News & Views: How the Slumping Economy Affects Companies' Hiring Psychologies and the Impact it has on Job Seekers

Each time you read an article or watch the news, the economic picture seems to keep getting worse. Nationally unemployment is at 8.5 percent, more layoffs are announced each week, a parade of stores have closed, and the stock market, despite some recent rallies, is near 1997 levels. Is there any good news out there?

Unfortunately, not as much as we would like. But despite everything you hear and read, companies are still hiring, albeit in much smaller numbers. Even companies that are laying off people are hiring for critical needs in different parts of their organizations. These firms tend to conduct their hiring quietly and without a lot of fanfare so as to avoid dealing with a high level of job seekers they will inevitably need to turn down.

Many companies that are selectively hiring today are in good shape financially and poised to capture significant market share when the economy rebounds. However their approach toward adding staff has changed dramatically and the sense of urgency to fill jobs has decreased greatly. Instead of moving quickly to fill a position, they are being much more deliberate. When ordinarily they would interview five or six candidates and make a selection, some companies have increased their candidate pools to 10 or 12. Hiring decisions that once took three weeks may now take two months. Companies can afford to be much more selective as the supply of potentially qualified candidates has dramatically increased. A year ago, a company would move forward on a candidate who met seven of their 10 requirements; today candidates may need to hit 10 out of 10 to justify the cost of additional headcount.

Although hiring is taking place, it helps to understand how competitive and difficult it is to land the right job. You can apply to jobs that you feel qualified for and not get a response. This is not necessarily a reflection on your capabilities, but instead a symptom of the unbalanced demand/supply ratio. As an example, according to Northeastern University's Center for Labor Market Studies, for every job opening in Massachusetts, there are an estimated eight people who can’t find full-time work. At the end of 2007, this number stood at just three.

Given the challenges of the economy and the mindset of hiring companies, below are some tips to increase your odds at job search success in today’s market:

It really is all about who you know

Most people find jobs through referrals and networking. You should, however, by all means apply to any job that looks promising, using all traditional vehicles, including job boards, company websites, professional and trade associations and social networking communities. But focus most of your efforts on networking with friends, neighbors, and previous co-workers, bosses and classmates. Positions you hear about that are more proprietary (and not publicized) will provide you an opportunity to compete in a less crowded theater. Not only that, but if you’re referred to the hiring authority by someone he or she knows and trusts, your stock goes up even before the first interaction. And, he or she is much more apt to interview you in the event you are not an exact match for the opening. (To learn more about this topic, watch our Networking & Informational Interviewing Webinar.)

One size (resume) doesn’t fit all

In this competitive environment, a generic resume is not going to cut it. Tailor each resume you send out so that it highlights your specific skills and accomplishments in relation to each job you are applying for. This takes extra time and energy, but you are much more apt to get better results when the reader can easily identify why you are perfect for their job. Cover letters are fine but don’t rely on them to sell your track record. Many professional interviewers look at cover letters as “sizzle” – the resume is the “steak.”

The internet makes the world a smaller place

Social networking sites like LinkedIn, Facebook and Twitter are powerful resources for job seekers to make valuable business connections. By joining and connecting with friends and colleagues on these sites you can exponentially expand your network and reap the benefits of these online tools. However, it is important to ensure your “online image” is professional and seen in a positive light. Some potential employers use these sites to do research on prospective candidates.

Recruiters are in your corner

Professional recruiters are a resource not to be overlooked. If companies want to conduct hiring under the radar, this is where they will frequently turn. Understand, however, that with companies being as selective as they are, recruiters are being forced to deliver only candidates that fit the specific requirements. Staffing professionals may not be able to generate the level of activity they could have a year ago, but they are still valuable resources to you for market knowledge and trends.

Any interview is a good interview

In this type of market, take any interview that is offered, regardless of your interest level in the job or company. You need to practice selling yourself and occasionally your interview could lead to another position in the company, or even through the interviewer’s network, that you didn’t even know about. (To learn more about this topic, watch our Interviewing Best Practices Webinar.)

Consider contracting

Contract work can be a great option in this economy. It gets you in the door where you can show your capabilities and provide some helpful cash flow at the same time. You can pick up additional skills and frequently contract jobs can convert to permanent roles as the economy improves. It also helps cover unavoidable gaps in your resume and is a great way to add people to your network that are familiar with your skills and can advocate on your behalf in the market.

Stay realistic

The days of big salary increases are over. Companies are offering conservative increases or lateral movements. Be realistic and focus on the positives the position offers for stability, long-term growth or career development versus the salary on day one.

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