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Recruiter Job Famine Coming to an End

by
John Zappe
May 20, 2010, 5:01 am ET

Mike Nale is a victim of the recession. In less than three years he has gone from promising founder of a recruitment marketing agency in Oahu, to living in a pay-by-the-day room. Having long ago sold off his possessions and swallowed his pride, Nale depends on handouts from friends and the rare odd-job.

A few weeks ago he took the desperate step of sending a plea for money to his LinkedIn network.

“It was a slow, downward spiral,” he told me recently. “I could see it happening, but I thought, ‘It will get better. I’ll find a job. Something will come through.’”

At 6.9 percent, Hawaii’s unemployment rate is among the nation’s lowest. For Nale, though, it hardly matters. “I don’t know where the jobs are,” says the one-time Manpower recruiter who two short years ago was being interviewed for his launch of a jobs TV show for the Islands. “I was a recruiter. You would think I should know how to find a job.”

His last TV appearance was as the central figure in a news story about Hawaii’s unemployed.

Nale’s story may among the more desperate, but his difficulty in finding work is not at all unusual.

A survey by the Society for Human Resource Management cited in Fortune found that 47 percent of out-of-work HR professionals who found jobs last year had been searching for 6 to 12 months. For 27 percent, the job search took more than a year.

Now comes the good part: CareerBuilder says there were 17 percent more recruiter job postings in the first quarter of this year. Even more hopeful was the 37 percent jump in searches on recruiter resumes.

Mary Delaney, CEO of Personified, CareerBuilder’s search and marketing arm, said demand for recruiters “is coming back very strongly.” Surprising even to her is that the uptick is not just in contract recruiters, but in full-time recruiting staff as well.

At The RightThing, an RPO, companies that “downsized their recruiting functions …  are now looking for ways to re-build capacity and expertise quickly,” says Terry Terhark.

“We are seeing a significant surge in urgent requests to rebuild recruiting capacity,” he adds, which means relying on The RightThing’s recruiters, besides hiring their own.

When I talked to John Sumser about the improving picture for recruiters, his take was that it will be a while, maybe a long while, before the recruiting groups can get back to even.

The layoffs of the last three years pushed out so many experienced recruiters that now there may be a shortage of them. With few companies hiring anyone, let alone recruiting teams, Sumser suspects that a good number of the unemployed recruiters turned to other work.

“We end up,” he said, “with an industry that needs to be trained from scratch.”

That has its downside, since companies will need to supplement their own recruiting efforts with RPOs and independents at least for a while. But it also gives employers an opportunity to realign recruiting efforts.

In fact, Qualigence CEO Stephen Lowisz has noticed companies are combining the task of sourcing with recruiting. He doesn’t say what he thinks of this, though he did note that “many companies hired ex-search professionals and created an in-house search function that has been both a cost savings, and in some instances, a documented improvement in candidate quality.”

This article is provided for informational purposes only and is not intended to offer specific legal advice. You should consult your legal counsel regarding any threatened or pending litigation.

  1. Jack Doering

    I am in total agreement with Stephens comments that companies are combining sourcing and with certain levels of recruitment research. We are a traditional sourcing company delivering IT and common business backoffice processes such as ERP for the past 9 years.
    Many of our Fortune/SME accounts are asking us to provide contract research/pre-qualification support teams to work for their internal HR/RPO group. Direct RPO firms are asking us to source the same type work to keep costs down adding flexbility to their engagements.

  2. C.T. Trivella

    Hi John, Thank you for broaching this topic. Mike’s situation is one that I’m familiar with, as I’m one of the people he reached out to. Mike’s situation is all too common.

    Something that strikes out to me is will these displaced recruiters be “recruiter ready” when they return to this job function? I’m not talking about the basic fundamentals that someone must have to perform recruiting. From what I have read and heard, the recruiting function is not going to be like it once was. Even for the well-experienced recruiter, I think there will be a learning curve in understanding the new way of this job. It’s taking on a bigger picture role as it should be, but many have not had the opportunity to view recruiting as a critical business function that impacts an organization from a financial perspective. Are companies going to be prepared to provide them the resources to get up to speed? Or will it be another situation where old corporate habits are slow to die?

  3. Michael Goldberg

    I think the post and the comments are excellent food for thought. As a Corporate Recruiting Manager, I will only talk to recruiters who can work the full desk (i.e. sourcing, recruiting, etc) and have the social recruiting skills to identify strong talent.

    Companies have learned how to meet customer demands with less people. Therefore, growth will still be minimized and the need for recruiting talent will be as well.

  4. Keith Halperin

    Thanks, John. Perhaps this may usher in what I call “The Great Hollowing Out of the Middle,” where recruiting activities that companies aren’t prepared to pay $50/hr+ for can be no-sourced (eliminated), through-sourced (automated), or out-sourced (sent away) for $11/hr or less.

    IMHO, the recruiting model which relies on the ignorance/reluctance of clients and recruiters to accept the reality of this as a continuing/increasing trend is questionable at best.

    Cheers,

    Keith

  5. Sunil Mehta

    John, the latest data from NimbleCat, http://bit.ly/9Zf7bQ, reinforces your point. Recruiting and HRIS were among the top ten jobs in April.

  6. North Bridge Staffing - Building Bridges

    [...] sign the jobs market is making upward headway: the number of jobs for recruitment professionals is apparently on the rise, after a couple of rocky [...]

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