As the recession begins to wane, it’s a good time to assess what
effects it has had on the relationship between employers and employees.
Why? These changes will continue to reverberate over the coming years
and affect how recruiting and hiring is conducted, what technologies
and approaches are used in finding candidates, and which resources are
brought to bear in retaining top talent.
A case of two perceptions
Per this recent report from Human Capital Institute
and Monster, 84% of employers feel that their employees are loyal and
content to have a job – but only 58% of employees actually feel that
way. The end result of this disconnect? Employees may jump ship when
the economy gets better. In addition, a majority of employees feel that
their employers are exploiting the recession to drive longer hours and
Employers and employees also fail to see eye to eye on the workplace
itself. In this study, researchers found that 73% of employers thought
their work environment had become more positive during the recession,
while a quarter of employees said it was more negative, and 35% said
that their stress levels had risen.
When the hiring starts
When companies and employees go through a multi-year recession,
habits change. For example, many firms have relied on early retirement
and unpaid furloughs to keep personnel costs down. Others have simply
held off on hiring, thus forcing fewer employees to do more work.
Hiring freezes and benefits cuts are also common.
What changes when the hiring resumes, as it inevitably will? Employers
may find that some potential hires are gone for good – gone into
business for themselves, recruited by a competitor, or migrated to a
new industry. In their place, however, will be candidates that are
grateful for a job, yet cautious or even cynical about the company that
Another challenge is operational: how does a company manage the gaps
between staffing up and demands for its products or services? How does
it retain the trained, experienced staff it has as new people are
brought in and work demands increase? Should benefits and incentives be
reinstated or upgraded?
Finally, what types of employees should companies bring in? For
example, many technology firms migrated a significant portion of their
work to contractors. Now their management teams must decide if going
back to full time employees makes sense – or not.
How recruiting has changed
So how have employers changed their recruiting efforts after two years of recession? Two words: social media.
Companies that once relied on job boards and recruiters now tap into
LinkedIn, Facebook, and other online social networks to reach out to
potential employees. While the jury is still out on the long-term
effectiveness of these techniques, companies now routinely include
social media in their recruiting budget (which are usually much smaller
than before the recession).
Job candidates have also become more adept at researching companies via
social networks – making the hiring process more complicated for
employers. Social networks have made it easier for candidates to learn
about the culture and personality of a company before they send in
their resume or speak to a recruiter.
The end game
For employers, surviving the recession is only the beginning. They face
challenges in managing their existing employees and locating new ones –
all while keeping their balance book, well, balanced. For employees,
the work world is in some ways less friendly and reliable, but
technology in the form of social networks has offered them more
information than in the past – and new ways to squeeze additional
mileage from personal relationships in the job search.