JOB NEWS

THE JOB MARKET: MUCH TO CHEER ABOUT IF YOU ARE JOB HUNTING, AND MY CONCERNS

At a speech I gave in LA to the IABC (International Association of Business Communicators) on May 18th, I talked about the major changes in the marketplace and what issues I see emerging as a result of those changes. Here are my observations and concerns.

The market nationally at all levels for corporate, marketing communications and Investor Relations professionals is strong. We have not reached a point where recruiting and hiring is frenetic, but I see the potential for that within a year. At certain levels and in specific industry categories the market has become dangerously overheated already. Employers who were desperate to find people during the dot com boom should have learned a lesson about overpaying and hiring under qualified professionals. Should is the operative word here. I just don’t see a great deal of creative or intelligent thinking going on in agencies as they cope with significant numbers of openings that impact the ability to service existing clients and take on new accounts.

Filling healthcare jobs at agencies has emerged as the hottest recruiting category. There are simply not enough qualified people to fill the many openings at all levels from Account Executive to Executive VP and head of the practice. One agency, Hill and Knowlton, just sent an email to an alumni group announcing there were 20 vacancies either in this specialty or technology to fill. Please glance at the “Grapevine” section of the blog where I list advertised openings as well as vacancies caused by VPs moving on to other organizations, to see the scope of the problem.

Technology PR positions both on the corporate and agency side are particularly hard to fill. The PR Manager or Agency Account Executives with 5-years experience have simply vanished. When the market imploded in 2000, an entire category of young professionals were forced out of tech because there were no jobs. They have not come back, so the gap remains. I also see that qualified Senior Managers who have been in positions for a relatively reasonable period of time (3-years approximately) are now evaluating their potential to be promoted where they are to Director. If the opportunity is not there, these successful professionals are open to new situations and may be “testing the waters.”

Employers who have not been “in the marketplace” within the past 9-months are in for a rude awakening. They will find that they cannot maintain control of the hiring process. Decisions are in the hands of job seekers. I am seeing agencies realize at a primitive early stage change their recruiting message. Instead of saying, “We are a great company and here is what we are looking for, please apply,” the new message is, “We offer employees great benefits, we are a fun place to work, we do great work for our clients, etc.” The problem is as this shift happens, the various agencies are jumping on the same approach and they sound like one another.

The impact of an employee-centric marketplace on knowledgeable employers is to create a true appreciation for the professionals they have on staff. I do not see employers rushing to offer salary increases, but when a valued employee is about to leave for greener pastures, I expect that the current employer will make a counter offer (see Blog for a discussion about offers). In fact, I believe employees are in the “drivers seat” when it comes time for salary negotiations -- if the employee has done his/her homework. By the way, the market is moving faster than results from traditional salary surveys.

The Cushman Report for May/June paints a complex picture of market forces. Yes, the opportunities are growing, but are there qualified people to fill them? Sectors that are heating up such as healthcare and technology are becoming “unhealthy.” Careers are at stake if opportunism rears its ugly head.

This newsletter (if you need this at the beginning) paints a complex picture of robust but challenging market conditions. Not a great deal of insight on the part of employers about what criteria will lead to successful hires, is creating the potential for unsuccessful “marriages” and continuing turnover.

A robust marketplace with many corporate opportunities at the Senior Manager to Director level (with base salaries in the $110-$150K range), puts further pressure on agencies who find themselves “cherry picked” by corporations seeking ambitious Account Managers/Supervisors. These A/Ms and A/S’s see more of a future on the corporate side and feel they have put in sufficient time with agencies to qualify for corporate moves.

How are agencies coping? Not well in my opinion. Larger agencies are insisting that if they hire at the VP level and above, that the finalist must have prior agency background in the industry where s/he will be assigned. They do not want to consider non-traditional hires. These vacancies are taking longer to fill putting additional pressure on existing staffs. (See below for a discussion of how that is no longer acceptable.) I have watched as Directors take positions as VPs, VPs move on to Senior VPs, and finally to EVP, General Managers.

My concern is that these moves are happening not because the candidates are fully qualified, but because that is the only way agencies can attract staff from competing agencies. Of course, the salary increase needs to be significant as well. In a year from now, will these folks then make another series of moves?

The level of turnover is counterproductive to the ability to deliver excellent client service and to building long term relationships, all the problems agencies faced during the go-go years. I do not see any new thinking addressing these issues. Frequent turnover especially in senior positions, raises legitimate questions about the quality of the experience the individual has gained in a very short time.

One observation about market conditions is that in the past 8-months I am personally aware of three major (Senior Director to EVP) corporate external searches where a candidate was hired and within less than 8-months was asked to leave. (This is the truth of the situation no matter what was said publicly.) In all three instances, an internal candidate was then promoted to fill the vacancy. In two of the cases, the company did not issue a press release about the internal promotion.

I think the reason for the internal hires was the company had struggled during the first round and decided there weren’t excellent candidates waiting in the wings. The decision was made not to lose months in another search with the potential for hiring a less than ideal candidate when an acceptable internal candidate would allow the organization to move forward.

Opportunism is rearing its ugly head -- I am seeing resumes, particularly of candidates with a specialty in technology PR (but it applies to all industry sectors affected by market downturns) that have very spotty resumes during the “bust” years. Their experience is weak and their marketability has been adversely affected by circumstances, in many cases beyond their control. Since so many resumes reflect that issue, potential employers are willing to be somewhat flexible. However, there is no tolerance for repeating the same pattern. There should be focus on solidity and stability as critical elements in job selection. It will be hard to maintain that resolve and not be swept up by flattering calls from very needy recruiters. But it is critical that candidates maintain their focus. Rapid moves in the next few years on top of earlier instability will signal that the candidate is still reaching for the elusive brass ring at a cost of his/her career.

Rule # 1 in this fast-paced environment: Do not believe your own publicity. Do not overestimate how good you are by the attention paid by recruiters or potential employers. Do not take a job simply because it offers a higher title and significantly more money. Analyze the post carefully: is the position too much of a stretch? Is there valuable experience to be gained that will enable you to grow in a direction that you need? Will you be the most senior communications professional? Who will be your mentor in that case? Where can the position take you once you are ready for a promotion?