There are various theories as to why the jobs picture hasn’t been as positive as some have hoped.  The most recent unemployment figures posted by the government show only a modest improvement.  That’s largely because employers — and consumers — don’t entirely trust the recovery that seems to be underway, and are wary about spending — which means companies have to keep it lean and mean.

For staffing and recruitment firms, it obviously means embracing strategies that let them meet employers’ needs for highly-qualified and capable people who must fit into temporary or qualified positions.   But they also need to be mindful of the fact that the picture may change — upward or, unfortunately, downwards (if there’s a “double dip” recession), and they’ll have to make the corresponding changes right in stride in order to stay competitive!

In the past three months, more people quit their jobs than were laid off…and it’s a good sign for the economy that it’s happening. As recruitment and jobs experts who spoke with The Christian Science Monitor pointed out…

In general, that’s a sign of better economic times,” says Donald Siegel, dean of the school of business at the University at Albany, part of the State University of New York. “I interpret it as a sign of an improving job market … when people feel confident enough to quit their jobs.

This interesting survey indicates that workforce loyalty is on the rise during this recession.  You might think this increase owed to simple gratitude during tough times, but there’s far more to it than that, according to the analysis:

The survey, conducted between early October 2009 and the end of January 2010, finds that 34 percent say the economic downturn has made them more loyal, while 14 percent say it has made them less loyal, and 52 percent say it’s made no difference.

Those workers who are more loyal to their employers attribute the shift to positive management, pay levels that have improved or remained steady, and active communication from senior executives. Those who are less loyal say it’s due to poor management, falling pay, and low company morale.

Companies that viewed the downturn as an opportunity prospered, in terms of solidifying loyalty and morale — through better communication, by attacking the hardships and challenges frankly and openly, and maintaining a positive and upbeat attitude with their workforce.

Are employers and staffing firms properly positioned for an improvement in the job market? It can be a mixed blessing if you’re not prepared.

Just one of the complications is skills scarcity, as the most qualified and valuable prospective hires find their talents are in greater demand and go off the market. Whether you’re a staffing firm or an employer, you might find yourself really scrambling to fill positions with good, qualified people — if you haven’t been laying proper groundwork ahead of time.

There are a few simple questions any smart HR department or staffing firm should ask itself about its preparedness for a job market uptick of lasting duration:

1. Do we have a plan in place? Be certain you — and your team — have a strategy in hand to guide you in sourcing and recruiting the right prospects when the need arises. Remember, waiting until only the actual moment you need them most means you’ll have to make last-second choices – not advisable in any business situation.
2. Are we willing to scale up our staffing team? If there’s a sudden influx of job requisitions, possibly even a new slew of clients to handle if you’re a staffing firm, do you have the personnel on board it’ll take to maintain solid due diligence?
3. Are we willing to invest in staffing skills? You should always be looking to strengthen your hand; whether you’re an employer or a consultant, you should stay on top of the latest training and work resources available that can help your staffing team succeed.
4. Are we keeping the prospect file full? Even if you’re not in hiring mode, always be sure to stay abreast of what roles you might have to fill if the situation changes – and try to maintain outside staffing resources or a database of prospects that can give you a quick head start when you do need to put hires in place.
5. Are we jumping the gun in hiring full-timers? Temp and temp-to-hire personnel are probably still a wise option to keep in mind, unless you’re absolutely positive about your business prospects in the upcoming year.

One thing we may sometimes not give enough importance to when we’re bringing on new staff is, how engaged are they likely to be with the job they’re doing?

This story from the Gallup Management Journal® defines “engagement” as…

…the psychological and emotional attachment people feel for their workplaces. It’s based on the fulfillment of basic human needs in the workplace, and the more people feel those needs are met, the more engaged they are.

Why does engagement matter? Because there’s also a clear link between engagement and profitability, which makes engagement a more urgent issue now than it has been in prosperous times.

You might think this feeling of engagement has suffered over the recession, but Gallup finds it’s remained reasonably stable – at 28% in the most recent survey.  But at the team level, there are signs that managers need to heed.  We won’t go into them here, because the article gives an excellent summary.

But as clients and recruiters are evaluating job openings and the prospects that might fill them, it’s important to keep engagement in mind.  Does the role, and the firm, offer the kind of opportunities for long-term attachment that will make it fulfilling for a qualified hire?   And what are the cues you can elicit from prospects that indicate whether or not they’ll be truly engaged with the job, and the company around it?

Being able to demonstrate a potential for engagement to the right person for the job can make all the difference.  When times are tough, when bonuses or raises may be in limbo, that sense of attachment means a lot, and can keep employees loyal and hard-working.  As the Gallup story concludes:

In a healthy economy, engagement makes good companies better. During challenging times, engagement might be what helps keep companies solvent. As the economy begins to improve — and it will — organizations with strong engagement will be poised to grow, and engagement may well play a role in that recovery.

“Big shoulders?”  You bet.  It ’s never been apparent how resolute and special Chicago is as an economic region than over the past two years.

A survey in Q4 2009 by Monster laid out a not entirely rosy prospectus for Chicago jobs in 2010, but signs for optimism still exist, not the least of which is the (relatively) upbeat attitude of Chicago recruitment professionals about prospects for the upcoming year.  Are people in our business professional optimists, or have they been through the worst of it for so long they’re desperate for a glimmer of hope?

We’d suggest neither. Chicago is an incredibly diverse and dynamic economy and community; we can thank our lucky stars for that, because we were truly insulated from a lot of the grief and pain that other regions have been through during this downturn.  Diversity is strength, in situations like this, and as experienced Chicago staffing experts ourselves, we know it’s our diversity that has kept us from the worst – and will pay dividends tomorrow.

The Monster report, among other analyses, have agreed that Chicago has fared relatively well in comparison to other cities; it’s been no joyride, but it goes without saying what a Detroit/Southeastern Michigan has suffered through, and the double whammy of overall recession and housing market catastrophes in Florida and Nevada are just two other examples of regions where opportunities have been in serious decline.

Maybe there is a little optimism at work in the attitudes displayed by Chicago recruiters in the Monster report – but it’s a well-founded optimism that’s backed up by the track record of an exceptional city.  Chicagoans, as usual, are demonstrating the diversity, flexibility, energy and grit to weather tough times.

It goes back to midyear 2009, but it’s still relevant, so here’s a provocative post from a blog by Lisa Amorao, a Silicon Valley professional in the staffing industry, in which see makes a good analogy between – of all things – taking care of children (hers) with flu, and good client service by staffing firms. There’s one key commentary that jumps out for us:

Now, just as no mother will admit to or feel good about not taking care of a sick child, no staffing firm will admit to abandoning their clients in a downturn. But take a look at the survey results conducted by the Staffing Industry Analysts: 30% of staffing companies feel that providing excellent customer service was a key to their success to 2008. In 2009, only 22% of staffing companies feel that providing excellent customer service is a key factor to their success. Seriously? Thirty percent was already an embarrassing number, 22% is simply horrible. The same survey also revealed that 56% of staffing companies feel that “increasing revenue” was their top priority.

Hear, hear, Lisa. We can’t account for it, either; it’s almost more important, in tough times, to help your clients figure out solutions to the challenges at hand. After all…isn’t that part of why they come to you as a recruitment professional?

If a staffing firm is devoted to maximizing revenue at the expense of good service, then let us suggest they’re not really in the business of human resources, or of creating opportunities or solutions where those may not have been obvious before. Instead, they’re in the business of selling widgets. And like somebody shilling aluminum siding or used cars, they’ll follow the path of least resistance to make a sale. Constant and in-depth client service doesn’t figure into their equations.

Not to toot our own horn too much, but our success as a Chicago staffing consultant over the last 10 years has largely owed to client service, pure and simple. We know it’s good business to work closely with our clientele. If you’re just trying to sell widgets, then you’re probably not interested in partnership, collaboration and problem-solving…and to us, that simply doesn’t make good sense.

The national unemployment picture is getting a little better, according to the Department of Labor, and as shown in this graphic at Fast Company.   While the heartland and east are still suffering (Pennsylvania is especially hard-hit), there’s reason to hope (see our earlier posts) that the situation may get better soon for people seeking jobs in Chicago.  But even while a recession endures, companies and shouldn’t entirely give up the hunt for talent, or at least for information on what talent is out there.  Why?

First, employees are everything – good staffers make or break your business, so you should always be on the lookout in case you need replacements, or need to hire new staff should business improve.  It’s important to have a good staffing partner or list of prospects on hand so you won’t lose valuable time playing “catch-up” when the need arises.

Recession is a leveler, too; your competitors are hurting if you’re hurting, and may have laid off good people who could help your firm, either now or when the economy permits hires.  So you can level the playing field versus your competition – or even take the high ground — by getting out in front on skilled prospects who fit your business, before they’re snapped up by other firms or called back by their previous employer.

Information is power.  Knowing what talent is available and knowing the costs of acquisition of that talent if times turn for the better are simply part of smart, long-term planning.  The more data you have on the talent pool, the more quickly and accurately you can act when the time comes.   It’s part of the contingency plans every company should lay out.

To paraphrase Daniel Burnham, make no little plans for your future; even if you’re cutting your staff right now, keep your eye on near-term or longer-term staffing needs, whether permanent, temp-to-hire or temporary.