The people market is tightening (again), and the pundits are arguing (again) over whether there actually is a shortage of qualified people to fill openings across industries, especially in high tech.

Is there really a shortage? Does it matter?

If there is a perceived shortage (i.e., jobs aren’t being filled), then companies will continue to fret over finding qualified people and managers will continue to worry that a lack of talent will damage their own careers.

During the most recent downturn there was an abundance of talent available as has happened in the past; for example

• The early nineties, when a typical ad for a software engineer in Silicon Valley drew 100-plus viable responses.
• Post-October 1987, when a financial services ad would easily draw five hundred qualified responses.
• The early seventies, when an ad for a microwave designer ran in the Sunday San Jose Mercury and over three hundred qualified engineers started lining up at 6 AM Monday morning to wait for the company’s doors to open.

It is neither the surplus of talent in a down market, nor the dearth of it in a tight market, that creates a staffing problem. Rather it is the attitude of many managers that if the person is not already working there must be something wrong.

In the Eighties the thought was “There must be something wrong; companies only lay off their deadwood.” In the late Nineties, it was, “There must be something wrong or this candidate would already have a job.”

Frequently the source of such attitudes is managers’ lack of confidence in the ability to make good hiring decisions. By hiring currently employed people, managers unconsciously can validate a positive hiring decision (must be good or she wouldn’t be there) or excuse a hiring mistake (assumed he was good because he was at XYZ).

Why the prevalence of this rarely-discussed-almost-never-admitted lack of hiring confidence? Why is staffing, with all its associated pieces, one of the most disliked of all management tasks? Simply stated, most people don’t like doing things when they don’t feel competent, and it is difficult to feel competent doing an intricate task for which you’ve had little or no training.

Staffing involves many tasks

• developing detailed reqs,
• screening resumes,
• doing substantial, time-saving phone interviews,
• creating and mentoring an interviewing team,
• interviewing,
• crafting an offer,
• closing and landing the candidate,
• avoiding post-acceptance pitfalls, and
• a myriad of other details.

Above all is the need to hire correctly; in other words, to hire the right person at the right time for the right reasons. To do it well requires sophisticated, proactive, real-world based training geared specifically to line managers. Instead, much of the available training is geared to having an HR department or using an outside recruiter; is too mechanical; or is comprised of general psychology information.

When there is an abundance of highly qualified candidates it’s a result of the economy, not of a surplus of people. Population demographics, baby bust to retiring Boomers, guarantee hard hiring times for a decade at least. To assure their ability to meet the staffing challenges of the twenty-first century companies and managers need to work together to

• create an efficient, proactive hiring process;
• build internal sourcing skills that work in any labor market;
• raise hiring skills to the level of core competency; and
• disseminate them throughout the organization.

The winners of the future will be the companies that can fill their needs from the available labor pool, whatever the size, and the managers whose hiring skills allow them to confidently recognize talent, no matter the source.

This entry was posted on Thursday, November 30th, 2006 at 9:59 am and is filed under Business info, Hiring, Retention. You can follow any responses to this entry through the RSS 2.0 feed.
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