With so many layoffs, it's a buyer's market for recruiters. Companies that act during such uncertain times will be able to get talented workers at a discount -- and be better prepared for the economic turnaround when it comes.

By Andrew R. McIlvaine

Now may be a great time to buy -- talent, that is.

The tanking economy may have resulted in more applicants than jobs these days, but some experts say HR leaders should be using this buyers' market for recruiters to stock up for the eventual recovery.

"I would challenge employers to act quickly to take advantage of this market," says Kurt Ronn, CEO of HRworks, an Atlanta-based HR consulting firm that assists clients in recruiting and restructuring.

Today's gloomy economic conditions mean that sought-after candidates may now be accessible to companies that, in more flush times, would be struggling to attract high-caliber candidates, he says.

Companies may also have greater access to top college graduates than in normal times: The latest recruiting-trends report from the Collegiate Employment Research Institute, based at Michigan State University in East Lansing, Mich., finds that the 945 companies surveyed plan to hire 8 percent fewer graduates in 2009 than last year.

However, the jobs picture for college grads is not universally gloomy.

Although the current U.S. unemployment rate stands at 6.7 percent (not counting the long-term unemployed who've given up looking for work), the jobless rate among college graduates is only 3 percent, says Jeffrey Summers, a principal in the talent-management practice at PricewaterhouseCoopers in New York.

Furthermore, the massive economic stimulus plan proposed by President-elect Barack Obama may mean current surpluses in the labor supply will not last long, at least not in certain occupations.

According to McLean, Va.-based Jobfox, Obama's proposed investments in road-building and mass transit, energy independence, high-speed Internet access and healthcare modernization will boost demand for occupations such as electrical and civil engineers, IT specialists, bioinformatics specialists and project managers.

In short, employers may want to get now while the gettin's good, say Ronn and Summers.

"Now is the perfect time to go out and buy talent at a discount that will help grow your company in the future," says Ronn.

The disappearance of bonuses, stock options that are sitting underwater and the growing number of firms that are cutting back or eliminating company matches to their defined-contribution retirement plans also means there are less ties binding A-players to the firms that employ them, says Ronn.

At the same time, employees who were being groomed to replace leaders at their firm are finding themselves still sitting on the bench because those leaders can no longer afford to retire, he adds.

"If you're not the No. 1 player in your industry or niche, now may be your chance to poach talent from the company that is No. 1," he says.

"This is a prime opportunity," Summers says, "to go compete for talent that you potentially couldn't compete for just a few months ago."

The dismal housing market is yet another factor freeing up talent that might otherwise be unavailable to many companies, says Ronn.

"The difficulties in relocation today mean there's more talent available locally to fill positions," he says.

People stuck with mortgages that exceed the current value of their homes are reluctant to put their houses on the market and face the prospect of having little to nothing available for a down payment on a house in a new location, he says. While that translates into fewer available national candidates, it also frees up more local talent, along with the money that would ordinarily be spent on a national job search, he says.

The economic situation also means many employers are being deluged with resumes from job-hunters who may be overqualified for the positions they're seeking. HR overlooks these applicants at their own peril, warns Ronn.

"The moment there's an uptick in the economy, you're going to need people who can grow with their position and take on additional duties and responsibilities as business bounces back," he says.

Indeed, some HRworks clients are deliberately recruiting people who may be overqualified for available openings but who have proven capabilities for taking on additional roles later on, he says.

Summers agrees.

"If you have well laid-out career paths in your company, then hiring 'overqualified' people is a terrific move,'" he says. "You get highly motivated people who are going to appreciate the opportunity you're giving them in a tough market, who will work hard and add a tremendous amount of value."

View original article in Human Resource Executive Online