Buy Talent While the Market is Down

Times are tough.

Sales of new homes fell last year by 26 percent, the steepest drop in 25 years according to the Commerce Department. Headlines regularly discuss the possibility - or more dramatically, the probability - of recession. Even Alan Greenspan, the former Chairman of the U.S. Federal Reserve Board, believes a recession is possible this year.

So, when business begins to wane, recruitment also often gets cut back. That means hiring slows down, open positions are closed and headcount is reduced. That may be a strategy you want your competition to pursue, but true industry leaders must react differently in fiscally-challenging times.

Human Resources executives have the responsibility to look further down the road than tomorrow's Dow Jones Industrial Average. An economic downturn - even a recession - can actually be a good time to add key talent.

Consider these facts:

The baby-boomer generation is getting older. They might not leave the workforce completely, but they are going to make a change - one that may be precipitated by an economic slowdown. They might transition to fewer hours or less responsibility, or even consider a mid-life career change. Either way, the impact is the same to their employers. Past data tell us that a significant number of leaders in corporate America will make some type of employment change in the near future.

The labor market is tight in the U.S., with unemployment around 5 percent. But now is the time to reassess long-term workforce planning. Within the next five years, numerous senior level positions are going to turn over as executives and managers retire. While many openings will be filled by internal promotions, those changes will create openings for external candidates - and you've got to be prepared to find them.

You should always be recruiting top talent to build your recruitment pipeline. Trying to ' time ' the market is a bad idea when buying stocks or procuring talent. Consider borrowing from an investment practice - that is, buying stocks on the way down. This ' income averaging ' allows you to buy more shares at lower prices, balancing your portfolio and improving your long-term return.

' Talent averaging ' is a good acquisition strategy as well. By balancing your workforce and populating it with key hires when the talent is available, you will bolster your workforce well before the time you need to scramble to fill positions.

When selecting a stock, analysts regularly look for companies with above-average yields and below-average prices. Now is also the time to acquire talent similarly. In good times, above-average talent is not as readily available or willing to consider new opportunities. However, even if their job is safe, top talent will be likely to explore their options when times are tough.

Boomerang talent is a great resource. In a tight labor market, you have probably lost talent to a competitor. This could be a great time to bring them back, along with their relationships and enhanced experience that was funded by your competition.

In lean or prosperous times, you should work to improve the diversity of your talent. Offer mentoring or leadership programs to leverage existing, experienced resources to train the new talent and thus maintain continuity with clients and employees. Additional training will have your workforce ready to quickly take advantage of business opportunities - and gain market share - when the economy recovers.

Think of it like this - You've been given a free spin at the talent wheel. Take it now! By finding top talent today, you'll avoid standing in the same long line as your competitors to woo fewer talents professionals.

To learn more about finding the talent your company needs, click here.