PJ Christie
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Economic Downturn Bright Spot- Talent Land Grab!
Posted by Jeb on November 19, 2008, 9:57 am | 4 comments
I know, I know, we are all freaked out by the strange economic times. So I thought it would be good to take a look on the bright side for a minute. With all the layoffs and general upheaval there are some golden opportunities here. The one that I keep focusing on is the coming talent land grab.
As highly skilled and experienced workers are laid off by companies forced to downsize these workers will be pushed into the job market. I see two basic benefits to businesses coming from this unfortunate situation.
The first benefit is the flood of new talent available to established companies as well as start ups. These workers will be highly motivated and willing to make concessions on salary, benefits, etc. in exchange for job security. They may also be open to to accepting equity in a start up as partial compensation.
The second benefit is existing employees will work harder and hopefully smarter knowing that their job security is not what it was a year ago. When they joined a company a year or 10 years ago they were in the driver's seat when it came to benefits, salary, time off, etc. Now they are coming to see that there is a queue of qualified applicants jockeying for their position. Businesses will benefit from this dynamic and see a decrease in turn over and an increase in employee loyalty overall.
Another bright spot here is that a downturn is a great time to start a business. Labor is cheap. Rent is cheap. Investors are looking for investments they can have a say in after getting burned by a lack of transparency in the markets. Also, companies that start up in a downturn learn out of the gate how to deal with tough times which will create a healthy discipline to reign in excesses during the good times.
I know it seems at times like we are falling into an economic black hole but we will come out the other side in the next couple years and the companies that survive will go on to reap the benefits of survival.
As highly skilled and experienced workers are laid off by companies forced to downsize these workers will be pushed into the job market. I see two basic benefits to businesses coming from this unfortunate situation.
The first benefit is the flood of new talent available to established companies as well as start ups. These workers will be highly motivated and willing to make concessions on salary, benefits, etc. in exchange for job security. They may also be open to to accepting equity in a start up as partial compensation.
The second benefit is existing employees will work harder and hopefully smarter knowing that their job security is not what it was a year ago. When they joined a company a year or 10 years ago they were in the driver's seat when it came to benefits, salary, time off, etc. Now they are coming to see that there is a queue of qualified applicants jockeying for their position. Businesses will benefit from this dynamic and see a decrease in turn over and an increase in employee loyalty overall.
Another bright spot here is that a downturn is a great time to start a business. Labor is cheap. Rent is cheap. Investors are looking for investments they can have a say in after getting burned by a lack of transparency in the markets. Also, companies that start up in a downturn learn out of the gate how to deal with tough times which will create a healthy discipline to reign in excesses during the good times.
I know it seems at times like we are falling into an economic black hole but we will come out the other side in the next couple years and the companies that survive will go on to reap the benefits of survival.
Comments - Leave a Comment
We don't take pleasure in others' misfortunes. It's the job of a business to take advantage of market opportunities in order to grow and thrive. This results in being able to create more and better job opportunities for others in the long run.
You seem to take great pleasure in the ability to profit from others' misfortunes.
the changing economy will certainly prove to be advantageous times for companies that are well-positioned to capitalize on the available labor, cheaper rents, and opportunistic investors.
the next 5-10 years will be an interesting time, no doubt. key industries (particularly green tech) will surpass others as primary contributors to GDP, and these industries will be the ones which likely take the most advantage of the available labor and government incentives.
the next 5-10 years will be an interesting time, no doubt. key industries (particularly green tech) will surpass others as primary contributors to GDP, and these industries will be the ones which likely take the most advantage of the available labor and government incentives.
Taking advantage of the land grab requires having a company capitalized well enough to carry the burden of an increased payroll. With credit drying up and less spending going on, where will that capital come from for companies not as well endowed as Small Box?
