Journal date: Wed. July 17th, 2013
Category: BC labour market planning
THE PROBLEMS WITH ATTRACTING "A" TALENT
The Flo's Diner Problem
When the unemployment rate drops, the “A” talent migrates to the “A” employers.
All creativity, marketing, management and productivity genius aside much of business is driven by demographics, GDP, and the larger picture. Some people succeed just because of geography and birth date. Right now all of BC business is caught up in a larger wave, - the shrinking available candidate market.
In April, Central 1 Credit Union issued their BC unemployment forecast ahead. This is what it looks like.
2013 6.5% BC unemployment rate. (Actual % in June was 6.3%)
Think back to 2007 at the height of the boom and just before the crash, when we couldn’t find candidates, (A or B) at any price. The unemployment rate was then dipping under 4%. In a few short years, hiring will be just that difficult again.
Each month fewer people applying for an increased number of jobs. We see it in civil engineering, PM/CM, equipment sales, and other areas.
There has been pressure, like never before, to add headhunting to the talent acquisition mix. Headhunting is a mixed bag. Certainly, it’s the one single way to simply go out and get the best talent there is and force a hire. The other side is that you end up taking it from someone else in your industry. Headhunting, usually a last resort tactic, is becoming a necessity.
The one thing “A” talent knows is how the employers in their industry stack up against each other. They know who they’d prefer to work for and who to stay away from. B players don’t know, or think about these things. B players are usually happy just to be employed. Hunting A players has the limitation of only offering them A employer opportunities. The result is good companies get better on the backs of the poor companies who lose their A talent.
Said differently, it’s difficult for Flo’s Diner to keep their best waitress because the manager from the Hilton just had coffee and left her his card. When the Hilton can’t hire through usual channels, Flo’s diner takes the hit. The Hilton flourishes and Flo’s, - well it keeps getting worse.
You really can build a great business by adding one great "A" player at a time.
Let's do it together,
Metrik Management Inc.