The Winds of Change
Monday, October 27th, 2008After one of the longest bull runs in the history of the markets, the winds of change are blowing through the financial markets. It seems like the effects are flowing through different parts of the economy and big companies have already started announcing lay-offs.
Since we have just launched a recruiting business, a lot of people have asked us “how do you think a down-turn in the economy will impact your site?”
Our answer has stayed the stayed the same, “There is still lots more demand for professional people - especially in IT - than there is supply. Also, good companies always need good people. The only thing that will really change is that referrals will become even more valuable.”
Why do we think referrals are even more valuable in tougher times? There are at least 5 reasons:
1. As things get tougher, adding value to your network will help position you if your own situation changes (you get retrenched, your company starts to run into trouble, you just want a change)
2. As more people are looking for work, employers will get more irrelevant applications. This will increase their cost and time to hire. In this environment, referrals provide a great filtering mechanism
3. Good people - even in tough times - are usually working. As the external job market gets tighter, those people are less likely to be out looking for work. Referrals are a great way to get to those people
4. Cash is king. Other income sources may be effected during tough times. If you participate in a referral program that pays you a reward, you can earn some much-needed extra cash AND help people in your network
5. What goes around comes around. If you make great referrals to recruiters and employers, they may well look favorably on you if you ever come to apply for a job with them… or even help you transition when you want a change.
So, help yourself and your network by making quality referrals to people you know and recommend… especially as times get tougher.
