Interquest Blog

Recession? What recession? How HR must fight the squeeze to ensure business success

A survey of 2,000 adults by bank Lloyds TSB has showed more than a quarter believed their job was less safe than a year ago. Just one in 10 said their job had become more secure. http://www.personneltoday.com/articles/2008/08/04/46978/employees-lose-confidence-in-job-security.html

The media hype around the ‘looming’ recession merely serves to perpetuate the problem: businesses feel insecure and belts start to be tightened. However, while the economy is under increasing scrutiny, we are yet to experience a lull. In fact, salaries are higher than ever and the demand for skilled workers, especially in IT, is still strong.

Despite this, the recruitment sector in particular has been rattled by the reports. When the papers start to predict rises in inflation, HR departments often fear that they will be the first to feel the squeeze. HR directors may consider putting a freeze on recruitment – or even start to make job cuts. However, this is simply a knee-jerk reaction, and often not the wisest course of action for the future success of the business.

Rises and falls in the economy and their knock-on impact on HR and recruitment are part of a cycle we have seen before and will no doubt see again. And while speculation about a recession is unlikely to die down just yet, when it eventually does the scramble to recruit the best will begin again.

Instead of panicking, companies need to alleviate future recruitment issues by snapping up rare skills while the market takes a downward turn. HR teams need to prioritise projects that are essential to business growth and ensure they are well-resourced, whatever happens in the marketplace.

Companies should learn their lesson from this inexorable cycle and think proactively about the future. Instead of giving in to the squeeze, HR directors need to take the lead in ensuring the business has the skills and people to ride the wave and come out successfully at the other side.

Interviews aren't working

Candidates are often blamed for interviews going badly, and advice is given from all sides on how to improve their technique. Everything is put under the microscope, from the firmness of their handshake and appropriateness of their attire to how they present their experience and how many questions they ask.

But how often is the interviewer’s performance analysed? All to often, junior managers are thrust in to an interview situation ill-prepared and unsure of what to look for. It is little wonder that first impressions and rapport are what matter most: many interviewers are ill-equipped to look for anything else, so end up choosing the person they remember best.

Untrained interviewers plus high levels of subjectivity equals unfair interview processes that fail to select the best candidates. This is a ticking time bomb under British businesses: not only do poor selection processes present a real threat to business success, but using untrained junior managers to conduct interviews leaves employers at risk from failing to comply to employment legislation. Legal action – and all the negative PR that brings – is a very real possibility for companies that don’t get the interview process right.

How to improve your employability fivefold

• Acquire rare skills – these are more desired by employers than ‘good skills’
• Improve interview performance – its not just about an impressive CV when you go to meet a potential employer
• Make the most of your feminine side – men need to learn to multitask and how to smile to get on in the workplace – even in IT!
• Be less money-motivated – or at least appear so when looking for a new job or promotion
• Have location flexibility – don’t tie yourself to one place if you want to find the best opportunities