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Occupy Wall Street: Preoccupied Recruiters

Since the market dip and round after round of layoffs, recruiters have served on the front lines of the jobless recovery.  We’ve born witness to the devastation that downsizing brings. We have sensed the desperation in our dealings with candidates who have been unemployed far too long. While recruiters do not make jobs, we fill them.  And so I wonder, with this Great Unfilling, is there a “there there”?  Where is the collective response from the very professionals who specialize in jobs, jobs, jobs?

A group of Americans have gathered to occupy Wall Street, in large part due too massively high unemployment — particularly for young people.  An article by Noreen Malone in New York Magazine entitled The Kids Are Actually Sort of Alright details the stark statistics.

14 percent of college graduates from the classes of 2006 through 2010 can’t find full time work.  Half of people ages 16 to 29 don’t have jobs —  55.3 percent.  That’s the lowest level since World War II (1945). College students are graduating with bone-crushing debt, which for the class of 2009 averages $24,000.  USA Today reports that at some point this year, student loan debt will exceed $1 trillion, surpassing even credit card debt. Total student loan debt is rising as other debts are tapering off. Delinquency has increased, too, since the height of the financial crisis.

Many recruiters do what we can ad hoc to introduce people to the career-saving opportunities they need. But the work is solitary. It lacks scale. It helps but a handful.  I would like to think that we, the recruiters who stand at the epicenter of the jobs crisis, would have something constructive to say and do, together, to fix what appears to be so very broken.  I look forward to your comments and suggestions.

 
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Intellerati. We love recruiting research so much we gave it a name.

A programming note:

We’ve have spun out an exciting new research division and have named it Intellerati. Intellerati offers recruiting research and candidate sourcing services to corporate executive search, talent acquisition, and diversity recruitment teams. For every engagement, Intellerati transforms research into actionable intelligence, giving employers the qualitative data they need to make the best hire, to diversify the executive suite, to inform workforce planning, and to deliver unprecedented ROI through the study of the talent ecosystem.  We have an Intellerati blog, which is where we’ll share some commentary, analysis, and practical tips on talent acquisition research best practices.

The Good Search is devoted exclusively our innovative approach to retained executive search. We’ve got a fancy new website, which also is home to our blog, The Investigative Recruiter, which is counted among the recruiting industry’s Top 20 blogs.

So come, visit, comment, subscribe.

 
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1.6% Unemployment: Sir Branson’s Job Solution

Sir Richard Branson has an intriguing idea about getting people back to work. It’s easy as 1-2-3:

  1. Talk to the 10-20% of the work force who want to work less.
  2. Let them.
  3. Then give those hours to the unemployed to get them back to work.

Sir Branson made the suggestion recently on CNBC, “If I was running america, I would make sure that the 10% of people are out of work were given jobs and the way I would do that was I would say to companies, ‘talk to your work force, find out how many of them are willing to work 50% of the year rather than 100% of the year. How many are willing to job share? How many more would be willing to go part time?’ And you will find that in every company there’s something like 10% to 20% of the work force who would actually like to work less hours. . .”

Now, Branson’s plan doesn’t create new jobs or new revenues to grow the economy. But it does hold the potential of making people happier and of preventing foreclosures and bankruptcy. Stressed out workers who would choose to work less if they didn’t fear losing their jobs would have the chance to dial it back a bit. In addition, unemployed people would finally get back to work and those families would stop falling into financial ruin. As Branson noted, it’s simple and it can happen very quickly. Branson estimates it will reduce unemployment to 1.6% overnight. That rate would be lower than it has ever been in our lifetimes. So why not give it a shot?

 
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Unemployment’s Catch-22

Most everyone knows it is easier to get a job when you have a job. Employers are inclined to suspect that there may be something wrong with an executive who has been downsized. The reason? Companies often use downsizing as a way to rid themselves of underperforming employees. However, while it has always been hard for someone who is unemployed to get a new job, it has never been harder than it is today. MSNBC host Rachel Maddow recently noted that people who are unemployed are staying unemployed for an average of 40 weeks — the highest level ever since the Bureau of Labor Statistics started keeping track.

Former Chief Economist and Economic Advisor to Vice President Joe Biden Jared Bernstein recently published a chart on his blog that breaks unemployment into three groups. There’s the recently downsized, the new entrants to the job market, and then there’s everyone else mired in continued unemployment.

Source: BLS

As leadership in Washington grapples with job stimulus programs, the biggest problem that needs solving is that of not being able to get a job unless you have a job — a classic catch-22.  We at The Good Search and at our recruiting research division Intellerati regularly hear from strong candidates who through a perfect storm of event have found themselves unemployed longer than they — or anyone really — thought possible. Author Joseph Heller first coined the term in an historical novel by the same name. His satire on bureaucratic think and circular logic resonated so deeply that “catch-22″ has since come to mean any “no-win situation”. Until we solve the catch-22 of persistent unemployment, nobody wins. Our recovery will remain elusive as Major Major’s sanity.

 
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How to Get a Job at Google: Mustache, No Pants

What does it take to get hired these days? Try a website, a video, a mustache, and no pants. A brilliant marketing campaign has been waged by a jobseeker Matthew Epstein targeting Google as his next employer. He has set up a website that speaks to Google and Google alone. To leave no doubt as to the purpose of his website, you can find it at the web address http://googlepleasehire.me/

Matthews effort has “gone viral”. In the Internet world, that’s not an easy thing to do and that fact certainly qualifies him for further scrutiny. He’s proven he can write and demonstrates a wry sense of humor along the lines of what you’d see on The Office or, dare I say, 30 Rock. Moreover, it takes courage to apply for a job dans pans. Courage, I tell you. Moreover, he brings it all home by allowing us to meet the the real Matthew at the video’s end. Matthew’s “grand gesture” is a tried and true device used by industry icons that include Donny Deutsch, one of the most successful CEOs in advertising history. Donny is reported to have sent car parts to the home of the Pontiac rep to land an account with Tri-State Pontiac dealers. He sent a fender with a note that read, “We’ll cover your rear end.” Donny won the account, doubling its size. Matthew, the savvy marketer that he is proving himself to be, has set up a blog where we can track his progress. His latest post: Matthew has a second phone interview with Google this Friday.

 
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Crazy, Stupid, Love: Makeovers for Executive Jobseekers

If you are a candidate looking for your next opportunity or know someone who is, Crazy, Stupid, Love is a lesson in the power of the makeover. Steve Corell portrays a man who has gotten so comfortable in his marriage that he has stopped trying, much in the same way some executives do later on in their careers.  He meets Ryan Gosling who is, in every sense of the word, a “player”.

Boomers are competing with the Ryan Goslings of the work force. It may sound hash, but as a television-journalist-turned-recruiter, I am painfully aware of the power of first impressions. In television, there are whole armies of people that help polish talent to such an high-buff shine that it is as if you are staring into the sun: nutritionists,  fitness trainers, hair stylists, colorists, make-up artists, fashion stylists, alterations tailors, dermatologists, cosmetic dentists, plastic surgeons, photographers, lighting pros, photo shopping air-brushers, publicists, and, if you’re lonely, an entourage. One minute, you’re an average Joe or Jill fading into the woodwork. The next minute — cue music — you are making an entrance. Of course, you then have to live up to the promise of all that, but that’s a problem every candidate should have.

However, far too often, gifted executives get overlooked because they haven’t paid enough attention to how they “present”. In the world of executive search, we talk about whether a candidate “presents well”. Tragically, whenever there are layoffs, boomers are among the first to go and they are among the last to be hired back because, well, they often look so old. I’m not talking actual age, but rather a state of body and mind.  We can’t pull all nighters like we used to.  Our bodies don’t bounce back like they did before. Suddenly, we really do have to start taking care of ourselves.  So our habits need to change at a time when we’re old dogs contemplating new tricks. As a culture, we have grown very sophisticated in our sense of style.  In earlier years, young girs looked to their mothers for fashion cues. Now, according to new research reported in the Atlantic Monthly that’s coming out in the Journal of Consumer Behavior, girls look to celebrities, and mothers, in turn, look to their daughters for guidance on style.  Celebrity style is now the standard, from head to toe.

While baby boomers are often really good at what they do, so frequently they stop trying in other ways.  They’re not as hungry as they used to be. And, usually, they’re not dating. So they stop worrying about looking hot or  keeping up with the lastest trends and technologies. On top of that, aging definitely exerts a downward drag on efforts to look like a player.  The good news is that boomers now have the secret to remain as young as nature will allow: simply exercise, big time. The book Younger Next Year says it all.  In addition, it helps to bring in expert advice. The Good Search makes it a practice to refer senior executives to a “dream team” of image experts for a simple refresh to update your look. In the end, this isn’t about making you into someone you’re not. It’s about making you all that you can be.

 
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A New Take on Diversity: Woman Up

Among companies that cultivate corporate diversity for competitive advantage, conventional wisdom holds that the more diverse a team, the better.  The more cultures, the more ethnicities, the more racial types, the more genders (male, female, and shades in-between), the more sexual orientations, the more diverse world views, the more innovative a company will be. Introducing alternative viewpoints informed by unique life experiences expands one awareness and sensitivity about the diverse customer populations that we serve.  However, now there is evidence the more women a team has, the better. So forget about stopping when women reach 50% of a team’s total as the perfect balance of Venus and Mars. Instead, if an organization really wants to drive results, said organization should push women into the plurality to 60, 70, 80 percent or more. This shocking bit of research has taken diversity science and stood it on its head.

Of course, the utter irony is that women are nowhere near approaching the 50% point of gender equity in the executive suite of most major corporations.  A 2009 study found that women held just 13.5% of executive officer level roles in the Fortune 500. A third of the companies had no women executive officers at all. Zero. Zilch. None.

Rosie the Riveter

I first read about the research in the Workforce Management blog called Fistful of Talent, penned by a courageous man Tim Sackett of HRU Technical Resources. His take away wasn’t that this called for downsizing men, or upsizing women in our ranks, but rather this was a lesson about how to work better in teams. His article pointed to a Harvard Business Review piece in which the researchers describe their findings, Defend Your Research: What Makes A Team Smarter? More Women. When professors Anita Woolley and Thomas Malone studied the factors that increased a group’s collective intelligence, they made some surprising discoveries. According to the article, researchers “gave subjects aged 18 to 60 standard intelligence tests and assigned them randomly to teams. Each team was asked to complete several tasks—including brainstorming, decision making, and visual puzzles—and to solve one complex problem. Teams were given intelligence scores based on their performance. Though the teams that had members with higher IQs didn’t earn much higher scores, those that had more women did.”

So forget about sprinkling in just a few women to ensure diversity as is so often the case.  To make teams smarter, instead of a soupcon of females, we’re talkin’ “beaucoup” –  a plurality that by definition is most decidedly not diverse from a gender perspective.  The only caveat is that the benefit may wane at the extreme end. Consequently, you don’t want a team to be completely devoid of men.

So how is it that women make groups more intelligent? It turns out we are great team players. Apparently, it’s written in our DNA.  We are masters of communication (listening) and constructive criticism. We are open to ideas and we’re not as autocratic as men.  Our natural ability to play nicely with others not only demonstrates how smart women are, but how we elevate the game for all involved.  The research makes a strong case that the best man for the job may, in fact, be a woman. Lots of them.

 
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Bye Bye Boom Boom: Dodd Frank’s Diversity Mandate

If Wall Street firms don’t immediately start ramping up diversity initiatives to come into compliance with a little-known section of Dodd Frank by next year, they stand to lose billions in contracts with the federal government.  As Wall Street grapples how best to comply with Dodd-Frank financial reform, there is an additional piece of broad reform tucked away in Section 342 of the new law: diversity.

The provision is buried within some 850 pages of legislative text designed to strengthen the financial sector, promote economic recovery and job growth, protect consumers and permanently end taxpayer bailouts of private institutions. But then, Senator Maxine Waters saw an opportunity to do more.  Speaking in terms Wall Street understands, she crafted language that ties compliance to billions of dollars of revenues: either smash the glass ceiling once and for all or you will pay.

Glass Ceiling

Section 342 embeds 20 Offices of Minority and Women Inclusion at virtually every major financial regulatory agency of the federal government: Treasury, the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the 12 Federal Reserve banks and the newly created Consumer Financial Protection Bureau.  The offices will serve as watch dogs, monitoring diversity of the agencies and the government contractors and subcontractors with which they do business, including virtually all of Wall street. The list includes “financial institutions, investment banking firms, mortgage banking firms, asset management firms, brokers, dealers, financial services entities, underwriters, accountants, investment consultants and providers of legal services.”

Wall Street does billions of dollars in business with the federal government for services that include debt issuances, sales of government assets, as well as more general advisory services.  That business now hinges on their ability to correct racial and gender imbalances.  According to Dodd-Frank language, if an agency’s compliance director concludes that a contractor has not made “a good faith effort to include minorities and women in its work force,” the agency head is authorized to cancel the contract.

Wall Street’s issues with women date back to Smith Barney’s Garden City, N.Y., basement party room (the so-called “Boom-Boom Room”), where lap dances took place in the 1990s. But industry-wide, women have share similar tales about how they were sexually harassed with vulgar talk; excluded from business lunches, meetings and golf outings; and how their careers were hindered or damaged. While consciousness has been raised and while the numbers of female and minority executives have improved, Wall Street firms still lack diversity in the upper ranks.  Now, apparently, with Dodd-Frank, that’s about to change.

 
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Who said Tech Startups were for Technologists?

Technology startups are creating a staggering amount of jobs, but interestingly they’re more focused on sales and marketing and less on technology these days.

As NYC entrepreneur and investor Mark Birch pointed out in a recent blog post entitled “Don’t Look to Tech Startups to Fill the Jobs Gap“, fewer engineers are needed to build something really cool because our technology is oh so much smarter.  More intelligent computing lowers barrier to entry and increases the number of early stage companies battling it out for market share.

Consequently, the soldiers startups need to win are not so much engineers, but rather sales and marketing people, executives who are commanding increasingly higher salaries due to increasing competition in the labor market and record-high valuations in venture capital funding.  So, the irony is tech startups are not so much for tech jobs anymore .  .  .

 
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Black Swan Could Cost 640,000 Jobs

If the unthinkable happens, if the “never has happened before” actually happens and the U.S. defaults on its debt,  640,000 jobs would vanish.  That’s just one of the really bad things that centrist think tank The Third Way suggests will take place if our nation hits the legal limits of its debt.

Of course, defaulting on our nation’s debt would be a black swan event.  Because the default would be a first, because it involves so many interlocking parts, and because the federal government touches so many of us economically in so many direct and indirect ways, the domino effect is extremely difficult to predict. And while we are stuck on the tracks and can see the train a-comin’ in August, it remains a strangely random event because it is so hard to predict what it is that Washington will do. It’s like trying to forecast the weather. Meteorologists frequently get it wrong because there is such a freakish amount of  variables. They get it wrong even with the help of monster computers that do in hours what it would have taken a whole lifetime for a weatherman to calculate.  Only, this isn’t a twister or a hurricane that, though devastating, is over in a few hours or days. This wouldn’t be over for a very long time.

So, as someone who advocates for career optimization, as someone who advocates for bringing great talent together with great companies, I am keenly aware the tearing apart that would occur would be tragic.

Please, let’s not go there.

 
 
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