Who acts first, wins….what does that mean exactly?
Like many, I have been thinking about the transition out of this current situation and what that might look like.
It’s obvious that within most markets and industries there are currently a large number of people not working; people who normally would always have work available to them, an astoundingly unique situation but one that is very much the state of play at the moment.
Working within a specific market for a number of years – in my case 12 years in the Dynamics space - you get to get to build relationships with and understand those people who make up your market and learn what they will and won’t be interested in i.e. types of roles, locations, salaries, date rates etc. One of the things I have found most interesting in the current climate is understanding people’s behaviours and to see if their requirements and expectations have changed. For instance, will a highly skilled Programme Manager previously earning £1000 per day, now accept an £80k permanent position? The answer most likely will be no, because they believe they know their value, so will be patient and wait for the right opportunities, at the right level to present themselves.
That being said, the vast majority of people that we have spoken to are mindful of the current situation, its impact on the employment market both at present and the longer term implications, so are open to being flexible but only up to a point. It seems that many people are open minded to a phased earning strategy over the next 6-12 months, e.g. starting on salary X which rises by 10% after 6 months and a further 10% after 12 months (mindful of market conditions improving in those time periods to support the pay increases).
Based on what I’ve learned from operating in the Dynamics market over the last 6 weeks or so my best advice to organisations within the Dynamics market is to think about your strategy for recruitment now; think about how you can act first and attract the best available resources, who you can engage at a fair salary/rate level in line with market conditions at that time.
Using the fact that an increased number of people are currently out of work to try and reduce the salaries you’re offering is a potentially short-sighted strategy. Yes, in the short term you may be able to hire higher skilled resources for less money than 12 months ago, but these new employees will always be on the lookout for other roles offering salaries closer to what they were earning and will leave as soon as they can. Be mindful of the time, energy and cost of engaging a new hire, you don’t want to have to repeat that process again within a 12 month period! Instead, this is a great chance to gain loyalty from new employees by showing them that you appreciate their worth and that you are putting a phased process in place which will gradually increase their earnings in line with market conditions, that hopefully will return over the course of a 12-18 month period.
Acting first and in the manner outlined above will enable you to engage with the increased number of resources currently looking for work, many of whom are highly experienced and very rarely available on the open market. These resources will undoubtedly be quickly hired and off the market again for a long period of time. People in long standing permanent positions will not want to consider leaving their roles now due to the economic uncertainty, so attracting the right talent is going to be a challenge if left too late.
Having kept in touch with a number of the prominent Microsoft partners throughout this period, we’ve found that many recorded their best ever Sales Quarters in Q1 this year and are very much of the mindset that projects sold have merely been paused not cancelled. These organisations are, as we speak, already doing some initial interviews to line up the very best talent available…..the benefit of acting first will be clear to see!
Please reach out if you have any questions and I would welcome the chance to discuss how we can support the growth of your organisation.
Phillip Blackmore - Sales Director
Catch Resource Management