Don’t Panic, but the Talent Pool is Shrinking

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The US broke many long-standing employment and labor records in 2018, with the effects rippling through all business verticals nationwide. With the 2008 recession now 10 years behind us, the 2018 economy showed strong jobs growth and shrinking unemployment. This is good news for job candidates who are looking to upgrade their jobs. For businesses, however, last decade’s hiring strategies won’t work anymore. The talent pool is shrinking, and updated strategies are a must.

In a talent shortage, candidates (not employers) have the power to dictate wages, benefits, and job content. Competition for qualified candidates is stiff, and potential employees have demand on their side. Just this year:

  • Youth unemployment hit its lowest level since 1966.
  • The number of open jobs exceeds unemployed persons by 659,000.
  • The economy has created 2.5 million jobs, representing 66.7 million hires.
  • The Bureau of Labor Statistics reported that April closed with 6.7 million job openings.
  • Unemployment dropped to 3.8%, its lowest level since 1969.

Despite high demand, only 50% of employees feel like their wages are competitive with market rates.

 

Death by Automation

Despite the longest bull market run in history, candidates don’t always have it easy, either. A recent McKinsey report estimated that 50% of today’s jobs are susceptible to automation by artificial intelligence. This used to be a distant vision of the future, but today, many of these technologies are already available on the market. Half of the tasks employees do today can be automated, reducing the demand for some skills that most people use as leverage in qualifying for a position. Once While less than 5% of all occupations can be automated entirely using technology, about 60% of all occupations have at least 30% of activities that could be automated.

talent pool - cities with skills shortages

Skills Shortages

Not to mention the staggering skills shortages throughout the nation. If candidates want to remain marketable, they must learn some new skills. According to a LinkedIn survey, the hard skills companies need most are cloud and distributed computing, statistical analysis and data mining, middleware and integration software, web architecture and development framework, user interface design, software revision control systems, network and information security, and SEO/SEM marketing.

The trend is obvious here – companies are desperate for digital skills to keep up with the increasing amount of technology required in modern business. Software development skills, such as performance tuning and SQL are required for over 850,000 open roles right now. To put this in perspective, the talent pool only contains 472,000 professionals with those skills.

The need for highly specialized workers is at an all-time high, while the pool of educated and qualified candidates is strikingly low. Trends in education levels and projected employment needs indicate that employers will require about 18 million more college-educated workers than will be available in 2020, a gap representing 11% of demand. Complicating the situation is the student debt crisis, called a bubble by many leading economists. The burden of debt is unsustainable based on the earning potential of most college degrees, especially arts, languages, and other non-STEM areas of study.

Talent pool - 2020 labor shortages

Economists don’t expend a reversal of this trend any time soon. Underqualified talent cannot leverage skills that are universal or able to be automated, lowering performance. Low performance reduces revenue, and therefore capital. Without the capital to modernize, companies cannot compete – in their markets or for gaining candidates. This cycle feeds itself, reducing candidates and marketability, sometimes to the point of bankruptcy.

 

Talent Pool Predictions

What’s next? Employee development and training is a proven way to reduce turnover. Companies nationwide are investing more in educational programs and expanding the skill set of their internal teams. This can help in modernization and retention, fending off some of the competition poaching. The promise of personal and professional development can be a key factor in a potential candidate’s decision making.

If companies want to boost growth, they need the right employees. However, to get the right employees, hiring managers need updated recruiting strategies. They must focus less on what the employee can do for the company, and more on what the company can do for the employee. Today’s professionals are looking for not only financial rewards, but recognition and a future. Despite employer belief, the top reason individuals left their jobs was due to career progression – not salary. Out of the employers surveyed, 48% have a strategy in place to promote company culture to make their company more attractive, and 43% leverage competitive salary packages.

What makes your company a place that a qualified, highly-desired candidate wants to work (or in many cases, leave their current company for)? At Blue Signal Search, we call this a company’s “sizzle”. If you are experiencing some of the growing pains of this shrinking talent pool and the digital age, contact us today. We can help you find your true value proposition – your sizzle – and market it to find the right candidate for your open role.

Need help with your recruiting strategy? Contact us at (480) 939-3200 or reach out to [email protected].

You Just Lost Your Job — Now What?

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Whether it was expected or came as a surprise, losing a job is never welcome news. For most people, losing a job means also losing financial stability, pressure on savings accounts, and uncertainty. It’s easy to let emotions run wild and take over. Don’t lose hope. The last job is over, but the next opportunity is waiting. Here’s what to do once the bad news hits.

 

Don’t make a plan just yet.

Give yourself at least a few days to process the initial emotions. Everyone needs a different amount of time to recover. Some personalities love to rise to the challenge and throw themselves into job-searching right away. Other people don’t. Know yourself, but don’t give in to the temptation to let sadness take over your schedule. An old saying goes, “Don’t make promises when you’re celebrating, or decisions when you’re mourning.” Emotions can cloud your judgment, so let yourself process them before you leap into action.

Set a deadline that by the upcoming Monday, the Netflix binge ends and the full-time job search starts. Try to stick to the same schedule you had leading up to the termination. It’s easy to fall into a cycle of bad eating and crazy hours, but this will negatively impact discipline, energy levels, and motivation. Everyone keeps a schedule and meets deadlines as part of a job, so you can do it now as a job-searcher. And just like a real job, leave it behind at the end of the day. It’s not helpful to let job-search anxiety follow you everywhere you go. Find job-search resources here.

 

Set manageable goals, but re-evaluate them first.

Once the shock has faded, take a look back through old career goals. What was at the top of the list? Where are you in that trajectory? If you have never made a career plan, think about specific career goals for 5 years, 10 years, and retirement. Most people just want to make enough money to sustain their lifestyle; try to think beyond that point. What age do you want to retire at? Do you want to leave money to your kids, or a cause you believe in? What kind of difference do you want to make in the workplace?

Since employees are hanging onto their jobs longer, keep a long-term outlook. During a job search, short-term demands like bills and family create pressure to make a fast decision. In reality, a job search is an investment in the next five years of your life and livelihood. Making the right choice is just as important as taking care of immediate needs.

Just lost job - quality over quantity

Quality over quantity.

During the 2008 recession, conventional wisdom said to send out thousands of applications to get a job. In reality, this is no longer a great search strategy. The best bet is to invest heavily in company research and target hiring managers with customized messages that revolve around your skills and their needs. Make it easy for them to see why they should consider extending an interview invitation. Update your LinkedIn to be keyword-heavy and focus on work achievements and skills, not just job history. Switch on the “Open to New Opportunities” function to help recruiters find you easier.

 

Reach out to your network.

Leverage your professional network where you can. This includes old bosses, coworkers, colleagues at other companies, customers, and anyone else who may have a connection. An easy way to start the conversation is just to let them know you lost your job, and ask if they would be willing to act as a reference during the interview process. This lets people know to keep their eyes out for opportunities that could be a fit. Be direct. Don’t beat around the bush when asking for favors. Be polite, and offer to reciprocate where possible.

The same goes for recruiters: get in touch with two or three carefully chosen ones within the right industry, rather than blasting thirty at a time. The best recruiters work on a carefully chosen portfolio of jobs, so they may not have something for you right away. If so, ask them for a recommendation for another recruiter, and move on. Look at their posted jobs beforehand, and contact them with the top few openings in mind.

 

Know that the job market is in your favor.

Just lost your job - BLS statistics

BLS reports that median job tenure has been increasing since 2000.

Our perception is that the labor market is unstable and that employers never hire anyone without years of experience. Many people also think that employees would never consider hiring anyone with a gap in their resume. The truth is that the job market has made big strides since the recession. Employees are keeping their jobs longer, and the economy is growing. The current labor market is a candidate-driven market, which means that there is a candidate shortage, and they hold more power than the employers. Many employers are reporting difficulty in filling their job openings. This means less competition for jobs and competitive wages. It also means that you’re more likely to stay longer at your next job. Know that you have options, and a gap between jobs doesn’t automatically disqualify you for great opportunities.

 

Consider consulting or freelance work.

Been meaning to try life as your own boss? About 1 in 10 people in the US workforce is self-employed. Freelance or consulting work has many benefits. It offers a bridge to cover the resume gap since the termination. It provides an opportunity to work on new projects that were not available in your last position. It develops new skills. It allows people who want to change industries a chance to restructure their skills

The drawback of consulting work is that it can take a while to ramp up and build a client base. Much of successful consulting depends on self-marketing. For professionals with a large professional network, it may be a great opportunity. For those who hate the idea of promoting themselves, beware.

One other note: unless your goal is to change industries, stick to consulting in an area that is as close to your ideal full-time job as possible. Job loss can seem like a good time to make a break for it and try out a career as an artist or starting a business in a brand-new industry. In reality, dramatic career changes have a much higher success rate when you prepare for them while you still have a steady income. If you’re absolutely committed to a big change, get a part-time job to cover basic expenses while you ramp up. It will buy you extra time to build up your skills and experience in your new venture.

 

Commit to making it easier on yourself next time.

Many people are let go through no fault of their own, and are let go even though they have done absolutely nothing wrong. With that said, job searching is stressful and difficult. Once you get back on your feet, there are still steps to take to make the transition easier, if it ever happens again.

Most Americans have less than $1000 in savings. For most households, this is not enough to pay the bills for even a month. Having no back-up plan gives you tighter deadline and shortchanges you potential opportunities. Make a promise to invest in an emergency savings plan once you get back on your feet, and put away enough money to last until the right job comes along, to avoid having to make a decision out of desperation and be stuck in a bad-fitting position for the next few years. Saving is hard, but living on no income is much harder.

Invest in future career goals while you have a job. Stay connected with industry professionals. Stay in touch with what the job market is doing. Know what kind of salaries the industry is paying. Work hard. Develop in-demand skills even when it cuts into free time. Many great employers will invest in training their employees, but in the end, they have a greater responsibility to the business than to their employees’ future career aspirations. Keep your resume updated and list top achievements on it at the end of each year. Compare yourself to people in your industry who have achieved what you want to achieve, and do what they do. Follow in their footsteps.

Many employees don’t take recruiter calls, which means if they lose their jobs, they don’t know the market rate, they don’t have relationships with good recruiters, and they aren’t aware of which skills are in high demand. It pays to take recruiter calls and keep a healthy relationship with a good recruiter, even when you are happy with your current job.

 

It’s not easy to lose a job. That said, there is a lot of opportunity out there. It can be a time of regrouping, recovering, and recalibrating to better achieve your career goals.

 

Looking for a job? See our openings here, or contact us directly at [email protected].

Why Successful People Take Recruiters’ Phone Calls

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Recruiters sometimes have a reputation for reaching out at inconvenient times. It can be tempting just to delete the LinkedIn message or reject the call. But overcoming that natural aversion and taking the call can pay big dividends.

Many companies cannot keep up with the flood of resumes in response to their job postings, and they use recruiters to fill their most critical openings. Many of the top openings are never even posted on job boards. Successful people know that a good recruiter can hold the key to their next great role.

Here are 10 more reasons that successful people take recruiters’ calls:

Successful people are proactive.

There are four professionals that everyone should know before they need them: a doctor, a lawyer, an accountant, and a recruiter. A crisis is not a good time to be looking for one of these people! Take a call when things are good. Candidates who wait until they desperately need to change jobs often find themselves boxed in without many great options.


They get free market intelligence.

Some recruiters are generalists, but most have a specialty focus. Recruiter who hire within a specialized niche are tuned into which parts of the market are growing, and who will be hiring or firing in the near future. A good recruiter relies on industry news to drive their business. They can pass on that industry news to hard-working candidates who might not have time to catch up on the market trends.

 
Take Recruiters Calls - Time InvestmentIt’s a good investment of time.

An investment of 10 minutes can turn into a dream job. Not only that, it can pay big money. Employees get an average pay increase of 8-11% when they change jobs. This is a lot more than the 3-5% annual raises offered by most companies. Young workers see the biggest gains when they change jobs.

Consider the opposite. If proactive candidates are changing jobs and getting those pay increases, there is less money available for the people who stay put. Occasionally changing jobs has become more common

 
Recruiters work for free.

The hiring manager’s company pays the recruiter, so the candidate benefits from a recruiter’s hard work for free. It never hurts to listen. Searching for a job is stressful even in the best of times, but a recruiter does a lot of the difficult leg-work, including getting the attention of the hiring manager, negotiating salary and relocation packages, selling the candidate’s skills, and coordinating all of the logistics.


Passive talent gets the best jobs.

“Passive talent” is a buzzword that has gained popularity in the recruiting world in recent years. Hiring managers have come to understand that top performers almost never need to leave their job, and are more likely to be passive in their job searches. Often, hiring managers are willing to pay more for passive talent. Not only are they willing to pay a fee to a recruiter, they often have higher salaries than advertised job postings.
Many companies cannot keep up with the flood of unqualified applications that come with job postings, so often a recruiter is their best path to top candidates.


They can double-check their career strategy.

Take Recruiters Calls - Career Strategy

Successful people have a set of written goals to map out their career. However, no one has a perfect perspective of the industry. Many employees have no mentor for their careers. A recruiter’s job is to talk to a lot of people, usually at a high level. They can give valuable insight on what is happening in the industry, as well as general workplace trends. Is it too soon to ask for a raise? What technologies are up and coming? Is it better to change jobs for growth, or stay put to avoid job-hopping? A specialized recruiter can answer these questions and more.


Recruiters often know industry salaries better than the hiring managers.

Managers who do a lot of hiring often have a very good idea of the market rates. However, most hiring managers only hire a few people per year, and many have limited information about current salary ranges. Since it is in the recruiter’s best interest to get the candidate the highest possible salary, candidates can learn where their salary falls with regards to the market rate. They can also discuss what salary range to ask for.

While some jobs naturally develop good negotiation skills, like sales, candidates in industries like technology and engineering often do not get as much opportunity to hone their negotiation skills. A recruiter can not only give them salary information, they often do the negotiation on the candidate’s behalf.


They want privacy.

Online job applications require a lot of information—name, current company, and often salary. Working with a recruiter adds a layer of privacy for candidates in small industries. Ask a recruiter on the first call what their confidentiality policy is. Good recruiters work with NDAs and can run protected searches that keep the client and/or candidate names confidential throughout the process. It pays to work with recruiters with strong confidentiality policies and to have a signed confidentiality agreement in place to protect everyone involved.


They know what upgrades they want.

No job is perfect. Top employees know the benefits and shortfalls of their current role, so that if something significantly better comes along, they can quickly evaluate it and act decisively. Every candidate has slightly different priorities: work-life balance, shorter commute, salary, benefits package, company culture, location, or more exciting projects. Candidates who talk to recruiters regularly are more likely to know what they want and to have clearly defined career goals, preparing them to handle any crisis that might come up.

Take Recruiters Calls - Confidential Interview

Not every recruiter’s call will lead to a job change, but that is not the only benefit. Candidates owe it to themselves, their families, and their careers to keep an open mind about potential opportunities. It is a time investment that more than pays for itself.

 

How to Talk Like a Two-Year Old and Still Win at Your Job

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“Mine, give it back!”

“No! I don’t want to!”

Have you ever heard a two-year-old say this? My son does—he says exactly what he wants, no questions asked. Over the next 20 years of his life, my son will learn to share his things, not just his feelings. He will come to understand that while his needs are important, so is caring about the feelings of others. He will apply discipline and filters to his emotions in order to cooperate with goals that are larger and longer-term than his immediate impulses.

As employees develop and progress in their early career, sometimes they mistakenly get the message that the most desirable kind of worker is a people-pleaser who will never disagree. When difficulties arise with their work, they keep struggling without bringing it up for fear of rocking the boat. In reality, people—not machines—are a business’s most valuable asset, and people have opinions, feelings, talents, and weaknesses.

The most successful employees develop effective interpersonal skills in addition to mastering their hands-on job functions. They learn how to disagree while remaining professional and result oriented. By taking an active role in their professional relationships, they are able to take advantage of more growth opportunities and to shape their career to a far greater degree than their more passive colleagues.

 

“Mine, Give it Back!”

Employees grow through their responsibilities and achievements. When a manager reduces your job responsibilities, or one of your major customers leaves for the competition, it can feel like a personal reflection on your abilities as an employee. It is sometimes appropriate to show initiative and take action to get back what you lost, or to reach beyond what your current role offers.

Accepting - Mine give it back - How to disagree professionallyIf the situation arose due to your mistake, own it and provide an action plan (if appropriate) to correct what went wrong. Rather than insisting on fairness, list the positive results that you can achieve and how you plan to get there.

If the situation is a stagnant job, a lost client, or another unfair loss of responsibility, take time to distill your frustrations into a clear, accurate list of prioritized goals. Set a timeline and an action plan for how to achieve them. Ask for the opportunity to prove yourself and demonstrate an understanding of what needs to happen in order to get a result that will benefit the company. Show respect for yourself and your abilities as well as for the needs of the organization.

How to say it:

  • “Although I didn’t hit my target last quarter, I’m determined to exceed my quota this quarter. Here’s my plan to improve on my performance.”
  • To a client: “I’m committed to winning back your trust.”
  • “I would love another chance to prove myself on this project.”
  • “I’m ready to take on additional responsibility. I know that I can contribute a lot to the company’s bottom line with a larger sales region.”
  • “What results do I need to show in order to earn a promotion?”
  • “I’m motivated to move into a management position in the next few years. Can we talk about how I can get there?”

 What not to say:

  • “That isn’t fair.”
  • “But what about me?”
  • “I deserve to have that.”
  • “It’s not my fault.”
  • “You can’t do that.”

 

“No, I don’t want to.”

Rejecting - No I don't want to - How to disagree professionally

Some projects are neither necessary nor realistic. Sometimes you can give more value by doing something else. Although C-level and hourly employees are both crucial to a company’s success, it is a poor use of time and money to ask the VP of Sales to do repetitive data entry.

Although successful employees are versatile and willing to do what needs to be done, they also recognize which tasks are unproductive or disadvantageous. Agreeing to every task can actually make you seem less qualified—not to mention that it quickly leads to an overwhelming inbox full of difficult tasks that no one else wants to do.

Cultivate an open dialogue with your team and superiors, and deliver consistently good work on time. When a thankless task lands on your desk, you will be able to honestly say that you can do more for the company’s bottom line by avoiding the task. Standing up for yourself is good for both your personal and professional growth—as long as you back it up with excellent work.

How to say it:

Demonstrate that you understand the situation, explain the obstacle without patronizing, and make an effort to find a workable solution whenever possible. Emphasize the positive result and be flexible where you can.

  • “I have several reports due by Friday—can we rework the timeline for this new project?”
  • “I don’t have a background in design, but Jessie mentioned that she wanted to take on more work like this. She might be interested in this project.” (Check with colleagues before volunteering them for more work.)
  • “I need additional support to deliver this contract on time. Are there reps available to help with the data entry so I can focus on closing the deal with management?”
  • “What if we did this a different way? I’m spending about two hours a day manually entering data, but I could spend more time making sales if we used an automation tool.”
  • “I’m sorry. I can’t take on that additional work right now.” (This works best for colleagues who are asking you for help with their work, not for a superior.)
  • “My preference is to focus more on marketing. That’s my background, and it’s what I love.”
  • “I could do that project with some additional training.”
  • “I’m struggling with this task. Can we talk about it?”
  • “Can you explain how this task contributes to the project goals? I can contribute more by focusing on sales calls instead of graphic design.”

What not to say:

Giving the excuse that you’re unqualified to do a task says:

  • “That’s beneath me.”
  • “I can’t.”
  • “That’s not in my job description.”
  • “I just don’t like that.”
  • “That makes no sense.”
  • Refusing with no explanation.

A Final Word

Toddler temper tantrums don’t fly in the workplace, but that doesn’t mean you should never speak up about your feelings. Respectful disagreements demonstrate professionalism and give your manager valuable feedback that they might otherwise miss. Their goal is productivity and results, which are difficult to achieve with disengaged and unhappy employees. By voicing problems and suggesting a better way, you can improve your company’s production as well as improving the arc of your own career.

Talent War in Emerging Tech: 5G, Small Cell, Connected Tech, IoT/M2M

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The emerging tech space is changing fast. Between 30 and 50 billion new IoT devices will be online by 2020. The emerging 5G network will boast a 1000x capacity increase and compatibility with new applications such as M2M, VR, AR, and connected things. Small cells and other related technologies are rapidly finding new niches. In the past six months, the technology talent surplus in these fields has flipped upside-down into “negative unemployment.”

Indeed.com reported a sharp increase in IoT-related jobs listed within the past 18 months.

 

New technologies are always on the rise: connected things, connected cities, connected cars, etc. To win the war, you need a connected recruiter. Consider this quote from The Art of War, the famous military strategy treatise written nearly 2500 years ago by Chinese general Sun Tzu:

“If you know the enemy and know yourself, you need
not fear the result of a hundred battles. If you know
yourself but not the enemy, for every victory gained
you will also suffer a defeat. If you know neither the
enemy nor yourself, you will succumb in every battle.”

                                                 — Sun Tzu, “The Art of War”

 

Any company trying to hire qualified talent is in a war with the competition. In a war, good strategy is critical to success; victory does not happen by accident. The most important factor that tech companies do not consider is what their competition (the enemy) offers:

  • Compensation packages

  • Benefits and perks

  • Training, certifications and education

  • Tools and resources

  • Environment and flexibility

  • Career growth and visibility

 

Are you fully aware of what you and your company offer?

Top candidates have their pick of companies. We conduct a company analysis with each hiring manager, including selling points for the job, what their competitors are offering top candidates, and how to structure a truly competitive overall offering to win the war.

Hiring is never easy, and the difficulties are compounded in a space with a huge skills gap and a short supply of talented workers. When you work with Blue Signal, you partner with recruiters who have deep industry knowledge providing a competitive edge. Never fear the result of a hundred battles (hires).

For a free consultation on how we can locate the best hire, contact us today at [email protected]. See our recent placements here.

 

Large vs. Small Company Size: How to Pick the Best Fit

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During a job search, candidates research many factors to determine whether a potential company is a good fit for them. Company size plays a major role in an employee’s experience, but many candidates do not consider how the company size will impact their careers. Here are 8 factors to consider when deciding whether a large company or a small one is a better fit:

 

Red Tape

In a large company, the business processes are complex and well established. There are many layers of bureaucracy, and because of this, nothing happens quickly. This includes the interview process, approval for projects, and the daily business processes the company follows. The benefit is that employees rarely need to invest time in deciding on company procedures. There is a greater sense of consistency and accountability.

By contrast, small companies can move more quickly, but are still seeking to establish those same processes. Employees may feel frustrated that every new initiative comes with the burden of developing a process. However, there is less paperwork to deal with, fewer arbitrary rules, and the ability to get things done quickly.

Compensation Structure

Large and small companies often structure their compensation packages differently. Generally speaking, larger companies are able to offer more financial benefits and a higher total salary. That does not mean that the compensation package through a larger company is a universally better fit for everyone.

Small companies may have a smaller average salary and benefits package, but they compensate through non-financial perks, such as more flexible hours, more recognition, a better work/life balance, and more customized opportunities for professional advancement. Consider the intangibles as well as the number on the bottom line.

Employee Visibility

Depending on seniority and past work experience, some professionals want to be drivers of their company’s projects. They want big impact for their efforts. This is much more of a possibility in a small company, where there is opportunity to guide the company’s overall direction. Small companies are more open to employee input, even at the upper management level. Many smaller companies foster a strong open-door culture, and even lower-level employees can have access to the CEO and director-level managers.

Big company size comes with bigger budgets and teams. There is less opportunity for each employee to have a significant impact on the direction of company projects. Employees are less likely to have direct access to upper management. The advantage is that projects in big companies are often large-scale and high-level.

 

Company Culture 

The size of the company does not necessarily set the tone of the office. In the past, small companies had a reputation for being more relaxed, but many big companies like Facebook and GrubHub have jumped on board with trendy common areas and casual dress codes.

The major difference between company culture in big and small companies is how much of an impact each employee has. In larger companies, the personality of the workplace is difficult for one person to change. This is a strong pro when a company maintains a positive, results-focused culture. However, employees who are not a personality fit may feel isolated or pressured to assimilate. It is very important to ensure a good culture fit when interviewing with a large company.

In small companies, each person is a driving force with the power to affect the culture. This works well for employees who enjoy setting their own unique work style and want to have a significant impact on their company’s workplace personality. The con is that some unique work styles do not work well together, and the cohesiveness of large companies can be a better fit for some personalities.

Job Scope

In a large company, employees have more opportunities to specialize in their chosen field. Resources are often available to develop deep niche skills. Employees often have the opportunity to become subject-matter experts in their field. People who are firmly committed to their specialty thrive in large companies where they are not bogged down with work outside their area of interest.

In small companies, employees have the opportunity to diversify themselves. Instead of feeling boxed into a particular task or niche area, they can wear multiple hats. Every day is different in a small company. Employees who enjoy new challenges and a lot of room to expand their skillset may prefer the flexibility of a smaller company.

Job Security

Stability does not depend on company size. This was proven in the 2008 recession, when Borders Books, Lehman Brothers, and many other large companies went bankrupt.  The major difference is that employees can lose their jobs in large companies even when they do nothing wrong. Since budget changes, mergers, and layoffs are tied up in large-scale politics, good employees can be hurt by the sweeping changes. Although small companies do go bankrupt more often, they are more likely to hold onto good employees whenever they can.

Innovation

Both large and small companies must constantly innovate to stay ahead of the competition. Large companies have the benefit of more resources and larger budgets, and can afford to spend significant amounts of money on research and experimentation with new products and processes. However, their size means they are less agile and slow to change. They are answerable to shareholders and investors for new initiatives.

Small companies are major drivers of innovation in the economy. While their budgets are limited, they are highly agile and are free to experiment with few restrictions. They answer only to themselves. In addition, employees in small companies have more opportunities to contribute new ideas to how things are done.

Advancement

Career advancement can go either way. While large companies have more layers and larger budgets, the competition can be fierce. On the other hand, small companies may struggle to promote talented employees in a timely fashion. The most important thing to look for is a company culture of reinvesting in its employees and a strong, results-focused management team.

 

For personalized advice and a free consultation call, have a conversation with us. Give us a call, or send an email to [email protected].