Major HR Turnaround in 2010 but Dangers Lurking

"What are the positive and negative implications for the labor market of the recent surge in recruitment?" Answer with Christopher Purdy, Partner at Greenfield Recruitment Partners.

In Luxembourg the employment market has rebounded, so there are chances for many employees to advance their careers and also for those who were made redundant in the recent slowdown to re-enter the jobs market.

Unlike the climate that developed in Luxembourg around four years ago, the market is not overheating for the moment, but definitely going in the right direction once again. Nevertheless, employers, HR managers and job candidates must all learn from the mistakes of the recent past and not repeat the same cycle of wage inflation, when some people were job-hopping every six months for pay rises of around 5,000 euros.

It’s not in the interests of anyone to go back to that habit. At Greenfield, we tell employers you should stick to market rates and not pay over the odds – because it will be detrimental to your business over time.

Candidates should also be realistic in expectations and seek to add value to their CV by gaining valuable fresh experience with a new company and not simply seeking quick pay hikes, which the market can’t sustain in the longer term. If there are a round of job cuts in the future, then perhaps you could be amongst the most vulnerable, if you’re too expensive for an employer contemplating cutbacks.

As the market improves, standards need not drop and at Greenfield we urge all potential recruiters to source their staffing needs through a Luxembourg Professional Recruiters Association (LPRA) member, who will be bound by its code of conduct to give honest and transparent assistance.

Luxembourg Experience Required

The profile of jobs that are coming up invariably requires people with existing experience in the Luxembourg market. For example, at Greenfield we’re currently seeking to fill the position of managing director with a firm that requires Luxembourg financial experience.

In another instance, a colleague at Greenfield is recruiting for a team of senior lawyers to join a private bank. The successful candidates must be someone with private banking exposure in Luxembourg. In both these and similar mandates, the jobs are for people with considerable local experience.

In terms of other sectors, there’s also a move to set up treasury centres by various commercial and industrial groups, and Greenfield has three separate positions open in this field.

Summary - Opportunities, Dangers and Lessons learnt

As the market improves, those employers who haven’t looked after their staff during the leaner times through salary and bonus cuts or delayed promotions will find their employees willing to leave for better opportunities elsewhere. Ironically, as the overall market improves they may face the “double dip” of dealing with an internal staffing crisis.

For employers seeking to hire, there’s a pool of potential staff to pick from following the downturn, so there is no need to fuel a return to the previous mistakes by poaching staff for unreasonable salaries. And as for those seeking a new job, yes, there are more options out there than a year ago, but be careful and don’t ruin the quality of your CV by changing jobs too often.

The downturn has helped HR managers and Greenfield learn lessons too. In 2010 the key to HR success is to find and retain employees who have the right mix of skills to reflect the demands of the current business market. All of us in this sector must find innovative and flexible ways to select the right candidates who can thrive in an increasingly pressurised environment.

Companies should seek more out of their recruiters and nurture long-term relationships with them, to help achieve their business targets.

At Greenfield, we feel we can give our clients an edge through our innovative methods to find the right candidate on the right terms.

This article was published in HR One, which serves the Luxembourg HR community on May 31, 2010.

http://www.hrone.lu/201005313871/Major-HR-turnaround-in-2010-but-dangers-lurking