The State of the Economy and its Implications for Recruiters and HR Professionals Presented by: Dr. Patti Ippoliti

Today’s Agenda What the economic data is saying... What the professionals are saying... What this means for recruiting and HR professionals…

What the economic data is saying...

What the professionals are saying...

What this means for recruiting and HR professionals…

Times are Tough US employers slashed jobs for the 3 rd straight month in March Net Loss of 80,000 jobs in March Longest period of consecutive month decline since early 2003 Unemployment rate increased from 4.8% to 5.1% Highest unemployment rate since Hurricane Katrina (September 2005)

US employers slashed jobs for the 3 rd straight month in March

Net Loss of 80,000 jobs in March

Longest period of consecutive month decline since early 2003

Unemployment rate increased from 4.8% to 5.1%

Highest unemployment rate since Hurricane Katrina (September 2005)

Employers shed 233,000 jobs in the first 3 months of 2008

What CEOs and Executives are Saying… For most, the initial recruiting impact is minimal Downturn is heavily concentrated in housing and financial sectors Too early to tell how widespread the impact will be

For most, the initial recruiting impact is minimal

Downturn is heavily concentrated in housing and financial sectors

Too early to tell how widespread the impact will be

What Has Changed? Employers still have the work and tight time frames. But the rules may have changed... Some need to make do with the wrong players Others need to hire contractors vs. permanent While others have their new hire go to another department

Employers still have the work and tight

time frames. But the rules may have changed...

Some need to make do with the wrong players

Others need to hire contractors vs. permanent

While others have their new hire go to another department

What the Search Firms are Saying… Busier than ever Employers are more selective…the selection process is much longer Openings are being delayed

Busier than ever

Employers are more selective…the selection process is much longer

Openings are being delayed

Are Job Seekers Willing to Relocate in This Market? Job seeker relocation sank along with home values from 16.4% in Q1 2006 to 11% in Q4 2007 Relocation for job seekers with employed spouses/partners sank from 50.1% in Q1 2006 to 16% Q4 2007

Job seeker relocation sank along with home values from 16.4% in Q1 2006 to 11% in Q4 2007

Relocation for job seekers with employed spouses/partners sank from 50.1% in Q1 2006 to 16% Q4 2007

How are 2008 College Grads Being Affected? 59% of the 654 companies in the MonsterTRAK survey plan to hire 2008 graduates (17% decrease) Average entry level compensation $39,500 (9.7% increase) Accounting and Healthcare more jobs Other industries vary

59% of the 654 companies in the MonsterTRAK survey plan to hire 2008 graduates (17% decrease)

Average entry level compensation $39,500 (9.7% increase)

Accounting and Healthcare more jobs

Other industries vary

What the Outplacement Professionals are Saying Planned job cuts fell by 26% in March Job cuts in March 2008 were 9.4% higher than 2007 Job cuts in 1st Q 2008 were 2.4% higher than 1st Q 2007 Job cuts are hitting: Financial Services, Retail, Manufacturing, Tech, Transportation...as well as Government and Not-for-profit

Planned job cuts fell by 26% in March

Job cuts in March 2008 were 9.4% higher than 2007

Job cuts in 1st Q 2008 were 2.4% higher than 1st Q 2007

Job cuts are hitting: Financial Services, Retail, Manufacturing, Tech, Transportation...as well as Government and Not-for-profit

Median Length of Job Search in months 2nd Qtr 2007 3.03 3rd Qtr 2007 4.32 4th Qtr 2007 2.81 1st Qtr 2008 3.05

2nd Qtr 2007 3.03

3rd Qtr 2007 4.32

4th Qtr 2007 2.81

1st Qtr 2008 3.05

Median Length of Job Search in Months (clients 50 and older only) 2nd Qtr 2007 3.06 3rd Qtr 2007 5.16 4th Qtr 2007 4.23 1st Qtr 2008 3.35

2nd Qtr 2007 3.06

3rd Qtr 2007 5.16

4th Qtr 2007 4.23

1st Qtr 2008 3.35

Median Age 2nd Qtr 2007 47 3rd Qtr 2007 46 4th Qtr 2007 44 1st Qtr 2008 43

2nd Qtr 2007 47

3rd Qtr 2007 46

4th Qtr 2007 44

1st Qtr 2008 43

Median Salary in a Former Position 2nd Qtr 2007 $90,000 3rd Qtr 2007 $92,000 4th Qtr 2007 $82,300 1st Qtr 2008 $71,500

2nd Qtr 2007 $90,000

3rd Qtr 2007 $92,000

4th Qtr 2007 $82,300

1st Qtr 2008 $71,500

Percentage of Job Seekers Winning Equivalent or Better Positions

To Summarize Slowing economy is clearly impacting the current job market Also influences employers' investment in future hiring Upcoming election exacerbates the situation

Slowing economy is clearly impacting the current job market

Also influences employers' investment in future hiring

Upcoming election exacerbates the situation

So, How Do you Dance With the Stars vs. Dancing with the Wolves? There are three key strategies to being effective in these uncertain times…

There are three key strategies to being effective in these uncertain times…

Strategy #1 Communication: Keep lines of communication open with C-level executives and all relevant stakeholders

Communication:

Keep lines of communication open with

C-level executives and all relevant stakeholders

Strategy #2 Real-time Alignment: Be flexible and agile. Deliver Excellence

Real-time Alignment:

Be flexible and agile. Deliver Excellence

Maintain a Positive and Productive Attitude! Strategy #3

Maintain a

Positive

and

Productive

Attitude!

Questions? Dr. Patti Ippoliti [email_address] Madeline Tarquinio [email_address]

Dr. Patti Ippoliti

[email_address]

Madeline Tarquinio

[email_address]