21 August 2009

Expect Job Market in Another Six Months

The world has seen enough of this - "the effects and after effects of economic recession". You have the reason to cheer because of the words "after effects" meaning that the recession is ended as far as my understanding is concerned. You cannot shed more jobs as you have already fired many and this is the time that everyone is going to be buckle up for job market. First you will see a move of highly qualified and intelligent workforce move from one company to another company. It is happening in Wipro, CTS, Infosys in India and many product companies. Breathe.

The job market is going to heat up in another three to six months and within the next nine to twelve months, each company will have record high attrition rate, may even be close to 20% (many are saying that it may even go to an extent of 30-40%). Even if you pay more, the people will not be willing to stay as they will use this opportunity to move out for many reasons. If you are intelligent company, you should selectively remove recruitment freeze, bring in talented workforce now. Because, when the job market recovers, you need to pay them more as there will many people who give them good offer (Demand-Supply baba). So, if you do not see further pressure to your business, lift the recruitment freeze. If you are highly conservative, wait till next recession so that you can be right at least in the next business cycle.

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