As the first quarter comes to a close, is there any doubt that we are in a Survival of the Fittest phase in the recruiting industry? In fact, this is the case in pretty much all lines of business currently. I’ve read some things recently that confirm a lot of what I believe regarding current business conditions and where we are going. The bubble burst in 2008, we are in the shakeout or survival of the fittest stage of things now, and it will be a while before we start to really recover. Some of the best guestimates I have seen have this shakeout lasting until around 2012. After that, it’s not that conditions will likely be great, but that industries (including recruiting in a big way) will have been reduced to the strongest players who were able to make it through the shakeout and they will be well positioned to prosper going forward even though conditions in general are fairly tough. They will also be positioned very well for when things really recover, way down the road.
I’m convinced that this is where we are. Our clients in various industries are challenged and we see many companies that don’t look like they will make it. But the strongest are making it work in this environment and we have business there. In recruiting we see the same thing and probably to a higher degree than most industries just because our industry is so sensitive to conditions out there. If your business is doing okay now and can continue to do well enough for however long this stage lasts, you will be in a fantastic position later on. Less competition and stronger relationships with those in the industries you serve that were also strong enough to make it through the shakeout…..that’s worth fighting for.
Todd Kmiec & Associates