Wednesday, March 4, 2009

Losers and Gainers

We hear about big companies laying off hundreds, but what we don't hear about is those same companies are hiring. They are even hiring back some of the people they just laid off. Why go through this rigmarole? 

Sometimes it's just the numbers: take a sweep and figure out what you need after you see the holes in your workforce. I spoke with a woman today who interviewed with her former boss for a position that's new in her old company, the one that let her go just six weeks ago. Now some have told me this happens when companies want to hire reliable people they already know, but it's all about relocation. They'll take you back but you have to get out of Dodge. Who knows?

I also spoke with someone today who was laid off from a company that a man I talked with yesterday was just hired by. And he's getting a six figure income.

The job market is about flow. There are losers and gainers (people aren't losers or gainers; the jobs are lost and gained). Keep that in mind. The economy is in terrific flux, but there are plenty of solvent companies ( maybe not some of the banks) and there is a stimulus that has some high focus, so don't believe that companies who are laying off aren't capable of hiring. They still are, even in this economy.

1 comment:

  1. Elly,
    It is also unfortunate in this time of churn, that companies are letting go of long term, higher cost associates by eliminating their jobs, and in turn creating new roles (similar in nature)that pay less.

    While the job profile is similar, they are not always offering the opportunity to their long term associate, to apply for the job, but rather, hiring new talent that is often younger and therefore less expensive.

    What they fail to calculate, is the productivity cost of ramping up these new associates, as opposed to retaining people who would hit the ground running in their new role.

    Go figure

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