Big Layoffs Can Bring Talent to Small Businesses

Massive company downsizings are back in the news, and many companies are being forced to trim the ranks. From local businesses that cut back a few positions to large international companies that lay off more than 20,000, companies are preparing to weather this recession a bit leaner.

The bad times for big business can be a boom to smaller companies and recently laid off individuals. When big companies cut jobs, and especially hundreds or thousands of positions are being eliminated, the companies often do so on a last-hired, first-fired basis. The cuts are not done according to job competencies or lack thereof. Suddenly, many competent people are out of a job. Talent floods the market. For small businesses, it can be a good time to recruit for specialized skills. For job seekers, it can be a great time to target smaller companies who are hungry for your big company knowledge.

Small Advantages

One trend that emerged when large scale downsizings were prevalent in the recessions of the 90's was that employees became disillusioned. A career with one company is a thing of the past, and employees don’t look for security from their employer. Every time there is a massive layoff, everyone starts to wonder if his or her number will be up soon.

When attitudes start to shift is when entrepreneurial firms have an advantage. A smaller company can’t necessarily offer long-term security either, but it can provide a company culture dramatically different from that of a mammoth corporation. Smaller firms, and some departments in larger companies, tend to have fewer levels of bureaucracy and typically allow employees more of a sense of ownership in the process of doing business. Don’t be surprised when big executives seek out smaller businesses looking for a better work environment. And, for those who have recently been laid off from large corporations, there are a number of smaller companies who are eager to have your talent and experience fresh out of big business.

Sharks in the water

So how can a business take advantage of another company’s downsizing? First, recruit. Many firms learned this trick long ago. They are not shy about calling the Human Resources department of the downsizing company and requesting resumes.

Keep in mind, the company letting people go wants them to find jobs. Another tip is to see whether the company contracted with an outplacement firm that can put you in touch with a pool of candidates. At Mulling Corporation, we receive calls from employers on a regular basis asking if we have people on our Career Transition/Outplacement program whom they may want to hire.

Remember to be flexible and also ensure that you are making good choices from the large volume of candidates flooding the market. With unemployment at high levels recently, companies are fielding a great number of candidates for each position. If a company close by is laying people off, there are more candidates from which to choose. However, those candidates still might not be an exact fit.

When interviewing candidates look for the closest match in both job skills and ability to fit within your corporate culture. From another perspective, if you remain flexible throughout the process, you may be pleasantly surprised. If someone was recently laid off from an organization, think of the added benefits that person brings to the table. They might not match the criteria exactly for your position, but the candidate may have the expertise of working for a progressive firm that gives them a broader perspective. Even if their former employer is not in the same industry, it’s likely they can bring some new thinking to your way of doing business. So, look at the number of candidates available to you as a smaller business as an opportunity to take advantage of some skill sets that you may not have had access to before. And, continue to make good decisions about hiring the right person for the right job.

If you are recruiting people from higher-paying companies, your first thought may be that you can’t afford them. But, salary may not be the deciding factor. Especially after being laid off, the candidate might be looking for other job perks, such as flexibility and responsibility and the opportunity to work.

Once you have narrowed the field to the point of making an offer, be realistic with yourself and your candidate. Think about what you can add to the offer to make it more attractive. Perks such as extra vacation time, flexible scheduling or telecommuting may be more valuable to some candidates than money. Sometimes, it is as simple as asking the candidate what it will take to get them to join your firm.

Act quickly. Once a company goes public with word of downsizing, recruiters and other companies descend, looking for talented people. If you have openings, don’t delay; the best candidates will be hired in no time.

Recessions are cyclical and so are the hardships and benefits that go along with them. For both the smaller business owner, who is looking for more productivity and a stronger staff, and for the recently laid off employee, who is looking for stability and a chance to use their skills in an appreciative environment, a recession can be very valuable.