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Great Times Around the Corner for Staffing & Recruiting Firms?

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Just read a fascinating article in today’s Knowledge at Wharton newsletter (Half a Million Job Cuts: Is There a Strategy Behind the Layoffs?).

The article illustrates that the massive layoffs we are seeing are not being caused by the current economy, but by deep operational weaknesses and strategic issues that  have “been lurking beneath the surface for years.”  The economy is just bringing these problems to the surface.

The exciting part of the article is the optimism the authors expressed that the recession will not be nearly as long as most have predicted, and when the turnaround comes it will be very rapid.

Equally exciting (at least for the staffing industry) is the observation that in the coming months, many companies will find themselves understaffed at a time when important projects cannot be delayed. This sounds like an ideal environment for professional staffing services, direct hire services and executive recruiting.

One other interesting observation is the author’s prediction that employers who have undertaken an intelligent approach to preserving talent will be much more likely to thrive than those that have taken a knee-jerk approach to cutting jobs. While those smarter companies may not be hiring today, these are the ones where you should focus your long term marketing efforts.

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