Thursday, December 4, 2008

2009

Everyone is having a lot of worries about year 2009. The world is in a recession and already big companies have started retrenching and there are talks about salaries of monitory’s compensation being cut for next year.

2009 we will see new challenges. For the time being in the IT industry, for what I see, there only has been 70-80% fulfillment rate for company’s organization or team structure for their manpower or resource plan. Even today as I type this, majority of my clients have 20-30% vacancy in their org. structure and they are struggling with such small teams. Projects at times have been delayed just due to a shortage of skilled staff ie: Java or .NET developers.

There will still be that shortage that us headhunters would be able to fulfill and despite hard times, I still believe that, you just need to work harder and at times be more creative. I am sure it will pay off.

Having said that, there will be new challenges. This year, it was to do with salaries, company benefits, career progression, new product offering and services, company branding and various privileges, every company has its own offering.

I believe next year candidates will be taking a step back to think about not only their needs and wants, but the company as a whole. I have known people to jump to an ABC company offering a 25%-30% increment jump, I mean who wouldn’t?, yet after 6 months they find themselves in a rut because the company is on the verge of slowing down and they will be lucky if they get their salaries paid. We know collection in Malaysia is never so straight forward.

Next year we will see candidates being extra picky of the companies they choose. It is all about its productivity, revenue inflow/generation and STABILITY! Next years challenge for me is the extra convincing power and also to represent companies who’s brand is reputable and most importantly financially stable.

Why financially stable? If a companies Oracle DBA’s leaves, the company has to fulfill that vacancy ASAP. If a Sales Director or Manager or Account Manager leaves, the CEO or other executives would be able to generate the sales for the company, therefore a company has to be financially stable. Most local companies are surviving on maintenance contracts, that is what that keeps them going.

We will also see a drop in applications as candidates would like to keep their jobs and stay where they are. We will see a fall in entrepreneurship and new businesses, unless these particular business can profit from the economic down turn. On the other hand we will also see a sharp increase in unemployment which will in-turn generate more direct company applications possibly to agencies too.