17 July 2009
	EMPLOYMENT Ahead of the game By Robert Quarshie The recession has certainly made finding a job harder, but you can shine in a competitive market

As a potential contributor to the nation's labour force and gross domestic product (GDP), it's a no-brainer figuring out that our economy is taking strain. Jobs are a lagging indicator, which means the severe 6,4% contraction in economic output in the first quarter could mean even more second-quarter retrenchments. "The data reflects a labour market in distress, with a reduced formal workforce," says Standard Bank economist Shireen Darmalingam. In addition, Grant Thornton's Employment Growth Index (EGI) for 2009 reflects employment growth of 4% in privately held businesses in SA. This is a 2% decline from 2008, when the EGI was at 6%. But it's not all doom and gloom if the employment trend is retrospectively observed. According to StatsSA, though employment fell by a substantial 208 000 jobs from the last quarter of 2008, this decline was not sufficient to erase the gains that occurred over the course of 2008. As a result, employment in the first quarter of this year was still 13 000 jobs above the level of a year ago. Similarly, the even larger increase in unemployment from the fourth quarter of 2008 (up 311 000) still left unemployment slightly below the level (by 7 000) of a year ago. The bottom line is that the world has changed when it comes to recruitment. The frosty economic climate that left many a company folding has still led to an era of general recruitment fine-tuning. This could mean that not only are companies (not restricted to the lower-skilled industries) downsizing, but that they are choosing their new recruits carefully, with an emphasis on "value" employees. "I haven't seen any real effect of the economic downturn on our own recruiting, but we still have a skills shortage in this country and there are still companies looking to employ people. What we have noticed, however, is an increase in the number of skilled people returning to the country from abroad and a trend among employers to look for more specialised people - someone who can do the job of two people," says Norman Calmeyer, of Tom Dick & Harry, a recruitment agency based in Gauteng. Skills issue Despite the recruitment industry's apparent resilience to the economic downturn, more emphasis is being placed on fighting a crippling shortage of talent - especially in the skilled job arena. Peter Schmitt, managing director of Tribalfish - an employer brand agency - believes the apparent shortage of talent is less the cause of not delivering on business strategy than it is a symptom of an unattractive business strategy. "Is the problem really the poor availability of talent or is it more the poor availability of great companies, with great leaders, which attract talent? Leaders who shape their companies, even their strategies to appeal to great people; leaders who know that their first responsibility as a leader is to strengthen their gene pool?" asks Schmitt. In recent poll for a research report conducted by Grant Thornton, 41% of privately held SA businesses believe that the lack of availability of a skilled workforce is still the biggest constraint to business growth (48% in 2008). This is the third consecutive year that workforce issues have been cited as the greatest impediment to growth in SA. In Botswana the figure is 54% and in Australia, 47%. "We are currently running our businesses in a very unstable labour market. We have suffered a huge brain drain. It is also difficult to replace those who left and are still leaving because of the education system, which has also been hard-hit by a brain drain. The job training [apprenticeship] is equally a challenge because the trainers' experience is low," Schmitt continues. To address the issue of productivity, it has been suggested that companies in the private sector need to train new graduates - who would be more willing to work harder and upskill for an upswing - during the economic downturn. Qualifications and experience But in the midst of the skills deficit, there are some areas that prospective job applicants can focus on to ensure that they are successful in their quest for employment. Unlike in boom times, it may not be beneficial to study further in the short term. "Experience and where people have worked counts the most - whether they are returning to the country or not. Students should do everything possible to pick up work experience, even if it means doing vac work for free. A recent graduate with three years' work experience will always have a lead over someone with a postgraduate degree," Calmeyer says. Instead, look at getting the most value from your current degree - even if it's an undergrad one. "What I can say to graduates is that companies look for those graduates who have the exceptional results and who have displayed leadership potential during their studies. Graduates need to attend large companies' recruitment presentations on campus and ensure that they understand the criteria for application, and be diligent about the process," says Rene Sickle of OutsourcedHR - a recruitment, professional coaching and human resources services company. You won't, however, lose out if you equip yourself (time and funds allowing) with a practical qualification such as an MBA (see MBA salary expectation schedule on page 6). If you are considering staying put in the academic environment, there are also opportunities inside. A simple search for careers in the public sector using www.careerjet.co.za revealed a surprising number of teaching, lecturing and professorship posts. The department of labour has numerous adverts for teaching posts as well. The education sector is under pressure and will suffer dire consequences if these posts aren't filled. Procedural barriers While job hunting online, it is important to be aware of the internal processes that could hamper the smooth flow of employment. "The problem with getting your CV onto the market lies in the fact that, while there are many job portals that graduates can register on, these portals charge the recruiter to access the graduate's details. This obviously restricts the number of employers who will find' the CV," says Adam Davison, operations manager at EmploySA. They offer a free service for both jobseekers and recruiters alike. Experts suggest registering with as many of the reputable portals as possible, and taking the initiative by contacting recruitment companies and HR departments directly. Salary expectations According to a recent survey on the current employment situation, college graduates in China have sharply lowered their salary expectations to something between 2 000 and 3 000 yuan (between R2 200 and R3 300) per month for their first jobs after graduation, Beijing Evening News reported this month. Locally, however, the mood is still that of resilience, with a some companies opting not to cut salaries, but rather to put a hold on additional expenditure, including the cost of recruitment. According to findings in the CareersSA salary survey conducted last year by Careers24.com, companies of 100 or less employees proved to be the poorest payers. The difference was more pronounced when it came to seniority. The best payers are companies with a staff base of 5 000 - 10 000 employees. The survey also revealed that a master's degree was by far the best qualification to have, especially when combined with experience. The value of an honours degree, however, declined dramatically after 55 years of age. But that leaves the average graduate with ample time to amass the requisite experience and any necessary higher qualifications to ensure they avoid this potential income plateau. Many companies are looking for ways to grow their employee base without breaking the budget. "Those that are not retrenching staff work on a tight budget, so it's close to impossible for them to hire new recruits, let alone get inexperienced graduates, who probably slow down their production cycles as a result of lack of experience," says an insider at Productivity SA. Demand for skills Employability and job security will depend on the skills required in the country at the time you graduate. "There will always be and always has been a market for candidates with an IT degree, especially BSc, BCom and BEng Information Technology degrees. The demand for graduates is so high that we only recruit graduates for three to four months a year and then, thereafter, there is nobody available anymore. Like anything in the world, the harder you work the luckier you will get," says Karen Geldenhuys, CEO of Abacus Recruitment, which focuses on recruiting within the IT industry. Excellent results in any field will stand you in good stead. "Of course - the better the candidate/student's results, the easier it will be for them to be selected and employed by companies," Geldenhuys says. These days being a graduate no longer guarantees employment. "Graduates lack the experience that skilled employees have, but during current economic times, many companies prefer to accumulate less expensive resources that they can up-skill in-house. This benefits both staff and the organisation. "Therefore, good advice to any graduate is to convey a great deal of enthusiasm during interviews, since employers are looking for those willing to learn" says Jess Green, head of ICT and engineering recruitment at DAV Professional Placement Group, Cape Town. "The best advice we can offer is to focus on up-skilling yourself as much as possible - [prioritise] vac work and internships to gain exposure to the market, and build a network, as well as setting yourself apart by being an allrounder in sport, arts, culture, leadership roles and academics," says Jacquie Bosh, DAV divisional executive for financial markets recruitment.