By: Melanie Berkowitz, Esq.
Employers are eager to take advantage of Recovery Act dollars. But the prolonged recession has made many of them wary about increasing headcount before they’re certain that the additional employees will be needed. Uncertainty does not mean inaction, however. Staffing companies still have a role to play even when their clients are not hiring.
According to Steve Schumacher, Executive Director of IT staffing company TEKsystems, although many employers are not quite ready to “pull the trigger” on additional hiring, business is not stagnant. “We’re having conversations with our clients about their plans for later in the year or early in 2010,” he says. “It’s important to understand and target each client’s needs precisely so that they get the best talent and most efficient use of their money,” says Schumacher.
In addition to understanding the client’s needs, staffing must help them identify the types of Recovery Act opportunities that they’re most apt to seek.
For instance, while some employers intend to bid directly on large government grants or contracts, others will be more likely to seek smaller opportunities, such as supplying materials, subcontracting parts of projects or providing professional or technical services.
No matter the client’s size or exact needs, these questions should be part of any staffing discussion:
- Has the client identified possible grant, contract, bid or other Recovery Act opportunities for which additional headcount may be needed?
- How can the client adapt its current capabilities to take advantage of industry growth? What skill sets might it need to add in the coming months?
- What industry signals will the client look to before deciding to increase its headcount?
- What new job titles might be needed to meet opportunities created by anticipated economic growth?
Questions such as these will help overcome a client’s “wait and see” attitude.
Where to Find Hiring Opportunities
Give clients the knowledge they need to start planning: employers who have yet to increase head count are keen to know which industries are hot or poised for growth.
“One of the biggest post-Recovery Act growth industries right now is construction,” says Jim Lanzalotto, principal of boutique strategy and marketing firm Scanlon.Louis, “particularly building new infrastructure.” He explains that the boom is not surprising; sixty years ago, post-World War II government spending brought an influx of funds that was also targeted towards infrastructure. “We’ve come full circle,” adds Lanzalotto, noting that if history is any indication, white collar hiring will focus on finding civil and structural engineers, architects, urban planners, and other professionals in both the design and building phases of construction.
Moreover, the Recovery Act’s tax credit for first time homebuyers, coupled with low interest rates, has made the mortgage industry hot right now. “We are seeing a lot of demand for loan originators, underwriters, title insurance specialists, document processors and others in the banking and mortgage industry,” says SAM! Farrell, Chief Sales Officer of KForce, a full-service professional staffing firm. Farrell anticipates that as long as interest rates stay low, the need for mortgage-related services will continue to grow.
Another area where jobs should see a boom in the coming months is Health IT. “The Recovery Act includes funds to develop and implement systems to migrate patient records to electronic format, as well as money for local health clinics,” says Farrell. This will lead to the need for other healthcare jobs, “such as doctors, nurses, technicians, record keepers and other professionals.”
IT demand will not be limited to healthcare; as the economy improves, expect to see an increase in need for IT professionals across many industries. ”Business needs drive growth in IT staffing,” explains Schumacher. Additionally, he sees “green” development and infrastructure adding IT headcount. Related skill sets include applications development, business intelligence and project management.
The Recovery Act’s legal complexity will also generate jobs. “We are already seeing increased demand for back office professionals such as accountants, attorneys and financial experts,” says Joe Burkhart, Director of TARP/Economic Recovery Initiative for the professional recruiting firm Mergis Group. “Right now, companies that have been awarded Recovery Act contracts related to TARP (the government’s Troubled Assets Recovery Program) are looking for accounting and finance employees to perform specialized valuation and other financial activities.” Burkhardt adds that, ”As more money flows to specific projects, we also expect to see hiring of workers such as accountants and bookkeepers who can help their employers meet ARRA’s strict reporting and accountability requirements.”
Additionally, the Sarbanes Oxley Act’s whistleblower provisions protect employees who report fraud or misuse of ARRA funds. Consequently, employers who intend to bid on Recovery Act projects need to be prepared to account for, track and report on every dollar received and spent.
Beyond Traditional Staffing Solutions
The Recovery Act offers less obvious ways to generate client conversations. One example: Mergis Group is partnering with small entities to do their recruiting and help them find government business opportunities. “We can search out RFPs that meet the abilities of a particular client,” says Burkhart, “and then provide contingent workers who can fulfill the contract.”
As well, Mergis does placement of temporary or contract workers with companies on specific projects. “Many times, organizations turn to a flexible workforce to manage costs and remain competitive during economic fluctuations,” says Brukhart. “In turn, some of our clients then choose to hire these workers upon completion of a project on a full-time or permanent basis because they have proven to be a good fit.”
To take advantage of opportunities in the “green” construction business, Lanzalotto says he is “advising employers to get certified in the skills that will be in demand in the green renovation market, including lead abatement, environmental construction and solar energy.”
He also encourages staffing firms to think creatively for their clients, suggesting that employers should hire more people to “make those signs telling us, ‘This Construction is a Recovery Act Project.’”
The comment may be pithy, but the sentiment is not: marketing and public relations are going to be important for employers as Recovery Act spending picks up speed. “Employers should think like defense contractors,” advises Jim. He suggests that companies consider hiring a PR or marketing professional to “promote” their success as a tool to attract additional business as new opportunities arise.
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Read more about staffing: Is IT Staffing Poised to Lead the Economic Recovery?
Read more about the Economic Stimulus: Mid-Year Review