B2B Agility™ Episode #19: The Great Hesitation with Sue Keith, Landrum Talent Solutions

Released: July 23, 2024

Introduction

In Episode #19 of B2B Agility™, host Greg Kihlström engages in an insightful conversation with Sue Keith, Corporate Vice President at Landrum Talent Solutions. This episode delves into the current dynamics of the U.S. job market, particularly focusing on the phenomenon Sue terms "The Great Hesitation." Together, they explore the contrasting conditions between hourly and corporate jobs, the shift towards flexible staffing, and the implications for both employers and job seekers.

Background: Sue Keith and Landrum Talent Solutions

Sue Keith provides a comprehensive overview of her role and the evolution of Landrum Talent Solutions. She details the company's rebranding journey following the acquisition of Cirrus Talent by Landrum HR, a longstanding HR services firm in Florida.

Sue Keith [01:59]:
"About 18 months ago, our firm Cirrus Talent, which specializes in marketing positions, was acquired by Landrum HR... Just this past July 1st, we announced that we had rebranded the new business unit to Landrum Talent Solutions."

Despite initial reservations about changing established brand names, Sue emphasizes the strategic advantages of unifying under a single brand to enhance market presence and streamline go-to-market strategies.

The Tale of Two Economies

Sue introduces the concept of the "tale of two economies," highlighting the stark differences between hourly and corporate job markets in the U.S.

Sue Keith [03:40]:
"We continue to have record low unemployment... businesses are struggling to find hourly workers. However, in the corporate world, we continue to see hiring freezes and ongoing layoffs."

While hourly positions remain in high demand with persistent shortages, corporate roles are facing contraction, particularly in marketing departments. Sue attributes this disparity to factors like prolonged economic adjustments and shifting business priorities post-COVID-19.

The Great Hesitation: A Shift from the Great Resignation

Building on the aftermath of the Great Resignation, Sue introduces "The Great Hesitation," a term that encapsulates the current reluctance among companies to commit to full-time hires.

Sue Keith [05:33]:
"I love this term the Great Hesitation because it's such a nice play on the Great Resignation... It's really rare to find new headcount approvals now."

The Great Hesitation is driven by several factors:

1. Reckoning from Previous Hiring Sprees:
   Companies are reassessing the aggressive hiring strategies employed during 2021-2022, recognizing instances of overhiring and mismatched roles.

2. Increased Competition Among Candidates:
   With an influx of applicants—sometimes over 500 candidates per position—hiring managers fear overlooking top talent, leading to prolonged decision-making processes.

3. Shift to Flexible Staffing:
   Organizations are increasingly opting for contract or contract-to-perm positions as a way to mitigate risks associated with full-time hires.

Impact on Candidates: Navigating a Competitive Landscape

The Great Hesitation has significantly impacted job seekers, making the job market more challenging and competitive.

Sue Keith [07:55]:
"The competition for full-time jobs is just really high... We've seen a market increase in requests for contractors and contract-perm positions."

Key Implications for Candidates:

• Rise of Contract Roles:
  More candidates are considering contract or contract-to-perm positions as a strategic entry point into organizations.

• Extended Hiring Processes:
  Prolonged interview stages with numerous rounds can deter candidates, as illustrated by Sue's anecdote of a qualified candidate declining an offer due to lengthy decision timelines.

• Increased Risk Aversion:
  Employed candidates are less likely to leave their current positions for uncertain opportunities, preferring the stability of existing roles.

Sue Keith [11:04]:
"If you are currently employed, you are very unlikely to leave to take a maybe job which is a contract to perm position because there's just no guarantees."

Impact on Companies: Operational Strains and Hiring Challenges

The Great Hesitation has broader repercussions for companies beyond just the hiring process.

Sue Keith [15:11]:
"Marketing teams are running skeletal crews... People are getting burned out because there's so few people, but it's the same amount of work, maybe more."

Key Challenges for Companies:

• Operational Burnout:
  Existing teams are stretched thin, often handling multiple roles without additional compensation, leading to increased burnout and decreased productivity.

• Extended Time-to-Hire:
  Lengthy hiring processes can result in missed opportunities, as talented candidates may accept offers elsewhere or lose interest over time.

• Perception of Indecisiveness:
  Protracted decision-making can signal to candidates a lack of organizational decisiveness, potentially deterring top talent from accepting offers.

Sue Keith [16:33]:
"Candidates who are employed are staying put... They are very risk-averse."

Advice for Employers and Job Seekers

As the job market continues to evolve, Sue offers targeted advice for both employers and job seekers to navigate the complexities of The Great Hesitation.

For Employers:

Sue Keith [18:51]:
"Please treat your candidates with dignity and respect... Just remember, make sure everybody is treated with dignity and respect and they get some sort of closure."

• Respect the Candidate Experience:
  Ensure transparent and timely communication throughout the hiring process to maintain trust and engagement with candidates.

• Leverage Flexible Staffing Wisely:
  Use contract or contract-to-perm roles as strategic tools to evaluate candidates before committing to full-time positions.

For Job Seekers:

Sue Keith [18:44]:
"We're seeing glimmers of hope... hiring will pick up in Q4."

• Be Open to Flexible Opportunities:
  Consider contract or contract-to-perm positions as viable pathways to secure roles and demonstrate value within organizations.

• Stay Optimistic and Proactive:
  Monitor industry trends and remain active on platforms like LinkedIn to capitalize on emerging opportunities, especially as hiring trends are expected to improve in the latter part of the year.

Conclusion

Episode #19 of B2B Agility™ offers a thorough exploration of the current employment landscape through Sue Keith's expert lens. The introduction of "The Great Hesitation" highlights a pivotal shift in hiring practices, influenced by past hiring excesses and current economic uncertainties. Both employers and job seekers must adapt to this evolving environment by embracing flexibility, maintaining clear communication, and fostering respectful interactions. As the market shows signs of recovery, there remains cautious optimism for a balanced and robust job market in the near future.

For more insights and industry discussions, subscribe to B2B Agility™ and explore additional episodes here.

Prepared by Greg Kilstrom