- January 28, 2009
- 0 Comments
The “Lost” Theory for Maintaining Momentum During a Recession
I’m calling what I just read in this MediaPost article the “Lost” Theory for Maintaining Momentum During a Recession because it’s seems as radical and antithetical an idea for me and you as the idea of going back to the island is for the Oceanic 6 (not because I just spent the better part of an hour reading spoilers about what will happen tonight on ABC at 8 pm CST).
Anyway, according to the article, companies should increase their marketing spend during recessions rather than hold back. Yes, increase. Now, I’ve noted before the similarities between marketing and recruiting, so the more I read John Gentry’s theory that companies need to rethink – not cut back on – their marketing plans during this recession, I couldn’t help but once again think about Ben convincing Jack that going back to the island is the only way to save it how the same ideas apply to recruiting.
There’s a lot of talk about needing to stay competitive during this time, and that those companies that set themselves apart – that is, those who continue to invest in marketing their product – will reap the rewards later on. So then doesn’t it hold that companies should increase their investment in their talent during this time, too?
After all, it’s your employees – that is, the people you rely on to sell your products and services – that essentially keep you competitive. That are ultimately responsible for the value of your product.
The more I read, it started to occur to me that perhaps the biggest obstacle to recruiting today is that companies are still under the impression that the same rules of talent acquisition still apply.
Gentry points out that it’s not just enough for companies to invest in their marketing plans, but to invest with more innovation during this time. Similarly, this Recruiter’s Corner post explains that the rules of recruiting are different during a recession.
Then there’s the research that shows that companies who maintained or increased ad spend during the 1981-82 recession saw 256% higher sales than companies that decreased their budgets. And while I know ad spend and recruitment spend are different, it seems that the same logic applies: What you do now will determine your success in the future.
When the recession ends, don’t you want to be the company that gets a greater number of qualified applicants – or maintains the greatest number of high-performers – because of the efforts you made to maintain your employment brand throughout?
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- Categories: Economy, Employee Attraction, Employee Retention
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