ClearEdge Blog: From the Edge


Do Client Layoffs Mean an End to Business Opportunities?

May 22nd, 2009 | Jessica Castaneda

In this economy, IT staffing and consulting firms are seeing many of their clients not only cut back or freeze hiring, but inevitably go through staff layoffs. Our first instinct is to cut and run, don’t waste your time, they aren’t buying. But should you move to greener pastures when layoffs are in full swing at client locations?

Taking the Long-Term View
We all talk about how important it is to build long-term partnerships with our clients. That commitment is never more apparent than when clients go through layoffs. How you treat, value and support clients during the dry spells in hiring activity can have a significant impact on the viability of that partnership when the rains come pouring back. So, how do you demonstrate customer care and build client loyalty when your customers aren’t buying? Below I’ve outlined a simple, two-part approach you can take to help keep your client relationships strong, position yourself as a true long-term partner and enable you to tap into new talent sources and a wealth of future business.

Part 1: Make Your Client Shine Now
Your client is going through a tough spell; tensions amongst their rank and file are no doubt high. Providing a few simple, value-add services can make them stand out to their retained staff, in their communities and to their displaced alumni. While you are not an outplacement firm — nor should you try to be one — you are a master at finding, vetting and placing professionals. Develop a communication your client can disseminate to their displaced workers with a list of available services you are willing to provide, some ideas include:

1. Resume tips and techniques – No one knows resume best practices better than your recruiters. So offer a free webinar to your client’s downsized staff. Review basic resume tips, techniques as well as pitfalls to avoid.

2. Jump start their job search – After a period of adjustment, displaced workers will be ready to start looking for new opportunities. Offer to include their resumes in your database with the expectation that if an opportunity arises they will definitely be called.

3. Become their career expert – Develop a monthly or quarterly newsletter — or develop a career page on your Web site – that gives clients, their current staff and their displaced workers industry information, career advice and current job openings. This positions you as an expert to your client, while also opening the door to future referrals as downsized staff find other employment and possibly run across opportunities for your business.

Part 2: Help Your Client Plan for the Future
While it may seem premature to begin future-state workforce planning while actively going through a downsizing, it’s actually the perfect time. Layoffs are often a reaction to short-term, cost-containment issues; but that won’t always be the case. Downsizes, however painful, give the client a unique opportunity to plan for and develop a more appropriate workforce structure based on future business goals. Offering your workforce expertise during this process will enable you to build an even more solid partnership with the client.

1. Technology and Skills Assessment – Offer a high-level, technology and skills assessment. Will the skills they currently have in place support their six-, 12- or 24-month business goals? Are there key software or infrastructure changes on the horizon that will drive the type of skills they will need to retain or recruit?  By providing your client with an assessment of their current workforce and a forecast of the top skills they will need in the near future, you are helping them make better workforce decisions in order to meet their overarching organizational goals.

2. Flexible Workforce Planning – Having the right skills in place is critical, but developing an optimal workforce structure for their organization will help your client keep costs down and efficiencies high. After all, those were some of the reasons for their current layoffs. By assisting your client in proactively planning for the right mix of direct hires, contract staff and outsourced engagements, they will be in a better position to quickly ramp up or ramp down operations in order to meet the changing demands of the marketplace.

It Pays in the Long Run
For any firm, it is obviously critical to maintain profitability and focus on what is currently making your business money. But, it’s is also important to keep your name in front of clients who may not be ready to buy. The beauty of these value-added services is in the “offering” itself. Just letting clients know you are committed to the partnership despite their current spend will gain you incredible leverage — regardless of whether they take you up on the offers.

Keep in mind, the inevitable economic upswing will soon affect everyone, including your clients. Actively maintaining your relationships, demonstrating your value and supporting your clients during layoffs and dry
spells — when many of your competitors have long hit the road — will put you in the best possible position to shut out the competition and capture significant client-share when activity does pick back up.

Jessica Castaneda
Marketing Director
ClearEdge Marketing

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