Change in the corporate world is a constant, with companies constantly acquiring or merging with others, closing down all or part of their businesses and expanding beyond their existing geographical boundaries. To some, this change is frustrating and a source of great anxiety, however good recruiters should be able to take full advantage of such major developments by recognising the opportunities as they arise in areas such as:
- The increased need for on-hired staff: in merger or acquisition situations, permanent headcount freezes are often put in place whilst the necessary organisational restructuring is undertaken. The integration process, however, yields an above average number of projects (notably in IT and accounting/finance), a key driver of the need for temporary or contract workers to bring in specialist expertise and fill the gaps in the existing workforce.
- Outplacement: large-scale organisational restructures usually result in a high number of redundancies, particularly at an Executive level (and especially among the ranks of the smaller company in the acquisition or merger). Not only does this create a need for professional outplacement services, but also an opportunity for Executive or Search consultants to find opportunities for the displaced executives.
- Supply Agreements: corporate change more often than not begets supply chain change, with supplier contracts rationalised, consolidated or completely overhauled to suit the needs of the new, larger organisation. Smart recruiters will be building relationships at HR, Procurement and Executive level as proactively as possible to ensure a seat at the table when the inevitable tender is issued.
- Geographical growth: when a recruitment firm has a strong relationship with a major company, the firms’ growth can often mirror that of the client’s. A large-scale organisational initiative that grows the client’s business beyond its existing footprint can act as a catalyst for the recruiter to also expand into new regions.
- Other M&A stakeholders: when corporate activity increases, so too does the demand for the professionals and financiers so integral to the process. Specialist lawyers, commercial and investment bankers, accountants, analysts, data room providers and corporate advisors rapidly exhaust their internal resource pool and look externally to find additional, capable staff to keep up with demand.
Remember, where this is chaos, opportunity lives. M&A activity is a boon for professional recruiters and whilst there has been a post-GFC hiatus, it is better to be prepared for the inevitable upswing than completely oblivious and caught napping when the floodgates open once more.
Article Source – Andrew Cassin – Acquisiti – www.acquisiti.com