Staffing Black Spots

Staffing Black Spots
Most firms would agree (with perhaps the exception of our insolvency colleagues) that the most recent GFC and the subsequent fall-out this has had on business and the profession as a whole has generally not been helpful or positive. On a more optimistic note, one aspect previously representing the ‘bane of existence’ for firms seems to be on the improve – staffing.

What was previously the ‘draw card’ for highly paid work in the mines against which firms had to compete to retain staff, the decreasing demand in the primary resources sector has more recently provided some relief for the professions in terms of reduced salary pressures and less headhunting of staff.

In fact, recently we have heard reports from practices throughout the country on how they are being proactively contacted by recruitment firms promoting a swag of prospective candidates for any position that may become available. This is a dramatic turnaround from pre GFC communication with recruiters where firms were lucky to receive a returned call.

While the recruitment industry is abuzz with candidates, some debate remains within the profession as to the quality of the available personnel. Some commentary highlights the increased availability of more junior staff, although with less certainty surrounding the increased availability of very good senior staff.

Furthermore, when it comes to the availability of good senior personnel with an interest in equity, this also seems to be a mixed bag. There are very conflicting results within the profession at present. In some firms we see excellent, keen candidates ready and willing to step up to partnership. At this point it would be easy to say that these are the firms who have proactively worked on their succession plan. Yes, that may be true.

However, we also see some other very good firms with equity opportunities who currently don’t have anyone internally right now, but not as a result of failing to be proactive through their recruitment and succession planning. It’s almost as though they are in a black spot for attracting good, keen senior personnel.

A couple of key elements that may influence this particular trend:

1. Location of the firm – it has always been thought that significant city based practices have the pick of the bunch when it comes to all types of staff, often to the detriment of smaller or perhaps suburban firms.

2. Suburban practices – often reflect on the revolving door to their offices as personnel come in, are trained up, and then depart to chase the bright lights of the city. We know of some really good firms currently located in significant major suburbs who just can’t seem to attract senior personnel, let alone someone with equity aspirations. Gauging by the current number of recruitment ads, these particular firms are not alone. Regional firms are perhaps a little luckier in that they may have a captive market. Those staff that wish to remain local, or have left the fold and returned, are happy to make the most of their opportunities within regional centres.

3. Size of the firm – as is the belief regarding the location of the firm, so too are the views in respect of practice size. That is, larger firms have greater ability to attract the most and best candidates. This is irrespective of location. So, if you are a smaller firm based in the burbs things could be tough.

4. Number of equity holders or partners – this kind of merges with the previously point. But again, more partners generally equates to a larger firm which has an increased potential to be more hip and happening in the eyes of potential candidates.

5. Money – whilst most will state that they are not driven by money, the fact is that those employed in the CBD will have higher expectations regarding their salaries than those in suburban or regional firms. So for some recruits this is seen as a potential negative.

Plus, I’m sure there are several other reasons driving such experiences such as depth of expertise, size and type of clients, perceived career progression, utilised technology, culture, the general age of the personnel, ease of travel to the firm and the like.

That said, with recruiters falling over themselves to provide firms with new recruits, why is it that some firms, in some areas, in search of more senior personnel are finding the going so hard?

Does this highlight black spots within staffing availability?