RSM Resources

Even as analysts continue to forecast economic expansion, large companies across the United States continue to lay off employees. That’s because, for many large companies, the road to profitability is paved with downsizing. But for many midsized companies, the path to growth could come from corporate castoffs.

As large companies focus on their bottom lines,they’ve sent many highly educated, skilled and experienced workers to the ranks of the unemployed. Recruiters used to stigmatize laid-off workers and place their resumes at the bottom of the pile. But the sheer volume of layoffs in recent years has changed attitudes. Many consider the newly unemployed a rich pool of talent waiting to be tapped.

In today’s corporate America, employment for life is a thing of the past. Chances are, layoffs result from an acquisition, closing, economic slowdown, merger, relocation or restructuring — not performance. Therefore, it seems natural that midsized companies looking to hire would take advantage of this wealth of talent. Laid-off workers represent qualified, motivated candidates who often can start sooner and cost less to recruit than employed candidates.

What your company has to offer
How can you entice a laid-off professionals till smarting from a corporate downsizing? Here are a few advantages experts say midsized businesses can tout:

Job security. Midsized companies may provide a more stable employment base. They tend to hold on to workers during hard times, knowing they’ll be hard to replace when good times return. In addition, fast-growing companies must continually add employees to keep pace with demand for their products and services.

Surviving and thriving. Midsized businesses in the service sector survived the recent economic downturn most successfully. In addition, many businesses have picked up work from larger companies that increasingly outsource support functions (such as accounting, food service, legal, maintenance, marketing,public relations, security, technical support)  in order to save resources and focus on core business.

Opportunities. Midsized companies can be more creative, innovative, nimble and aggressive in pursuing opportunities than their larger counterparts. This is because they have fewer management barriers and, if privately held, less stockholder pressure that may inhibit forward momentum.

Where to find displaced job seekers
Almost no field or industry has escaped downsizing, so midsized companies pursuing laid-off workers have no shortage of prospects. Here are several tips for recruiting displaced workers:

• Team up with outplacement and career-management firms to harvest potential candidates. Approximately 80 percent of U.S. employers provide some sort of outplacement services for departing employees.
• Contact the human resources departments of local businesses that are downsizing to see if they are offering transition assistance or to ask for the names and resumes of employees who are being let go.
• Help organize and participate in local employment open houses to conduct mass interviews with laid-off employees.

While corporate layoffs may present your company with a great opportunity to bolster your own ranks, you still need to consider the merits of each candidate. Experts advise you to proceed with caution:

Steer clear of niches. Midsized companies have always needed the proverbial "Jacks and Jills" of all trades: workers who can handle multiple roles and responsibilities. However, big-company professionals often have highly specialized areas of experience and expertise, and they may expect their job duties to be highly structured and defined. Adjusting to a climate whereon-the-job training, continual learning and ever-changing responsibilities are to norm may be difficult for them.

Make sure everyone’s on the same page. Successful transitions for big-company employees may require employers and candidates alike to share realistic expectations. For example, workers moving to smaller, midsized companies may find they must accept reduced compensation, benefits, perks and status. On the other hand, midsized companies hoping to recruit seasoned experts need to offer competitive employment packages. Recruiting highly skilled candidates may require improving what you offer all your employees. For example, flex-time, compensatory time, telecommuting, unpaid leave, sabbaticals, cafeteria benefits, 401(k) plans, daycare and stock options are all popular ways to attract employees — and sometimes can help offset larger salary offers.

Watch out for the honeymoon period. Newly hired employees who were laid off by previous employers may spend the first several months seemingly grateful to have landed work. However, this contentment may not last. These employees may feel they had to settle for their new jobs to avoid unemployment. They also may be bitter if they had to accept lesser compensation and benefits than they had earlier. They could poison the work environment with any lingering negative attitudes.

Midsized companies are well-positioned to hire the many workers large corporations no longer need. If you do your homework, you’ll know you’re getting proven performers, and your new employees will know they’re working for a forward-thinking company that values their talents.