What’s the “Pick and Shovel” for Your Business?

The tremors that have shaken the global economy over the past several years have proven one thing for certain… That nothing is in fact certain.? As leaders, we are at the helm of our respective ships specifically to navigate our organizations through uncertain times.? And as the expression goes, “if it was easy, anyone could do it”.? Unfortunately, now is not the time for just anyone.? Dating back to the global pandemic, and followed by civil unrest, war, inflation, supply chain interruptions, talent shortages, and polarizing political opinions; predicting the future needs of your business isn’t for the faint of heart.? But as leaders, we are not only here to guide our ships over glassy seas, so how can we manage the unmanageable??

Some business leaders will hesitate.? In fact I have heard economists call this time ‘the great hesitation’.? But don’t confuse these uncertain times with a known recession, or an identified economic downturn.? That is not where we are, but where we are may in fact be worse, because we simply don’t know what is next.?

Others will respond aggressively.? See these market conditions as a natural shuffling of the deck, and invest in their business to position themselves well as global markets inevitably stabilize.? As Mark Twain once wrote, “When everybody is digging for gold, it's good to be in the pick and shovel business.”?

As a perfect example, Etsy, a global online marketplace, where people come together to make, sell, buy, and collect unique items, stock rose nearly 250 percent during the pandemic, with more than 10% of the brand’s revenue coming from facial masks.? Unfortunately, they were unable to hold their momentum, but it clearly illustrates Mark Twain’s point.??

Another relevant quote by another great American author, “if you cannot do great things, do small things in a great way”, Napoleon Hill. And I think that is where we are right now. Being overly aggressive may prove to be foolhardy, but riding out the storm that may never come will only guarantee that you are exactly in the same place tomorrow that you are in today.

I prefer cautious optimism and careful action that is guided by experts.? And believe, now more than ever, faced with unpredictability, that you should employ business consultants and advisors in the areas that can give your company a strategic competitive advantage.?????

As CEO of one of the largest IT staffing firms in the United States, delivering solutions for complex talent and technology needs to Fortune 500 companies, my experience, and more so, my perspective, is obviously rooted in workforce solutions. But even if you are not in the people business, per se, I know you will agree with me when I suggest that people are the lifeblood of any organization.? And all good executives, regardless of industry would also agree that placing the right talent, at the right place, and at the right time is often the difference between success and failure.? It’s our, ‘sink or swim’.

So where does that leave us, what do we know today that can benefit our organizations now and into the future?

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This may be the best time to hire contingent technology experts.

The IT talent shortage still exists, but hiring trends have cooled, and layoffs have also contributed to a more settled marketplace where supply is nearer to demand.?? This has stabilized cost a bit, but more importantly, has opened the real possibility of finding the right talent, at the right place, and at the right time if you are working with a seasoned, well-established and networked IT staffing agency.

Top talent is available again across the employer landscape, and is not being disproportionately consumed by the upper echelon of the employer landscape as it had been over the previous 5+ years.? But be cautious, furloughed projects and furloughed people will be reengaged soon, called back to the workforce to address rising cybersecurity threats, revolutionary advancements in AI and other critical business functions that are reserved for the best and brightest IT minds.

Accessing that talent now, could move your business to the front of the line when choosing highly accomplished, highly skilled individuals, and place you at a position to accelerate business growth well beyond your competition in 2025 and beyond.????? ?????

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The technology landscape is not hesitating

Leaders may be hesitating, companies may be hesitating, but technology is not.? In fact the tech and information technology sectors are as dynamic as ever, now rapidly unveiling the endless possibilities inherent to AI and machine learning.?

This is an area where cautious, well guided action is critical to the long-term success of your business.? In a recent McKinsey report, 40% of C-suite executives anticipate spending more on AI in the coming year.? I agree with Ahyoung An, senior director of MuleSoft who said, “Every team in your organization is looking to the IT team to help them deliver AI powered experiences. And I know we don’t want to admit it, but IT doesn’t have all the answers. Because AI isn’t as easy as just turning it on. Delivering great AI experiences requires time, expertise and data.”?

?Key words being time, expertise and data.? And where the availability of highly skilled, highly qualified resources noted in my previous point have relevancy here.?

On the other side of the coin, cybersecurity is always a significant concern, and a tremendous need for organizations in a rapidly expanding – and albeit hostile environment. Year over year growth in cyberattacks are growing in the double – and triple digits.? Smaller, and less obvious organizations are also becoming more frequent victims of this crime that costs, on average, $4.45 million dollars per breach.? Cybersecurity jobs are expected to grow by 32% (from 2022 to 2032) – equating to nearly 17,000 annual job openings in the US.

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Time-to-fill is really ‘money-to-burn’

Hiring through a staffing partner reduces your costs upfront. Yes, while it might seem that rates could be high for premium talent, there is a lower outlay when you factor in that all costs associated with sourcing and recruiting are covered, and overhead normally attributed to employees is reduced. This is significant, especially when there is volume hiring to make up for lost time and quick productivity.

Lengthy hiring times inevitably affect production. The average time-to-hire in the tech industry is around 33 days (which is the time from when the qualified candidate was identified, engaged and then accepted the offer.)? This is not to be confused with time-to-fill, which is the entire calendar span to fill the role, from job inception to accepting offer, which sits roughly at 56 days. If your in-house hiring calculations exceed those times, or even if they are nearly the same but only after enormous, exhaustive effort, it’s time to explore alternative partnerships that can keep those times low (which keeps cost low).

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Indecision, by its very nature is in fact a decision.? And I would argue that it’s seldom the right decision, and likely not what we hope from our leaders when faced with today’s unique business environment.? While we may not experience an economic soft landing, and those organizations and leaders who choose to wait on the sideline will have every right to wave their finger at me to say, ‘told you so’, I would remind them that nobody remembers the naysayers.? Instead, we remember the innovators, the inspirational leaders that say, ‘follow me, I have a vision, I have a plan and I have the people who can help us get their’.? ?

I will leave you with one more thematic quote to ponder.

“This would be a great time in the world for some man to come along that knew something.” ~ Will Rogers.