What’s Your “Lost Opportunity Cost”?
Who can criticize a company for growing at 30% a year? … A few that know it could be growing at 50% a year.
Who would support their spouse to leave a job during their best year ever? …The one that knows that they could be leaving $100K/yr on the table by not being opportunistic.
Whether you’re a company on the hunt for talent or a candidate in search of a better job, you know that the current employment market is in major growth mode. So I urge you to wake up and recognize the opportunities which abound and begin calculating your “lost opportunity cost”.
Candidate Lost Opportunity- For candidates, it’s all about measuring what else you could be doing with your time, skills and talent. You know this market won’t last forever and you want to take full advantage of it. You probably fit into one or more of the following:
- Movers’ market – This is a movers’ market and your chance to let the market do some of the career heavy lifting for you. TIP: Be open to next step positions. Many companies are recruiting down a level, looking for people who are ready to take the next step up. Also be open to “bridge jobs” that could enhance your skillset, readying you for that next big job in the future.
- Are you being paid what you’re worth? I know, this is a loaded question. The reality is you’re worth what someone will offer, and candidates are seeing some strong increases in compensation. TIP: This is a great time to look at a base salary and stock equity.
- Move into a hotter space – A market like this could also give you an opportunity to move into a hotter space. Right now companies are more willing to recruit outside of their sandboxes, so this could be your chance to break into a new hot sector.
Company Lost Opportunity- Companies doing well have typically been slow to evaluate their “lost opportunity cost” as it relates to talent. If you’re a hiring manager, here are some things to think about:
- Waiting for the “perfect fit” – In a market like this, your wait could be twice as long as it was a year ago. While you’ve been waiting, your competitors have scooped up yet another account or moved a product closer to being market-ready. TIP: Review and adjust your openings in 20 day chunks.
- Turnover– This is what I call the “double-lost opportunity”. This means disruption of business along with the time to refill the position(s). Not to mention the additional burden on team members trying to fill any gaps. TIP: Pay more attention to your talent on the bubble, the “about-to-turnover” people. Some will be worth saving and some will be doing you a favor.
- Hiring below the need – We see a lot of companies hiring below what is actually needed for the long term. This is mostly driven by compensation limitations. If you have to fill a position twice in a few years, it would be more cost-effective to elevate the role the first time around. TIP: Evaluate what would be possible if you raised the compensation and caliber of candidates.
I urge you to calculate your lost opportunity cost. You have much to lose by not taking a hard look at your current situation, and a lot to gain by taking advantage of the job market. So when I call and you tell me you’re “happy” or “have no hiring needs”, my reply will be: ”That’s EXACTLY why I called!”
-Bill