2003 will be a better year than 2002 and 2001. Our economy is pulling out of the recession and demand for staff will strengthen across the board during the February-through-May hiring season. That means better times for search consultants to develop new clients, win new business and make placements.

To maximize business development efforts now, let's do a quick analysis of the supply and demand of labor today.

On the demand side, which industries continue to hire?

This year and last, companies large and small scaled back hiring and cut staff. Few industries were spared. Technology, communications and manufacturing sectors were hardest hit. Financial services and insurance saw "pockets" of activity. Holding up relatively well were the consumer-driven food and discount retail sectors. The best performers continue to be the pharmaceutical and biomedical industries, fueled by an aging population buying drugs and healthcare services. In addition, the defense industry is predicted to be strong as it receives windfalls from increased government budgets. To determine where specific hiring is taking place, think about which sub-industries are performing best.

On the supply side, who are the candidates with skills in demand?

Skills most needed today correlate with a company's core operations. Accounting and finance staff continues to be in demand. Client service is necessary to maintain customers. Top sales professionals are always valued if they can generate increased revenues. Candidates with industry-essential skills are where to find highly valued candidates. For example, product designers in select manufacturers or multilingual employees in international companies. Those at greatest risk of losing their jobs are non-essential staff who have no direct impact on increasing revenues or reducing costs, such as support functions in marketing and sales, human resources staff, middle management and project-management positions that may be replaced by new technologies and other ancillary functions. If needed, many of these functions can be outsourced.

Over the last two years, companies have had to reduce expenses and headcount to maintain profits. Many have gone too far, trimming beyond the fat and cutting into muscle. This can work to a search consultant's advantage. Smart hiring managers know that the soft labor market is an opportune time to pick up top talent. By working with top candidates, now in greater supply and easier to locate, search consultants can act as the "conduit of talent" by marketing top candidates into prospective client companies.

"Precision Marketing" is the No. 1 way to making placements.

Follow these three steps:

1) First, identify a "No. 1" candidate. This is a one with skills in demand from an industry growth "pocket." Be sure that the candidate is motivated to make a career move, that she is flexible and easy to work with, and that she has reasonable expectations regarding salary and the timeframe to make a move.

2) Become the candidate's "agent." Ask the candidate:

• to pre-select prospective employers (industry competitors) she is interested in working for.
  
• to name the position she wants and the title of the manager she would work for. (Test the candidate's willingness to work with you by asking her to send a prospective employer list with locations and even phone numbers. The candidate will be helping you research target client companies. The speed of response in delivering a company list will be a telling sign of whether you are investing your time wisely with a specific candidate.)
• to share the companies she has already interviewed with and/or where she has sent her resume. This will give an indication of where the candidate is in the job search and whether you have true control or perceived exclusivity. These could also be new client leads. Beware if the candidate is hesitant to share job search activity or has sent out many resumes.

3) Market the candidate into choice companies by first sourcing the name of the hiring manager and then following up with a direct call. Here's what can happen when you present a No. 1 candidate from a direct competitor:

• There's an open position and the manager wants you to send the resume. That leads to a sendout.
  
• There's no position open but the manager wants to review the resume and will meet the candidate even with no position open. (There may be anticipated hiring needs in the near future.)
  
• The manager realizes you're a "specialist" because you're working with a top candidate from the industry. He refers you internally to another manager who has an open position.
  
• The worst outcome (which is not bad at all) is that the hiring manager asks you to send information about your firm and follow up at a specified period of time. This could be a client in the making.

"Precision marketing" is very effective because top candidates are empowered to pre-select their next position at the companies of their choice. They feel as if search consultants have their best interests at heart and are partnering with them in their job search. When an offer is made, no selling to "take the job" is required as a candidate is intrinsically motivated to accept the offer. Most importantly, your new client has hired a top candidate from a competitor firm and is very satisfied with the outcome.

In summary, the quickest way to developing new clients and making placements is to market a No. 1 candidate with high demand skills into competitor companies. Be sure that you've identified a candidate who is motivated to make a career move and is working with you exclusively this way. Your prospective client, the hiring manager, will respond to you as an industry specialist who knows his business and delivers quality. The outcome is a "win-win-win." The hiring manager gets a top employee, the candidate works for the company of her choice and you make a placement.

Mike Ramer, CPC, is a national trainer for the search industry. For more information, please visit The Ramer Group.