This is the third of a three part series about the Dry Powder Job Market. (Part 1 & Part 2).  In Part 2, we began to discuss some ways that job seekers can differentiate themselves in this new market.

Picture the stock market as a high stakes football game.  Just like the stock market, a football game has many different highs and lows.  When a team makes a big play and runs a kickoff return back for a touchdown, the fans in the stands celebrate.  Their team is on their way to making a comeback.  Another quick play in the form of an inception for the team, puts the fans in a celebratory panic.  The impossible is possible and their team is once again the best in the league or the world.

These mood swings and quick changes in the game are no different than the stock market.  The media and stockbrokers are the fans quickly adjusting their buying and selling tactics and strategies to the plays of the game.  The media reports the highlights of the game and quickly experts appear touting an end to a recession.  Their team has turned a corner with a bowl game bid in sight.

Companies and business investors no longer trust that their team is on their way to the championship game and are now holding their cash in reserve choosing to invest their capital in only sure things.

In the Dry Powder Market, the work you do behind the scenes as a job seeker in preparation is what matters most.  Consider my friend, Samuel.  Samuel was laid off from his job as a Human Resource Manager for a large international company.  The company choose to eliminate as a cost cutting measure as 2009 came to a close on December 31st.

Samuel was panicked as expected.  He had 8 month old twins to worry about supporting.  But instead of taking a few weeks off, my friend began applying to a handful of positions very sparingly.  The market for human resource professionals is tight with more candidates than their are jobs.  Samuel knew this and took a very aggressive approach.  He created an employee handbook customized to one company’s needs for which he had a job interview.

But first Samuel did some research, he called friends and even someone within the organization and learned that as a small company they had never had a human resource department before.  And because of this, he reasoned they also might not have an employee handbook.  So he set out to create an employee handbook with his target company in mind.

The first interview went well and his handbook was a hit.  Not only was the handbook well-received but the hiring manager had something (the handbook) to take back with him to his office and provide the CEO and executive team a tangible example of Samuel’s work.  They were very impressed.  I know what you are thinking.  Samuel had years of experience in HR as a senior professional and had built a department once before.  Wrong.  Samuel has approximately 4 years of experience, has his Master’s degree in HR and has worked for large layered companies within human resources.

And instead of weeks they called him back within days and scheduled second interview at the end of the week.

Samuel met with a panel of seven leaders including the CEO.  Each of them had a copy of his handbook in their hands.  And by the end of the interview, when Samuel asked when he should expect to hear from him, the CEO told him by Tuesday of next week.

Just as promised, an offer arrived on Tuesday.  Samuel’s first day in his new position is today.

Photo Credit Sixthman.

In Part 1 of “It’s a Dry Powder Market,” I introduced the dry powder theory. The dry powder theory is an investment term used to describe tactics investors employ during an economic recession where they maintain a very liquid amount of assets that are quickly available to adjust to the turbulent market.  Companies keep cash (the most liquid of assets) in their bank accounts and reserves to account for the volatile market.    And because talent is the most expensive form of capital, companies forgo hiring permanent employees and opt for other strategies like work redistribution and the hiring of interns and contract and temporary employees.

Temporary and contract employees are extremely liquid.  Here today and gone tomorrow.  Companies opt to pay larger contract or hourly rates of pay rewarding these type of employees for the risk associated with a temporary position.  Companies can quickly eliminate this type of overhead without costly severance plans, benefit payments, and guilt associated with layoffs and corporate restructures.

A large number of companies are employing this type of hiring in 2010 just in case.  A candidate can compete in a Dry Powder Job Market not just against other candidates but also the economy by considering the following:

• Demonstrate Value. It’s no secret the job market is extremely competitive.  A job seeker must be on their game and demonstrate during every opportunity that they are the best investment a company can make.  This starts with your online presence and LinkedIn profile.  Companies want to see how your experience and success can translate into revenues for their company.  Focus on quantitative figures and numbers when describing your responsibilities and projects.
• Be Aggressive. Bring your A Game at every opportunity.  Companies have access to hundreds of high quality candidates.  Use testimonials and references to get your foot in the door.  Don’t wait for your interview.  Connect with company representatives from the moment you know there is an opening but with great care.  Consider your strategy and competition in everything you do.
• Be Creative. A simple resume and cover letter is no longer enough.  Consider coming with a marketing pitch, an idea to promote their product, and presentation to lower their expenses and increase efficiency.  Give them an idea or solution they can’t live without.  Look to your professional network to seek ideas and recommendations outside of your market or industry.  Creativity matters.

**Look for Part 3 of “Dry Powder Market” discussing market strategies and one job seekers aggressive move that got a company’s attention.

Photo Credit Warning Signs Direct.