About 5 or so years ago I was sitting in a university dorm room chatting with one of the senior guys in college about a vast range of different things.
He poured us both a glass of scotch and being a young, fresh-faced and naïve 19 year-old I slowly sipped and cringed my way through the drink telling him how nice it was and how “I don’t mind a glass of scotch occasionally”, even though I couldn’t stand the taste of it!
Me being 19 and only a few months into my university life and him being four years my senior, I listened to a lot of his opinions and assumed he knew what he was talking about. I now realise he was only about as old as I am now and more than likely knew as little about the grand scheme of things as I do at the moment. We talked about our game of rugby from the weekend, what assignment we had but hadn’t started yet, college politics (and federal politics with him being a staunch Nationals supporter as was my father) and finally we came to a topic I knew next to nothing about; the stock market and share trading. One thing he did say to me which I remember and thought was quite smart, albeit fairly obvious was “…you need to buy when others want to sell and sell when others want to buy.”
It made a lot of sense especially since I loved Economics from High School so I related everything in life back to demand versus supply. If people really wanted certain shares they would be in high demand and people would be willing to pay more for them, so you should sell yours and make a profit.
On the flip side, when things aren’t going well and people are eager to offload shares they will be willing to sell them at below market value or below what they bought them for so if you buy them cheap you can make money out of them in the long run.
Easier said than done.
Recently I’ve been looking at the job market and couldn’t help but see some similarities in the theory. At the moment there are countless companies, teams, divisions and/or organisations that are making large scale redundancies or headcount reductions. A lot of managers don’t want to make these changes and don’t want to let these staff go. We know this for a fact because a lot of our clients will call us with the names of their staff members and tell us that they are very good and that we should get in contact with them.
Here is where my thinking comes in; if you’re a company out there at the moment that is in a stable position (i.e. a reasonable bank balance, good cash-flow and a healthy pipeline of work), why not take this time when other companies are selling to look into a market brimming with exceptional talent and see if you can buy to make a profit in the long run? Why not look at bolstering your current team by bringing in someone with more experience or a higher level of technical ability to get more out of your current allocated head count?
You may be sitting there thinking that your current team is fine and you are meeting your boss’s expectations but imagine if there was a gem of a candidate looking in the market right now who could help you to exceed your boss’s expectations, wouldn’t you want them on board? Or maybe you would prefer that one of your competitors took this opportunity to get ahead….?
Isaac Dufficy – Senior Consultant