Will 10% Unemployment be the New Full Employment? It’s all Interim Marketing Now.

Posted on August 20, 2009. Filed under: employment outlook, employment trends, interim management, Leadership On Demand, On demand executives | Tags: , , , , , , |

With my conservative-realist hat squarely placed upon my shaved head I ask you to consider that the economic environment we are seeing today (August 2009), specifically the unemployment rate, is what we’re going to see for many, many months to come.

I’m not going to be misled by politicians telling me just prior to 2010 elections that the days of  milk and honey have returned.  I know that the shaking we feel beneath our feet isn’t an earthquake; it is the vibration from countless business plans going through the shredder. There is fear and uncertainty in the land, but we must move forward even if on a different path with a different view of our business model.

Our economic world has changed–big time. I’m not an economist so I can’t and won’t talk about what the change means. I just know the business environment in which I need to succeed and help my clients succeed is very different from the one I was operating in prior to 2009.

What does this mean if you are a CEO or a marketing executive?

I believe that companies are going to be more and more reluctant to hire permanent marketers. Instead, companies will look to fill their needs on demand. They’ll augment skeleton marketing departments with interim and contract talent as they need it.

There is too much uncertainty in the land to confidently invest in a strong and capable marketing department. There is too much volatility in the marketing programs budget to justify a fully staffed marketing department. Better to keep fixed labor costs to a minimum and bring in the rock star interims for a few months as needed. No long-term commitments, no health insurance concerns, just the perfect skills and knowledge applied to the opportunity or problem for a season.

In past years, in a different economic climate, a high percentage of executives in the U.S. would scoff at the idea of relying on interim talent in marketing. Those same executives have no choice  now but to seriously consider the interim option. They can’t stop marketing or else their companies will fall prey to the competition. However, they should think twice before burdening the operating budge with a fully-staffed, permanent marketing department.

Here are two sobering stats from The Financial Forecast Center.

They forecast the U-3 unemployment rate in the U.S. to be 11% in February 2010. (A group of economists surveyed by the Wall Street Journal estimated the unemployment rate for December 2010 will be 9.5%.) We’re looking at 10% unemployment for at least the next 16 months, if you wish to belief these sources.

The other sobering forecast is the GDP. The Financial Forecast Center shows the GDP improving from -3.8% in June 2009 to zero GDP growth in February 2010. I like seeing the numbers heading north, but we can’t expect much, if any, growth for the foreseeable future.

Low growth GDP and 10% unemployment is the new business environment for the U.S.

Those who adapt to the new reality will succeed. Those who manage with an eye in the rearview mirror will stumble.

Let me know directly if you’d like to discuss what an interim marketing solution might look like for your organization.  To learn more about interim management within the marketing and sales function check out my book, “Leadership On Demand: How Smart CEO’s Tap Interim Management to Drive Revenue.” It’s also available through Amazon and other online book resellers in paperback and eBook formats.

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5 Responses to “Will 10% Unemployment be the New Full Employment? It’s all Interim Marketing Now.”

RSS Feed for One Riot – One Ranger Comments RSS Feed

Thought provoking post Charles. Marketers must certainly prepare themselves for a change.

Whether it is good for a business to treat marketing in its broadest sense as something that can be turned on and off at will, I would question. Outsource by all means, but to hire an interim manager just for the season feels too ‘stop-start’ to be truly effective.

You’ve prompted me to write my own post on the topic, which I hope you’ll find of interest http://bit.ly/eJNZ0

I’m so glad I found this site…Keep up the good work I read a lot of blogs on a daily basis and for the most part, people lack substance but, I just wanted to make a quick comment to say GREAT blog. Thanks,

A definite great read.. 🙂

-Bill-Bartmann

[…] Let me know directly if you’d like to discuss what an interim marketing solution might look like for your organization. To learn more about interim management within the marketing and sales function check out my book, “Leadership On Demand: How Smart CEO’s Tap Interim Management to Drive Revenue.” It’s also available through Amazon and other online book resellers in paperback and eBook formats. This post has been republished from Charles Besondy’s blog on interim management, One Riot, One Ranger. […]

[…] Let me know directly if you’d like to discuss what an interim marketing solution might look like for your organization. To learn more about interim management within the marketing and sales function check out my book, “Leadership On Demand: How Smart CEO’s Tap Interim Management to Drive Revenue.” It’s also available through Amazon and other online book resellers in paperback and eBook formats. This post has been republished from Charles Besondy’s blog on interim management, One Riot, One Ranger. […]

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    A Discussion of Interim Management for Marketing and Sales Functions by Charles Besondy

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    This blog is devoted to the topic of interim management for marketing functions within large and small corporations. Interim management as a staffing concept is well-understood and widely utilized in Europe. However, here in the colonies we are just beginning to open our eyes to the business benefits of being flexible and nimble when it comes to staffing senior-level marketers. (c) 2006 - 2012 Charles Besondy
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