Working for Free in Today’s Economy: Dedication or Desperation?

Not too long ago, job candidates were in a position of power: we had a “war for talent.”  Many companies were looking for creative ways to recruit the best of the best by offering “freebies”…free food, free vacations, free country club memberships, free day care, free gym memberships, free movie tickets….you name it.

The tides have shifted.  In today’s recession the very same companies that were providing lavish incentives are now asking talented employees to work for free. Yes, free.  This concept may seem outrageous to some but judging by the large number of individuals eager and willing to participate, employers are now holding the position of power.

How Are Today’s Companies Recruiting Employees to Work for Free?

• Jobnob: This salary board is now offering regional “happy hours”, a way for unemployed to connect with employees and well, work for free. Startups spend a few hours and a few bucks buying drinks for potential candidates and then offering them 5-10 hours of work at their respective companies. The first event had over 300 people. John Gray, blogger for the Wall Street Journal, refers to this as “prelancing”. He attended and was even recruiter by Jobnob to work for free and enhance his online marketing skills.

• British Airways: As airlines continue to lose revenue and cut jobs, it has asked 40,000 employees to work for free for the month of July. Leading this effort is BA’s Chief Executive, who will forgo his $100,000/month salary next month. As British Airways is learning, it is one thing to ask job seekers actively looking for opportunities to work but to ask current employees currently receiving salaries is a different ballgame. While a few hundred employees have volunteered to follow this request, the majority would prefer unpaid leave or part-time work.

• Google: A company that at one time offered many of the free perks listed above, Google is now asking illustrators to work for free. Unlike British Airlines struggling to stay afloat, Google can actually still afford to pay its employees. So, why would a quality candidate want to work here for free? Many job seekers are thrilled at this opportunity to not only work for the search engine mega-monster but also to build their skills, contribute work to a thriving company and to feel a sense of pride and social status.

What Do Recruiters Need to Know?

• Just because recruiters are now eliminating the cost per hire factor when does mean they should eliminate their recruiting best practices and processes. A poor hire will still reflect negatively on the company brand and overall productivity of the company. Recruiters need to still treat these employees with the same attention that they would hires receiving compensation.

• Despite massive layoffs, companies are suffering from talent shortages in technical and managerial positions. As many job seekers are looking to change careers, working for free might help to build certain skills and ensure a job in the future. According to Bersin & Associates’ TalentWatch report published in Fall 2008, the greatest talent shortages exist in the areas of:
-Line managers (43 percent of organizations cite severe
or major shortages);
-Executive positions (34 percent of organizations cite
severe or major shortages); and,
-Engineering and technical professionals (cited by 42
percent of organizations, with 14 percent stating their
shortages are urgent).

• What will this mean when reviewing resumes in the future? Does it lower the value of the person’s work or is it seen that they are ambition? Recruiters will need to consider the factors motivating these job seekers to work for free. For individuals such as John Gray, it presents an opportunity to build knowledge and create a new career path.

While this concept of “prelancing” might seem like a tough sell for many recruiters, job seekers are responding favorably. JobNob and Google are seeing a large amount of interest from individuals looking to build skills, self-esteem, and also, create future opportunities. When the economy begins to recover and these prelancing experiences begin to pop up on resumes, recruiters should consider the individual and in most cases, recognize them as a sign of ambition and dedication rather than desperation.  And from the standpoint of a job seeker, working for “free” may be one of the most valuable career internships you can find.
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