Hiring Someone Who Was Previously Fired/Laid Off

Stuff happens, sometimes it’s their fault and sometimes it’s out of their control. Call around and get a sense for their reputation in the market. If they are an asshole or uncoachable, that’s a red flag. If not, I guarantee they will be hungry to show you their value.

This idea laid off workers are tainted is outdated. On a long enough timeline, we’ll all be affected at some point.

In this market I would not hold it against someone for getting let go. Shops aren’t making money in this environment and many are lowering headcount to survive. 

 

You want to know if it’s easier to find a new job when you’re employed vs unemployed?

WTF do you think is easier? Jesus.

In dating, you're more likely to be attractive when you're in a relationship vs single, same applies to recruiting

In theory, those who say it’s not a big deal are right to some extent. People understand that layoffs happen, especially in this economy. The problem is that in today’s job market, where every opening attracts hundreds of applicants, many of them very highly qualified, being unemployed can easily push you out of the running. You might make it through a few interview rounds, but in the end, it’s often easier for companies to choose someone who’s already employed, especially in junior recruiting where the differences between candidates are small.

Another big issue is that the longer you’re out of work, the more you start to look like “damaged goods” in the eyes of some employers. There’s this flawed perception that if you were really good, you’d already have found another job. Some recruiters won’t even give you the time of day once they learn you’ve been laid off.

Speaking from experience, I was laid off due to the bad market, had glowing reviews from my previous employer, and what I thought was a strong resume, but it still took me almost a year to get hired again (the job I got had 2k+ applicants). A few headhunters stopped working with me after finding out I was laid off, and the dynamic in some interviews noticeably changed once it came up, even though my resume clearly showed I wasn’t currently employed. Of course, others didn’t care and simply shrugged it off.

Still, I recognize how tough it is from their side. When you’re one of the final candidates, being unemployed can be a hard story to overcome, especially in this market. When the final round is 3 kids with super solid gigs/resumes, and then there's you, who is unemployed, who do you think they are going to choose? Can you blame them? And you can’t overlook the mental side of it either. It’s far more stressful to interview when you really need the job or when it’s the only thing on your schedule all day/week. It is infinitely easier to get another job if you have a job. I don’t want to sound alarmist, but I think a lot of people overlook how difficult it really is to land a job, even when you already have one.

This is a wild thought.  For most situations, who cares?

If a potential candidate was fired from their last job for assaulting a colleague, obviously that person isn't getting hired.  Far more likely is that we were laid off because of conditions not related to their job performance.  Or for culture/fit reasons.  Or because their boss wasn't the brightest or was difficult to get along with.

Part of being a manager is hiring good people and bringing out the best in them.  I always think of that Mike Tomlin quote (I think it was him) which basically said that coaches who complain about QBs who aren't "coachable" are revealing something more about their own capabilities than the person on whom they're commenting.  Peyton Manning doesn't need a coach.  Coaches get paid to nurture and help develop and bring out the strengths of non all time greats.  Same thing here.  With the obvious exceptions aside, a good manager should be able to get good performance out of most competent candidates.  At that point, someone who has been laid off may actually be a better hire, in the sense that they can be had more cheaply than an equally talented person, but one without the scuff on the resume.

After years in this industry I recognize that there are many many awfully ran piece of garbage shops out there with managers who don't know ANYTHING and just wing it. I would not judge a candidate until I learned more about the situation and their direct report, tbh. 

Otherwise it's just figuring out if they have the technical skills to do the job. People put way to much emphasis on fit in finance, and I think this will go away now that the industry is so efficient. You can't just wing it based on feelings and determination in this industry like you could in the 80s.

A few different questions from OP and many thoughtful responses above.  

Two things can be true at once: an employed candidate is more attractive than an unemployed candidate AND a layoff (in this environment) isn't an indictment of the employee.  

If the OP is more broadly seeking advice: if you think you're in line for a layoff in next 24 months, the time to start job hunting is now.  

Would you hire someone who had previously worked at Lehman in 2009? 

I’m sorry I’m triggered and I have to go in. This post is just another example why hiring is broken. Have you not been paying attention to what’s been going on the last few years in the world and specifically our industry? Interest rates rising, 5% in one year. Tariffs that have thrown construction budgets out of whack. 

You’re obviously not feeling a candidate, so stop making excuses and just hire somebody that you feel is qualified or vibe with. God forbid you have to train the person a little bit. Which you’ll end up having to do anyway because there is no standardization in our industry at all. 

If the person has shown the ability to learn quickly, and is personable give them a chance. If not, don’t come on here with your narrow minded views about hiring. I swear, half the people in our industry are only in leadership because of family connection or having some sort of first mover advantage. END RANT.

Being laid off isn’t the red flag it used to be — especially in this market. A lot of great analysts have been let go due to downsizing or restructuring, not performance. If a candidate owns their story, explains the context clearly, and shows strong technical and cultural fit, I’d absolutely move them forward. Most hiring managers care far more about attitude and skill set than whether you’re currently employed