Dotcom recruiting isn't what it used to be. Gone are the days when recruiters easily sold candidates on the hottest new B2B upstart or a revolutionary e-tailer. These days, with doors shutting faster than you can say, "Boo.com," recruiters are feeling the pain of the dotcom shakeout with everyone else. So what does that mean for recruiters and the past, present and future of hiring in the Internet space.

Yolanda Cox, corporate recruiter for Match.com based in Dallas, has seen the Internet space go from being the place where everyone wanted to be to the place where everyone was scared to go. "We're lucky that Match.com is profitable and already part of a publicly held company. I can't imagine trying to recruit for a company still in the funding stages. They are the ones who will have the toughest time getting good candidates, because the market isn't supporting the idea that employees can all get rich off of the IPO," she says.

Teresa Winstead, a recruiter with the New York- and Los Angeles-based Interactive Resource, agrees. "Many jaded dotcom employees are shying away from the recent startup syndrome. They are more prepared this time around. They want to know the executive management and details on the financials, exit strategy and timeline." Basically, it's a harder sell, but ultimately, both employers and employees may end up in a better, more stable working environment.

Candidates that were once swept up in the get-rich-quick hype are now learning that it's not all about stock options. In fact, overnight millionaires are, in most cases, a thing of the past. "Candidates are no longer seriously considering stock options; cold hard cash tends to be the draw," says Winstead.

So, how can dotcoms compete in these shaky times? Barry Mills, national recruiting director at Atlanta-based Matrix Resources, says that to recruit competitively, dotcoms have to be more creative and cater to the younger and more culturally diverse work force. "Gen X and Gen Y are more inclined to consider the hip and fast pace of the dotcoms versus a corporate, more bureaucratic environment," he observes.

Because of the backlash, candidates might be lulled into thinking the competition for jobs has eased up. But that isn't the case. Although the hiring pace has slowed, the demand for experienced workers -- especially those with long-time industry experience -- is still great.

"Dotcom hiring is still strong, but not at the frantic pace of a year ago," says Mills. He points out that while two years ago, a hire might have been made from only a resume or phone interview, today the screening is much more thorough. "As the dotcom industry is becoming more mature, the HR and purchasing departments are now more involved in the hiring process. Dotcom positions are more attractive to less-experienced candidates because those companies are more willing to consider a candidate with technical training and less experience," he says.

The Not So Bumpy Road Ahead

Recruiters seem to agree that the shakeout is beginning to stabilize, and they are optimistic about the future. "The future will be full of wonderful new Web-based applications that will require an endless supply of dotcom talent," says Mills. "As one dotcom folds, the displaced employees will scatter. Some will join more mainstream corporations, and a few will go out to start their own firms thus perpetuating the truly capitalistic nature of the information technology marketplace."

For now, however, Paul Villella, president and CEO of HireStrategy in Reston, Virginia, is cautious about the immediate future. "Many candidates will find it more difficult to find new jobs in the next few months. They are having to change their career strategies, often going back to basics, such as brushing up on in-demand skills and more networking. They're often no longer looking to move on every 17 months but are choosing to settle into more stable, longer-termed employment… We expect to see a decline in turnover as the economy goes through this period of adjustment."

Many believe that B2B Internet companies having a strong future. Others argue that networking and wireless companies will be where it's at. The specific skills that are still in demand, include Java, C++, Oracle, UNIX, networking and data warehousing. In addition, B-to-C or B-to-B application development and skills pertaining to wireless development are also valuable. "The people who actually develop Web-based applications, such as Java programmers and Oracle DBAs, are still in very high demand," observes Villella. He says that experienced sales, finance and accounting professionals and senior-level executives, such as CEOs, COOs, CFOs, CTOs and CIOs, who can step in and run startups and emerging growth companies are needed. "For executive positions, our clients are demanding a higher level of experience than they did a short time ago, but there is still a need for that talent."

In the short term, the dotcom shakeout will challenge all involved parties: recruiters, companies hungry for talent, and the job seekers who are hanging tough despite uncertainty. This is still an industry with tremendous growth potential and a bright future. One truism that you might want to bear in mind: The one constant in life, and certainly in the workplace, is change.