SAN FRANCISCO (CBS.MW) -- The way you treated your co-workers could mean the difference between getting hired and getting rejected in a job search these days. It's no longer who you know, but how you get along with them that counts.

Good interpersonal skills are key to landing a job and making a successful career switch in a rough economic climate, said Dr. Michael J. Willis, a Syracuse, N.Y.-based career management consultant.

"What people overlook the most is developing interpersonal relationships with your customers and co-workers," said Willis, who works with individuals transitioning from one job to another.

High on the list of what employers also are looking for are self-management qualities, planning and organizational skills and the ability to make efficient use of time.

Pursuit of continuing education is also a key to success, Willis said. "Read a book, take a class, get another degree. Prudent employees are always looking ahead to see what kind of skills they might need in the future."

An area where employees can't afford to lack "people skills" is the financial services industry, which is poised to do extensive hiring this year, according to several executive recruiters. See related story.

Although solid analytical and number crunching skills are vital for financial planners, the ability to connect with people is what Donn Sharer, vice president of financial planning for MetLife (MET: news, chart, profile), looks for first in potential employees.

"The investment and insurance products we sell are commodities, but what people really hire us for is our guidance," he said. "We're looking for people who can sit down and help clients sort through all the issues that they face."

It's also important that employees recognize when they're victims of "negative self-talk" -- telling themselves they're not good enough to get the job -- or sending subtle negative messages to potential employers, said Scott Ventrella, author of the book "The Power of Positive Thinking in Business: 10 Traits for Maximum Results."

"Pessimism, lack of confidence, that all comes through in our speech or in mannerisms," he said. "Employers tell me they care most about attitude, creativity, taking risks and the ability to bounce back in an uncertain work environment."

Different mindset

Executive recruiters and industry analysts expect companies to start hiring again in 2002 after cutbacks last year, but the hiring mindset won't be the same as it was during the late-1990s boom.

Now with resumes stacked high on employers' desks and stock options not the lure they once were, recruitment firms said the playing field has been leveled. Companies are more selective in hiring the right person rather than the "right now" executive.

"Companies are becoming more demanding," said Steve Zales, president of Spencer Stuart Talent Network. "They're not willing to accept the first semi-talented individual to walk through the door."

If you're already out of work, don't spend all your time looking for a job, advised Smooch Reynolds, CEO of The Repovich-Reynolds Group, who wrote the book "Be Hunted! 12 Secrets to Getting on the Headhunter's Radar Screen."

"We are in a very rough era and one of the things I encourage people to do in times like this as they navigate their next job is to spend two-thirds of their time conducting their job search and one-third of their time doing freelance work," she said.

Consolidation

Widespread consolidation, in technology especially, is also changing the way companies recruit employees, according to Mark Jaffe of search firm Wyatt & Jaffe.

"Companies are saying that we don't want six VPs populating our marketing department. We want two that can wear many more hats," he said. "The trend is toward being more versatile than more specialized."

Companies are now asking themselves how much they spent two years ago to gain a human capital advantage and how much that's worth to them today. "They spent huge amounts of money to get specialized individuals and to populate companies that weren't very successful," Jaffe said.

The exuberance of recent years caused some companies to fill top positions with not necessarily the best person.

"What went wrong last year and the year before is I think we fueled a lot of growth but we didn't have experienced, savvy leaders to carry it through," Jaffe said. "You have a lot of broken pieces out there now.

In the dot-com hey day, venture capitalists were putting pressure on search firms to hire candidates as quickly as possible, regardless if the person was the best fit, said Joseph Daniel McCool, editor in chief of Executive Recruiter News.

"The preference now is for a more seasoned, experienced and frankly, older candidate rather than a young, fresh dot-com face," he said.