Tenon

The last 12-15 months have been characterised by considerable uncertainty in the market, with a number of factors contributing.  In no particular order:

General elections – there have been a number this year already, with some important G20 events on the horizon or underway: European Parliament (6th-9th June, US (5th November), UK (4th July), India (ongoing).

Global conflict – Russia/Ukraine and Israel/Palestine are still dominating the headlines, with Taiwan an increasing concern among many others.

Technology layoffs – these have been ongoing, with approximately 263,000 in 2023, and 84,000 so far in 2024 according to Layoffs.fyi.

Recession – UK, Ireland, Japan, and Finland have all been in recession this year and the IMF predicts that approximately 50% of global growth in 2024 will come from the APAC region, with just 18% from EMEA.

The May 2024 report on jobs states the number of permanent placements made in the UK each month has declined non-stop since October 2022, with many organisations limiting spend on recruitment.  The Office for National Statistics (ONS) indicates the overall number of job vacancies sits at 916,000, down 200,000 from a year ago.

The latest inflation data (2.3% for April) is encouraging and should buoy confidence, but a cautious approach is still prudent. 

Our own observations are subjective, but this year we have seen a reduction in hiring at Executive Committee level and one to two layers beneath.  There is less movement, despite the obvious frustration many individuals are communicating to us – lots of appetite to move but a lack of viable opportunities.  A significant proportion of technology leaders we speak to are moving into consulting or fractional work until the market picks up.  For organisations that are hiring, there are plenty of strong candidates available at the moment and any gaps on a CV should warrant a conversation and not simply a knee-jerk response.

It is important to keep an open mind – some of the most impactful hires will often be the left field candidates or the ones who have tangential sector experience but will help innovate and transform in ways your organisation hadn’t considered.  Given that any candidates you interview should already have the right technical skills, your assessment should focus on the cultural fit and style, how well they will fare within the broader structure, and their appetite.  A significant proportion of experienced functional leaders that we work with have often made cross sector moves, and many now cite “the willingness to learn” as a crucial factor when they are hiring.

How can you prepare?

• Determine your hiring needs for the next 6-12 months and engage with the market in advance of a formal requirement.  Staying ahead of the talent market will be to your advantage.
• Be clear with any internal stakeholders about specific requirements when hiring and where there is flexibility.  Moving goalposts introduce unneeded uncertainty.
• Work out a process for recruitment and subsequent onboarding before you go to market.  Even an indication of interview stages, stakeholders and format is preferable to working it out at short notice.

If anything is likely to put candidates off during a process it’s lack of transparency, poor communication, and an unclear process.

Please get in touch if you’d like to discuss any of the above – we strive to support our clients and candidates at all stages of a process and believe that the best outcomes are achieved through strong partnerships where there is trust, transparency, and effective communication.