As we navigate the fast-moving landscape of the hiring market, it becomes evident that economic factors are having a huge impact on hiring trends.
As a supplier to industry for over 15 years, the last 6 months have been one of the quietest we have seen as far as working on new roles or companies investing in hiring. I don’t think anyone can argue otherwise. Clients have been carefully considering their next move, with a number just consolidating, treading water, watching. Waiting.
Start-ups have been hit with high interest rates, VC’s not wanting to spend money and the natural ripples that occurred post SVB. People just are not investing as they once were.
There is a natural concern that comes from perceived silence of hiring rounds within businesses BUT there are green shoots. Even though interest rates continue to rise, there seems to be a mid-Covid feeling of, ‘well this is what it is now, let’s be careful… but move forward.’
One candidate sided impact I am noticing is an increase in salary expectations to move roles. Interest rate increases mean mortgages and living costs have gone through the roof, I am noticing candidates are focused around making a move work for them financially. Historically, this is a central reason for moving but it is becoming much more of a focus, or a core driver from an inability to sustain current lifestyles.
When interest rates are low, borrowing becomes more affordable, encouraging companies to invest in expansion and innovation. As a result, businesses may increase their demand for technical talent to spearhead technology-driven initiatives and stay competitive in their respective industries. Something I think we are all holding our breath for!
Conversely, as we are seeing at the moment, higher interest rates can lead to reduced borrowing and curtailed capital investments by businesses. In such an environment, large companies may become more cautious in their hiring decisions, particularly for positions that require substantial financial investments in the form of salaries, training, and tech infrastructure.
The post Covid flexibility of co-working locations and WFH are here to stay, although there is a cultural push to all be together, rising through the market. There is also a very sensible acknowledgement of role and office requirements are not a one size fits all situation. A technical Project Leader is going to gain a huge amount more from meeting people physically than a Developer in the midst of a build.
From a candidates perspective, there is still an expectation of being able to make a midweek appointment or pick the kids up, but a more sensible approach should be taken. Applying for a role in London when living in Devon might not be the best idea if you need to be in the office 2 days a week. Please don’t be annoyed if the company ask you to be present – it’s the culture the business wants to build, and that’s really up to them. Just make sure you apply for a company that fits your wellbeing as well as skillset.
There are certainly green shoots appearing and hiring is starting to occur again. Let’s stay positive and be thankful that those green shoots are showing and growing whilst remaining resilient during these tough times, as they will pass.
Thornton Gregory are here to guide you through this cycle and provide hiring strategies that work with corporate strategy to provide solutions to resourcing issues or just reassurance we have seen this before and will get through it.
Either way – reach out.