Anywhere but the middle

I had a really interesting conversation the other day with someone far more intelligent than me – one of the many benefits of my job. We were talking about consumer behaviour during downturns and where firms need to be positioned and their argument was “anywhere, but in the middle”. If you take food retail, I think most people would say the current environment plays into the hands of Aldi and Lidl well. The LMVH share price is up circa 51% in the last year and 177% in the last five years – just because growth is slow in Europe, it isn’t everywhere, and there’s a lot of wealth in the world unaffected by inflation.

What’s this got to do with the world of recruitment? Well, we feel there’s more hiring going on at junior levels and senior levels than in the middle. Why? Financial services had a tough 2022. Asset Managers really struggled in 2022, M&A was very quiet, and VC slowed at the end of 2022. What we saw after the financial crisis was a “juniorization” of roles. The rationale is that you replace a leaver with 15 years’ experience with someone with five and all will be well. In some instances, of course it does work well. On the whole though, it’s in the difficult times you need people with relationships, experience, and judgement, and often these things get better with experience. You will also see strategic hiring at a senior level when boards feel they need new skills for the rapidly changing world we’re in, or shareholders feel leaders have run out of ideas. You can be a great CEO, but the person for one phase of a business’ journey isn’t always the same person needed at the next stage. However, the current market can leave those in the mid-ranks of their career frustrated. Experienced, knowledgeable, but few places to go, and therefore the key things to remember are that all things pass and you’re not alone.

In the last couple of weeks, we’ve seen some real “green shoots”. Feedback that M&A is looking a little better, VC’s feeling positive, and our lending focused clients still robust despite rising rates. We are though seeing more and more standoffs over remote/hybrid working. Firms are definitely now wanting teams back in the office more. I don’t think we’ll go back to where we were pre-pandemic in most cases, but job seekers are still holding out where they can for flexibility. I completely understand why, and if I had a long commute I would too, but the pendulum has swung back in the favour of firms, who want people to contribute in-person. All sides need to show pragmatism and balance whilst we all find our feet on what the accepted “norm” is.

Firms also need to ensure they protect their brand during quiet periods of hiring. Actually, I think that of all the many reasons firms outsource their recruitment, this is often an undervalued benefit. In boom times, an established recruiter/headhunter/agency/executive search firm (or whatever people brand themselves as – recruiter down the pub, headhunter at dinner parties - or sometimes best to say nothing), can help lesser-known firms establish their brand with their peers and in the market. In quieter times, firms often become really bad with candidate feedback. We’ve all looked for a job at one time or another, but it doesn’t stop firms becoming less communicative. Equally, whilst I know why firms implement applicant tracking systems (ATS), if the constant stream of complaints we hear is anything to go by, they aren’t popular with candidates. Hard to navigate, and general making you feel like a number, automated processes can make a job search impersonal. Despite best efforts, we all sometimes fail when it comes to candidate experience, but when firms outsource there is at least another layer between them and the job seeker, thus freeing up their time, cashflow, resources, and, in this example, protecting their brand.

Another topic we’re asked a lot about on our travels is AI. When you take to extreme levels, it becomes quite scary. How can we replace so many jobs so quickly etc. However, of those I speak to about their own role, the general consensus is that it will just be an aid, another tool to aid productivity. The adage of “people do business with people” is challenged in many doomsday scenarios, but I still think it’s true. Indeed, I mentioned above that if it was possible in an ideal world you wouldn’t use automated recruitment process, as people want to speak to someone. I think AI is an area that’s going to be hard to regulate, as you’d need a global consensus, which often seems impossible on any subject. Therefore, I doubt we can change the trajectory and so we will just have to see. I really enjoy the relationship side of my business, and meeting people post-pandemic is a real treat, the idea this could be diminished is sad.

We’re always keen to meet new firms, new candidates, and to grow our business. We’re also planning more workplace learning events and so please contact Fiona Wallace at: [email protected] if you’re interested in being kept informed about these.?