The difficulties with hiring a less experienced Operations or Middle Office candidate in the current market.

Candidates who fall into the 1 to 4 years’ of experience bracket have always been the most in demand type of profile recruiters are asked to find. This is for several reasons; not only does it give their current team members the chance for career growth by bringing in someone at a lower level, but these potential employees are typically cost effective compared to more experienced hires, have room to build a career within the firm, they should have more youthful enthusiasm to still learn and hopefully don’t come with too many bad habits embedded from other firms.

I have recruited during a couple of recessions, including the turmoil of the financial crisis post 2009, and I can honestly say that in my 18 year career specialising in Operations and Middle Office recruitment, the current market for these types of less experienced hires is one of the hardest and most challenging I have witnessed.

The main issue that we are facing is that most companies are only just starting to run graduate recruitment scheme, potentially the first since the summer of 2019, which consequently means that there is a distinct lack of individuals who fall in the 0 to 3 years’ experience bracket. Whilst CassonX has been able to find those who have that level of experience for many companies, because of the sheer demand for this talent, it means that they are commanding salaries that are indicative of those who traditionally have between 4 and 7 years’ experience. It also means that actively searching candidates have a plethora of job opportunities to choose from, with most of these individuals not wanting to just do the same job in a company just for a little bit more money. This has been the typical hiring strategy for many years. Consider that a lot of businesses will give them the chance to move into roles with an opportunity to develop and learn/do more, deemed more of an “exciting” opportunity than the traditional entry level Operations where they might have trained.

Very intriguingly, in most instances where the lucky few have managed to secure a role within Operations over the last couple of years, their working career dictates that they haven’t even been into the office five days a week and only ever experienced hybrid working conditions. Trying to attract this junior talent is very challenging, so the knock on effect mean that those with 4 to 7 years’ experience are the most inexperienced people that most employers can find available, and making that level of experience very demanding and competitive too. Candidates are demanding substantially more when moving for the same type of role. As example, candidates aren’t moving for a standard 4/5% increase, they are able to command ￡10,000 pay rises with probably rounding it up to the next ￡5,000 marker. And most companies are willing to pay it to attract the talent they want and be competitive.

Trying to educate some potential employers about this current climate and market conditions has been the hardest part of our role as a trusted recruitment partner, especially if they haven’t had to hire for a period of time and seen this recruitment spike. It is also worth highlighting there has be a ton of hiring in the Operations market in the last 6 months, and concequently many previously available candidates are now not available having secured roles. Realistically, there are certainly no large pools of good candidates sitting at home unemployed given the sheer volumes of roles we have seen.

It’s not only enticing that is very difficult, especially if companies can’t offer video style interviews and insist on face to face interviews, but also companies are really struggling with retaining their staff also. I am starting to experience many of my clients talking to me about offering retention incentives and other creative ways they are trying to keep their staff from having their heads turned. Especially as the cost of living has substantially increased this year too. The best advice I have given everyone considering a retention bonus is to make sure that this is on top of what they are already doing, and not, as example, as a substitute to a bonus they are receiving. It is becoming lot more standard in the industry that those working in Operations have a 3 months’ notice period as standard also. Unfortunately this does not fend off interest from other firms though.

Only 3 years ago I recall talking to businesses about people who wanted to only work 3 days in the office, and this was almost laughable. Because of the recent pandemic, the hybrid working model has now become a normality. Can you believe that candidates are now looking for even more flexibility than that! Especially when this is only what they have experienced hybrid conditions with their careers so far.

CassonX have really struggled sourcing talent for opportunities with companies where they want their employees in the office five days a week, or even host interviews in a face-to-face capacity. This is deemed much less favourable?and given the huge amount of opportunities available to candidates, they have quite bluntly rejected the chance to even meet with them given the variety of options available.?Unbelievably, some candidates are now demanding a chance to work from home at every single day of the week, which is not something CassonX agrees with for many reasons - especially for building camaraderie, but is showcasing and indicative of the new working conditions in the modern world that we are working towards.

We are also now passed the period where people are “lucky to still have a job”, and if an employee hasn't been rewarded with pay rises or bonuses, then I can almost guarantee they will be looking for a new role, after committing and remaining loyal during this abnormal pandemic period. Even if they aren’t actively looking, then given the aggressive marketing strategies available on social media platforms, and of course LinkedIn, then I can guarantee they would have received communication from at least one recruiter at some stage offering a golden carrot to leave.

It is very much a candidate lead market at the moment, please do consider how the market has changed over the last year before hiring talent at this level.?

CassonX are very happy to discuss any of this information with those that are looking to hire talent, and how best to be successful in this climate.