Enjoy Some Summer Reflection

?As we come into the summer holidays, some businesses may see a plateauing as the stock markets and governments take a little bit of breather from their tumbles of recent months, we are seeing a lot of reflection and projection.

We are seeing a lot of reflection on how good the markets have been, the month-on-month, year-on-year growth in the recruitment industry and projections on whether or not markets will fall in terms of recruitment. Also, whether the drive for talent will continue and whether or not funding will become more difficult in the future, slowing expansion.

Inflation is obviously playing a part in terms of rising costs, rising salaries and rising charges to be passed onto the clients, but can this be sustained?

Well, we think the market is still strong and will stay strong. Even a plateau at today's levels is still better than last year, the year before and the years before that.

The HR & talent tech market is on fire, and so must be recruitment confidence to invest so heavily!

With my own recent, personal experience – of market due diligence since the sale and my exit from Sourcebreaker – the sums being invested are huge.

HR Tech has been super resilient. In 2021 venture investors funnelled more than $12.3 billion into HR tech startups, roughly 3.6 times the amount invested in 2020. All according to PitchBook data. The trends continued in 2022. Mega-deals ensured more than $1.4 billion were invested in the sector in the first two months alone.

We have seen so many RDLC members outperform the market, with several in the top 50 fastest growing companies.

The employment market is strong and has remained at the highest levels since records began. Moreover, inflation and rising rates don't seem to have dented the recruitment space.

Although the US and Canada have seen a drop in mortgage applications and house prices, the UK has remained strong; house price growth has been 13%, the highest level since 2004. So, at worst, expect a correction, not a crash.

Whether or not we see a downturn, a correction, an upturn, or a bounce, all you can do is stay on top of your business plan and cash flow and make sure that you are agile should things change. The best businesses I've ever seen and worked with have been agile coming out the back of any slowdown of any kind because they are first out of the traps while others sit on their hands waiting for someone to shout GO!!

Not in the RDLC, our members will be sharing ideas as they holiday, giving each other business and sector updates and the best approaches to changing sentiments.

?Find out more about the RDLC network: https://www.rdlcpirates.com/