Major Players Commercial Update - Qu.1 2023

What a start to the year - with rising inflation, record-breaking mortgage lending rates, and the reality of the cost of the living crisis well and truly set in. Despite these challenges, the digital, marketing and creative industries are continuing to hire steadily, however employers and candidates are more being much more considered in their approach.??

The post-pandemic recovery saw a boom in over-hiring with businesses making decisions based on the volume of work faced. This resulted in almost half of businesses (46%) expressing regret of some of those hires during this period, and subsequently, almost three-quarters (72%) of candidates reporting surprise or regret that their new role or company was “very different” from what they were led to believe.?

This has meant that businesses and job seekers alike, are putting each other under the microscope a lot more, which has meant the whole hiring process has become more elongated to allow for a greater period of decision making. The ONS reported a decrease of 51,000 vacancies between December 2022 to February 2023, solidifying that quality over quantity is top of mind right now for hiring managers. Interestingly, we’ve seen that the number of vacancies has remained the same for Q4 2022 and Q1 2023, however, the number of actual hires decreased by approximately 15%.?

The crack-down on quality and business performance is also shining a light on flexible working policies. The mandatory in-office days are increasing across many businesses including reputable tech names such as?Meta, Twitter, and Salesforce. In an article on tech’s evolving attitudes, Salesforce CEO Marc Benioff shares, “I do think that we're going to have a rebalancing, there are folks that are required to be here, whether they are doing core work or need the mentorship or folks coming in from college who benefit from being in the office. we're never going back to how it was.”?

Data from our 2023 Census shows that just over?half of respondents (51%) are currently hybrid with fixed hours workplace policy, however, but only 18% preferred this way of working. Instead, 61% wanted to see their business implement a hybrid with flexible hours policy, thus potentially supporting a more positive work/life balance. This represents a tricky period for employers who are not able to revoke elements of flexibility, but somehow must build collaborative practices, develop inclusive workplaces and support career progression.?

Similar to clients being more considerate, candidates are thinking far greater about their situation, placing greater emphasis on job security. From the ‘great resignation’ in 2021, we’re now seeing the ‘great recalibration’, focussing on how they can re-energise in their current roles, with a core focus on L&D and upskilling. Further supporting this, our Census highted that 95% of respondents in permanent roles considered it amongst one of the most important factors when looking for new roles.?However, as we’ve pointed out – candidates continue to seek flexible working policies, and arguably this makes it’s much more difficult to benefit fully from learning and development environments if remote -?missing out on critical learning and relationship-building opportunities in the office.??

At Major Players,?the teams we’re building in Amsterdam and Manchester are also seeing similar trends with employers and employees alike. In Amsterdam, Joe Faulkner, Country Manager of The Netherlands, highlights that the financial turbulence has affected business, as the tech crunch continues to impact Amsterdam’s scale-up scene. Several high-profile tech-led businesses have pressed pause on non-urgent hires and in many cases, are restructuring. The ripple effect of the global recession has also slowed down hiring across other international enterprise businesses that use Amsterdam as their EMEA headquarters.?

That being said, there are still signs of growth amongst more nascent start-up businesses in the city with a demand for highly skilled creatives and digital candidates. Independent agencies are also hiring for both international and Dutch-speaking candidates; whilst traditional management consultancies that have acquired agencies, or created their own agency function, remain buoyant and continue to bolster CX, creative and digital teams.?

Jess Parker?who heads up our Manchester hub, states that the North-West is the new hotspot for huge business expansion. Across the media, fintech and creative industries, the “North/South” divide is beginning to shift. Businesses are choosing to either lay their foundations here in the North or ensure they have a strong footprint and brand presence. Why? Because what matters to businesses now is innovation, ambitious creative and inspiring talent, aligned partnerships and energy – not just location.?

With the ‘Greater Manchester FinTech sector set to be worth ￡1billion in 2023’, the opportunity for expansion across the Northern region is vast with a 67% uplift in the past 3 years. Whilst it feels the economic downturn has held those purse strings tight, it’s evident that the region is diving in head-first for growth.?

Our biggest Census (formerly Salary Survey) yet will be published next week, w/c 17th April – if you want a copy as soon as it’s released you can request it here. I’ve pulled out some sneak peeks ahead of the launch:?

• Candidates want to align themselves with businesses that are sustainably minded or align closely with their values?

78% of FL respondents said it is important to work with businesses with purpose for them. We are delighted to have attained B-Corp status which is one of many ways business are ensuring they are built for good putting people, planet, purpose before profit. We know that this will continue to be a request from candidates –??If you’d like to learn more about B-Corp and the ongoing journey, click here.?

• Lack of cost of living support reported across the industry?

Nationally, we’re grappling with an increasingly stressful time as the escalating costs of energy bills, groceries, and housing expenses place significant strain on household budgets, particularly for those occupying the lower rungs of the income ladder. A staggering 62%of respondents claimed to receive little to no support from their employer during this time, with many not offering adequate pay rises to match the rising cost of living, financial health support or other emergency support to bolster monthly pay-checks.?

So what now? More and more employers in the Creative Industries are not only tasked with creating outstanding work, and driving consumers to engage with their products in brands in an incredibly competitive marketplace - they are also grappling with huge challenges around the cost of living, support and engaging a cautious workforce.??

In my opinion, now is the time to double down on the basics; showing people that you care, being thoughtful in the hiring that you do and creating talent growth strategies in line with a purpose lead employer brand. Simple right? As ever, if you are interested in discussing any of the above I would love to hear from you– challenges, thoughts or questions are welcome.?

Additionally, If you would like to learn more about the Dutch talent landscape, please reach out to NL Country Manager & Associate Director, Joe Faulkner for more on our upcoming Dutch Census, covering workplace trends, salaries, and career insights in NL. For everything northern talent, reach out to Jess Parker, our Director leading the MP regional hub.?