Market Insights and Trends
Q1 Review
The first quarter of 2023 has been slower than expected in terms of recruitment volume.
This is not surprising as many organisations are still experiencing change fatigue, burnout and are looking for stability. Macro-economic factors are adding fuel to the fire with a stronger emphasis on controlling costs.
We can expect these pressures to continue to flow downstream and create pause in the market. We are already starting to notice the restructures and redundancies coming through.
Recruitment Activity
Recruitment activity should remain consistent for the rest of the year, albeit lower than 2021 and 2022.
The majority of the current recruitment activity is at the Manager and Senior Manager levels (circa $130K to $190K. This is expected to continue through the year.
What about supply?
We can expect a larger pool of candidates given the cost cutting environment, however, the
majority of these candidates will typically be more expensive than the roles currently being recruited. The Senior Manager level is likely to have the most stock due to restructures and
redundancies along with generally high attrition rates. Additionally, there will be more experienced and expensive candidates willing to be negotiable with remuneration due to the scarcity of roles the next level up.
Shift to Fit for Purpose
With organisations having to do more with less, hiring managers will look more closely to ensure candidates are fit for purpose. This will translate to a greater emphasis on "quality" as well as ensuring motivations for taking the role are aligned.
There is greater awareness of the impact of getting it wrong.
Key Challenges
We believe some of the key challenges for the rest of the year will be:
Ongoing fatigue and burnout
Constant change from macro-economic factors to digital disruption, AI, changes in business models, team structures, leadership, etc will continue to test the adaptability and resilience of risk and compliance professionals.
Doing more with less
As the purse strings are tightened, risk and compliance professionals will continue to be stretched. Does it feel like you have always had to do more with less?
Retention of top talent
Disruptive business environments along with ongoing fatigue and burnout will lead to top talent considering new roles.
The majority of candidates are falling into two groups:
1. Forced change: We believe this group will continue to grow as the year continues and organisational changes come into effect i.e. changes to role responsibilities, reporting lines, changes in management and redundancies due to cost cutting and/or restructures.
2. Cautious: With the extent of change, candidates are looking to bunker down and wait and see. They are still passive in the market and will only move fi the opportunity is right.
Growth of the Resilience Profession
Business Continuity, incident and crisis management are continuing to have an increased focus from boards and management. We can expect an increasing number of opportunities in this space. We are also starting to see Risk and Resilience more commonly used as position titles.
Hybrid resourcing
For smaller and mid-sized businesses, hybrid resourcing will start to be an attractive resourcing option due to limited budgets and headcount and the inability to match price (at times).
The rise of the mid-tier and boutiques
We have all started to notice the rise in individual contractors and boutique specialist consulting firms come up in the last circa 3 years. These firms are providing organisations and leaders a cost-effective offering that compliments current resourcing models and/or technical skill gaps. This will further contribute to the growth of hybrid resourcing.
ONE SIZE DOES NOT FIT ALL.
PX Resources is a specialist in governance, risk management, audit and compliance recruitment. We take an advisory based approach to recruitment and we work closely with clients and hiring managers to provide fit for purpose recruitment solutions. We have the experience, market context and networks to source and deliver the best talent.
In addition to recruitment and search services, PX Resources partners with specialist consulting firms to provide you with tailored governance, risk and compliance solutions.
Contact Us for a confidential discussion.
