HR Market Update
The economy was the main story for this year, with the triple effect of record inflation, record interest rate hikes yet at the same time, record low unemployment rates. These macroeconomic forces resulted in knock-on effects in the HR space, with some sectors like tech coping with high-profile layoffs, usually with quality Career Transition and Outplacement programs included as part of the package, while other sectors struggle to find good people.
As we close out 2022 and look ahead to 2023, with inflation potentially abating, these are the trends we are seeing in the HR space:
Levelling Up Your Talent
Despite layoffs in the tech sector, there is still a shortage of talent in many non-tech industries. This presents a unique opportunity for organizations to update their bench, as those who were displaced in tech are now open to working in non-tech industries. We’ve connected with and identified strong talent in HR, Finance and many other disciplines that can bring to your team the innovative thinking, best practices and process-driven rigour which are hallmarks of tech companies. What’s more, as macro-economic pressures potentially lose steam, we anticipate that the rising cost of talent will flatten to historical norms as we go through 2023. Reach out to Joanna Kelly, our VP of Recruitment Solutions to learn more.
The Leadership Crisis (and Opportunity)
One theme keeps appearing in our daily discussions with HR leaders and in polls that we have conducted to gather insights into the key concerns of HR professionals. There is a gap in leadership in many organizations. The Great Resignation contributed strongly to this gap, as did the high levels of retirement of leaders within the baby boom generation. In some cases, organizations have identified their new leaders through succession planning and/or new leaders have willingly stepped up. It’s clear that more leadership development still needs to take place. We would also observe that there are talented individuals who for many different reasons are hesitant to step into a leadership role. With this in mind, we are excited to have Dr. Liane Davey of 3COze as our featured speaker for our complimentary January Top of Mind webinar to address this important topic.
Now more than ever it’s important to strengthen your network. It’s been said that your network is your net worth. We encourage you to check out our Senior HR Peer to Peer group for HR leaders and Executives on the Move group for VPs and C-levels looking to make a move.
Speaking of which, we are seeing a lot of movement in Senior HR Leaders (VP, CHRO/CPO level). What’s most interesting is these are lateral moves into different organizations rather than moves up. There are various reasons for this which we’re happy to discuss.
Finally, we at The Talent Company want to wish you a safe and wonderful holiday season. 2022 was an interesting and exciting year and we are sure there will be more of that to look forward to in 2023.
How do you plan to navigate compensation in this uncertain macroeconomic environment? Are you ready to respond when opportunity knocks? Do you want to invest in your people for a greater return? We’re here to help. I invite you to book a quick 15-minute chat and let’s have a sounding-board conversation.
Greg Vertelman, Chief Growth Officer and Career Transition Practice Leader