What we are seeing in the UK talent market in 2022

As a provider of a range of research-based advisory services, there is a question we are commonly asked by our clients… ‘What are the key issues impacting on the current market for senior management and leadership talent?’.

Based on some of our recent senior recruitment and remuneration advisory assignments we’ve noticed some trends and are able to provide a clear understanding of current affairs in the UK talent market, and actions clients can take towards securing the best talent.

A candidate-led market

Many sectors, such as tech, healthcare, manufacturing, and sciences, have firmly become a candidate-led market.   The supply is the candidates, and the demand is the clients. At the present time, there is far too much demand (vacancies) and not enough supply (ideal talent) to fill that demand, this vastly changes the way that clients must operate in order to not only attract but retain talent within their business.

We are having to research and target the best individuals we can find, most of whom are not actively seeking a new role at the initial point of contact. This means that the reward package, amongst other aspects offered by the client, must be compelling enough to divert talent towards them. Swift action must be taken to effectively locate and secure talent and those looking to find talent must be ready to act on changes in the market as and when they appear.

A candidate-led market is not necessarily a negative in itself. Whilst it does mean that clients will need to closely monitor several their company traits and offerings, such as reward/benefit packages, company culture, business ethics, policies it also means that candidates that come forward are more likely to decide on a role that aligns better with their goals, values, and career progression.

Steps to stay ahead

Whilst the market will remain extremely competitive for the foreseeable future, there are steps that can be taken to help in securing and retaining talent. We need to develop, in conjunction with our clients, a very clear and compelling proposition to take to candidates around what the role is expected to deliver for them and most importantly, the career development opportunities it represents for the candidate.

The client needs to have an unambiguous storyline as to where their business is going, allowing candidates to understand if that fits with their current skills and goals, as well as highlighting the direct impact the individual must make, and a clear picture of the reward/benefits package that is to be offered both now and down the line as they progress in their role.

This is not just an ‘in vogue’ expression, but candidates are now, more than ever, very keen to understand the culture and values espoused by the prospective employer. During the interview process the client must have a clear understanding of their company’s values to be able to convey this effectively to candidates. This is something that could benefit from being scripted to ensure that key details do not get omitted or misunderstood when conveying them to a candidate.

This is especially important now that candidates have more choices than ever when choosing an employer. Current employers are well aware of the difficulties in replacing senior staff will often counteroffer in order to retain the talent they have. To combat this clients need to emphasise the ‘Why join us’ message well before the closing stage of any candidate selection process.

As the UK economy changes employers will need to have a good handle on the market when it comes to management remuneration and reward which, recent cost of living increases aside, is tracking heavily upwards in many sectors. Employers without an understanding of the market will fall short of offering appealing rewards which will see a substantial impact in their ability to attract talent.

It is also worth considering the possibility of ‘Working-from-home’ arrangements, if applicable to the role. The 2020 Covid-19 pandemic saw a surge in employers offering WFH to their staff, whilst many businesses have slowly been bringing their staff back into the office, WFH seems to be here to stay, with many candidates favouring its benefits as opposed to a fully in-office position. This is something that should be addressed clearly at an early stage of the interview process.

Conclusion

Employers face many challenges as part of the candidate-led market we are seeing but overcoming these challenges can reap valuable rewards for both the client and the candidate. To ease the burden of these challenges, it is more important than ever to consider partnering with the right advisors to ensure an offer is valuable enough to attract and retain talent for the future.

At Henley Insights Group, we bring together a cohesive grouping of specialist businesses to provide a comprehensive range of research-based services for corporate clients. Whether that be for Executive Search, Talent Intelligence, Commercial Insights, Pay & Reward Consulting or M&A Targeting, we’re fully equipped with the right skills to deliver exceptional results for our clients.

If you’d like a confidential chat to discover how we can help your business, contact us using the button below.