January 2023
WHAT NEW CHALLENGES & OPPORTUNITIES CAN WE ANTICIPATE IN THE STAFFING INDUSTRY?
An industry whitepaper for Hiring Managers, Internal Recruiters and Human Resources professionals. This report is prepared by The Management Recruitment Group (MRG).
Different by Design People – Process – Expertise
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IDENTIFYING THE HIRING CHALLENGES IN 2023 CHALLENGE ONE: CANDIDATE AVAILABILITY CHALLENGE TWO: THE HIRING JOURNEY CHALLENGE THREE: THE CANDIDATE FOUR: DIGITAL TRANSFORMATION IN SUMMARY: MRG’S VIEW WHO ARE MRG: CORE VALUES WISH-LIST CHALLENGE
IDENTIFYING THE HIRING CHALLENGES IN 2023
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This report identifies four key stressors on the 2023 hiring industry. These can be summarised as:
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Candidate availability has contracted at an unprecedented level due to the loss of economic confidence in the market. 2022 saw a cost-of-living crisis, war in Ukraine and rumours of recession. Furthermore, we are feeling the impact of a working culture revolution produced by the pandemic.
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The Hiring Journey , or lack thereof, in a constricted candidate market can exasperate the availability issue outlined above.
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Candidate wish-lists are now no longer wish-lists but a must-have list. This is a candidate driven market and adjusting quickly to this power shift is critical to meeting your hiring goals.
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The digital transformation of the hiring industry has left some struggling to keep up, while others have abandoned the human touch needed in this industry.
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CONTACT SOURCES
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1. CHALLENGE ONE:
CANDIDATE AVAILABILITY
Availability as an issue is not a new one for 2023. Some sectors consistently struggle to find talent, as they default to sourcing from like-for-like people, or have simply outgrown the available talent pools. However, the issue in the UK is set to intensify due to: • The Great Resignation; • Quiet Sitting; • Hesitancy to switch roles during a cost-of- living crisis; • Rumours of recession; • Geographic inflexibility of candidates. The looming recession is clearly impacting the UK jobs market. Employers’ caution in hiring combined with fewer available candidates has resulted in the number of permanent placements falling for the first time in nearly two years. Claire Warnes, Partner, Skills & Productivity at KPMG UK
“Quiet Quitting” describes dissatisfied employees, who choose to stay in their current role, which they perceive to be a safer choice than job hunting. Whereas “Quiet Sitting” applies to the senior level professional, who has chosen to wait out the perceived economic upheaval. As noted by KPMG, there is currently a “greater hesitancy to look for or switch roles alongside a generally low level of unemployment which has led to a further steep drop in the supply of workers.” The graph overleaf demonstrates the increase in the number of UK job vacancies. We are now facing a candidate-driven hiring market as available roles are at an all time high. In 2023, your once ‘candidate pool’ from which to source is now restricted to a ‘candidate puddle’. Previously, a candidate target list of 50 may have sufficed, but fast-forward to 2023 and you’ll need to be closer to 200. Recruiters must take an inventive and relentless approach to achieve their hiring goals, as it is time to search wider and deeper. Relying on advertising is now not enough and recruiters must be inventive in their search by looking to new sources such as:
The estimated number of vacancies fell on the quarter to 1,161,000 Number of vancancies in the UK, seasonally adjusted, October to December 2022
Source: Office for National Statistics – Vacancy Survey
a retained basis. We work rigorously for our clients as they put exclusive trust in us. In the words of Ben Duffill MRG’s UK Managing Director “when working on a retained basis, the recruiter forms a marriage with the client, whereby they have shown trust in us, so we must deliver on our goals”. This relentless approach is why 80% of MRGs clients returned for further recruitment requirements in 2022 .
Whilst our sectors; Real Estate, Facilities and Development are not suffering redundancies (quite the opposite they are growing healthily) the relentless “bad news” peddled by our media has a confidence impact that needs coaching out of candidate pools. Ben Duffill, MD, MRG UK
• • • •
Associated markets;
Supply chains;
UK nationals globally located;
Non-cognate sources.
Many financially comfortable, executive-level professionals chose not to return to work after the pandemic. This is particularly troublesome as access to experienced senior hires quickly becomes reduced.
The attitude to the search process must now be relentless, meaning to pursue each campaign with enthusiasm, energy and pride. To be relentless is central to the MRG culture and this is primarily because we work with clients on
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2. CHALLENGE TWO:
THE HIRING JOURNEY
With unemployment rates remaining low, competition for highly skilled candidates is fierce . The Hiring Journey needs to be an enabler, not a point of failure in the hiring process. It needs to be quick and decisive, but not compromise on selection integrity. It also needs to allow for candidates from more varied sources. Recruitment must be based on competency from the widest candidate pool: MRG uses a unique and methodical combination of third-party assessment tools along with our own MRG Matching Matrix to ensure candidates short-listed are of the right quality and experience for our clients’ opportunities. These tools identify the candidates’ strengths and weaknesses, giving the client a 360 view of who they are potentially employing. We do this by carrying out layers of assessment and in-depth due diligence with a mix of some or all of the below tools, before the candidate and client meet: • The MRG Matching Matrix (internal tool) • Thomas PPA (www.thomas.co) - Candidate Behaviours • TEIQue (Emotional Intelligence) - How Candidates deal with People and Human Issues • High Potential Trait Indicator (HPTI) (www.thomas.co) Personality/Behaviours specifically in the workplace. The benefit of using these tools is that it removes the recruiters’ and employers’ conscious and unconscious biases – as impartiality is important to MRG, as inclusivity is an MRG Core Value. The assessment tools help us analyse each candidate in three key areas:
cheerleaders for the candidate to quickly close a campaign, and as such it is important for us to find the right candidate, not just any candidate. This is what makes us ‘Different by Design’ and practical upholders of our value to be forensic. ASSESSING BEHAVIOURS How does a candidate operate, work and collaborate? This is first evaluated with the Thomas PPA assessment tool. Here the client confirms what they desire from a candidate and the candidate creates a personal profile of their behavioural traits. Unique to MRG we combine this with a newer tool called High Potential Trait Indicator (HPTI). HPTI, unlike Thomas PPA, is focused on work behaviours only, measuring six core functions:
To further ensure the candidate is protected from unconscious bias, all MRG employees undergo training on this subject. To progress within the company you must achieve 100%. Thomas PPA, HPTI and MRG recruiters’ own intuition, combine to give the client a wealth of information before making a hiring decision. Having this insight into a candidate helps for a smoother transition into their prospective team and our clients’ companies. ASSESSING INTELLIGENCE MRG frequently carries out emotional and cognitive intelligence profiling. Thomas International GIA is a cognitive intelligence testing tool. This aptitude test answers questions such as how adaptable a person is to change; can they quickly grasp and cope with the mental demands of the role and is this person a driven high-flier? Overall, this tool gives the client an understanding of the candidates’ mental horsepower.
Recruitment agencies do not typically use and combine this many candidate assessment tools. These tools will be even more important in 2023 in a stressed market. A stressed market for clients means there is no room for bad hires. Matthew Evans, Board Director, MRG
• Competency; • Behaviours; • Intelligence. ASSESSING COMPETENCY
• Conscientiousness; • Adjustment; • Curiosity; • Risk approach; • Ambiguity acceptance; • Competitiveness.
We identify competency as a key attribute of a quality candidate. So rather than checking for years spent in a previous role, we identify the key competencies with the client and then assess the candidate using our MRG Matching Matrix. The MRG Matching Matrix utilises a series of questions to understand whether the clients’ key competencies are present in the candidate. These can be educational competencies or technical skills required for the role. Identifying these competencies with a client is more useful than a traditional job description as it allows us to have an unblinkered view of the clients’ requirements. We use this information to advise clients on the strengths and weaknesses of a candidate, with quantifiable scores. We are acting as advisors to our client – not
We believe strongly in our value to be forensic in terms of candidate selection in order to protect our clients from making poor hiring decisions. A stressed market for clients means there is no room for bad hires. Matthew Evans, Board Director, MRG
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candidates backgrounds?
with
diverse
company’s tangible benefits and intangible culture to a potential applicant. core A successful EVP can reach 50% deeper into the labour market when candidates view the EVP as attractive (Vervoe). The EVP demonstrates to the candidate what a company and culture can offer them. It is everything of value the employer has to offer in exchange for their talent, skills and experience. The answer candidate questions about their potential employer, such as: EVP should • What sets you apart? • What are your strategic goals? • What do employees like about working with you? In a tight market, it can be the differentiator between securing a quality candidate, or not. Plus, delivering on your EVP can decrease annual turnover by 70% (Vervoe). MRG can help guide companies in creating and communicating a forensic and attractive EVP. This is a new service we are offering to businesses. Standing out in a crowded market means showcasing your role and your Employer Value Proposition. Charlotte Rush, Marketing and Operations Director, MRG
EQUALITY, DIVERSITY AND INCLUSIVITY (EDI) A company culture that embraces EDI is another item on candidates’ wish- lists. Inclusivity is ranked as the second fastest growing candidate priority post-covid (LinkedIn). Also, the most taken LinkedIn course in 2021 was the “Unconscious Bias” training . A class that “aims to promote a workplace culture of diversity Being an inclusive organisation starts from before a prospective new employee arrives for interview and must be embedded in every stage of the recruitment process. Michael Hewlett, Board Director, MRG
3. CHALLENGE THREE:
Firstly, as excellent a tool as LinkedIn is, we don’t rely on LinkedIn alone for diversity. The majority of LinkedIn users identify as male (57.2%). The dominating age group on LinkedIn is millennials (60%) and only 2% are over the age of 55 (Social Shepard). Best practices for attracting a diverse candidate pool include: • Having a diverse internal interview panel; • Using competency-based interview questions; • Exploring behaviours rather than ‘background’ through the use of psychometric testing; • Blind/anonymised shortlisting; • Offering part-time, flexible, hybrid and remote working; • Looking at more than one or two platforms. To achieve a diverse candidate pool, the recruiter must be relentless in their approach to inclusivity. Do not just use the “little black book” anymore, instead incorporate a wide variety of search methods including exploring aligned organisations and associations. At MRG we are also forensic in our duties and put the effort into assessment, which removes bias and allows employers to judge fairly. DO YOU HAVE AN APPEALING EMPLOYER VALUE PROPOSITION? An Employer Value Proposition (EVP) communicates your
THE CANDIDATE WISH-LIST
Most Important Priorities for Candidates Overall June 2021, LinkedIn’s Talent Drivers Survey 1 Work/Life Balance 2 3 Colleagues & Culture Fastest-Growing Priorities since COVID April 2020 vs June 2021 +12.3% Flexible Work Arrangements +7.3% Inclusive Workplace +6.3% Work/Life Balance 1 2 3
Attracting a candidate to a role now carries additional levels of complexity. While salary remains a key priority for candidates, other factors have caught up and we can now identify work-life balance as topping the scales for importance (LinkedIn). Now it is common for executives to expect flexible working as part of a package, even if in reality this is restricted. If your organisation does not build in practical solutions to this new norm you could be at a disadvantage over others. include expecting a wider range of additional benefits (such as healthcare, gym membership, hybrid working or modern offices) in addition to the traditional ones (salary, holiday or bonus). Candidates are also increasingly socially conscious and want to understand a company’s ethics and commitment to CSR. Other expectations Candidates have a complex wish-list and in a candidate- driven market that wish-list is now a must-have list .
and inclusion” (LinkedIn).
EDI is first and foremost the morally right approach to embed in company culture. Plus, practically speaking, it is supported by the stats, that show that companies with diverse workforces are 36% more profitable and enjoy higher staff retention ( Jo Major, Diversity in Recruitment ). Both the candidate and client value a diverse workplace.
So, how do we find and attract
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4. CHALLENGE FOUR:
DIGITAL TRANSFORMATION
Being inventive is our fourth core value and at the heart of our communication style and approach to marketing. THE BENEFITS OF DIGITALISATION While we are identifying challenges, digitalisation does have its place in the hiring world and to list it as a challenge alone would be a disservice to the potential opportunities. The smooth lining of the search and selection processes through digital channels such as phones, email, social media and company websites has revolutionised the hiring industry. These tools, when
ARE YOU BEING HUMAN? Automated recruitment has made many stages of the search and selection process simpler and quicker, but direct and human communication is still highly valued , especially with senior search recruitment. 50% of job seekers still prefer human interaction when job hunting . 45% of those said the online process felt dehumanised (Elite Magazine). Charlotte Rush, Operations & Marketing Director at MRG explains that “one must be careful not to lose our sense of customer experience with the rise of digital enablement and automation. The difference between an average search consultant and a great one is how they personally interact with their customers and use tools to better approach the customer journey.” In so many industries nowadays we have lost The problem with digitalisation is everyone is doing it, but not everyone is doing it well. The digital approach should be unique and inventive to stand-out and attract the best candidate. The communication style should be engaging, personalised and segmented. This is especially key for senior level recruitment. An email blast ‘scattergun’ approach to a database of mostly, but not all, relevant candidates is a big no in the executive search business. the sense of customer service. ARE YOU BEING INVENTIVE?
In my opinion some organisations still do not realise the power of good marketing and how it is intrinsically linked to sales. Data is invaluable and brand is so vitally important in competitive markets. You also need engaging content to set you apart from the crowd. For me, the most successful marketing campaigns are those that are subtle and appeal to find a solution for the challenges that your audience are faced with. Business owners that appreciate that marketing is the driving force and embrace the value of a brand are those leaders that I believe will ultimately have more successful businesses. Charlotte Rush, Marketing & Operations Director, MRG
The stronger those (digital) approaches get, the less reliant on a single source, such as job boards, recruiters will have to be. Growing an audience, making connections, forming and nurturing relationships, will all help to build instant access to people Wave
used correctly, save time, money and grant access to candidates on a global scale. Also, for the candidate, they too see the benefits of digital tools with two-thirds of UK job-seeking adults (64%) believing video interviews have had a positive impact on the hiring experience and two-fifths (41%) thinking that companies who use automation in the recruitment process are making securing a role easier. Nearly half (48%) say video interviews make them feel more confident and that they can present a better version of themselves (Elite Magazine). A hybrid approach combining both human and digital touchpoints must be the tactic for senior-level recruitment to be successful.
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WHO ARE MRG?
Launched in London in 2007, MRG is now a globally renowned executive search company , dedicated primarily to leadership appointments in Real Estate, Facilities and Development across a range of sectors. In 2019 MRG opened its first international office in Asia and is looking ahead with two more global offices opening later this year. There are also resourcing teams based in Australia and South Africa sourcing talent on a global scale. By the end of 2023 MRG will be on-the-ground in four continents. Under the MRG Group sit two niche brands
launched in 2019; Bid Recruitment and University People. Bid Recruitment specialise in recruiting bids, marketing, communications and business development professionals, whilst University People is dedicated to recruiting professional service leaders for higher education institutions. Our group headcount grew by 40% in 2022, an accomplishment in economically unsettled times. We believe this is due to the fact we offer something different to our candidates, clients and internal employees. We call it being deliberately ‘Different by Design’. We also hold our Four Core Values at the heart of how we do business.
IN SUMMARY: MRG’S VIEW
The world has changed and continues to change at an unprecedented rate. Combined with this break-neck pace of transformation is a challenging economic forecast for 2023. These stressors have caused a series of concerns in the hiring world, namely: candidate availability, the hiring journey, the expanded candidate wish-list, plus the digitalisation of the hiring process. MRG prides itself on rapidly adapting to the new landscape by embracing change. This attitude of agility has resulted in new assessment tools, new digital technology and embracing new EDI values. Simultaneously, we have held fast to the MRG core values, to be relentless, forensic, inclusive
and inventive. Throughout this whitepaper you may have noticed nods to our values. This is because our values are not empty gestures – they define our approach to practical solutions for real problems in the hiring industry. The overarching example of this values approach to problem solving in recruitment is that we are relentless and inventive in our pursuit of quality candidates for our clients and then forensic and inclusive in our vetting processes. The result is a positive client experience and 80% of our business in 2022 was return business. The hybrid approach, whereby we embrace the new, yet hold fast to our values is the reason for our success and why we describe our business and our people as ‘Different by Design’.
MRG’S FOUR CORE VALUES
RELENTLESS Search and Selection is rarely easy. Being Relentless is about doing the hard yards to get an assignment to the right conclusion. It’s about overcoming challenges. Ultimately, it’s means we’re driven by enthusiasm and energy and a pride in the work that we do.
FORENSIC We are Forensic in our approach to candidate assessment and analysis and we pride ourselves on spotting the details that others may miss. Our briefings and our research are exhaustive and our work is detail-obsessed. We are process driven and data led. We look for evidence and proof to back up what we believe.
INCLUSIVE We believe that diverse ideas and experience builds better teams and better teams make better businesses so our approach to recruitment is open, fair and objective. This hasn’t happened by accident, we’re Inclusive by design. Everyone at MRG has undertaken unconscious bias training and the MRG Matrix system eliminates bias from our process. We also try really hard to be a great place to work and a place where people can bring their whole selves to work. Our people are our best asset, and it makes sense to invest in, and look after your best asset.
INVENTIVE We love finding new ways to solve issues unique to every assignment. And that’s because we’re Inventive. We understand the world of recruitment inside out and this knowledge is instrumental in finding new answers to stubborn problems. We encourage new ideas and our Business Improvement Group seeks to embrace change.
MRG is a values-driven business – and those values underpin everything we do. While being agile in a modern world is the right course, at MRG we have and always will hold fast to our values Simon Cheshire, CEO & Founder, MRG
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Please do not hesitate to contact us for any help or support. We have a team of experts who understand leadership appointments across multiple sectors globally.
T: +44 (0)20 3692 9900 E: talk@mrgpeople.co.uk W: www.mrgpeople.co.uk
SOURCES https://home.kpmg/uk/en/home/media/press-releases/2022/11/kpmg-and-rec-uk-report-on-jobs.html https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/jobsandvacanciesintheuk/latest https://wave-rs.co.uk/blog/the-hottest-recruitment-trends-for-2023/
https://www.linkedin.com/business/talent/blog/talent-strategy/talent-market-drivers-since-start-of-covid https://elitebusinessmagazine.co.uk/people/item/finding-the-balance-between-digital-and-human-hiring-strategies https://thesocialshepherd.com/blog/linkedin-statistics https://vervoe.com/employee-value-proposition/
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