Lets make sure we're prepared for 2023

For the last two years, agency recruitment has been the best it’s ever been! Jobs in, placements made, new client acquisition… they have all been at an all-time high with most recruitment firms consistently breaking personal and professional records. 

As we look ahead to 2023, the market is still looking very optimistic. Hiring plans are still one of the main topics of conversation but some things have changed. Let’s make sure we are prepared! 

Less Risk Takers: 

We saw a massive focus on doubling and tripling headcount in our larger, big tech global companies. Many saw the increased need for digital transformation and wanted to get ahead... and fast! There was a “war on talent” and both the global tech firms and multiple million euro-funded start-ups won. We won’t see this in 2023. The hiring frenzy has somewhat stopped. Larger companies are now seeking less risk-averse recruitment strategies like outsourcing and contract-to-hire methods. 

Employees or employment seekers are becoming increasingly aware that a big salary with a household name doesn’t necessarily mean it’s the right job for them. 2023 will be the year a lot of permanent staff look for stability. 

Salary & Rate Increase Normalisation: 

The big question discussion! We could talk all day about salary and market rates. Anyone within the tech, MedTech, or finance industry has seen a major hike in their pay cheques. Across the globe, the average wage within technology has increased dramatically. Salaries within technology are still at an all-time high. However, it seems as though many organisations have reached their limits. From December 2019 until now, the market salary and rate had been changing every three months. It had been extremely difficult to pay fairly. The playing field is now evening out. I believe market salary guides in April 2023 will become the true guide on how to pay your employees. 

Stronger Relationships Formed:

Most recruitment firms have their top-performing clients wrapped up. For the first time in the recruitment industry, our phones, and emails were flooded with companies asking for our help! Organisations needed to grow, and every manager became a “recruitment expert”. However, everyone slowly realised that hiring isn’t as easy as it seemed. 

With a large increase in job orders, recruitment firms everywhere had to prioritise. Exclusive clients were no longer difficult to acquire, retainers became the norm, and contract books were increasing weekly. Strong relationships have been formed, managers who never saw recruitment or recruiters as business partners have changed their minds, and hiring brought about new relationships that will be difficult to break. 

Less Experienced Recruiters:

It is a good time to look at who your recruiters are and what experience they have behind them. The last two years have been a total dream for agency recruitment around the globe. Most firms couldn’t keep up with the demand of job orders coming through and hired many rookie recruiters. This was brilliant to see our industry grow. However, as the tide changes coming into 2023, you want the more experienced recruiters in your corner. Pre-covid recruiters are excited to see what next year will bring! Working through recessions and pandemics could be something you want to see in our CVs.

If you are looking ahead and know you will be hiring throughout 2023, either excessively or moderately, use this time to do a sound check. Will your preferred agency withstand a recession, how have they performed pre and post-2019, and do your values align? 

Remote Working:

Remote salaries are outpacing local salaries in IT. Most organisations hiring developers who used this new approach of hiring remote teams across Europe are already winning. However, for those who are still testing the waters on this new way of working, it’s not too late. In fact, a lot of HR plans and policies have been implemented, and new WFH rollouts and in-depth research on how this is done successfully are now available to us. It is a good time to use other people's learning to your advantage. 

If the above points have hit home and you’re thinking about your recruitment plans for next year, feel free to reach out and we can have a chat! The recruitment industry across all sectors will have their ups and downs. 2023 is going to be an exciting year for us all. The worst day when hiring is still better than your best day when you are not! Growth will continue, and all we need to do is prepare for it.