Quarter 1 Overview
We saw a significant increase in hiring levels during Q1 2023. Towards the end of 2022, there was a decrease in activity, primarily influenced by the negativity in the wider economic and political markets. From January, we saw a major upturn in confidence, which has translated to an increased number of roles.
In terms of business areas, the financial services sector has seen the quickest uptick in hiring levels, especially within the wider fintech markets. This was largely driven by activity across the US and Europe. Hiring levels in the tech market were certainly slower in larger blue-chip firms in Q4 but we saw an increase in hiring activity in Q1. Understandably, the energy sector also saw massive growth.
After a nervous end to 2022, firms regained significant confidence in the market and looked to hire aggressively at the entry level. Due to many firms suppressing hiring entry-level roles during the pandemic, we witnessed an increase in competition for the best talent at this level. This meant that firms were more creative with ensuring their opportunity stands out, not just with regards to remuneration but also in terms of career progression.
Salary Levels
There has been significant wage inflation in the last 12 months and this has continued into 2023. Previously, the range for graduates within the recruitment sector was around £23k-£25k. Now that has moved on, with the lowest payers at £25k, ranging to £28k for contingent firms. This is naturally larger for executive search firms with the entry-level salary for these roles closer to £35k.
Forecast for Quarter 2 2023
We’re hearing firms talk of a continued growth in hiring levels in Q2. After a bumper 2022, many firms intended to increase headcount in Q4 but this was curtailed due to the trepidation in the wider economic market. Firms have now come out of this and, with the downturn nowhere near as bad as imagined, their hiring needs still remain and so many are playing catch up to meet their clients’ demands.
When it comes to salaries, over the next 18 months this is an area in which we expect to see significant development. There is a real ‘war for talent’ at the entry-level due to the suppressed hiring levels during the pandemic. Many firms are now trying to plug experience gaps at the junior levels of their business but face increased competition from other major entry-level hires, who are now dropping some of their requirements to fill gaps. This extends to the financial services sector and some of the ‘Big 4’ consultancies.
Challenges for Candidates and Employers
In terms of candidates, while there are plenty of opportunities out there for graduates, there is still a barrier to entry in terms of skills and qualifications to get the top jobs. Candidates are also struggling to set themselves apart, as many were unable to gain work experience during the pandemic. As a consequence, these candidates are behind slightly older peer groups or are reliant on what can be fairly generic educational backgrounds.
For employers, a big challenge will be the need to be inventive with their hiring. Many firms are trying to catch up on their recruitment and there simply are not enough ‘top tier’ graduates to go around. This means that firms need to be more creative in their hiring to find the skill sets needed to fill their vacancies, such as considering more remote workers to increase their talent pool.
[/fusion_text][fusion_text columns=”1″ animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility” sticky_display=”normal,sticky” column_spacing=”150″]Quarter 1 Overview
We saw a significant increase in hiring levels during Q1 2023. Towards the end of 2022, there was a decrease in activity, primarily influenced by the negativity in the wider economic and political markets. From January, we saw a major upturn in confidence, which has translated to an increased number of roles.
In terms of business areas, the financial services sector has seen the quickest uptick in hiring levels, especially within the wider fintech markets. This was largely driven by activity across the US and Europe. Hiring levels in the tech market were certainly slower in larger blue-chip firms in Q4 but we saw an increase in hiring activity in Q1. Understandably, the energy sector also saw massive growth.
After a nervous end to 2022, firms regained significant confidence in the market and looked to hire aggressively at the entry level. Due to many firms suppressing hiring entry-level roles during the pandemic, we witnessed an increase in competition for the best talent at this level. This meant that firms were more creative with ensuring their opportunity stands out, not just with regards to remuneration but also in terms of career progression.
Salary Levels
There has been significant wage inflation in the last 12 months and this has continued into 2023. Previously, the range for graduates within the recruitment sector was around £23k-£25k. Now that has moved on, with the lowest payers at £25k, ranging to £28k for contingent firms. This is naturally larger for executive search firms with the entry-level salary for these roles closer to £35k.
Forecast for Quarter 2 2023
We’re hearing firms talk of a continued growth in hiring levels in Q2. After a bumper 2022, many firms intended to increase headcount in Q4 but this was curtailed due to the trepidation in the wider economic market. Firms have now come out of this and, with the downturn nowhere near as bad as imagined, their hiring needs still remain and so many are playing catch up to meet their clients’ demands.
When it comes to salaries, over the next 18 months this is an area in which we expect to see significant development. There is a real ‘war for talent’ at the entry-level due to the suppressed hiring levels during the pandemic. Many firms are now trying to plug experience gaps at the junior levels of their business but face increased competition from other major entry-level hires, who are now dropping some of their requirements to fill gaps. This extends to the financial services sector and some of the ‘Big 4’ consultancies.
Challenges for Candidates and Employers
In terms of candidates, while there are plenty of opportunities out there for graduates, there is still a barrier to entry in terms of skills and qualifications to get the top jobs. Candidates are also struggling to set themselves apart, as many were unable to gain work experience during the pandemic. As a consequence, these candidates are behind slightly older peer groups or are reliant on what can be fairly generic educational backgrounds.
For employers, a big challenge will be the need to be inventive with their hiring. Many firms are trying to catch up on their recruitment and there simply are not enough ‘top tier’ graduates to go around. This means that firms need to be more creative in their hiring to find the skill sets needed to fill their vacancies, such as considering more remote workers to increase their talent pool.
[/fusion_text][fusion_text animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”large-visibility” sticky_display=”normal,sticky”]Salaries – London
| Role | Experience | Basic | OTE |
|---|---|---|---|
| Recruiter | 0 Years | £23k – £30k | £30k – £50k |
| Recruiter | 1 Year | £25+k | £40k – £60k |
| Recruiter | 2 Years | £35+k | £40k – £70k |
| Recruiter | 3 Years | £50+k | £50k – £150k |
| Recruiter | 4 Years | £50+k | £50k – £150k |
| Recruiter | 5 Years | £50+k | £50k – £150k |
| Recruiter | 6 Years | £50+k | £50k – £150k |
| Recruiter | 7 Years | £50+k | £50k – £150k |
| Recruiter | 8 Years | £50+k | £50k – £150k |
| Recruiter | 9 Years | £50+k | £50k – £150k |
| Recruiter | 10 Years | £50+k | £50k – £150k |
[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]