There is no better time for an employer to invest in their people than right now.

So many companies have been wearing it as a badge of honour for years, but as employees feel the financial squeeze from all sides, can employers keep true to their word in 2023?

When their people need it most?

It’s really tough. Many companies are facing significant headwinds. Investment flows are stalling. Risk appetite is diminished. Thanks to the combination of higher taxes and eye-wateringly high inflation, consumer confidence is at rock bottom. Actually, is there a phrase for below rock bottom? Subterranean?

Yet, as we noted in our May blog, employment levels remain puzzlingly high. People press the panic button when mass redundancies begin, but apart from certain technology and financial names, employers are hanging on to their people for the moment. In the face of such uncertainty, this seems sensible.

Consumers are inevitably tightening their belts, but this hasn’t quite filtered through to the economy yet. We are likely just in a recession now, but things threaten to go downhill fast in 2023.

How will employers react when the storm finally breaks?

Will employers try to keep salary levels at the rate of inflation, or will this push them to insolvency meaning inevitable redundancies? The Bank of England might have a magic QE money tree, but company owners need to dip into their already tightening profits.

If pay is less, in real terms, over a longer time period, with household costs still rising, we will likely see a lot of movement in the job market. This flux will create opportunities for the best employers who have found a sweet spot that balances remuneration with the benefits of working for a top employer brand. It isn’t only about the money: after the pandemic, job satisfaction is roaring up the charts as an employee priority.

There are also certain roles where top talent needs to be treated right.

The coming year(s) will see finance, legal, tech and leadership functions become survival essentials for employers who start to realize that they are on a slippery slope.

The quest to identify the best talent (that will stay and help you through the storm) has never been more pressing. Search firms have always been seen as trusted partners. If they find the right people in the name of survival, they may soon justifiably be seen as saviours.

At EM, we have retained many of our clients through the pandemic and into the relief of the aftermath, but we now sense another phase beginning. Clients are retaining high-precision searches with us. They are impressing on us the critical nature of every role. The language has changed from “nice to have” to “must have.”

The big squeeze will usher in volatility to the executive search market, and opportunity. Every recruitment decision will be scrutinized like never before.

There has never been a more important time for business to invest in its people, both in hiring them and rewarding them.

Give us a call if you have a critical hire. We know that you are worthy of your badge. Alternatively, to find out how EM can help with your Recruitment needs for 2023 get in touch with David Howell