Today I want to share the July 2023 market hiring update. Economic uncertainty has shaped much of the hiring landscape for the first half of 2023. According to the KPMG and REC UK report survey on Jobs, fewer permanent roles are available with companies, and the number of candidates in the market has seen its highest uptick since December 2020.
Despite this, vacancies continue to grow throughout the recruitment landscape as business leaders focus on growth opportunities. In the financial landscape, hiring continues to increase at an accelerated rate.
Companies are searching for specialists to assist them with complex budgeting strategies and business continuity after the UK narrowly avoided a recession.
It’s a difficult time for recruiters and hiring managers, who struggle to fill vacancies in a skills-short market, particularly with salary and flexible working demands from those considering a move.
However, there are opportunities for candidates as teams look for new ways to entice employees with flexibility, progression strategies, and other unique benefits.
The General Recruitment Landscape in July 2023
Though the economy is struggling, and many companies are taking cautious approaches to hiring, vacancies in the hiring world are still increasing. According to REC UK, more than 2 million active job ads were circulating in the UK as of June 2023.
Many firms are still searching for exceptional talent, and shortages in the skill landscape mean most are taking longer to find their ideal applicant. The figures in the market today demonstrate how important it is for businesses to update their recruitment strategy.
Working with skilled recruiters will allow business leaders to accelerate their slow hiring processes and ensure they present the right employer brand to candidates.
Currently, the net employment balance in the recruitment space remains stable at +27, meaning it’s above the pre-pandemic level. However, hard-to-fill vacancies are still a core concern for business leaders. Two in five employers say they’re struggling to fill team gaps.
To help attract talent, employers are beginning to invest in raising pay, with 48% saying they increased their remuneration packages in the last six months. Another 50% said they’re now focusing on upskilling staff to get more value from their existing team members.
Despite this, only 2 in 5 employers say they have a financial well-being policy in place, and 39% say they don’t plan on introducing any such approach in the near future.
The Evolving Finance Recruitment Market
Hiring slowdowns and company layoffs have had a major impact on virtually every industry. However, the demand for financial professionals is still growing. Over 60% of companies hiring accountancy and financial professionals plan to expand their teams in the next 12 months.
However, around 90% of employers say they’re experiencing significant skill shortages, making filling the gaps in their teams harder. Virtually every organisation involved in the financial world is looking for proactive ways to expand their teams.
The need for new financial professionals is only being exacerbated by the evolution of technology and standards in the financial space.
Many financial roles are experiencing increased demand, particularly in areas related to accounting, compliance, risk management, and business development.
One of the key factors driving the financial hiring market is the impending salary indexation. Salary expectations among banking and financial experts are high, with around 41% of professionals saying they want a salary increase on top of indexation.
Around one in two business leaders say they plan on giving their employees a pay rise this year, and 63% plan to offer bonuses to financial team members too.
The changing landscape is driving increased confidence among financial professionals, with around 93% saying they’re confident they’ll be able to find a new job opportunity this year. This could mean we expect to see a lot of professionals switching roles to seek better benefits.
Employers and hiring managers will need to invest additional effort in ensuring they can retain their most essential workers, investing in flexibility, professional development, and benefits packages.
Trends in the Financial Hiring Market
For some time now, the hiring market for financial and accounting professionals has swung in favour of candidates. Skill shortages and limited access to talent create many opportunities for professionals to determine exactly where and how they want to work.
The market also means that although the economy is uncertain, financial professionals shouldn’t struggle to find opportunities this year. Additionally, there may be an opportunity to earn more, as around 89% of employers increased their financial and accounting salaries last year.
Some trends that emerged in the industry at the beginning of this year and the end of 2022 have persisted. For instance, as technology in the accounting industry grows, employees seek more upskilling and training solutions to help them expand their talents.
This coincides with the rising trend among employers to train their team members, so they can avoid seeking new talent in a complex market.
Other trends appearing at the moment include:
- Automation in the hiring journey: Slower hiring cycles are prompting companies to invest more heavily in intelligence and automation. Over 8% of Fortune 500 companies now use ATS solutions. Additionally, recruiters are using automation tools to help rapidly fill more vacancies as companies struggle with long-standing team gaps.
- New generations entering the workforce: Baby boomers are leaving the workforce as Gen Z begins to join. This means companies are rethinking their approach to employee value propositions. Gen Z employees value training more than their counterparts and expect flexibility as a hiring benefit.
- Demand for new skills: While the financial landscape has always been multi-faceted, the environment is rapidly changing due to the influence of new technologies. Companies are now searching for financial professionals who understand how to leverage the latest AI and analytics tools to improve their financial standing.
Looking Ahead: The Future of Finance Hiring
The financial hiring market as it stands today is placing increasing pressure on hiring managers and business leaders. Skill shortages remain, and employees have more opportunities to choose where to work. This means businesses must work harder to cultivate the right talent, build their talent pipelines, and retain employees.
While demand for higher salaries is increasing, successful companies must go beyond simply offering the right remuneration packages to attract today’s financial experts. As new generations continue to enter the market and technology evolves, a focus on training and employee experience will be essential.
Working with the right finance recruiter will also be particularly important for business leaders today, ensuring they can access the right talent pools in a skills-short marketplace.
Thanks,
Rachel
About Rebus Financial Recruitment
Rebus Financial Recruitment provides a specialist and focused recruitment service to its customers, ranging from various organisations, including SMEs, to large PLCs.
We strive to offer both the client and candidate a seamless recruitment experience. Using our expertise, we get to the heart of employer and employee needs, and, in doing so, we match the two perfectly.
To learn more, contact one of our team today, or call us on 01282 930930.
