2022 has continued as feverishly as the lead-up to Christmas, which was arguably one of the most frantic periods we’ve seen in a long time. We continued to see a rising barometer as the heat in the market intensified, wondering if an end was in sight or watching carefully in anticipation if this was to continue indefinitely. Suffice to say our clients are still finding the market extremely candidate short with many clients complaining that recruiters are turning away their work as they struggle to prioritise the most valuable and rewarding work with clients that truly partner with them. There have even been instances where competitive firms have referred new clients to us to help cope with the intense demand as they hunker down on their own priorities. So yes, the market is still hot, but with some caveats we’ll discuss throughout this update. 

"The Great Resignation" 

 Additionally, we entered 2022 holding our collective breath as what impact we might experience “Downunder” with all the hype overseas surrounding the phenomenon “The Great Resignation”. We were expecting a mass exodus of senior people making sea changes and career compromises in favour of lifestyle choices. We were expecting many to abandon their careers leaving a gaping talent hole thereby disrupting our otherwise assuasive market here in Australia. We were preparing our clients for new talent strategies as the pending gloom was upon us, yet, now in late April, we don’t believe we have felt many, if any, effects of this phenomenon, and at the very least, within the Strategy and Transformation functional community. If anything, the opposite is true! More people are flocking to Strategy and Transformation type roles than ever before, especially where work/life balance and flexibility are on the table. In fact, at the more senior end, we have seen a marked uptick in senior Transformation positions as organisations look to accelerate their transformation programs and lock in benefits after being put on hold during the height of the pandemic. 

 Whilst we don’t have a crystal ball and it may in fact still be on the horizon for Australia, albeit delayed, we can’t help but feel the hype around the “Great Resignation” may have translated more locally into the “Great Relocation” What has become a clear winner coming out of the pandemic is a much more open stance on where a candidate is sourced and as a result located. Many of the previous barriers surrounding this have been removed as clients fight for the very best talent they can find anywhere within Australia! Yes, there are team and cultural considerations however it can be easily overcome. 

 Where are the volume of roles? 

 There is volume in the Strategy and Transformation market however is still up to the Senior Manager level and this is where candidates have the most options. It still holds true that hiring managers need to be engaging, have a great story to tell, run a smooth process that honours the candidates needs as much as their own and always have a back-up candidate in the process in the event their preferred candidate rescinds. We have observed many candidates with multiple offers as well as compelling counter offers when they move to resign. The evidence is clear that hiring managers who capture a candidates’ heart and mind, through ACTIVE engagement in the recruitment process are winning the talent war over their competitors (most of the time at least). 

 At the GM and Head of level there is a steady flow in Strategy roles with a slight increase in roles being observed on the Transformation function.  

What is abundantly clear and has remained post pandemic is the level of wage growth as well as a changing of candidate expectations. What used to get you a GM on $250K- $300K (before add-ons) now costs you $280K-$330K and with less experience – yes, a tough pill to swallow for organisations and unless you are forward thinking on talent management, locking in these incremental wage increases into budgets, you won’t be playing at the “big boys” table when it comes to securing the best the market has to offer. Be prepared however to invest in these candidates as you’ll be paying more and oftentimes getting less than what you’re used to. In addition to the higher salaries, make sure you allocate budget to developing these people as your future leaders - not all will come with the expected gravitas and maturity but will have solid core skills and competencies for the role with huge potential and runway. 

 Offshore candidates - A new normal 

 In any normal year, a third of our placements are from offshore. As the world returns to a new normal, we are seeing an increase of Aussies returning home after either a stint abroad or in some cases extended periods even several years away. We are also starting to see a marked increase of interest from candidates looking to relocate to Australia after delaying their plans while borders were closed. This trend has continued throughout the first quarter of 2022, and it is our strong view this will gather momentum throughout the rest of this year.  

Sponsorships seem to be happening again albeit sporadically. Anecdotally there is also evidence suggesting sponsorship application times of three to four months which is a significant reduction from the nine months we were informed about late last year. It’s something we’ll be monitoring carefully as we have a few offshore candidates currently in this position and will have first-hand evidence in the next edition as an update.  

It is also worth noting that offshore candidates have a timing attached to their arrival and a cost attached to their relocation, so if you are time poor and budget shy, while migration plays catch up to pre-pandemic levels, clients may have to bite the bullet, and pay a premium locally in this market to get their person. The reality on the ground is if you are getting a cheaper salary for someone offshore by the time one factors in the relocation and visa sponsorship costs and the lost productivity, you may well end up paying more in the end for the offshore candidate (at least until visa processing times come down significantly) than the local one at a premium. Something to think about! 

 Diversity 

Diversity is still very much on the agenda everywhere however we’ve noticed a slight shift toward all forms of diversity, not merely gender. We see this as a very positive sign in talent management and acquisition strategies and have encouraged our clients to think more broadly about this at every briefing. 

Conclusion 

We are still seeing a hot, extremely competitive and talent short market. We’re experiencing people in both consulting and industry roles itching for change. We are still seeing consulting firms use increased bonus structures to retain their talent and we’re seeing an increase in activity with offshore talent again. Diversity is still front of mind albeit slightly broader and it feels like we’re all settling into a new state of normal. In most corners there is an acceptance of higher wages for less experience (although some organisations are still fighting a losing battle here) and there is increased attention to how best to secure talent wherever they may be. We’re also conscious of broader economic factors such as higher inflation, rising interest rates and how that may influence the job market, but what is abundantly clear and here to stay is that the Strategy and Transformation market is as hot as ever!