As we progress through 2024, the financial and accountancy recruitment sector in the North East continues to evolve, shaped by economic pressures, political changes, and shifting workplace dynamics. At Broster Buchanan, we’ve observed several key trends impacting both businesses and potential job seekers across all sectors in the region.
In the wake of the COVID-19 pandemic, UK companies embarked on an unexpected hiring spree, leading to strong salary inflation and unprecedented conditions for job seekers. However, this surge in hiring has now ended. While salary inflation has decreased to 5.7%, it remains ahead of general inflation, indicating real-term growth. According to the Bank of England’s latest Monetary Policy Committee Report, the vacancy-to-job-seeker ratio has fallen sharply over the past year, suggesting that job opportunities are somewhat reduced.
However, on the ground we are still experiencing the following.
Despite the shift in hiring dynamics, unemployment levels remain low, contrary to initial expectations. This low unemployment rate has created candidate shortages, particularly in interim markets where the supply of candidates is notably tight. The demand for skilled professionals remains robust, especially in sectors where specific expertise is required. Employers are facing challenges in finding suitable candidates to fill roles, which is leading to increased competition for talent.
There is still strong demand for staff across various industries. However, this demand is coupled with less turnover at more experienced levels, creating blockages for senior appointments. Experienced professionals are less inclined to leave their current positions, which limits the availability of senior talent for organisations looking to fill leadership roles. This situation underscores the need for companies to focus on retention strategies and succession planning to address potential leadership gaps. Employers must navigate the challenges of candidate shortages and adapt to changing employee preferences to attract and retain talent effectively.
A significant factor contributing to the reduced churn in the job market is the reluctance of employees to change jobs and potentially sacrifice the work-from-home conditions they inherited during the COVID era. The pandemic has reshaped work expectations, with many employees valuing flexibility and remote work options more than before.
In the current job market, candidates are placing less emphasis on base salary and focusing more on a balanced scorecard of broader working conditions. Work-life balance, career development opportunities, and company culture have become increasingly important to job seekers. Employees are looking for roles that offer more than just financial compensation, seeking positions that align with their personal values and lifestyle preferences. Employers need to recognise this shift in priorities and adapt their recruitment strategies accordingly to attract top talent.
As we move through 2024, the recruitment landscape in the North East is expected to evolve further. Employers who offer competitive packages, embrace flexible working arrangements, and provide clear career progression opportunities will likely have the upper hand in attracting top talent. For candidates, the market presents numerous opportunities but also requires a commitment to continuous learning and adaptability. Those who can demonstrate a blend of technical expertise, soft skills, and the ability to navigate change will be well-positioned in this competitive environment.
Whether you’re looking to hire staff or considering your career options, there are many opportunities available, and we can guide you through what remains an uncertain and sometimes unpredictable market.
