As part of the MRINetwork organisation, Talent Partners are part of a network that has over 900 offices in 40+ countries with over 3000 consultants recruiting mid to senior management professionals for client companies across the globe. Here are the thoughts of some of our colleagues who are recruiting in the UK marketplace.
An Abundance of Caution Slows Economy
When riots broke out across England—first in the Tottenham section of London, then in other cities throughout the country—the blame was widespread. Some attributed the spark of the riots to government austerity measures including cuts to education; others noted the high youth unemployment—which has resulted in other civil disturbances in Europe and the Middle East over the last year. In a very literal sense, though, the riots started after Mark Duggan, an alleged drug dealer and gang member, was shot and killed during an attempted arrest.
“I think the riots and looting were opportunistic and little more than that,” says Sandra Hill, managing partner of The Hill Group, an MRINetwork affiliate in Manchester. “The economic situation throughout the UK is difficult, but the riots have given it a more desperate appearance than is actually justified.”
Current estimates show that the UK’s gross domestic product grew by 0.2 percent during the second quarter of 2011, down from 0.5 percent growth during the first quarter. Some have attributed the slowdown to an increase in the value added tax early in the year. Yet, as Hill notes, shopping centers are staying full and British residents are taking more vacations this year than in the last several.
While confidence may be returning for workers who currently hold positions, confidence has not returned to the labour market as a whole. “Candidates’ primary concern in changing roles today is job security,” says Hill. “Candidates are highly reluctant to explore opportunities—it often takes three or four requests before a passive candidate will even provide a CV. When recruiting today, our most important job is to sell the stability of the company. We have to highlight their financials, show that they are on solid ground, or that it is investing heavily in R&D.”
Considering that actively recruited candidates are dragging their feet, it’s no wonder that very few qualified candidates are applying for posted positions. Once a candidate is found, though, risk-averse companies are delaying the hiring process further.
“Employers are conducting more extensive background checks and vetting candidates to a greater degree than ever before. More people want to be involved in the hiring process and companies’ attitudes are closely tied to short-term market factors,” says Hill. “The mid-August equity market turmoil caused many firms to reevaluate their hiring plans, some going as far as re-reviewing every open position.”
“Despite all the rightful concerns both businesses and employees have, we see green shoots,” says Hill. “The UK auto industry is supposed to be in horrible shape, yet, one of the largest English auto companies is currently adding more than 1,200 positions to its UK operations this year. While the aerospace industry is also said to be in a slump, the Paris Air Show in June was one of the most successful ever for Airbus.”
“There is an abundance of caution in the market,” says Hill. “It is slowing things down, perhaps prolonging the downturn. However, in the end it is just caution. As business continues to be conducted, the necessary confidence will begin to return.”
If you are looking to strengthen your team in the UK or further afield then please contact Stephen Kennedy, MD of Talent Partners to discuss how we can work with you to recruit top talent internationally.
