Navigating the HR Job Market: Leading into the Final Quarter Insights

As we head into the final quarter of the year, several recurring themes are shaping the HR recruitment landscape. While there is optimism in some areas (we have had back-to-back strong quarters), key challenges persist:

1. Market Optimism but Declining Volumes
   Optimism remains within the HR market (we have had two strong back-to-back quarters and banks sharing positive earnings results), BUT we are experiencing a significant drop in the volume of work.

Why? 

1) Tight Budgets - Clients are not willing to pay outside their compensation bandings, with fear of overpaying. 

2) No urgency - clients are fixated on making the “right hire” with the perception there is an abundance of available talent.  

3) Macro-Economic factors – US election in 2 weeks, Middle East uncertainty, pending interest rate drops. 

2. Record Low Attrition Rates
   With attrition at an all-time low, passive candidates have become harder to engage. Even those who are dissatisfied with their current roles are hesitant to consider lateral moves, often citing concerns over economic stability and the challenge of rebuilding internal trust and advocacy in a new organization. Key points to consider:
   • People aren’t leaving roles due to fewer options in the broader recruitment market.
   • Senior roles are experiencing even less movement, as people in these positions recognize the lack of opportunities should they need to transition.
   • It is our view that companies will eventually reassess their talent pools, leading to organizational changes aimed at refreshing their teams. 
   • Employees should be thinking about the potential changes and how this might impact their role and their own productivity.
   • While low attrition reduces recruitment burdens, clients are also concerned with the lack of innovation and new ideas. 

3. Lengthier, Undefined Recruitment Processes

Lengthening the hiring process increases candidate and client anxiety, which in turns makes a successful “close” ever harder. 

This leads to a mixed candidate experience, with a lot of high-touch work in keeping candidates engaged throughout the process. 

4. HR Transformation in Focus
   Transformation remains a dominant theme. HR teams are under constant pressure to be leaner and more efficient, often working with tighter budgets. The emphasis is on technology upgrades, operational excellence (greater focus on utilizing data and analytics + cost-savings), and embedding HR Business Partners more deeply within business operations. A common by-product of these transformations includes:
   • HR teams being stretched and experiencing fatigue.
   • Measures of success, productivity, and effectiveness being reimagined (Eg: Measures for success in TA – Quality of Hire more valuable measure, than Time to Fill or Hybrid work incentives, including bonuses for consistent in-office attendance)

5. Candidate Storytelling is Key
   Candidates are now required to be more assertive in showcasing the value of their experience. Storytelling has become a critical differentiator in standing out during recruitment processes. Industry experience has gone from being a nice-to-have to a must-have. Companies are increasingly looking for deep industry expertise, with an ability to think both commercially and logically. The story telling starts on the CV and runs deeper during the interview process, be prepared for a lot of questions and clients that are always looking for a reason to say no. 

We have hosted Story Telling Workshops and launched a Personal Branding Service – if interested please reach out to learn more. 

6. Contributing to the HR Community & Forthcoming White Paper
   Our team remains committed to supporting the HR community. Recently, we hosted our second breakfast event, in partnership with Cappfinity, featuring a panel discussion on organizational transformation through a skills mindset, an area of ongoing interest for senior HR leaders and CPOs.
   Additionally, we are conducting research for an upcoming white paper that will explore the skill sets required for HR leadership and highlight key trends expected to shape the future of HR. We hope to share the results in the upcoming month. 

For more information around the HR market in the US please contact Roshan Jayawardena at rj@elliottscotthr.com