Spring Market Update - US HR Market

As we head into summer, here are key insights into the HR job market:

Q2 Optimism: Optimism continues midway through Q2. However, instead of increased headcount, there's a focus on upleveling HR teams in line with the broader trend of “HR Transformation.” This results in higher quality but lower volume searches, often confidential.

Low Attrition Rates: Candidates are hesitant to make lateral moves. Clients seek specific profiles from certain industries but are reluctant to exceed their budget. Creativity in attracting talent is crucial, with flexibility and work-life balance being key differentiators. Headhunting passive talent remains challenging.

Specialist Roles Increase: There's a rise in demand for specialist roles such as Benefits, Compensation, HR Operations, and HR Technology (HRIS enablement, people analytics). Total Rewards and innovative employee benefit offerings are essential for attracting and retaining talent. This also reinforces that these roles are in higher demand. 

Inconsistent Interview Processes: In efforts to uplevel teams and conduct sensitive searches, clients avoid rushed decisions, leading to mixed candidate experiences.

Talent Management Strategies: Skill-based and competency frameworks are central to talent management. While Talent Acquisition roles are in lower demand, metrics like quality of hire (QoH) tied to business success and workforce planning are increasingly important. Internal mobility programs, including global mobility, are on the increase.

HR Business Partners: HR Business Partners (HRBPs) are becoming more embedded in the business. The role of “Head of HRBPs” is common to ensure consistency, but HRBPs maintain autonomy in servicing their business units.

Hybrid Work Norms: Hybrid work schedules, with 3-4 days in the office, are standard. Interestingly, active candidates are still not fully committed to these arrangements.

For further information around the current HR Market in the US, please contact Roshan Jayawardena at rj@elliottscotthr.com.