Recruitment budgets this year..

This day last year was the last day lots of us commuted into London.. coffee & breakfast to go (remember those days?!).. A year later, where is the market? What are we seeing?

In a year of "new normal". Somethings have remained steadfast – The end of March, is traditionally seen as the run up to budgets being released in April.

Budgets

Last year many budgets were put on hold, and many firms wanted to “wait and see how this all plays out”, all the while teams were stretched and projects were streamlined or put on hold. Others took advantage and hired talent that had been made redundant and onboarded them without lengthy notice periods. This year, many firms are already gearing up for hiring, replacement hires, growth hires, projects finally starting hires. I am spending a lot of time helping clients with salary benchmarking ahead of releasing roles (don’t hesitate to reach out if you would like the same), whilst always trying to find the right person for them.

Bonuses

Interestingly a lot of firms have forecasted paying bonuses reminiscent of the 2018 bumper year this year. For 3 main reasons:

1) Although it has been an unusual year to put it mildly, costs have been lower – travel, food, entertainment expenses.

2) For international firms, some geographies and/or product lines have thrived, offsetting each other.

3) Retention is at the forefront of conversations this year. With so many firms concerned with the loss of talent, they are seeking to reward those who have worked hard. We are already seeing the tide of candidates who know this won’t be happening for them.

Which draws me to my next point, Attrition.

Cyclically bonus pay-outs is the time when a lot of individual hand in notices and move on to pastures new. Last year, a lot of people didn’t do this, although many did – it simply came down to risk appetite and personal situations.

This year, many more individuals will be giving notice after they have received bonuses. Why? Because teams have been stretched without resources, they are manging multiple projects when they should be leading one, because other firms are hiring, because their employer isn’t offering flexible working once offices re-open.

So, in summary, a year on cyclical hiring continues, projects are being ramped up, budgets are looking very healthy and attrition looks plentiful.. we are gearing up for very busy Q2 and Q3.. now to get back to the commute and psyching myself up to take the tube again!