Job Seekers in 2023, a fight to survive

You know how COVID and home working disrupted how UK candidates worked during the Pandemic? and because of this shift, thousands of candidates fled to find businesses that could offer fully remote or hybrid working.

Well, I think 2023 is in for a new shift and candidates will be searching to finding companies who can pay them more money, but this isn’t out of greed - it’s fighting to survive. 

Starting with the businesses… 

Although the first thought would be to assume things will be slower. I think 2023 will not only be healthy for the recruitment sector, but we’re going to see a shift in candidate mindset that we haven’t seen before. 

“Fighting to Survive”. 

In previous economic downturns, cutting workforce to help the bottom line was the first thing businesses did. But, in a world where we already have drastic skill shortages and immense competition in all digital markets - can businesses afford to loose their best people? 

But what about the candidates?

With 1 million UK mortgages about to end in 23/24 - and the rates doubling/tripling. A large % of home owners will not be able to make their payments. (Let’s also not forget the increased cost of energy, food, goods).

With the average UK monthly mortgage payment being £755, we can expect this figure to rise to £1500-3000 per month.

Who on earth can afford that?! If your mortgage is already in the 4 figures - I’m not sure you’re going to like what is about to come. 

(For reference, non-home owners/renters will feel the burn also). 

So, they’re going to ask for more money, or find a business that can pay them to live. 

That 20-30% of the candidate market which have ignored recruiters (not salty) the last decade because money was never a main driver. You know, the ones that value loyalty, team-culture, location or simply love their place of work and looking elsewhere gives them anxiety. 

These are the folks that could be ready to enter the job market and for the first time in a long time - and unlocking a pool of talent that recruiters were unable to reach/attract before. 

What could be done?

Well, during a financial crisis, upping salaries for every member of staff is going to be difficult (although, I do believe most businesses COULD afford it, but that would damage the plans to get the country house’s new gym and spa wouldn’t it CEOs?)

Could businesses - especially in commercial roles increase their commission structures? Or bonus’s? Introduce car allowances? Or look to cover expenses that would save their people money (company phones, internet, healthcare, dental etc)?

If there’s no budge, I think businesses may not loose their top people in this market - they’re going to loose their loyal people. 

Y’know not your top sales person but the 20 people who are in or around target (the Captain Consistent’s) And we, all know, it’s not your top 1% that grow your business - neither are they easy to keep happy. It’s your 30-50% of workforce that are your rocks. 

And these people we weren't worried about loosing before because we knew they were happy but I think we could be in for a shift. 

So, candidates - are you lucky enough to have locked in your low rates before 2023? 

Or are you already starting to feel the pressure of what next year will look like? 

Will you be forced to reluctantly look elsewhere, to make ends meet?

I can give some reassurance that they’re plenty of businesses just as a good as yours who are willing to pay you more and in some cases - much more. They're businesses that can offer a host of better working conditions and benefits. Now is the time to be ahead of the curve for 2023.

And for businesses, are you going to back your people or let them go? Can you afford not to pay your people more? Or afford to loose instrumental people? 

We’ll have to see…