Phoenix Employment Market Survey 2024: Navigating Trends and Insights for a Dynamic Job Market - Part 1

Introduction

The Phoenix Employment Market Survey for August 2024 provides a comprehensive snapshot of the current trends and sentiments in the employment market across key sectors, including Legal, Accounting and Finance, Tax, Tech, and Corporate Finance Advisory. 

With over 4,000 client contacts and 20,000 candidates surveyed, this report offers valuable insights into the challenges and opportunities employers and employees face in today's rapidly evolving job market.

Commentary and Analysis

Market Confidence and Hiring Trends

One of the key takeaways from the survey is the prevailing sense of cautious optimism among both clients and candidates. A significant majority of clients (83%) expressed strong to moderate confidence levels regarding the robustness of the market relevant to their sector over the next 6 to 12 months. Similarly, 67% of candidates also reported feeling very confident (13%) or confident (54%) about the market, with 28% neutral about the market's stability.

This optimism is reflected in hiring trends, with 76% of clients having hired staff so far this year. However, securing talent has emerged as a notable challenge, with 45% of client contact respondents indicating difficulties in this area. This suggests that while employment opportunities are abundant, finding the right fit remains a critical issue for organizations.

Future Hiring and Job Movement

Looking ahead, 67% of clients plan to continue hiring over the next 4 to 12 months, with similar sentiments reflected among candidates, 43% of whom are considering a move to new employers over a similar time-frame, and 31% unsure who could arguably make the move. This indicates a dynamic job market where employers and employees actively seek growth and new opportunities - albeit with respondent client hiring plans exceeding the number of respondent candidates planning a move to a new employer.

However, the survey also highlights concerns from employers regarding the future hiring landscape. The primary challenges include sourcing, attracting, and retaining the right talent, as well as aligning financial compensation with candidate expectations. Additionally, the skills gap—where the available talent does not match the evolving needs of organizations—remains a critical barrier to successful hiring.

Key Influencers in Job Movement

The survey reveals that financial compensation is the most influential factor for candidates considering a job move, with 44% ranking it as their top priority. 

Hybrid and flexible working arrangements follow closely, indicating the enduring impact of the post-pandemic shift towards remote work. Company culture and career progression are also significant consideration factors for respondent employees when moving, though to a lesser extent than package and flexible/hyrbid working. This reflects the complex array of factors that candidates weigh-up when making career decisions.

Interestingly, while Diversity, Equity, and Inclusion (DE&I) and Environmental, Social, and Governance (ESG) policies are not yet primary motivators for the majority, 83% and 90% of  respondent client companies currently have DE&I and ESG policies in place respectively. DE&I and ESG are increasingly important for younger generations, particularly Gen Z and Millennials. This suggests that organizations will need to place greater emphasis on these areas to attract and retain young talent in the future.

Hybrid Working Dynamics

Hybrid working remains a divisive topic, with 57% of clients requiring at least three days in the office, while a slightly smaller, yet still substantial percentage of respondent candidates (46%) subjected to a minimum 3 days-in-office requirement. 

Despite the preference for flexibility, only 31% of organizations plan to increase mandatory office days, indicating a cautious approach to enforcing in-office work.  However, it is worth noting that the majority of respondent clients are currently working from a minimum of 3 days-in-office baseline, which reflects what we at Phoenix are experiencing on the ground.

The data suggests that while hybrid working and a minimum 3 days in the office is an increasingly common trend, its implementation varies widely. There is no one-size-fits-all approach to this subjective issue. However, a considered, well-communicated policy which is monitored is key and organizations will need to continue to balance flexibility with productivity and team cohesion.