In light of the recent data released by the Irish Department of Finance and the OECD referring to global unemployment trends among member nations, it has been observed that unemployment rates have reached historically unprecedented lows. Notably, this positive trend is also reflected in Ireland, where unemployment has similarly reached its lowest recorded level.
What does this mean for employers?
Prioritising the well-being of your workforce remains of vital importance, particularly in the current economic climate. It is essential to acknowledge that individuals have an array of choices at their disposal, given these favourable employment conditions. Individuals are unlikely to prolong their tenure in an environment where their preferences are not met.
It can be noted from the chart below (Business Confidence Index, major OECD Nations, July 2000 to August 2023), that Business Confidence has deteriorated somewhat during the latter part of 2022 and into 2023, as higher interest rates and inflation have impacted consumers and business spending on production and inventories. However, from a recruitment perspective, it’s important for companies to ‘look through’ the economic and business cycle to the period ahead where all evidence points to a recalibration of interest rates lower, which will have a beneficial impact across the market.
With that being said, the investment and funds sector has undergone a challenging period over the last three and a half years, which has resulted in increased constraints on companies relating to their expansion plans and overall growth strategies. It remains true that the financial markets are expected to sustain a degree of strain throughout the remainder of 2023, particularly as the year draws to a close, but given the length of the hiring cycle to source and place top-quality investment talent, it’s important that companies do not delay their hiring processes until there is firm evidence of a cyclical economic recovery. At that point it would be too late to start competing against every other firm in the market, looking for scare resources.
Most mid-senior level front-office professionals have 3-month contractual notice periods, and the hiring process, from job-brief to sourcing and screening, through multiple interviewing and assessment rounds can easily take another 2-3 months – hence we’re looking at active roles now only being effectively in-situ around year-end/Q124 assuming no further delays in initiating action.
Advice for clients:
Amidst the challenges, there exists a silver lining. At Coopman, we possess a comprehensive understanding of these dynamic financial markets. Our unwavering commitment lies in furnishing our clients with invaluable market insights and exceptional candidates.
By understanding both experience and requirements of a candidate for a particular role, we can accelerate and streamline the screening and interviewing processes for companies. Furthermore, we aim to identify opportunities with the benefits of time reduction and expediting the search for suitable candidates while maintaining a pool of qualified individuals to facilitate efficient progression. It gets increasingly difficult for companies to find the right candidates at year-end as the expectations for bonuses and salary may vary depending on their current roles or experience, therefore, it is recommended to start the process now.
If you are concerned about how the current market may affect your position, or to discuss how we can support your hiring processes in the current market, please get in touch with Principal Consultant in Investment Front-Office, Gareth Connellan QFA, CFP® at gareth.connellan@coopman.ie
