The Market Has Changed!
We Report On The Market
We don’t make the market, but we do observe and report on it. During every search, regardless of industry, function or position, there is an update report (or multiple reports) presented. For each search, we look at hundreds of people (researching their backgrounds), reach out to a subset of those (also hundreds of people), ask lots of questions – salary, work logistics, etc. – and then bring people forward that we feel are the best fit. Our search update report includes trends we have uncovered through these hundreds (and sometimes thousands) of interactions.
Boiling The Frog
(This is a horrible sounding parable when you think about it.) The story – if you put a frog in boiling water, it will immediately jump out. However, if you put a frog in tepid water and turn up the heat, ultimately boiling the water while the frog is in it, the frog will stay in the pot and ultimately boil. The metaphor is really about how people can fail to notice gradual changes.
Multiple Changes (Let’s List A Few)
Salary – the popular press tells us about annual average salary increases. Right after COVID, increases seemed to go up a bit (never over an average of 4%, but higher than the more common 2.5% to 3% annual range). That’s nice if you are average and stay at your company. People in 2021 and 2022 were getting a 10% increase or more when they moved externally. Many candidates have made moves – one or two of them – since 2020/2021.
With all that said, salary expectations are simply higher and people have no incentive to take a lateral move in terms of compensation. While salary survey data seems to follow the more conservative 3% to 4% increase pattern, candidates that moved once (or twice) and/or are willing to talk about making a move today are looking at 10% (+/–) to make a move. They may be at a current salary that fits the current survey data, but they will go above it when they move.
Location/Commute – before March 2020, people went to the office daily (yes – five days/week). Then many people stopped unless they were ‘essential workers’ or worked in a manufacturing environment where leadership wanted staff on-site to support the workers who were on the front lines and had to go to their place of work.
People became accustomed to working more from home (often only at home). Remote work grew more common and some companies welcomed and continued the concept. The talent pool for remote positions became national rather than local. Hybrid ultimately became the more common standard and morphed into an expectation.
Not anymore . . . . . companies are more and more wanting and requesting people back (a few days/week, at least). People who work from home don’t want to come back. There is substantial pushback. The ‘hybrid’ question is the number one question we receive when we reach out to candidates – people want to know what a potential new employer’s hybrid policy is.
Tenure – we used to source candidates with little turnover in their past. Long tenures were common and desired. (Okay – there were some companies in this market where lifelong employment was the norm – and getting someone to leave was nearly impossible.)
The theme since COVID – people made moves (remember the ‘Greats’ . . . . . including the Great Resignation and the Great Reshuffle). Looking for someone who did not move is now actually a challenge. And looking at the salary comments above, people who did move received a higher salary increase than if they had stayed.
Conclusion?
I was taught early in my career that the only constant is change. We will continue to see changes as the remainder of baby-boomers slowly exit the market, employers and employees seek a balance pertaining to in-office and at-home work, and as we see the economy grow (at least according to some predictions).
My conclusion and advice: hold on tight – enjoy the ride – and adjust with the times!