Professional Services Market Update

After record breaking job numbers in 2022, multiple offers for candidates, inflated salaries and counteroffers that offered eye-watering buybacks, many firms and employees were wondering what the job market would be like in 2023.

What was the job market like in H1 2023?

We started this year with fears of a potential global recession, rising interest rates in an attempt to curb high inflation, energy prices at all time highs and a general cost of living crisis, causing people to feel the pinch. All doom and gloom.

Job numbers started to fall, although by no means to low levels, it was more of a market correction and normalisation.
Candidates became more reluctant to move as there were concerns of ‘what if’. What if we tipped into recession and it was last in first out? What if I move roles and my new firm struggles in some way?
A number of professional services firms either completed or were talking about merging, which brought with it both positivity and concerns from employees.

In short, there was uncertainty in H1 which is never good for markets.

What will H2 bring in 2023?

Indications show that inflation is decreasing, interest rates are near their cap with the feeling that although there is still a tightening of belts for many families in Q3, Q4 should start to see some more positivity appearing which will lead us into an improved market in 2024.

Digital transformation

We will continue to see development within AI and how this can be utilised and controlled. Tech is giving firms the ability to focus on digital transformation. This will not replace people, it will take away some of the more mundane tasks to allow people to develop their skills, build relationships and add value where needed.

Increase in face-to-face interactions

We expect to see a continuation of people returning to the office with many fIrms now expecting people to be in 3 or 4 days a week to develop and improve learning and development, collaboration, and to build relationships, the bedrock of what Professional Services firms are about.

IRL (in real life) is being increasingly spoken about and focused on. It is the constant topic of conversation with business leaders as many employees are resistant to return to the office.

Learning & development

Firms are concentrating on L&D to upskill employees, something which is a great retention tool, as firms need to concentrate more on retaining their quality employees, and this has become increasingly important.

There has been an increased need for firms to get their employees to connect with the purpose and the vision of the firm, and more work has been dedicated to this. This is also important when encouraging and coaching managers to manage multi generational teams.

More and more teams are made up of a range of ages and with that comes the challenges of learning how to motivate and manage people in the way they would like to be managed.

Equity, Diversity & Inclusion

ED&I is continuing to be at the forefront of business leaders' agendas - how to recruit a more diverse workforce and how to ensure there are role models and allyship groups within the organisations to show that inclusivity is important and matters.

Increasingly, candidates want to understand the full context behind firms' policies and agendas to ensure it is not just a tick box exercise. If people join firms and don’t believe ED&I is at the heart of an organisation, they leave pretty quickly and spread the word within the market.

ESG

Firms are increasingly placing ESG on the agenda with many firms looking to reduce their environmental impact and aiming to achieve net zero, with a clear message as to how they are going to achieve this. Some firms have put international travel on hold to demonstrate a commitment to their policy.

Overall, despite a challenging start to 2023, the professional services jobs market remains consistent. Professional firms are continuing to hire and job numbers have returned to pre-covid levels. Top talent remains in short supply, so firms need to ensure they are selling themselves well at interview stage and ensuring that processes move quickly. Good candidates are likely to receive multiple offers so if you are interested in hiring someone, do not delay!