Demand for executive-level talent continues to rise. Each quarter we are seeing more open searches than we have in the past two years. The supply chain issue in the world of human capital is not backed-up ports, it’s the limited candidate pool which is simply not large enough to meet the current demand.
While the pendulum began swinging in favor of candidates in 2021, today, candidates are firmly in control of the conversations and timelines. Moreover, the remote-based environment that the pandemic normalized is now seen as the desired model by many candidates.
As has been well reported, a record number of people changed jobs or left the workforce last year. With demand for new roles outpacing supply, promotions are happening sooner and candidates with less experience are being considered for more senior roles. We are seeing our clients consider people for roles who wouldn’t have previously been considered as they were seen as too green.
Executive compensation continues to increase due to rising inflation, where we see a near lockstep correlation, as well as continued demand for limited talent.
What can financial services firms do to stem the tide?
The more competitive the job market, the more critical the relationships with top candidates have become. Thus, a search firm with deep industry contacts and direct lines to candidates can be the differentiator when compensation and employee benefits are seen as table stakes.
One of the biggest challenges our clients face is having candidates fall out of a search process (often late in the process) because they received another offer. With the demand for talent so high, candidates are inundated with opportunities. The solution is speed – the faster you can get through your hiring process, the better chance you’ll have at landing the candidate.
While this is hard for me to admit, as I personally prefer working in an office, hiring teams who embrace the hybrid or remote work model are more attractive to potential candidates and better able to compete in an increasingly competitive market.
About the Author
Brandon holds dual roles as President of McDermott + Bull and Chair of the firm’s Financial Services Practice. As President of McDermott + Bull, Brandon leads day-to-day operations for the firm as well as the strategic buildout of the firm’s team of executive search managing directors. As Chair of the firm’s Financial Services Practice Group, he is a partner to an array of financial services firms, including investment banks, commercial banks, private banks, credit unions, asset managers, institutional investors, and fintech companies.