The Great Slowdown – It’s Here
It is interesting to see how a number of the recruitment organizations are tackling the challenging market conditions we are currently facing. A number of major groups have indicated that based on the last six-monthly performance there is a need to adjust their headcounts to accommodate declining revenue numbers This has been particularly affected by the way compensation plans have been adjusted during COVID to accommodate less management. It clearly means that the actual affect on profitability is even more than the sales drop off.
The cost models have been changed such that at a certain point the majority of the sales “number” falls directly to the bottom line. Similarly, if revenue drops so does profit but faster as it returns quickly to the breakeven position.
It is highly likely that a number of the small to medium sized groups have already adjusted headcount as they normally move before the bigger players. An interesting side affect has been that many agency recruiters are looking to move into internal talent acquisition roles, which is again normally a sign that the market is slowing.
Most pundits have been saying for some time that there has to be a change in market dynamics. With so many contradictory situations such as many vacancies but no candidates, high productivity and therefore profits but a unpreparedness of employers to increase employee reward. General conditions have been further affected by rising inflation which has put more pressure on family resources. Let’s not forget how rising interest rates have affected real income with people paying much more for the same outcome.
The Great Slowdown has begun and if you normally packaged up the previously mentioned realities of life and agreed that was your lot, then you would normally seek a new role in a more rewarding environment.
Until now, most players have been indicating job security as the most important consideration when reviewing options available, often using the job search process to become a reason for staying with their present employer and at times even securing a counter offer from the current employer on the way through.
The pundits previously mentioned, whether they be economists, industry commentators, employers, recruiters or similar, have been indicating it’s only a matter of time before job security returns to being a myth, as mitigating negative influences affect the job market.
That time is now here!
Time to “dust off” the resume, so you can compare your present day skill set and experience to what is being sought after in the various markets.
Are you still competitive?
Visit a Recruiter.
Review the various job advertising media.
Critically review your career advancement over the last 3 years.
Develop a plan for success.
It is time to get serious about what the future holds and manage you success, no one else will drive the process. Job security is no more, you must create your opportunity, do not remain complacent.
If you would like to discuss where you are and how you get to where you want to be, call us, otherwise just go for it!
But do go for it, your future depends on it!
To know more opportunities across Australia, you can reach out to Peter Gleeson, Ian Stacy or Peter Tanner at (03) 9190 8904 or visit tannermenzies.net.au