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Talent Trends & Implications for Europe in the First Quarter

THE TALENT MARKETPLACE TODAY

The talent landscape looks vastly different than it did 5 years ago. Successful organisations are accepting the realities of the market and investing in succession planning, employee development, and different ways to attract and retain talent.

In our global practice, we’ve seen average compensation packages across all roles increase by over 20% since 2021. In Europe, it’s taking on average 30% longer to get new leaders in place, and we are asking clients to make decisions 50% faster or they risk losing top talent.

European talent trends: 20% higher compensation package expectations, 30% longer to get new leaders in place, and 50% less time to make decisions on candidates.

AN EVOLVING MARKET

The talent landscape has changed, so what does that mean for hiring companies? Several key moving targets have come to light, and while the implications of this continues to reveal itself, the following patterns have emerged:

A "moving targets and implications" table of eight talent trends and their recruiting implications: leaders are more cautious about change; diversity spans thoughts and experiences, not just demographics; top talent is passive but has options; willingness to relocate halved during the pandemic; employees may return amid economic uncertainty; contract and lateral moves are increasingly attractive; succession planning is harder; and competitive pay attracts but will not retain top performers without strong management and culture.

CANDIDATE SNAPSHOT

Our conversations with more than 15,000 prospective candidates in 2022 validate that top leaders continue to look at career opportunities from a different lens. Prospective candidates are looking to align with an organisation that has a clear purpose and a role that resonates on a deeper level. Prospective candidates are asking tougher questions and observing how hiring teams are making decisions, communicating employee value, and describing opportunities for growth.  

Misalignment is a missed opportunity in today’s talent market. The gap between hiring organisations and candidate desires is widening. We continue to advise clients on evaluating the attractiveness of the organisation and the position.

We also learn why leaders are leaving. Deloitte’s recent research found 70% of the C-suite are seriously considering quitting for a job that better supports their well-being. Organisations may be missing an opportunity to both attract and retain talent if they don’t address their own leadership, values and culture.

AESC insights comparing the hiring organization's and the candidate's 2022 views. Organizations' top challenges attracting talent: compensation, fit, competition, lack of talent, and location/mobility; retaining talent: compensation, growth, competition, culture fit, and incentives. Candidates' top reasons to accept a job: better compensation, organization purpose, culture alignment, growth, and advancement; to leave a job: dissatisfaction with leadership, poor culture, limited advancement, desire for purpose, and higher compensation.
Association of Executive Search and Leadership Consultants (AESC)’s January 2023 benchmark completed every 3 years.

K&R EXPERIENCE

The food and ag industry continues to face a leadership deficit. Tomorrow’s industry leaders, and our 2022 placements, were sourced from around the globe for many executive functions.  We placed leaders with small start ups to large, mature firms, not-for-profit, and for-profit organizations. 

Three Kincannon & Reed experience notes: functions recruited (a 2022 upsurge in CEO and commercial leadership recruitment after 2021 leaned toward CFO and finance roles); startup recruitment (25% of placements over three years joined startups); and board recruitment (growing demand as board roles evolve).

For more human capital insights, contact us to schedule a time to discuss.