We have certainly experienced a change in the Sydney employment market over the last twelve months. With rising interest rates impacting businesses and consumers, the job market has slowed down considerably. This time last year, candidates were receiving multiple job offers and hiring decisions were being made relatively quickly to able to secure talent. In the last six to twelve months, there has been less choice of roles, and candidates now need to be more proactive to ensure that they are being considered for opportunities.

Equally, organisations are being more cautious in their decision making with hiring processes being pushed out for extended time periods. Organisations are being mindful of their own HR and business budgets and are now less likely to stretch their salaries for the right candidate. Whilst there are less roles available, it is still a talent short market for top-talent, and businesses are holding out for their ‘unicorn’ candidate. Hiring managers are also increasingly scrutinising candidates’ tenure in previous companies to assess the likeliness of candidates’ long-term commitment to an organisation, as they work towards stabilising their teams after turnover and much change over the past few years.

Passive candidates are being extra cautious due to economic uncertainty and are less likely to jump into a new role quickly in the same way they were in 2021 and 2022. Many candidates we are speaking with have also regretted moving to new roles over the past couple of years and will move only if the leadership and culture is strong, but more so if the company is stable and growing.

MOST IN DEMAND HR TALENT

HR Business Partners: A lot of organisations are struggling to attract the right calibre of HR Business Partners, particularly those sitting within the $130,000 - $150,0000 base salary mark. HRBP’S that can demonstrate strong commercial acumen and stakeholder management skills at interview are doing very well during their job searches.

Remuneration & Reward: Specialists who are able influence senior stakeholders have remained in high demand this year. Remuneration and Reward Partners with ASX-listed, Financial Services and Governance experience have been especially difficult to attract.

HR Advisors: At the Junior to mid-level market, the most in demand role have been HR Advisors. HR Leaders are struggling to attract experienced Advisors with a good level of employee relations experience, often due to the need to pay a premium for top talent. Many high performing HR Advisors are focused on moving into HRBP roles for their next role and are now willing to wait until they find a step up in their next role.

IR Specialists: As the industrial relations landscape continues to change, experienced and contemporary Industrial Relations Specialists remain in high demand, particularly those with proven experience effectively partnering with unions and end to end EBA negotiation experience.

COMPETITVE ROLES FOR CANDIDATES

Executive HR Roles: It is most competitive for roles at the senior to executive level. Opportunities that do arise however are less consistent. Most vacant roles at this level are replacement roles rather than newly established opportunities.

Talent Acquisition: We have seen an influx of Talent Acquisition candidates in the market at all levels due to hiring freezes, headcount reductions and overall economic uncertainty. With some excellent Recruiters on the market right now, we view it as a great time to bring forward their hiring of these roles now.

Organisational Development: There has been less movement within the Organisational Development space, particularly at the Partner/Senior Consultant level. That being said, open roles with a strong focus on Talent and Leadership Development has remained steady due to many organisations being focused on building their capability internally.

WHAT TO EXPECT IN 2024

Overall, due to the significant movement in the HR market in 2021 and 2022, coupled with budgetary headcount restrictions, we are predicting that in early 2024 HR roles will continue to become more specific and aligned to the business. As People and Culture teams continue to be more under resourced than ever, recruiting highly qualified and experienced practitioners to solve their current ongoing people and business challenges are top of mind for hiring managers.

As interest rates in the short term appear to remain flat, as an eternal optimist, we are predicting positivity in the market and hopefully an upswing of opportunities in 2024. Whilst recent years have taught us to be cautious with market predictions, industries where we see the most growth in the next year include Education, as well as Healthcare and Aged Care. With many HR Professionals already commencing their job searches this side of the festive season, we’re predicting a good amount of movement in the market in February 2024.