Commerce, Public Sector and Search

Nicola Grimshaw, Digby Morgan’s director responsible for leading the commerce, public sector and commerce search divisions, gives Human Resourcefulness an update on the state of the market across her sectors.

Moving into 2009, we have started well with some interesting mandates from clients who are embarking upon HR transformation. This is leading to some interesting opportunities for candidates in an otherwise relatively quiet market in the commercial sector. Towards the end of 2008, our job orders were reduced month on month and particularly in December, though interestingly our total job flow for 2008 was constant with 2007.

Time to hire from clients is being extended as businesses that are looking externally to hire are also having to look more closely at internal candidates or other direct referrals and answer the ongoing question regarding the actual need for a particular role. From a candidate perspective, we are certainly meeting several candidates who are victims of the credit crunch and we are working with these individuals to support them in somewhat difficult times. For instance, we are spending increasing amounts of time working with them on CV and interview preparation, if necessary, and assisting them in reviewing their overall opportunities which, potentially, might well include considering interim roles whilst looking for the right permanent role.

We are also witnessing some reluctance from candidates to move on from their existing employer with some putting job searches on hold to stay in what they feel is a more secure environment. It’s not, by any stretch of the imagination, all gloomy, however, and the team working across the commerce sector is still very busy with the aforementioned roles relating to HR transformation, a number of exciting talent management roles and a diverse range of positions within the SME sector.

Public Sector
As you would expect in these more challenging times, Digby Morgan’s public sector team is busy with a pipeline of work that is expected to grow still further as the year progresses and includes public sector businesses from right across central and local government.

The demand is more often than not from public sector businesses that are looking to transform HR functions and, interestingly, many of these businesses are keen to attract talented private sector HR professionals who have worked on change management projects. In addition to these skills, however, is the need for candidates to have extensive stakeholder management and influencing skills and often a proven ability and track record of managing and influencing in a highly unionised environment.

Given the current market conditions and the nature of an increasingly sophisticated and specialist HR discipline, many of our public sector clients have recognised the benefit of working with a niche HR specialist - such as Digby Morgan - and are working outside of any framework supplier agreements in order to get the benefit of such specialist recruitment services.

Whilst some individuals may have preconceived, and somewhat outdated, thoughts as to the style and pace of the public sector, many candidates are now being attracted to the public sector as a result of the size and scale of some of the roles. They are also more than aware that the total reward package – which might well include favourable flexible working, base pay and pension arrangements - can be an attractive proposition.

Executive Search and International
Despite the somewhat difficult economic and ‘client-driven’ times, we still have several clients that are keen to use executive search in order to attract candidates on certain assignments – often for international roles. In particular, we have been active on roles in Switzerland, the Netherlands and Germany where we have been using executive search methodology to attract the best candidates. The increasing demand for candidates for European or international roles has meant that we have spent a great deal of time and effort re-engaging with many of the senior HR professionals in our international network to ensure that we are able to work efficiently on these roles as they are briefed.

For example, reward specialists are much in demand on an international basis and many of these assignments are also looking for candidates who are internationally mobile and may well speak at least two languages fluently.

Entry to Mid Level

Matthew Chester, who runs the Digby Morgan team responsible for the search and selection of entry to mid level HR professionals across all industries, reports on the latest happenings in that area.

To be honest, the start to 2009 has been more active than we might have expected. Whilst we expect the year to be one of consolidation, there appears to be a good selection of talented professionals willing to engage with us – and, encouragingly, talent which is not necessarily at risk of, or having already been made redundant.
We definitely see this as a promising beacon of significant hope amidst the unprecedented doom and gloom propagated by the media. Progressive and ambitious HR professionals who have reached a ceiling and are somewhat frustrated in their current role are still willing to make the changes required to progress their career in the right direction in order to benefit from total reward and progression within the workplace.
Employee Relations is a specialism which remains in demand as at times like these senior HR advisors need to ensure that their ER policies and procedures are well oiled whilst remaining business focused.

Although confidence is pretty low and the focus is often on costs, we are finding that there is still a genuine demand for good HR recruiters to attract and onboard top talent. In challenging times like these, good people will offer employers significant competitive advantage and genuinely help the business to discover opportunities to take market share.

An Interim Update

“Whilst the final quarter of 2008 saw a decline in the volume of interim assignments compared to previous quarters, the year as a whole for our interim practice was ahead of 2007”, reports Digby Morgan COO, Alistair Cook.

Even though we’ve seen a slightly slower start to the beginning of the 2009, we are confident that over the year there will be an increasing demand for interim HR professionals. We expect that this demand will be a result of the requirement for specialist candidates to support organisations through periods of change and/or to offset clients’ inability to make longer term hiring decisions.

The market remains competitive with a number of candidates who would normally only focus on the permanent market entering the interim market for the first time. There are a number of clients - across a whole range of industry sectors - who have reduced their permanent headcount and we’d anticipate in that in the second half of 2009, that those clients will turn to the interim market to fill specific skill gaps.

The functional areas of HR where Digby Morgan anticipates there being interesting interim assignments through 2009 include:

• Organisations where there has been an increased level of regulation and where extra resources are required from a development or cultural change perspective
• Whilst the Learning and Development functions in most organisations have been hard hit, we have seen and anticipate there being a continued demand for candidates with skills in the implementation of new performance management systems
• Although we have seen a reduction in the demand for operational resourcing candidates, there are organisations seeking to review supplier models, systems and processes at a time where the volumes of open vacancies are down
• There remains a high demand for generalists and HR business partners who have worked through periods of restructuring, in particular where they have strong ER, TUPE and consultation skills
• HRIS analysis/data manipulation and reporting – with pressure on costs and key decisions being made around headcount. There remains a demand for the integrity of HR data and for improvements to be made to the quality of management reporting tools

Industry sectors where Digby Morgan anticipates interim opportunities through 2009 include:

• The public sector and, in particular, in health, local and central government. Over the last three years Digby Morgan has hired consultants with a strong understanding of the public sector market and are registered on a number of supplier panels
• The infrastructure support sector. As the Government continues to invest in key infrastructure projects we would anticipate opportunities arising within this sector
• Outsourced services. As organisations continue to focus on cost reduction, the outsourcing of non-core activities to specialist providers remains an ongoing trend. This has a direct, knock-on effect for HR providing a demand for project-based TUPE mobilisation skills
  

The City Update

These are definitely unprecedented times in the City but HR continues to play a key role across the sector. Dona Battat, who runs Digby Morgan’s City team, reveals the reality from today’s front line.

Despite investment banking being in such turmoil it’s not all bad news in the City HR recruitment sector. Whilst there are undoubtedly fewer HR roles across the sector (with recruitment freezes across many of the bulge bracket banks, magic circle law companies and top accountancy firms), the good news is that, despite this, opportunities are continuing to surface across both financial and professional services. Roles are arising across a variety of City organisations, including banking and private equity as well as some law, property and consultancy firms. The array of financial services firms includes wealth and asset management companies, which also continue to hire despite the downturn.

Current HR opportunities in the City are deemed to be critical hires that need to be filled as soon as possible. Therefore, our open orders are real requirements from organisations with a critical business need who wish to recruit as quickly and efficiently as possible. The interview process is increasingly dynamic and clients are either making critical hiring decisions or indeed withdrawing roles in an equally timely manner. In turn this clarity enables candidates to make career decisions more quickly and points to a more focused edge towards recruiting across the board.

Across many of our City clients, roles have arisen where organisations require specialist HR expertise as well as additional strategic HR input to cope with the changing landscape of their organisations in such testing times. Often at Group level, skills in demand continue to include HR strategy, mergers & acquisitions, restructuring, OD and change. In addition, there are still a number of senior level learning and development and talent opportunities ongoing - although the indications are these are now decreasing. Some of these opportunities are newly created roles to enhance internal capability through in-house resources.
In other cases, for example, where organisations are coming together and restructuring their HR departments there are sometimes niche business areas that have a need to recruit HR professionals with very specific industry expertise.

As well as a marked increase in the need for true specialists, we are also seeing a trend towards an appetite for increasingly comprehensive HR generalist skill sets as candidates are being expected to be able to take on broader HR roles - for example, deeper skills in employee relations are in demand. Historically, this is often true of smaller organisations but, in the current market, the broader the skills set a generalist possesses the better.

For some financial services organisations supporting European operations, there has been an increased need for generalists with international experience for European based roles, for example, in Paris, Amsterdam, Zurich and Geneva, as well as Moscow. In turn we continue to build a wider pool of international HR professionals at the senior level in financial and professional services as key international assignments play an increasing role in career and talent development within City based organisations.

Whilst the market fundamentally remains unpredictable, the City continues to absorb critical hires. Certainly, specific HR skills remain in demand and the City continues to seek those candidates who can bring the specialist HR expertise the City needs in current times.

Thames Valley

Whilst not totally unaffected by the economic situation experienced across the UK, Digby Morgan’s Reading office remains optimistic about the challenges ahead for 2009. Andy Montgomery, who runs the Thames Valley office, expands further.

Although there have been undoubted challenges within many sectors, HR continues to play a key role in developing business strategy within the region and, with a wealth of large multi-nationals and EMEA headquarters within the region, it is understandable that recruitment has centred not only on the recruitment of UK skills, but international ones as well. Despite some organisations currently being more cautious, critical hires still continue to take place and many sectors remain optimistic about the challenges ahead.

Furthermore, Digby Morgan in the Thames Valley has also seen an increase in clients opting for an ‘interim solution’ to their recruitment need. With so many experienced interims available with the ability to bring knowledge from multiple sectors, it is clear to see why so many clients are looking to Digby Morgan to help source additional support to assist them during these times.

In early January, Digby Morgan also hosted its first networking event of the year in the Thames Valley. In conjunction with Ali Gill, Managing Director of Crelos, the Henley based firm of Business Psychologists, Digby Morgan’s first event of the year covered the subject of ‘Talent Management in Tough Times.’

The event covered many areas including what it takes to attract, develop and retain the talented professionals that are so critical for every organisation, as well as the value of ‘recession leaders’ during these times. The Talent Breakfast also proved to be an excellent opportunity for guests to network as well as discuss the challenges facing them over the next 12 months with experts in their field.

To discuss any recruitment needs on either an interim or permanent basis, or to find out more about future networking breakfast events planned for 2009 in the Thames Valley, please contact Andy Montgomery on 0118 903 6829 or andymontgomery@digby-morgan.com

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