What are some noteworthy hiring trends observed in 2023?
We conducted an analysis based on data from 85 hires made by our team between January and June 2023, spanning various fields including eCommerce, Performance Marketing, Brand Management, National Accounts, Analytics, and Supply Chain. Here are the key highlights:
Average Base Salary Increase: 6.7%
Pay Cuts: Surprisingly, 21 out of the 85 individuals took a pay cut, with an average decrease of 8.2%.
Salary Increases: 48 out of the 85 individuals enjoyed a salary increase, averaging at 14.5%.
Consistency in Salary: Interestingly, 16 people changed roles without any change in their base salary.
A striking observation here is that nearly one in four individuals experienced a pay cut. This phenomenon can be attributed to a combination of factors, including redundancy, market corrections in sectors that had witnessed substantial wage growth in 2021/22, and individuals prioritizing work-life balance over financial compensation.
Most frequently cited reasons for changing roles include:
Career Advancement/New Challenges: 29%
Desire for Remote Work Flexibility: 10%
While the “career progression” category lacks specific details, a recurring theme is companies freezing internal promotions or being unable to provide assurances regarding the timing of internal transfers, prompting individuals to explore external opportunities. Although redundancies have not impacted the consumer sector as profoundly as the tech sector, they have played a significant role in shaping the talent market this year.
Turning our attention to broader trends and observations:
Undoubtedly, the talent market in 2023 has not been as dynamic as it was in the preceding years of 2022 and 2021. However, this shift was anticipated, as the unprecedented growth and activity of those years were unsustainable. Factors such as reduced venture capital funding, decreased consumer spending, ongoing challenges related to iOS14, and rising input costs have collectively contributed to a more cautious approach toward expanding headcounts across industries.
As the balance of power in hiring has tilted away from job seekers towards employers, we’ve witnessed a trend of more rigorous interview processes and heightened expectations from hiring entities. Gone are the days when candidates could entertain multiple job offers after interviewing for several roles within a short period.
In terms of the types of businesses that have been actively hiring, there seems to be a lack of consistency in terms of size or industry. Whether it’s established blue-chip companies, venture capital-backed startups, self-sustaining direct-to-consumer (D2C) startups, Software as a Service (SaaS) firms, or agencies, businesses in all these categories have seen both growth and reduction in their headcounts. However, a common thread among successful hirers is their proactive approach to understanding unit economics, streamlining operations, and optimising their cost structures in 2022, positioning them favorably for the challenges and opportunities of 2023.