Gillespie Manners viewpoint: Building resilience into business growth

“Are we in a recession?” – it’s a question that apparently, a lot of us are asking. According to Exploding Topics, there’s been a 280% rise in the number of recession related queries put to Google and other search engines in 2022.

And the search results themselves are mixed to say the least. Let’s face it, there are agendas in the mix. From assertions that we’ve been in the midst of a downturn for months, to claims that we’ll safely ride-out the risk altogether.

When consumer confidence drops, less money is spent and economies decline. It’s in nobodies’ best interest to ring alarm bells. Particularly the outlets whose content is routinely pushed to the top of Google’s ranking algorithm.

Whichever way the wind blows, preparation is key

‘Uncertainty is the only certainty there is’ - Allen Paulos.

We have no magic looking glass. And as we all learned in 2020, sometimes life can be unprecedented.

The thing is - recessions don’t automatically spell doom. Challenges, yes. But where there are obstacles there are also opportunities. Planning, preparing, and approaching economic uncertainty with a solid strategy is key.

When navigating economically challenging landscapes, there are a select number of paths resilient businesses tend to take. Discover key lessons learned from previous recessions, and how innovative businesses can not only survive, but thrive.

This playbook summarises academic research and market-based case studies to uncover the verticals primed for growth during financial downturns.

Recession Resistant Verticals – The Playbook for Technology Businesses
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Looking to the jobs market

Perhaps the best clues to be found as to the state of the economic climate are those within the jobs market. So, what’s it really looking like? From experience, it’s not dropping off. The market is busy, and in the B2B technology and sales space, very much candidate led.

Key themes from the last quarter, as observed by the team of Executive Search specialists at Gillespie Manners include

A stark rise in counter-offers

Anecdotally, we’ve seen a stark increase in the number of counter-offers being made as a result of resignations.

But we’re not the only ones to have observed this. Close to a quarter (23%) of employers are more likely to counter-offer employees now than in previous years.

Businesses are keen to retain and develop their talent, and they’re willing to put their money where their mouths are. We’ve seen up to 50% increases in salaries being tabled.

Why? It’s a competitive market, and top calibre candidates are hard to come by. Some in the talent acquisition game have even termed 2022, ‘The year of the counter-offer’.

Significant pay rises in emerging markets

Linking to the above, the highest compensation package rises are those in emerging technology markets.

Automation, AI, machine learning and robotics businesses are all investing significant sums in their employees, both existing and new. According to Hired.com’s global State of Tech Salaries report, salaries for tech candidates are at an all time high.

A skills gap in industry 4.0

Rapid changes to technological industries, labelled as the fourth industrial revolution, have seen a skills gap emerge. The robotics and manufacturing space is experiencing a skills gap.

According to a Deloitte review, 3.4 million manufacturing jobs will be needed by 2025, while only 1.4 million are expected to be filled.

And this certainly tallies with the trends we’re seeing in the market. Our robotics, automation and manufacturing division remains busier than ever.

Candidates are drawn to new areas

One thing we keep hearing from the candidates we speak to is that they’re keen to move into spaces like climate technology or automation.

These attitudes follow the market – and the money. Climate tech funding this year represented over a quarter of every venture dollar invested.

And though VC funding has slowed overall, thanks perhaps in part to consumer confidence perceptions, this demonstrates that money is still being pumped into select sectors. 

The takeaway

There is a key trend stringing together the themes of our observations on the market – we work with innovative businesses.

The organisations that we support have been making moves into new territories and markets. They’ve not been idle. And they’ve certainly not been burying their heads in the sand.

They’ve undertaken rigorous exercises to assess their market positions, scope out opportunities for growth and resource their teams accordingly. As the threat, or reality (whichever side of the fence you’re on) of a recession looms, they’re doubling down on the right resources to crave out their growth.

Is your business looking to build resilience into its growth plan? If you’re embarking on a mission to enter a new market, establish a presence in a new territory or build out a function, we can help with that.

Feel free to browse our site – or if you’d prefer a good old fashioned chat, I’d be delighted to learn about your growth goals.

By Alex Gillespie
Co-founder and Director at Gillespie Manners Global Executive Search