In Q2 FY2024 we are seeing the impacts of the nervousness of the economy playing out across businesses. With some major businesses undertaking significant downsizing, inflation is increasing, there’s a tight labour market, and venture capitalists are choosing existing ventures over new ones. This quarter is a pressure cooker for leaders. But it is not all doom and gloom. This quarter we also saw a net migration gain, time will tell whether this will continue and will serve to lessen the pressures on the labour market.
Cost of living for employees continues to be a big issue, with inflation having an impact on people’s pockets. It puts employers in a tricky position, with wage pressure and increased costs against a backdrop of uncertainty.
Owing to this, job seekers are placing more importance on stability and security. If you are a venture backed business you can expect savvy candidates to ask questions about your runway, funding stage and plans for achieving growth. There is more opportunity to attract global talent and those businesses that can continue to scale throughout this period will be well positioned to dominate the market in the years to come.
Given the tight labour market, consider investing in growing the capability of the team you have where possible. We believe this quarter founders and CEOs will want to focus on supporting their leaders who are under immense pressure to deliver. These leaders will in turn support the engagement of the team. Where you have a gap that needs filling, consider getting creative with your talent attraction as simple advertising strategies are unlikely to cut through a competitive market.
Read our Quarterly Insights Report for Q2 FY2024 for more sector and market insights and our top three recommendations for scaling businesses to position themselves for growth in the next quarter.