Moving to a new job always comes with risk. But now, more than ever before, UK candidates are hesitating to leave an established position to take a role with a new company. Clients are bearing the impact of this, with a shortage of candidates at most levels.
We talked to Steve Stubbings, Business Director for Life & Non-Life Actuarial at Emerald Group, to explore how forward-thinking clients are increasingly looking at sponsorship to bring industry-leading candidates into their teams.
Unintended Consequences
The momentous changes we’ve experienced over the last few years have added a new level of nervousness amongst candidates in a naturally risk-averse sector. Economic conditions, plus the unforeseen impact of solutions to early Covid challenges are impacting candidate decision-making. Steve explains how this starts with the interview process, “Remote interviews are a great tool to move the selection process forward swiftly. This option is an efficient solution to travel, cost and time constraints on all sides, but it presents a new challenge for candidates. It’s harder for them to understand the company culture of a potential employer and to take those crucial early steps to build a relationship. Add in the pros and cons of hybrid working, particularly when starting a new job, and clients have to work much harder to convince a candidate to leave their current employer. As a result, vacancies can be open for extended periods of time, which can be detrimental to the reputation of the business involved.
“In addition, whilst clients are expanding and looking to hire, market concerns are feeding this hesitancy. The UK market in particular has also been impacted by Brexit, which has dramatically changed the ability to move potential employees from the EU.”
Creative Solutions
Change is here to stay and these trends are likely to continue in 2023. Steve explains how Emerald Group consultants are supporting clients in this challenging market, “We’re increasingly having to find creative solutions to client recruitment needs. Our market knowledge and international experience mean we are supporting an increased number of clients looking abroad for their candidates. Yes, there can be increased cost, but there are ways to balance this out and overall, there are huge advantages to this approach: we’re providing solutions that are bringing highly experienced individuals into client teams.”
Focus and Future-Thinking
Sponsored candidates often bring a different energy to their career progression: they are qualified individuals who want to join your firm. They are proactive. They are prepared to develop their skills to build a successful career with you. In return, they will require some local market training and development, support for relocation, and a long-term, positive employee experience.
Sponsoring a candidate into the UK from overseas requires an understanding of the complex balance of key drivers for a candidate: salary (important but not always the main motivation), working culture, role and responsibilities, hybrid working arrangements, technical responsibilities, plus career development all play a role. Our experience smooths the way to a successful recruitment outcome, ultimately finding the right person for your team.
Cost-effective Recruitment
When recruiting in-market, clients are often willing to make exceptions around these key factors for the right person. Steve explains how this works with sponsorship, “Our skill as recruiters is to help clients create a package that will work for the best individual for a specific role. When looking to sponsor someone, we start with how transferable their skills are. Often, differing market regulations can be rapidly overcome with training. It can be cost effective to recruit a less experienced candidate with the right technical ability then invest in training to develop their local market knowledge. Within six months, you have an experienced employee with the right skills, committed to ongoing development within your team. This can be a very cost-effective approach to hiring.”
A key consideration for every client is how easily an international expert will fit into another market. Steve explains how Emerald Group’s international market knowledge helps identify the right technical and geographical fit, “Candidates working in international markets like South Africa, Hong Kong, Middle East or Asia often have experience that is very similar to UK candidates. Many international businesses work with UK clients, have UK subsidiaries or exposure to UK regulations. Risk-based capital models can be very similar, as can reporting and reserving processes.”
Successful sponsorship hinges on a few key adjustments to the recruitment process. Emerald Group consultants start by understanding the very specific needs of a role, then focus on identifying exceptional candidates who are willing to relocate to the UK, and have realistic expectations of what this involves, including salary and benefits. Steve adds, “Our skill lies in helping candidates build a deep understanding of the realities of relocation. It’s not just about the job. They need to consider the entire moving process, family impact and enter the recruitment process fully briefed on all the implications of an international move. Clients then need to adjust their interview processes to focus on transferable skills and to understand the candidate’s determination to add local market knowledge to existing technical ability.”
With ongoing economic and personal pressures, candidate scarcity is likely to continue in 2023. However, the market is on track to return to more traditional working practices and stability will improve candidates’ willingness to take risks. In the meantime, candidate sponsorship provides an excellent route for recruitment.
Sponsorship Q&A
How easy is it to sponsor candidates?
Businesses need to have a licence to do this but applying for this is straightforward and we can put you in touch with businesses who can advise you on how to do this.
How much does it cost?
On average, it costs around £6k to sponsor a candidate, but there are exceptions, for example candidates from Hong Kong may have a BNO visa which will eliminate this cost. We also recommend providing relocation support: for a minimal budget, you can secure loyalty from your candidate, and it’s a very positive indication of a company culture that supports their employees. We understand that recruitment costs must be balanced and proportionate: we’re always keen to discuss the overall budget for recruitment needs, where this helps clients seek creative solutions that get roles filled.
Is it worth the cost?
With today’s scarcity of candidates, this is a very worthwhile approach – particularly if you’re looking for candidates with four to ten years’ experience. These candidates are few and far between, and the international candidate pool is ideally placed to fill this gap.
What’s the risk?
Working with us on a contingency basis, there’s no cost till you hire, so this is a low-risk approach. When we find you the right person for your role, you’ll know that you’ve considered all the options and can hire with confidence.
Do sponsored candidates stay?
Yes, if they are looked after by their employer and have a positive, long-term employee experience. You’ll need to treat sponsored candidates the same way you do your other employees, recognising when they are in line with UK market experience and matching their salary trajectory. Emerald Group can advise on this, even after hire, to ensure your team remains loyal to you.
Let’s Talk Sponsorship
We make candidate sponsorship an effective recruitment process for our clients and for candidates wishing to relocate. To find out more, send us your details and we’ll be in touch to arrange a time to talk. Or call us on +44 (0)207 283 2520.