There have been some notable major corporate collapses across the last 12-18 months, mostly within the retail, travel, and hospitality sectors. Debenhams, Arcadia Group, Flybe, Mothercare to name a few.
The impact of a national lockdown in the UK was severe for many businesses and while government support helped keep many afloat, the covid-19 pandemic was an obstacle too great for certain corporates that were already experiencing financial difficulty.
The outlook for many businesses on the recovery path is difficult to fully forecast with still so much uncertainty in the pace to the economic recovery. There will inevitably be some corporations that will regrettably be forced to cease trading and the expectation by many insolvency practitioners is that the rate of formal insolvencies can only go up once the government’s business support interventions wind to a close towards the end of this year.
More formal appointments for insolvency practitioners will require investment in staff to manage the influx in new cases and this is where difficulties will arise.
There is already a UK talent shortage for those with certain skills and experience. Notably those with big ticket creditor advisory restructuring experience and those that have worked and led on corporate administrations.
Hiring high calibre Administrators and Managers is always a challenge and an experienced insolvency professional with the ability to work on complex and larger appointments is highly valuable at the best of times.
Recruiting such talent when the market picks up is going to be very difficult.
Not only will candidates have multiple offers to choose from but there will be attractive counteroffers placed in front of employees to retain talent during a time of growth and candidate shortage.
If you can start planning and creating a recruitment strategy ahead of time, then do so.
Not always viable due to current work volumes but if a high calibre candidate is available, making a move for them is advisable. You can integrate them whilst work volume is quieter and hiring an elite candidate ahead of the competition can enhance productivity and up-skill and influence the current workforce
Often, employers only go to market following a resignation. Only a few plan ahead by hiring without an opening.
If you have the financial resources to do so, start creating a recruitment strategy early. You never know when one of your employees will decide to move on. It could be very unexpected and will leave a noticeable hole.
Failure to replace quickly tends to up the work strain on the remainder of the team. For some, a departure provides internal opportunities and an even greater reason to stay. Others may feel burnt out and will require time away from work. Especially after the mental strains and challenges of 2020.
Good CVs that come through speculatively should always be given some consideration. If you can afford the time to speak with a prospective candidate, regardless of there being a live vacancy, it is always worth doing so. You never know, you may end up hiring a future leader for your business.
