Evolution of Total Talent Management: The Tenth Edition of the Talent Monitor
In collaboration with Intelligence Group, an ambitious step was taken in late 2021 by forecasting rate trends for professionals in 2022. This included both independent professionals and those employed by secondment companies, in as many as 114 different professional groups. Halfway through that year, we also released an interim update on the predicted trends.
However, this forecasting model appears to be broken. Indeed, the crucial factors of "inflation" and "scarcity development" have exceeded the limits of the model. Inflation has risen so significantly that it is almost equal to the total inflation of the past decade. This scarcity also affects economic models, such as the business cycle clock, and seems to defy any logic.
What we initially considered to be an annual tradition is now proving, given the correctness of our predictions and the growing amount of available data, to be too wide a gap between theory and practice. Therefore, there is no shame in admitting that our forecasting model is currently not working properly. As a result, we are unable to offer a rate forecast for 2023 comparable to last year.
In this edition of the Talent Monitor, we take a look back at rate trends in 2022 and share our expectations for 2023, including:
- By 2022, professionals' hourly rates rose an average of 3.8%.
- Hourly rates of professionals in 2023 are expected to increase on average by 4% to 6%. This is influenced by several factors, such as keeping pace with developments in collective bargaining rates.
- Nor do clients take drastic measures to index rates of professionals on current assignments; they prefer a performance-based approach. Higher rates are mostly paid on new assignments.
In short, although the forecasting model has been disrupted, we still share valuable insights and expectations for future rate trends in the labor market. Curious about all the results? Download this edition of the Talent Monitor here.
About the Talent Monitor
Intelligence Group and HeadFirst Group, of which Inhuurdesk is a part, present unique quarterly insights based on recruitment and labor market data from Intelligence Group, combined with hiring data from HeadFirst Group. Both data sources are stored in a structured way, in accordance with the ISCO standard.