LHH Workforce Trends 2024

Retirement, AI, and Interim Recruitment

In the past six months, we have experienced a significant rise in the number of individuals seeking our outplacement and career transition services. This trend aligns with the current economic climate, as reflected in the latest ONS statistics showing a 4.4% unemployment rate¹, a year-on-year increase of 0.4%. As economic uncertainties persist, we anticipate a continued rise in the demand for our services throughout the remainder of 2024.

Notably, the technology and pharmaceutical sectors have seen substantial workforce disruption. These industries, known for their comprehensive employee benefits, are undergoing significant restructurings. Within the global tech sector almost 2,000 businesses made redundancies resulting in over 260,000 people within the industry being made redundant in 2023. In 2024 so far, it is estimated that over 81,000 tech workers² have lost their job from companies ranging from Tesla to Cisco.

LHH has seen a shift from previous experienced workers changing jobs within the tech sector, to many individuals taking their experience and knowledge into new sectors.

We are also seeing an increase in those with existing tech skills upskilling themselves further to make them future proofed for the new role requirements as a result of AI and technology advancements.

In the pharmaceutical sector, including biotech and life sciences, industry adjustments driven by various factors such as patent expirations resulting in less cash flow, organisational changes post-COVID, and technological advancements, has seen the rise in the number of pharma professionals receiving career transition support. While redundancies are not to the scale of the tech sector, the volume of those being laid off is rising. We are witnessing an increasing number of professionals transitioning out of pharma and into new sectors like FMCG and food. This shift presents a valuable opportunity for employers to access a diverse talent pool with transferable skills.

Retirement Does Not Mean Retirement

A notable trend among our outplacement candidates is the evolving perception of retirement. Traditionally, financial security was the primary concern for those retiring. However, in the last 3-4 years, there has been a shift in attitudes towards winding down careers. Many individuals now view retirement as a phase for new opportunities, exploring semi-retirement, portfolio careers, and part-time work that leverages their skills and experiences.

Non-executive directorships (NEDs) remain a popular choice for senior professionals seeking flexibility and continued engagement in their fields. Additionally, a significant number of candidates consider starting their own consultancy businesses. While approximately one-third of candidates explore this option initially, through LHH’s resources and advice, fewer than 20% actually start their own business, often due to the realisation of revenue expectations, managing their own business and other reasons. Nonetheless, NED roles provide a balanced alternative, allowing professionals to contribute their expertise within a defined timeframe.

The Rise of Interim Hires

The landscape of interim hiring is evolving. Once considered a temporary solution for filling senior positions during transitions, interim roles are now increasingly common across various levels, from department heads and above.

This trend reflects market caution, as businesses prefer interim and contract roles to maintain operational continuity while navigating economic uncertainties. Interim hires enable organisations to achieve their day-to-day objectives without the long-term commitment of permanent positions, offering a pragmatic approach in an unpredictable market.

As we continue to support professionals through these transitions, our focus remains on providing the resources and guidance each individual needs to succeed in an ever-changing employment landscape.

¹ https://www.bbc.co.uk/news/articles/cw5ykyzdzezo

² https://www.verdict.co.uk/five-biggest-tech-industry-layoffs-of-2024-so-far/?cf-view