Recruiting Q4-2023: mission impossible?
So far this year has been really awful for job opportunities. August is generally quiet and this year has been no exception. Can we expect an acceleration during the last quarter of the year ? What's the sentiment ? What have you heard from recruiters lately ?
Following.
Its going to be extremely tough out there for awhile. I know plenty of firms still holding onto staff that they don't need on hopes of a rebound. We let go of most of our acquisitions team. Only opportunities will be asset management because those are going to be the problem areas. If your goal is acquisitions/development, its going to be really tough out there, there is no sugar coating it. If your looking for any job, asset management or special servicing is where you'll find something, but I know many that would not enjoy to be in those positions.
The market is going to be really tough for awhile. CRE pay will be lower as well. We're likely looking at at least 2-3 years of pain before things start to stabilize. I could very well be wrong, but thats just my guess here.
What's your take on capital markets (d/e and IS) positions? I still see plenty of deals getting done it seems like on LinkedIn. For me, since I have been out of a job a few months and on the outside looking in, it really looks like the doom and gloom is overblown? However, yeah the hiring right now is very very slow and there are not many exciting opportunities on the market at the moment.
There's deals happening, but I'm willing to bet they're mostly concentrated with the best teams. These deals are also mostly being done out of necessity (maturities, end of fund, etc.), so volume is still way down. Looking at latest quarterly revenues from the big brokerages, it doesn't look like the doom is overblown.
I'll also add that people always use LinkedIn to try and boost their brand. So even if a broker only sold one building, they are now more than ever pushing marketing because they have to try harder to get their name out there.
Curious what your board's game plan is by culling your acquisitions team? Sure, there are hundreds more acq guys waiting by the door, but your current team is a known quantity (hopefully a good one) and will be ready to go when the market recovers.
Is it not short sighted to cull the team, only to put together a completely fresh team once work comes back?
Or are margins so thin that you can barely keep the lights on
Top performers were kept around and are helping on asset management.
In fairness, my firm kept the team around for awhile. Most of them were doing nothing for quite awhile and they got good severance packages. I think they are thinking long-term there is going to be serious problems due to the lack of transactions. They probably ran the numbers and thought its just too expensive to keep people around when there is no work.
Also theres are ton of people that got let go, many that are top performers, looking for jobs in acquisitions. I think they kind of know this and are okay with hiring a new team.
Out of necessity, trying to make the jump from ASO1 on a solid D/E placement team placement to REPE AM right now. I had no idea it was going to be this brutal…
Also Institutional Investors are trying to cut the CRE exposure as much as they can
I think its gonna be rough until at the earliest next year. Your best bet is well capitalized developers/family offices and asset management roles.
My take is that until we get an actual fed pivot, which typically coincides close to a macroeconomic bottom, most investment teams are going to be sitting around idle. Those layoffs are happening because management at those shops has a stance that we are in this shitstorm for longer than a few more months. I think if we're lucky we might get a pivot by the end of the year, more likely sometime next year. Once pivot happens, I think hiring will spring back into action.
The latest I heard from the recruiters is that the activity is picking up but the fundraising is super slow hence the recruitment is still pretty stagnant.. what a shitty market honestly!
Coming from an acquisitions guy who was recently laid off, it is very tough out there to find any acq/development roles. Recruiters are optimistic more roles will be posted after Labor Day, which will be interesting to see if true. All firms I've spoken to are waiting for transaction volume to pick up to even consider adding headcount, which will be very difficult to time given the lack of clarity in the market.
Starting to consider AM roles or moving to the debt side. I've also noticed a serious lack of roles in the Northeast, with more seen on the West Coast and in Sunbelt markets. Will be interesting to see what the fall brings...
Similar situation in Canada. Was laid off Q1 2023 and most roles (2-3) that I should've gotten went offline. I've started consulting for a firm which is helping. Recently got a verbal from the UAE for focused on US Investments - this too was done by cold emailing / networking.
If you have experience in debt / would be willing to switch I think there are some opportunities. I have experience in underwriting, debt am, and workouts and get reached out to semi-regularly.
I will say that debt AM is very frustrating and slow in the sense that you wait for a Borrower to send you stuff / respond to inquiries.
Is it me or the market seems to have slowed down even further vs August?
Definitely have seen close to no new job postings on LinkedIn (specifically NY).
Besides LinkedIn / SelectLeaders anyone recommend other sites to look at? Indeed seems like a crapshoot
It's a weird market. I would lean on your network and recruiters mostly.
Definitely has slowed down compared to August
Aut itaque maxime cum vero hic earum officia. Sit impedit omnis voluptatem est aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...