Paul Chapman: Is the 'Hiring Season' Over in Commodities?

The commodities world is experiencing an evolution from a fixed 'hiring season' to always-on recruitment. Commodities companies and candidates alike should adapt their talent strategies to prosper in a competitive environment, argues HC Group's Managing Partner and host of the HC Commodities Podcast, Paul Chapman in HC Group's Q3 2024 Market Review.

Historically, hiring within the commodities sector followed a predictable seasonality. Recruitment planning for the upcoming year was typically finalised by September, with search processes commencing through the winter months. This approach allowed successful candidates to resign as soon as bonuses were paid out in the early months of the year. So, across disciplines - much like the transfer window in many professional sports - the great re-shuffle was largely completed by late Spring, often with a few surprises thrown in. 

This seasonality has been slowly diminishing over the last decade, with significant implications for organisations competing in this talent-driven sector.

Impacts for Employers

Firstly, in the wake of the Great Financial Crisis, bonuses became increasingly deferred (whether cash or in the form of unvested equity) and were often subject to claw back provisions. For senior level talent, and especially front office talent, this introduced a substantial barrier to mobility, as a significant portion of past earnings could be forfeited in any move. In many cases, due to tenure and the windfalls of exceptional performances since 2019, these deferred sums can be multiples of any annual bonus expectations. 

Consequently, companies seeking to attract top talent must navigate this reality, as prospective candidates become only marginally less expensive in bonus season than at any other time of the year. Another key development has been the proliferation and extension of notice periods and non-compete agreements (currently and thankfully, being challenged in the US courts). In a fast-paced business environment such as commodities trading, organisations cannot afford delays in execution, and the strategic necessity of having the right talent in place at the start of the year often outweighs the costs associated with buyouts or facilitating a candidate’s move. 

Finally, there is demand. Employers, increasingly unwilling to risk losing talent during the vestigial ‘transfer window,’ now hire throughout the year. This trend is particularly evident among hedge funds, where the competition for top-tier professionals has led to a continuous search for talent, irrespective of seasonality.

Rethinking Recruitment

What does this mean for talent attraction and retention? Firstly, recruitment projects should start earlier, with key talent being actively tracked over extended periods - even for years. Opportunities often arise when insurmountable financial barriers - such as stock prices or contracts - change, making previously inaccessible candidates more attainable. 

Secondly, in the planning stage it needs to be recognised that in many cases there is no ‘cheap’ hiring window. The structuring and funding of compensation packages to attract and unlock top talent must be a strategic priority. For further insights, we recommend engaging with our Talent Intelligence team for tailored solutions. 

Finally, I am a firm believer that no long-term successful hire is made based solely on financial incentives. People join for the right blend of opportunity and culture. Money is what unlocks the move, not what makes it. If there is not clarity of the “why”, then it’s often best to avoid the “how much”.

Paul Chapman

Managing Partner, HC Group
Host, HC Commodities Podcast