The talent market is definitely picking up. Most companies are spending more time on recruitment. Microsoft had outsourced recruitment, it is now being insourced. Headhunters are very active, and are working quite aggressively. The market for junior recruits (new graduates) is buoyant with many applications and enough good quality candidates. Experienced Finance/Accounting candidates are harder to find.

Compensation levels are flat or even slightly below a year ago. However for more specialist roles, candidates negotiate hard and are well informed of market rates. Companies resist this negotiation as much as possible so as not to set an internal precedent on higher compensation.

Across Nordic, Finns are relatively easy to recruit into Stockholm. Danes and Norwegians are much harder, we think primarily because of the difference in compensation. Candidates from Central and Eastern Europe are doing well in the application process. Although not over represented in applications, they progress very well through the initial assessment. None of the companies represented are actively targeting recruits from C&EE, though one is involved with CEMS who do recruitment events in Budapest.

Most companies represented use the 6 month probation period to assess newhires, though asking someone to leave at 6 months is generally seen as a recruitment failure and is very rare. Microsoft use the probation period even for leadership positions in order to have a consistent approach for all employees (this comment provoked a lot of discussion!).

Once recruited, for many people the lack of mobility is the biggest inhibitor for career progression. Microsoft has developed virtual working to a high level, allowing people to have regional roles without leaving their home country. Meeting rooms are equipped with easy-to-use webcams which enable impromptu video conferences (fostering better collaboration than phonecalls). Interestingly, Microsoft's regional organization of approximately 80 people is dispersed, located in their home or preferred countries and they collaborate virtually as a matter of routine. A meeting facility exists at Schipol airport to allow efficient face to face meetings when needed. This culture of virtual working means mobility is less of a barrier to career progression, and high potential employees can be easily put in touch with each other and senior leaders as part of a high potential program.