Despite a plethora of indexes and surveys showing that vacancy levels  within financial services are at an all-time low, the reality is that while there may be fewer new jobs, there is still a lot of hiring activity – particularly within compliance, risk and product control. Measuring the numbers of permanent vacancies has little meaning – what’s more interesting is how banks are reworking their business models, evolving and changing and what that means for hiring.

We are seeing far more mobility between tier 1 and tier 2 investment banks than ever before because the rationale for moving is now completely different.  It’s not about money – it’s far more about career development. The financial services sector is simply not the cash cow it used to be and while there is still a lot of money to be made, bonuses will obviously be based on the profit of the organisation rather than the individual.  Skill sets and talent pools are consequently far more mobile and candidates are thinking more laterally about where they move and where they can get progression/cross training opportunities and stepping stones. Good people are really benefiting from this market as they are getting opportunities that just wouldn’t have been available to them before.  Moving from a large team to a small team for example, may have historically been seen as a step backwards for a financial services professional – today it is seen as a way of getting increasing levels of responsibility.  Strategically that’s a good move because when the market comes back they’ll be in a great position to leverage the additional experience they have had.

We are also seeing replacement hires as there has been a mini brain drain out of financial services into other areas such as energy markets.  And as financial services organisations increasingly outsource areas such as risk advisory and consultancy to professional accountancy practices, we are seeing financial services professionals gravitate that way too – a move that would have been unheard of a few years ago!

Adrian Kinnersley is Managing Director of Twenty Recruitment.

The recent announcement by the world’s largest inter-dealer broker – Icap – in which it predicted that profit for the end of the financial year would be at the upper end of analysts’ predictions of £336m to £358m brings welcome news to the City. But in light of this, does the subsequent claim by Icap itself that clients have rediscovered their appetite for risk spell positive signs for growth? And will it create new opportunities for job seekers?

Perhaps it is too early to tell, but this could kick start areas within investment houses that have lain dormant since hiring ceased in the wake of the Global Economic Crisis.  Whilst five or six years ago when global markets were steady, investors had a real appetite for risk, in recent years these organisations have become increasingly risk averse.  Consequently, mergers and acquisitions activity has been at a low level. But could the tide be changing?   It appears so.

A recent survey of Chief Finance Officers carried out by Deloitte UK found that whilst optimism might be down, risk appetite is certainly up.  In fact, risk appetite has risen to its highest level since Deloitte first carried out such a survey in 2007.  Just over 40% of CFOs that responded to the survey believe it is a good time to take risks on their balance sheets. And whilst the appetite for risk is strongest amongst larger companies, it is a positive sign for candidates.

The survey also revealed that there has been a shift in CFOs opinion with a move towards raising leverage for the first time since 2008, as well as a focus on pursuing growth strategies with expansion being the top priority.

Any expansions plans whether organic or through mergers and acquisitions activity are likely to increase the need for recruitment within key areas. Whilst there is still a long way to go there is no doubt that a continued appetite for risk will bring with it recruitment opportunities.

Robert McLeod

Robert is Financial Services Director at Venn Group, the specialist provider of temporary and interim staff across the UK. Robert has over twelve years experience of managing recruitment teams within the financial services sector.

The constant and overwhelming barrage of negativity around executive pay is bad for business, bad for any potential economic recovery and bad for the country

Competitive remuneration for success is fundamental to the viability of business in Britain and is a basic feature of capitalism, which, in the absence of any alternative, is pretty key to everyone whether they like it or not.  The ability to attract, retain and reward the very best talent globally is absolutely critical to the speed of any recovery. We need to encourage entrepreneurialism and aspiration as that’s the only feasible way to soak up the inevitable job cuts in the public sector. It’s completely wrong that bankers, chief executives and anyone that earns well is seen as a social outcast in our society – if we want to drive the best talent out of the country then we are doing a pretty good job.

Obviously pay has to be linked to success let’s take the example of Stephen Hester, Chief Executive of Royal Bank of Scotland who is caught between a rock and a hard place. The Government’s ‘hands off’ commitment in terms of running the bank has clearly not been honoured.  But if Hester doesn’t turn the bank around , he will be vilified as an example of an overpaid banker who can’t do his job –  if he does turn it around there is not the slightest chance that he will be paid even remotely in line with his peers for pulling off what will be an amazing achievement.

Our politicians need to realise that belittling the ability of companies to reward their best people will impact heavily on our ability to compete on a global level in business – and let’s face it – that’s pretty much all we have left to ensure our seat at any table discussing global issues.  The negative image  portrayed by government funded statistical surveys which use lazy maths and half-truths have stoked up a negative fervour that is leading us down an economic cul-de-sac  – a route that will eventually end in us being nothing but a small island with a huge debt.

Adrian Kinnersley is Managing Director of Twenty Recruitment, the London and New York based professional recruiter.

The announcement towards the end of last year that the Chancellor has accepted the Vickers Report recommendations didn’t come as much of a shock but what’s interesting is the fact that changes to the banking system may well create a raft of job opportunities within the financial service IT sector.

The recommendations include the separation of retail and investment banking arms to ensure stability – basically ensuring that the banking needs of smaller customers and consumers are handled by ring fenced parts of the bank . But from a systems perspective, this is a huge  undertaking – it will require significant IT and operational investments which in turn is likely to create a raft of IT jobs as the banks strive to bring about a complex technology separation. However, we’re likely to be looking at a period of around four years before the boom happens as in reality, we will have to wait and see what timeline the banks will be willing to commit to.

The legislation will not be fully drafted until 2015 with implementation by 2019 and obviously there will be an extended planning period of analysis and design before the real implementation begins.  Much could happen politically, economically and financially during this period but if the work does happen then the projects would be gigantic and will require huge amounts of human resource.

Laurie Boyall is Managing Director of McGregor Boyall the  financial services recruitment specialist for *Change &Transformation*Compliance*Executive Recruitment*IT*Marketing*Product Control &Valuations*Risk

The compliance recruitment market is an area that is continuing to experience growth – largely due to increased regulation from both the EU and UK.  This has resulted in whole teams being created covering both advisory and implementation roles.  And whilst this may have been a prevalent theme over the last eighteen months, there shows no sign of let up for the foreseeable future.  However – it’s not just technical know-how that’s in demand. 

Today’s compliance professionals need to be front office facing and have the diplomacy and rigour to be able to stand up to the trading floor. Sales and Trading teams do not like regulation – they see it as a hindrance to executing business and the challenge for compliance professionals is making it easy for the front office to do their job. They have to be assertive, direct and solutions driven.

Additionally, many of the roles call for product specific knowledge and with demand outstripping supply this has presented opportunities for contract staff with the right product knowledge.  While banks are obviously having to be cost conscious in the current climate, the compliance function is absolutely business critical and so those with relevant experience can continue to justify their rate and their position.

To this end, we are seeing an upward pressure on salaries and daily rates within compliance – a head of compliance, for example, can command rates in excess of £500 a day – and this trend looks set to continue for the foreseeable future.

There is no doubt that the logical consequences of the raft of regulations that have been implemented in the last few years ,is that people who understand and can implement any necessary changes are in high demand. In fact, despite the current gloomy headlines about the job market many of these professionals have taken advantage of this situation to move into lucrative contract roles both to accelerate their career progression and increase their knowledge base.

Robert McLeod

Robert is Financial Services Director at Venn Group, the specialist provider of temporary and interim staff across the UK. Robert has over twelve years’ experience of managing recruitment teams within the financial services sector.