According to the latest job data from APSCo, the employment market slowed significantly this summer as businesses took a break during the Olympics – but firms that were hiring stuck to interims. APSCo found there was a 4% rise in temporary placements last month compared to August 2011 – which mirrors the results of the latest Venn Index, our quarterly report on temporary and interim vacancy levels across the UK.

Hiring activity typically slows in the City during the summer months, but this year it appears that some workplaces slowed to a standstill. Many professionals seem to have heeded the Government’s suggestions, either to take time off during the games or to work from home which has had an influence on hiring – particularly within the financial centre with its close proximity to the action. 

In addition, there is some uncertainty surrounding new government reforms, due to be introduced next month which may have had an impact on permanent hiring levels. The legislation will include a binding vote on pay policy designed to improve ‘transparency and accountability’ in directors’ remuneration. Under the new rules, executive pay policies should clearly set out how pay supports the strategic objectives of the company, and should include better information on how directors’ pay compares to that of the wider workforce. Until the impact of these changes is fully understood, some firms may feel it is better to wait before taking on additional staff at top level.  

It’s no secret the financial services industry has had a turbulent time of late, and in the wake of recent controversies, institutions are turning to change management specialists to put in place procedures to safeguard against similar occurrences in the future. Interims are used to bridge the gap in these unpredictable times as they offer more flexibility than a permanent hire – and of course no permanent headcount cost. Here at Venn Group we understand the value and resilience of the temporary and interim market and we are not surprised by APSCo’s findings. It will be interesting to see if this trend continues as we approach the latter part of 2012.

Robert McLeod- Venn Group

A recent assessment by advisory firm Corven suggested that major financial services institutions could be twenty years behind the aviation sector when it comes to managing risk.  However, according to Lucie Pychova who heads up the financial services risk division at Twenty Recruitment, the banks are definitely maturing in their approach albeit somewhat reluctantly.

“The trend of traders trying to re-invent themselves as risk managers is becoming a thing of the past as the sector realises it needs a real culture shift.  Historically there have been numerous examples of movements from trading into risk, and while there are a few senior Heads of Market Risk that have successfully made the transition, in general the two cultures just don’t gel.”

Pychova says that the banks are realising that what has been perceived as a fairly lukewarm approach to risk just won’t be tolerated in the current climate.  Risk Managers are therefore really gaining a strong voice and a seat at the table.

  “This is a new breed of Risk professional – tough personalities who have to be able to challenge – and impose limits on – profit driven traders – whatever their seniority.  The role is no longer one of ‘internal policeman ‘as it was in pre Lehman days but one of power – but with that power comes huge responsibility. Regulations are updating and evolving all the time and not keeping up can result in huge losses.”

“There’s no doubt that there is still a backlash against the inherent culture within financial services and while there is still a long way to go, within risk departments things are definitely changing.”

Lucie Pychova is Head of Risk Recruitment at Twenty Financial Services

• 93% of UK FS executives say harmonised regulatory environment in the EU is vital
• Anti-Money Laundering (AML) tops list for regulation affecting UK businesses
• Regulatory compliance drives demand for senior skills – raising compliance budgets for 53% of UK businesses

Faced with a barrage of different financial regulations, including Anti-Money Laundering (AML), anti-corruption requirements, privacy regulation and Basel III, the vast majority of UK financial services CFOs and COOs (93%) believe that a harmonised regulatory environment within the European Union is important to the operational well-being of their businesses.  Ninety-two per cent believe a single environment is important across Eurozone (common currency) countries, while 88% think it is important globally, finds new research from Robert Half Financial Services.

When asked which global regulation has had the most significant impact on their business over the past six months, UK finance professionals cited AML, disclosure or reporting requirements and privacy requirements as their top three areas.

200 UK CFOs/CFOs were asked, ’Which three of the following global regulations have had the most significant impact on your business’. Their responses:

The need to meet demand for so many areas of regulatory change is driving demand for senior finance professionals with the right skills to ensure their organisations are compliant.  This has led to a rise in compliance budgets for more than half (53%) of UK businesses over pre-2008 budgets, with a further 37% reporting that they have maintained the same expenditure.

200 UK CFOs/CFOs were asked:

Compared to pre-2008, has your compliance budget, including capital expenditure and labour costs increased, decreased or stayed the same?

Neil Owen, Global Practice Director, Robert Half Financial Services said: “We have noticed a significant increase in demand from organisations to bring the right talent on board to help them stay ahead of the regulation tsunami.  Some companies are bringing on permanent senior professionals; others are turning to seasoned project regulatory specialists with the requisite knowledge and experience to oversee key initiatives.  It’s not surprising that so many financial executives believe it is important to harmonise all of these areas of regulatory compliance, which has become such a huge element of their day-to-day role and that is driving up costs for the majority of businesses.

About Robert Half

Robert Half is the world’s first and largest specialised recruitment consultancy and member of the S&P 500. Founded in 1948, the company has over 350 offices worldwide and more than 20 in the United Kingdom providing temporary, interim and permanent recruitment solutions for accounting and finance, financial services, technology, human resources, marketing and administrative professionals. Named one of the Sunday Times’ 100 Best Companies to Work For, Robert Half offers workplace and job seeker resources here and on Twitter.

Following a succession of scandals, there is no doubt the City is in a precarious position, but research indicates temporary vacancies within Financial Services are up by 6.9%.

Despite recent press that suggests opportunities within the sector are decreasing, The Venn Index – a quarterly report which provides an overview of vacancy levels and in-demand skills across the UK – has found the Interim market had a healthier 2nd quarter than possibly predicted. Although vacancies across all sectors are 4% down on quarter one, the Financial Services Industry enjoyed a rise of almost 7%, all eyes are now going to be on the 3rd quarter results.

It’s no secret there has been negative publicity surrounding the UK’s banking system in recent months and Libor, Vickers and the PPI fiasco have contributed to the current state of affairs.

In light of these recent events, experienced change management professionals are being drafted in to work on projects to streamline businesses and restore public confidence. Interims are in an ideal position to clean up organisations’ internal affairs because of their impartiality. Mismanagement and corruption may be hard to establish on the inside, but experienced, un-biased contractors are able to implement strategies to encourage an upturn in performance without the commitment of lengthy contracts.

Institutions are concentrating on projects within IT, HR and PR departments with a focus on crisis strategies and damage limitation programmes. We have found that hot areas are asset management, regulation, risk, and compliance. There is particular demand for financial controllers, performance analysts, and senior business controllers to assess how businesses are performing financially and put in place systems to make organisations more efficient. Professionals with a strong background in effective financial management are being snapped up quickly and can command good rates.  

The culture of banking in the UK has been called into disrepute, and change is needed to restore faith amongst domestic customers. The current situation is far from ideal – but it offers the opportunity for ambitious professionals to work on significant projects within a major financial centre of the world.

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.

To see Venn Group opportunities please click here.

In the current economic climate it is clear that many factors of people’s lives are being effected with one of the most directly hit being employment.  In 2011, we saw a steady rise in unemployment in the UK – however, interestingly, some industry sectors actually invested more resources in to employing and training staff during this period – especially in areas such as financial services; it is believed that this is due to the uncertainty that surrounds money markets and foreign currency exchange.

On the continent many individuals and families have been affected, especially in the more obvious of the hotspots, Greece and Spain, where unemployment figures are out of control and the single currency has become very weak. Many professionals believe that it is only a matter of time before the problems in the rest of Europe have a direct impact on us in the UK. One of the main issues is that the Eurozone is the UK’s biggest trading partner, with almost 50% of our exports going to the Eurozone in 2011. As European economies, such as Greece, Italy and Spain, have continued to see decline and economic unrest, there is a clear expectation that there will be less demand for UK services and products with an undoubted knock-on effect on employment, especially in manufacturing verticals.

Furthermore, the problems within the Eurozone have caused a nosedive in confidence amongst business owners and managers with a strong disinclination to take risks with such high degree of uncertainty in the markets. This means that there is a lack of new opportunities being generated and a lack of investment being put into current employees, which, of course, is bad news for the younger workers and graduates looking for employment and development.

However, this isn’t the case in all industries.  Several recruitment specialists are observing a trend for companies to “hoard” their skilled work force, with many holding on to their most capable workers in the hope that the upturn is not too far away. They are confident that the cost of keeping on and paying those staff is preferable to letting them go and then having to pay the cost of recruitment and training once the economy has improved.  It’s fair to say, therefore, that whatever the economic situation a high quality candidate will always be in demand.

At City Jobs, we have over 14 years’ experience in the industry, bringing the most demanding clients and the highest quality candidates together consistently and successfully.  Visit us today to ensure you’re being seen by the right people.