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Financial services jobs market improves

Thursday 22nd July 2010

The latest London Employment Monitor from Morgan McKinley found that HR and hiring managers in the financial services sector in London expect overall City hiring levels to increase in the second half of 2010, compared with the first half.

New job creation was cited by a third (33%) of managers to be the focus for hiring in H2 2010.

With the anticipated increase in hiring, 55% of respondents stated that finding good candidates with the right skills and experience was more difficult (44%) or significantly more difficult (11%) than a year ago.

When asked about the key personnel challenges faced by financial institutions, the majority (42%) of managers felt that the structure of remuneration packages was the top priority. Competitors poaching staff was the next significant concern for 41% of managers and a shortage of talent was identified by 30% of managers as being the third most pressing personnel concern.

With remuneration continuing to be a high-profile issue over the last few months, Morgan McKinley asked managers if there were plans to make any changes to compensation packages to attract talent in H2 2010.

Most (71%) anticipated that the bonus element of compensation packages would remain the same and only 17% of managers expected a rise.

When asked about salaries 48% of managers expected the average salary to stay the same in H2 2010 although 47% thought it would increase.

Andrew Evans, Managing Director, Morgan McKinley Financial Services said: "As anticipated at the start of the year, hiring in 2010 was expected to rise significantly compared to 2009 levels and this has proven to be the case.

"The first six months of 2010 saw job opportunities increase by 26% compared to the second half of last year. The monthly data also reinforces this growth with June 10 job volumes up 49% on June 09 levels.

"As we move into the second half of the year however, our survey shows HR and hiring managers are split between anticipating a levelling-out of hiring versus continued rises. From May 10 to June 10, there has already been a slight pause with new jobs available remaining relatively steady, down 2%.

"Sourcing and retaining the right talent remains a key priority for HR and hiring managers in the second half of the year. Over half felt that finding the right talent was more difficult than a year ago.

"While there are not talent shortages across the board, the poaching of staff by competitors continues to be a concern. In turn, remuneration structure is high on the agenda as managers look at ways of retaining and rewarding staff that fit with the current public sentiment towards bonuses, while also enabling the City to remain a competitive and attractive place to work."

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Mike Jones