The London Financial Services Job Market

There has been a lot of talk in both the media and the market itself on the supposed ‘War for Talent’, and the research that we as an organisation have conducted over the last 12 months has done little to dispel this perception. We can clearly show that this war is far from over within the financial services sector.

With large numbers of new finance jobs coming onto the market each month and the shortage of high quality and experienced finance workers, those that are registering with agencies are being snapped up very quickly. Many are using this to their advantage to fast-track their careers thereby creating a high level of churn within the financial services market. According to figures from the Forum of Professional Recruiters (FPR), placements in the City for financial services professionals have increased year on year by more than six per cent. And, it is not just the permanent recruitment market that is booming, with talent in such short supply companies are looking at all hiring options whether it recruiting people as temps, permanent members of staff or interim. This trend looks set to continue throughout 2007 and onwards.

City Employers

According to the latest Robert Half Financial Services Group City Recruitment Index half of all employers within the City of London and Docklands are planning to increase their number of financial services staff by the summer this year. One of the main reasons cited for increasing staffing levels in 2007 is due to business expansion and increased workload, mainly due to the increased volume of merger and acquisition activity.

Because of the shortage of talent employers are having to look at innovative ways to attract and retain valued employees – remuneration packages and career opportunities are therefore high on the business agenda for many organisations.

This optimism in the market is reflected in the salaries that are currently being offered with more than a third of all employers stating to us that they plan to increase employee salaries by between five to 10 per cent during the first half of 2007.

Benefit packages

A tailored benefits package is an important retention strategy in the marketplace today. Employers are increasingly recognising this and are moving away from solely concentrating on the monetary benefits such as bonuses and pension contributions, towards ‘softer’ benefits that focus on helping workers achieve a healthy work/life balance. The employees themselves are now looking for these ‘softer’ benefits such as flexi-time, extra holiday, gym facilities and the option to work from home. Our latest Robert Half Financial Services Group Salary Survey revealed that the benefits most desired by financial services workers are:

Flexi-time (26%)
Extra holiday (26%)
Gym facilities (23%)
Work from home (21%)
Share options (15%)
Bonuses (13%)

Younger workers in particular appear to be the most willing to embrace more flexible benefits with 24 per cent of respondents under the age of 35 expressing a desire to work from home more frequently compared to just 16 per cent of the over 35s.

Packages therefore need to be reviewed to ensure they strike a balance between financial reward, career development and providing incentives that reflect a work/life balance to attract and retain the highest quality candidates. It appears that employers are taking heed as our recent research has revealed that over the last six months 11 per cent of London employers have introduced flexible working hours to existing benefits packages and 9 per cent now offer the option to work from home. Six per cent have revised their benefits packages to offer gym membership and extra holidays.

As the war for talent continues to intensify employers will need to continue to offer and develop their diverse range of benefits to meet the individual needs of each employee.

City Bonuses

With the market as it is bonus expectations have remained high over the last couple of years. Late last year we conducted a poll looking at bonus expectations and many cited that they expected their yearly bonus in 2007 to be between 10-20 per cent of their annual salary. These expectations were met for many, as a third of all our candidates received a bonus of between 20-30 per cent of their salary.

Career opportunities

Our recent Robert Half Financial Services Group Salary Survey has shown that almost half (43%) of all Financial Services workers are looking for a new job, with the majority citing better career development potential as the main reason. Training, mentoring and leadership opportunities are important tools in keeping staff engaged and motivated. Mentoring in particular is a crucial strategy for transferring wisdom, fostering talent and promoting the best practices within an organisation.

Today’s financial services workers want to feel like they make a difference otherwise they will look for career progression elsewhere. Top talent has never been as valuable as it is today. Talent and not financial capital is fast becoming the most valuable business asset. As a result the tables have turned, and candidates can now afford to be discerning in their choice of employer. The onus therefore is firmly on the employer to provide meaningful incentives to retain staff in today’s marketplace.

About Robert Half Financial Services Group

At Robert Half Financial Services Group, we assist a range of financial organisations with their recruitment needs including; Investment, Retail, Corporate Banking and Broking, Insurance Services, Asset Management and Private Equity. We specialise in placing high-calibre finance and banking professionals, and offer a service as targeted and comprehensive as it is efficient and effective. For more information about Robert Half Financial Services Group or to search vacancies online, please visit www.roberthalf.co.uk or call Neil Owen in our London City office on 020 7562 6500.