Challenging market set to continue for operations professionals
As the fall out from the credit crisis continues many investment banks are being forced to rein in expenditure. These cost cutting exercises have meant a tightening of belts on expenses, and more applicable to the recruitment market, redundancies, restructuring and reductions in pay rates for temporary members of staff.
As many banks have successfully worked through redundancies and restructuring they can start to move forward and understand where the critical and urgent hires are. As a result we have seen some movement in the permanent market but for replacement and strategic hires only. Towards the end of the first half of 2008 some banks expressed a more optimistic outlook for the coming months and have released vacancies, where there had previously been minimal or no recruitment activity.
Employers remain fairly rigid in terms of the essential skills required and want to be sure that the chosen candidate ticks all of the boxes. Much of this rigidity is due to a perceived increase in candidate flow due to redundancies. Consequently, we are finding that some permanent candidates are hesitant to enter the market due to the unstable conditions.
In contrast to the permanent market, temporary vacancies have remained fairly steady throughout the first half of the year. The number of available candidates has increased, due to the increased instability of roles and fewer temporary staff being made permanent. However, we are still seeing candidate shortages within key areas in operations.
So what roles are being recruited for?
For both temporary and permanent positions we have seen roles in all areas of operations, in particular commodities, derivative trade support roles and middle office roles across all products. We are also seeing an increase in managerial positions within the middle office.
“Counter-offers remain a regular occurrence in the permanent market as banks fight to keep their top talent”.
Retention is still an issue for many of our clients despite the recent rounds of redundancies. Counter-offers remain a regular occurrence in the permanent market as banks fight to keep their top talent, by offering increased responsibility and remuneration and packages that cannot be rivalled. On the temporary side we have also seen an increase of retention bonuses for candidates at all levels.
In brief, the first half of the year has been a fairly turbulent period for operations recruitment. Some areas have seen no let up in the candidate shortages of 2007 whereas in others the number of candidates vying for positions has increased. Line managers are still being dogged by headcount issues and the recruitment process continues to be lengthy. Despite a more optimistic start to the second half of the year it is likely that the challenges faced earlier in the year will continue.
Our message to employers is to sell the opportunity to strong candidates, especially at the senior level. Be mindful that the competition will try and keep hold of top talent so be prepared for counter-offers. It is essential to move quickly during the offer stage and to get the contract out as soon as possible.
Candidates must think about how their current skills and experience relate to the roles they are interviewing for and make sure you highlight this clearly. Be patient as timeframes are still slower than usual. There are still roles out there for strong candidates, so do not put your career on hold due to the credit crunch.
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