Asset management puts recruitment on hold
The next few months will be a time of consolidation rather than growth for recruitment in the asset management sector.
It is widely reported that bonuses will be few and far between this year. Senior staff are likely to miss out altogether whether for public relations, employee relations or performance reasons. Back and middle office staff are expected to be rewarded still, although bonuses may feel meager compared to heyday pay-outs.
This may be the calm before the storm
Cutting the one perk the banking and financial services industry is famed for won’t result in mass mutiny while confidence in the job market remains low. But with employers no longer prepared or able to commit to 10% year on year salary increases either, they must find other ways of attracting and retaining crucial hires. Badenoch & Clark’s recent workplace study, A Longer Term View: Looking beyond the current crisis, points to development, career paths and challenge being the key.
The number of vacancies available within back, middle and front office departments fell by a dramatic 70% across September and October. This is marked by the first signs of decline in recruitment activity at third party administrators, in response to slowing business. The less affected long asset managers, especially those specialising in mutual or retail funds, are maintaining an appetite for fresh talent.
In parallel, more candidates are seeking permanent opportunities which offer perceived stability, and reappraising their salary expectations in a bid to secure them. The glitz and glamour of hedge funds are finally playing second fiddle to established fund managers with longer, more consistent track records.
Recruitment within asset management is unlikely to grow for the remainder of 2008 or into early 2009. Though the sector is loosely peppered by redundancies, it is some small comfort that they are not as widespread as in the troubled banking sector.
But as companies continue to fight fires to stay afloat and stabilise their position, this may be the calm before the storm. Astute employers are placing unprecedented attention on redefining productivity and creating internal engagement now to avoid a desperate situation.
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