Job market soaring in finance and banking sectors
Second Post editorial, 31 March 2006
The current resurgent economy and frenetic activity in the markets mean thousands of jobs are being created in London's financial industry. Share prices are burgeoning, mergers and takeovers are once again producing glints in bankers' eyes and a bumper year for deals all round is expected.
It’s fair to say that the reversal of the belt-tightening of the early noughties is fully underway. Banks which in the purges of '02-'03 had offloaded personnel in their thousands, are now retrieving their rolodexes and sweet-talking the top talent, in many cases re-employing the same people.
February for instance saw 16,500 City jobs created - up 47% from last year - according to a survey just released by Morgan McKinley, the recruitment consultants.
Just in case any of their jilted staff had decided to downshift and take up more easygoing (and secure) professions such as farming or teaching (neither particularly easygoing but it's all relative!), they may be persuaded back by the high salaries produced by all this hiring activity. Competition for talent is pushing salaries up - basic remuneration for senior staff rose 15% in the last year to an average £76,750, while for all workers it has risen 7% to £49,805.
Adding to the excitement, this time of year is bonus time, which contributes to the recruitment activity. Bankers are sometimes known to jump ship having pocketed their bonus. Clearly this isn't an industry that's all about loyalty, but it is one in which with those with the skills can command great wages, and at the moment can in many cases pick their employer.
And with salary offers rising across the board, firms must also address other factors in order to differentiate and attract and retain the best, according to Morgan McKinley's chief executive Robert Thesiger. He noted, "pay will always be a factor but organisations will be looking at other ways to secure the talent they need, whether through the make-up of total compensation packages or through the career development opportunities they offer."
Recent research from the Centre for Economics and Business Research showed that the number of City jobs rose to a record 327,600 last year, higher even than at the height of the dotcom boom.
The biggest growth area this year is expected to be in investment banking - the area dealing with advice on corporate transactions such as mergers, takeovers and floats. This is the sign of a mature recovery. However other areas such as equities trading and even analysis, until recently the marked man of the finance world, are also expected to be hiring in the hundreds in '06.
A good time to dust off your CV then, finance workers!
By H.Jones, 31st March 2006
|