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International recruitment consultancy Badenoch & Clark has found that 79 per cent of financial services employees say brand makes no difference to their choice of employer.

Badenoch & Clark surveyed nearly 250 UK financial services employees as well as leading financial services employers to identify key salary, employment and recruitment trends. The research revealed a huge disparity between employee priorities and the packages on offer from financial services employers.

Key 2007/2008 financial services employment trends

• The recruitment market for financial services professionals will continue to be buoyant in 2007 and into 2008 – 76 per cent saw a headcount increase in 2007 and nearly half (48 per cent) believe this will continue in 2008
• While relevant skills and experience remain essential for employers, 16 per cent are considering employing people from non-financial services background
• Counter offers are becoming more and more widespread with 40 per cent of candidates surveyed counter offered – although only 14 per cent were accepted
• Investment banking and investment management are the most popular areas to work in - 72 per cent of candidates want to work in these areas
• Only 7 per cent of financial services firms plan to rationalise their workforce in the next 12 months

Neil Wilson, Managing Director of Badenoch & Clark comments, “Our research reveals that this is a market in which there is a notable mismatch between what employees find attractive in a role and what employers are focused on offering. Employers should spend some time evaluating the most attractive benefits for employees and prospective employees. Flexible working hours are one of the biggest incentives according to employees, and yet only 55 per cent of financial services companies currently offer it. Instead far more employers rank benefits such as season ticket loans, car allowances and gym memberships higher than employees actually show interest in.”

Attracting talent

Survey participants ranked financial services sectors based on predicted degrees of growth in the next 12 months.

1)      Hedge funds, investment management
2)      Investment banking, stock broking, retail banking
3)      Boutique finance houses, insurance, private equity, corporate banking

Forty per cent of financial services employers say they find it difficult to attract employees with the right level of skills and experience. Luckily, a well known brand is only a major incentive to join a company for 21 per cent of financial services job seekers. Salaries and career progression remain essential, at 69 per cent and 66 per cent respectively.

Neil Wilson says, “The dynamics of recruitment in the financial services industry constantly changes, particularly during volatile financial markets. Historically counter offers have been the preserve of senior executives, but in such a candidate short market where competition is fierce this is increasingly becoming the latest phenomenon. However this will only work if employees are leaving for salary reasons, and our survey shows that today’s savvy financial services staff are looking for much more than simply money. Only 9 per cent of our survey respondents cited salary as a reason to leave their job.”

Badenoch & Clark’s survey also reveals an interesting disparity between incentives on offer from US, European and Japanese owned banks. The research reveals that Japanese banks are flagging behind their European and US counterparts in regards to flexible working and benefits.  US and Japanese banks also fall short of offering additional holidays which features highly with employees.

Trends in working hours at US, European and Japanese banks remain fairly consistent, averaging more than 40 hours per week for most workers – for 81 per cent, 90 per cent and 100 per cent of employees at US, European and Japanese banks respectively. Despite these hours, a reassuring 76 per cent claim they are nevertheless happy at work.

Sharing the wealth

Back and middle office workers at financial services organisations do not enjoy the same bonus payouts as their front of house colleagues. 59 per cent say they receive no more than £3,000 in annual bonuses. Only 3 per cent are rewarded £40,000 or more in bonuses.

Annual salaries vary throughout back and middle office functions. Due to the rise in regulation in the hedge fund industry, the sector has seen a huge increase in demand for compliance professionals – as reflected in their 2007 salaries. There is also still strong demand and attractive incentives for qualified accountants as new players such as hedge funds, private equity firms and niche asset managers vie for the best talent.

Typical back and middle office salaries in financial services, exclusive of bonuses

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Related links

• Badenoch & Clark