Financial services organisations are continuing with their hiring plans as competition for talent remains high despite ongoing uncertainty driven by the UK’s decision to leave the EU. According to a new report out today from Hays Financial Markets, over two-thirds of employers plan to recruit over the next 12 months, with the majority hoping to hire permanent staff.
In a survey of over 900 employers and employees working in banking and financial services, the Hays Financial Markets Salary Guide 2018, shows hiring is being influenced by regulatory changes including MiFID II and GDPR as competition grows for the talent needed to implement change.
More organisations increased salaries this year than anticipated, at 72 per cent. 43 per cent of employers increased salaries by up to 2.5 per cent, and 13 per cent increased salaries by more than 5 per cent in the last year. Larger salary increases are seen across financial crime compliance, as well as areas including finance technology including data science, cyber security and infrastructure.
Despite pay increases, plans to move have not been distilled for workers, as salary dissatisfaction is prompting many to look for new opportunities. Over half (56 per cent) expect to move roles in the next 12 months, with a third saying this is due to their salary and benefits package.
Hiring plans are strong, yet skills shortages look set to continue
Recruiting new talent is a top priority for employers, who are planning to hire regardless of political and economic factors. Positively, 60 per cent are focused on permanent hiring, as organisations take a long-term view of their recruitment strategy.
As employers add to their workforce to tackle regulatory changes and plan for the future, competition for talent is intensifying. 61 per cent report experiencing moderate to extreme skills shortages this year. Over half say skills shortages are impacting on productivity in their organisation, as well as having an effect on innovation, employee morale, growth and profit.