Recruitment Market Review 2009/2010
Overall 2009 continued to be a challenging time for recruitment activity in all sectors, however there was a significant pick-up in Q4 2009, which breathed new life into the professional services recruitment sector. We feel that this renewed confidence will be diluted somewhat as we move into 2010, where a more ‘steady as you go’ approach will be the order of the day for Q1 2010. However, the steep decline in the number of job vacancies which was evident since Q2 2008 has abated and we expect steady but slow gains in most sectors throughout 2010.
Many professionals choosing to remain where they are until the storm blows over
The number of new candidates coming onto the market throughout 2009 was sporadic, with many professionals choosing to remain where they are until the storm blows over, however a large number of professional have come to the market as a result of job losses.
This trend has resulted, in recent times, in employers finding it more difficult to source good candidates with appropriate experience, especially for niche and senior hires. Our research shows, however, that moving into 2010 that there is a strong appetite among financial professionals to make a move to a new position. Overall, the insight from speaking to employers in the market place shows a return to confidence and a more positive outlook in the market, although at cautious levels. We expect Q1 through to Q3 2010 to show low levels of growth with a more significant pick-up in Q4 2010 onwards.
Positive outlook has resulted in greater hiring activity already in January 2010
This positive outlook has resulted in greater hiring activity already in January 2010 compared to January 2009, although it has still been around mission critical hires and areas where redeployment of existing staff is not an option. In addition, professionals are now more inclined to review new career opportunities and the fact that many of these, within the financial services markets, are not waiting for bonus payments in Q1 2010, has resulted in some significant market activity, the likes of which has not been seen in the market place for 18 months.
This market has seen low levels of hiring and staff movement. As the Industry & Commerce sector is diverse in nature it is not possible to give a ‘one glove fits all’ assessment, however 2009 has proved to be extremely tough for most companies resulting in low levels of hiring and redundancies in several areas. There have been pockets of activity, and these have been highly sought after with several candidates taking roles they were over qualified for or would not have considered in the past. This has given great choice for employers who were in a position to strengthen their finance function. However, as with other markets, many professionals have chosen to stay out of the market and the search for top talent or specific hires remains difficult in several cases.
Salaries within Industry & Commerce have remained static
Salaries within Industry & Commerce have remained static with entry level salaries for recently qualified candidates dropping back from 2008 figures. In addition, bonuses were not paid out in most instances. From our research with employers, we do not envisage any significant salaries increases in H1 2010.
A feature of the market continues to be candidate’s flexibility to the salaries they are accepting as well the type of roles they are prepared to consider. Many have taken the approach that it is better to be in a role that partly fits their expectations rather than not to be in a role at all. However, with the bottoming out of the market we expect that professionals will begin to be more particular about the type of role and conditions they accept in 2010 and focus again on career advancement and development.
Young professionals...have met the challenges admirably
In this vein, many commentators predicted a soft underbelly with young professionals coming through indicating that as they have never experienced a recession before that they would find it difficult to shift their attitudes developed in the boom, however in our experience and from speaking to employers in the market this has not been the case; rather these young professionals have focussed on ‘best results’ and have met the challenges admirably. This augers well for the future.
The temporary & interim market within Industry & Commerce remained steady in 2009 and into 2010; however the salaries being achieved have remained under pressure, due to the large numbers of candidates in 2009 and into 2010. Several companies have chosen this route to fill hiring requirements and from our research this market will remain steady throughout 2010. In addition, many candidates are using this route to stay in employment while the job market stabilises creating stiff competition for ‘career contractors’.
The Banking & Financial Services market remained quite in Q1-Q3 2009 but there was a welcome respite in Q4 2010 with increased activity in several areas. This has not continued into 2010 at the same levels, however there is markedly more activity, especially at the mid to senior end. Within Banking, while several institutions still have hiring freezes, there are more and more ‘critical hires’ happening as well as a ‘back to business’ attitude which has resulted in new mandates. Overall, if we compare the market to September 2008 with the Government bailout there is a different attitude and a steady increase in recruitment activity. In addition, there has been activity within ‘distressed asset’ teams within certain financial institutions as they prepared themselves for the transfer of assets to NAMA.
There has been a lot of discussion both nationally and on the international stage in relation to financial services remuneration over the past year
Salary freezes have been in place throughout 2009 with few bonuses being paid and this has continued into 2010. There has been a lot of discussion both nationally and on the international stage in relation to financial services remuneration over the past year but only time will tell how this affects pay structures in the coming years and whether the impact, if any, will be on bonuses or other parts of the overall package.
The landscape for 2010 is steadily improving, and in our opinion it will be Q4 2010 before a clearer picture of hiring requirements and salary guides begins to appear. However, it is clear even at this early stage in 2010 that that financial services professionals are now willing to move out into the market to explore new opportunities and develop their careers again. In addition, the financial services job market has seen an upward trend since September 2009, with several employers showing an increased commitment to hire, and this is likely to continue slowly over the coming months and while progress is slow and changeable the landscape is far more positive.
It is widely publicised that 2009 has been an annus horribilis for accountancy and taxation practices. At the forefront of this has been downward pressure on audit and tax fee income as well as a reduction in new business.
Much of the corporate finance and tax planning work that was so evident in previous years has all but disappeared
In addition, much of the corporate finance and tax planning work that was so evident in previous years has all but disappeared. There has been some relief in that firms with insolvency divisions have been busier than they have ever been, and there has been an attempt to redeploy staff into these areas from the more under utilised areas of corporate finance and transactions services. As a result, most firms were forced into making redundancies across the board and most accountants and tax professionals coming out of contract did not get further offers of employment. Most firms reacted in a timely manner readjusting their cost base in an effort to stabilise the practice. However, like other markets, activity returned in Q4 and offered a welcome respite after a tough year. 2010 should see this trend continue with greater activity across all sectors, however due to a fundamentally changed landscape a number of firms are looking at merger opportunities to give themselves a competitive advantage. This will result in low hiring levels in this sector for the remainder of 2010.