I read a very interesting article on the Accountancy Age website recently about the lack of female progress onto boards. The author, former PwC director Francois Moscovici, discussed whether the chronic under-representation of women on boards is a talent pool or company issue, and suggested ways forward. She believes more companies need to refine their recruitment practices, systematically include women on board short lists and better manage their executive pipelines – steps I very much agree with.

View the full article here

The facts and figures around this issue continue to be disheartening. According to Corporate Women Directors International, almost a quarter of the world’s 200 largest companies still do not have a single woman on their boards of directors. And the picture in the UK definitely needs improving. The representation of UK female board directors (14.3%) lags well behind Norway (39%), Latvia (23%), Sweden (21.9%), France (20.5%) and other nations.

I believe that increasing these percentages can only be a good thing. Surely greater diversity in boards will lead to more informed, sounder decision making? In her article, Moscovici argues that women lack the confidence and attitude to push themselves through the glass ceiling and that they will only apply for a job if they are 100% confident about their competence. In my experience as a recruiter I haven’t noticed a significant difference between the genders in this respect but in this current economic climate, perhaps a few more risk averse board members is just what we need!

Source: Accountancy Age, 12/09/11

Accountancy Age, diversity on boards, women on boards

As the economy hovers perilously above recession, the role of the chief financial officer (CFO) has once again been pulled into focus. Pressure is mounting on finance professionals to manage growth in line with controlling costs; to maintain a lean operation but also an agile one that can capitalise quickly on improved conditions. History has shown us that upturns can gain momentum very quickly and companies don’t want to find themselves on the back foot.

I would argue that the global economic downturn has affected the job descriptions of CFOs more than any other C-level position. The ‘to do’ list of a CFO in 2011 is very different to that of a CFO in 2008. The scope of responsibilities has widened considerably: today’s CFO is not only expected to be technically strong and an expert on matters financial and regulatory, but a strategic-thinker, a visionary, a leader. More a navigator of a ship rather than a chief mate, if you’ll allow the metaphor.

In turbulent times, boards tend to put proven, practical and shrewd performers at the helm. This is certainly something I have witnessed over the past few years. I wasn’t surprised to read in Accountancy Magazine that 54% of FTSE 100 companies have a chairman with a background in finance.

So, are CFO salaries rising in line with these added expectations? Well, it is hard to comment in the overall as there is such a range but there has been a noticeable trend towards incentivising CFOs within commerce and industry with bonus schemes. This is in contrast to the financial services sector, where intense public scrutiny resulted in the scaling back of bonuses this year and last.

CFOs are definitely becoming more prominent within companies and have ‘louder voices’ when it comes to top line strategy. We are seeing this trend – this shift in role requirements – trickle down to finance professionals at all levels. Companies are increasingly seeking commercial accountants with sharp business acumen who can add value and affect their bottom lines, rather than just operating as a back office or support functions. Accountants are now expected to interact with a wider circle of stakeholders, adopt more strategic mindsets and translate financial data coherently and accurately.

For these reasons (among others), finance professionals with good interpersonal or ‘soft skills’ in addition to technical expertise are now in high demand. The feedback I’m receiving from employers is that these value-adding skills will become even more important over the next 12 months.

But back to CFOs and a final word of caution. With all this increased strategic and operational importance, the weight on their shoulders will be heavier than ever. A number of CFOs have notoriously tried to achieve too much on their own and have become withdrawn from their teams, too reactive, overworked and consequently, ineffective. As the role of the CFO evolves, so will a greater reliance on the collective. CFOs will need to adopt more of an ‘open door’ approach than in the past. They’ll need to delegate more and foster their teams. No man is an island!

This blog appeared on The Huffington Post on 13/09/11

CFOs, economic downturn, Huffington Post

ICB Chairman, Sir John Vickers this week published a report which he feels will ultimately safeguard the UK banking system and separate the ’casino’ style risks the City has been perceived to be taking with domestic savings. Two of the main highlights of the report are: 1) ring-fencing domestic deposits and leading banking away from ’trading-book’ activity; and 2) increasing the capacity to absorb losses.

Ring-fencing

Separating retail banks and wholesale/investment banking divisions is a move seen to be protecting the taxpayer. The implications of this though are flexible and, somewhat murky at this stage as banks will be lobbying to understand exactly what levels of flexibility there will be. The fact that ’universal’ banks will no longer be able to cross-sell products to one anothers customers and in effect work in a ’third-party’ style of relationship will have a number of potential outcomes. This will also affect organisational structures as retail banks must now have boards of directors independent to investment banking divisions – in theory creating different company cultures.

This is one step removed from the separation of the universal banks, but in itself does also create opportunity. As organisations restructure, there will be opportunity for new talent to come in approaching things with fresh eyes and the potential to guide the implementation of the report’s recommendations and ensure the future rigour of the firm. We may see, new departments and role functions created to be the interface between the parts of the business either-side of the ring-fencing.

Increasing the capacity to absorb losses

Enhanced regulatory control over the sector is nothing new and it is important to remember that there are already measures in place such as Basel II and the subsequent implementation of Basel III.

The Vickers Report is suggesting that UK banks will need to exceed internationally agreed Basel III recommendations against risk weighted assets (RWA) to somewhere closer to 17-20%. This will have huge implications for the sector, particularly as banks are already struggling to raise capital in the current economic climate.

The impact of all this on the recruitment market may at first sight appear bleak, however there are absolutely opportunities for certain areas of the recruitment market to flourish through this transition period.

The demand for individuals with regulatory (Basel III), Capital allocation and RWA experience is already high and will now will go through the roof; creating more opportunities for people to enter this specialised area. As the importance of these functions is instilled throughout the industry, we expect to see more candidates seeing regulatory risk management as an area they can enter and continue to grow and develop their careers as the perception is they will always be in demand.

Summary

It is important to remember that this legislation will affect only the UK banks. There is a feeling that the Vickers Report could create a two-tier banking system. Banks that are affected by the ring-fencing will need to safeguard their staff from overseas banks operating in the UK as they will not be affected by the reforms. These firms may be seen as more attractive options to staff due to the comparatively lower amount of red-tape.

The next few months will be telling as banks will be lobbying hard to minimise the impact and cost of this legislation. There is still a large grey area in the policies outlined which will need to be clarified to ensure transparency throughout the industry.

The Chancellor George Osborne has vowed to give clarity on how this legislation will be put into place by the end of the year. Until then, we will all wait and follow with interest…

Banking, banks, Financial Services, legislation, profits, retail banking, Tax, Vickers, Vickers system

We all use Facebook to keep in touch with family and friends, share photos, plan our social calendars, apartment hunt and sometimes to even wrangle a date!

So why not use it to land a job? Professional and business networking has evolved and social networking is the new vogue! Most of the large social networking sites now advertise jobs, so it’s time for you to get social!

These days, you can use social media to build a powerful personal brand and attract job opportunities directly to your doorstep. Social media can make it easier for you to find the right job and connect with the right people to help you win it. The key is to be proactive.

Social media can be your friend, but it can also turn against you quickly. If you’re not willing to be disciplined and smart in the way you manage your social networking accounts, then there’s no point trying to use them for finding a job. Ensure you have the appropriate privacy settings in place and don’t post comments or photographs that you wouldn’t want a potential employer to see.

We have just launched a new Facebook group for office support and secretarial job seekers. Link in with us today and receive regular market updates, career advice and tips on how to manage your social networking profiles.

It’s time for you to be open-minded and think differently about how you’re going to get that dream job.

Facebook, job hunting, office support jobs, secretarial jobs

So now you’re fully qualified! You’ve passed all your exams and done your time to become a fully fledged chartered accountant. But what next?

With over 6,000 newly qualified accountants this year alone, what you really need is a CV that’s going to get you noticed above the competition. Here are a few tips:

First impressions count

Aim for 1.5 – 2 pages but avoid using large fonts, double line spaces, and eccentric type faces to fill up the space and make it look longer – they didn’t work at school and they don’t work now! Ariel, Calibri or Times New Roman, in size 11 is the norm.

There’s a fairly standard layout for CVs, which is usually:

• Name, address and contact details, plus visa status where applicable, as a header
• A brief personal summary, where you work, your strengths, your goals etc.
• Education details (e.g. university, school, A-levels, GCSE grades etc)
• Any language skills and level of proficiency
• Your work experience, starting with the most recent first and working backwards
• Personal interests and achievements

Show your personality

It’s really important to express your personality as this is what often separates you from other job seekers. This doesn’t mean witty one-liners, more that you should add some detail on what you do outside of work so people get an idea of you as a person. If you’ve climbed Kilimanjaro, or knitted a blanket for charity, then that’s worth mentioning and it will really make you stand out from the crowd.

As a newly qualified accountant, your CV is more likely to be ‘chronological’ rather then ‘functional’ which is more common at the senior end when you are targeting a specific role or company. Your employment history on a chronological CV should follow the traditional format of: dates of employment; name of employer; size and business type; followed by your job title; responsibilities you’ve had and any specific achievements in the role. Try to avoid short 2-3 word bullet points – a coherent sentence for each bullet reads much better.

The best CVs for a newly qualified accountant in practice should also include your top two or three clients and what you did for them. Perhaps it was a specific IFRS conversion Or maybe you audited one of your clients’ overseas entities? It really helps to give potential employers a good feel for what you’ve done and the types of companies/industry sectors you’ve had exposure to.

Check – and then double check

Finally, read it and re-read it to check for any spelling mistakes and grammatical errors. Get friends, family or colleagues to give it a once over too before you apply for a position, because once you’ve pressed send, you can’t get it back!

ACA, CA, cv, CV tips, exams, ICAEW, Newly qualified ACA, Practice

Buy. Sell. Buy. Sell. Up. Down. Up. Down. Not a particularly technical way of describing how the markets have been acting over the last few weeks I know, but this type of see-saw effect appears to be a normal way of life at the moment. As a recruiter, I keep abreast of all market activity, as what occurs within the financial markets and with banks in particular, dictates how busy the hiring market will be.

Over the last few days, reports of the need for further regulation have once again arisen, mainly driven by Vince Cable’s inability to understand that his version of reform will in actual fact harm the financial markets even more and thus lessen the UK’s competitiveness and overall attraction to new business. Some banks are already threatening to relocate their HQs to lower tax havens, not to mention more and more employees are considering relocating to other regions, again financially driven, which could ultimately lead to talent shortages in the UK.

What Cable fails to see, and what is excellently detailed in this report by Oxford Economics is that London’s economy will act as catalyst to lead the UK recovery as a result of its high export orientated, flexible, dynamic and competitive economy, both in terms of its businesses and its people.

There was also an interesting article in this morning’s City AM arguing that Cable’s suggestion that the government’s regulatory stance must get tougher will be detrimental to economic recovery. The article summarised some of the regulations that we already have in place, which banks in particular have had to adhere to and at times, at an unprecedented speed. These include: Basel 2.5, Basel III, Capital Requirements Directive 4, Living Wills, OTC derivatives, Prospectus Directive II, The Dodd-Frank Act, new taxes…the list goes on.

It is evident that London will have to play a significant role if there is to be a turnaround in the UK’s public finances. Unless the capital returns to making the significant contribution to the Exchequer that has been the norm over recent years, it is hard to see the overall UK budget deficit getting back to manageable levels.

By over-regulating and restricting free flow business, you naturally increase cost base. We won’t know until the 12th of September what the UK ICB’s (led by Sir John Vickers) final recommendations are for British banks but they are likely to include a requirement to impose a firewall between banks’ retail and wholesale operations into subsidiaries that must be separately capitalised. McKinsey estimates that this will raise the cost of funding for investment banks by about 94-113 basis points. Although, only UK banks will have to abide by these rules, I can’t help but worry that this may in fact further impact the overall recruitment market in London.

economic recovery, increased regulation, Vince Cable