Of course it’s positive to see our Employment Monitor registering an increase in job availability in January 12 after two months of declining hiring activity in the City. However, it’s important to note that this is a very typical trend at this time of year with December being a shorter working month. For the eight years that we have been recording job availability, January has always seen an increase in financial services hiring activity in London.
Of course it’s positive to see our Employment Monitor registering an increase in job availability in January 12 after two months of declining hiring activity in the City. However, it’s important to note that this is a very typical trend at this time of year with December being a shorter working month. For the eight years that we have been recording job availability, January has always seen an increase in financial services hiring activity in London.
The number of jobs will also be boosted to some extent by roles that were signed-off but not released in December due to factors such as budgetary constraints. However, despite the fact that January shows a rebound, we have to put this into perspective; the total number of available roles in January 12 was just over half the number of January 11 which was in itself a relatively subdued month for hiring compared to previous years. Despite the welcome monthly uplift, this 52% drop on the number of jobs in January 11 indicates we are still in a very cautious hiring market.
The rise in number of job seekers in the market in January 12 compared to December 11 again reflects the time of year. The ‘New Year, new job’ effect prevails to some extent every year regardless of economic conditions. In addition, we are in the midst of bonus announcements, with expectations that many banks will be restricting the size of bonus pots to reduce costs and focus on other ways to attract talent. Speculation and anticipation of unsatisfactory bonuses may have encouraged professionals to re-enter the jobs market in January 12. However, as the distribution of bonus pots is unclear at this stage, it therefore also remains unclear whether bonus season will have the usual jobs merry-go-round effect.”
The significantly increased time to fill roles reflects the environment in which organisations are currently operating; interview processes and headcount sign-off are quite clearly delayed for a number of reasons. Firstly, finding the right person is absolutely paramount – each hire is crucial. Secondly, negotiating and agreeing compensation and benefits packages is frequently taking longer with changes to the structure of remuneration within institutions and hiring managers facing cost pressures. Thirdly, lack of visibility and confidence in the market means it can be genuinely difficult to determine the right person and the right time to hire. The constantly changing landscape, particularly with respect to regulation also adds another layer of complexity.
We are definitely seeing the impact of this uncertainty reflected in the relatively active level of hiring activity for temporary and contract roles in financial services. It’s encouraging to see these short term roles being released which suggests a need for skilled professionals, however it also points to a real ‘wait and see’ approach to hiring permanent employees.Of course it’s positive to see our Employment Monitor registering an increase in job availability in January 12 after two months of declining hiring activity in the City. However, it’s important to note that this is a very typical trend at this time of year with December being a shorter working month. For the eight years that we have been recording job availability, January has always seen an increase in financial services hiring activity in London.
The number of jobs will also be boosted to some extent by roles that were signed-off but not released in December due to factors such as budgetary constraints. However, despite the fact that January shows a rebound, we have to put this into perspective; the total number of available roles in January 12 was just over half the number of January 11 which was in itself a relatively subdued month for hiring compared to previous years. Despite the welcome monthly uplift, this 52% drop on the number of jobs in January 11 indicates we are still in a very cautious hiring market.
The rise in number of job seekers in the market in January 12 compared to December 11 again reflects the time of year. The ‘New Year, new job’ effect prevails to some extent every year regardless of economic conditions. In addition, we are in the midst of bonus announcements, with expectations that many banks will be restricting the size of bonus pots to reduce costs and focus on other ways to attract talent. Speculation and anticipation of unsatisfactory bonuses may have encouraged professionals to re-enter the jobs market in January 12. However, as the distribution of bonus pots is unclear at this stage, it therefore also remains unclear whether bonus season will have the usual jobs merry-go-round effect.
The significantly increased time to fill roles reflects the environment in which organisations are currently operating; interview processes and headcount sign-off are quite clearly delayed for a number of reasons. Firstly, finding the right person is absolutely paramount – each hire is crucial. Secondly, negotiating and agreeing compensation and benefits packages is frequently taking longer with changes to the structure of remuneration within institutions and hiring managers facing cost pressures. Thirdly, lack of visibility and confidence in the market means it can be genuinely difficult to determine the right person and the right time to hire. The constantly changing landscape, particularly with respect to regulation also adds another layer of complexity.
We are definitely seeing the impact of this uncertainty reflected in the relatively active level of hiring activity for temporary and contract roles in financial services. It’s encouraging to see these short term roles being released which suggests a need for skilled professionals, however it also points to a real ‘wait and see’ approach to hiring permanent employees.
Victoria Walmsley Operations Director
