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Financial recruitment to rise and redundancies fall in 2010

Monday 8th February 2010

By Mike Jones

More than half (52%) of Scotland's financial service firms responding to an annual labour market survey intend to increase headcount in 2010 by up to 10%.

The majority of firms (73%) described their company's level of business confidence for 2010 as "optimistic" or "very optimistic" while 24% had neutral feelings about the future. Importantly, just 3% were pessimistic (compared with 19% pre-credit crunch).

The annual study, which has run since the Millennium, was conducted by Joslin Rowe Scotland, the financial services recruitment specialist and supported by Scottish Enterprise and Scottish Financial Enterprise.

The main findings of the Joslin Rowe Review are:

* 43% of responding firms cut staff in 2009 and 10% predict to make further cuts in 2010 due to offshoring and outsourcing, as well as redundancies. Up to 10% of staff are expected to be affected. Directors are most vulnerable;
* January 2009 was the worst month for financial services recruitment - with job vacancies an incredible 93% down on 2008 levels;
* Companies increased their flexible working provision to cut wage costs. The number of companies with a third of staff working shorter working weeks/days has risen from 11% to 17%;
* 35% of respondents experienced difficulties enticing staff from competitors as the labour market reduced substantially in 2009 through lack of confidence;
* 13% felt their employer brand had suffered since the credit crunch, making it harder to attract staff;
* Nearly half responding companies (47%) said their current staffing levels were too lean to manage a significant upturn in 2010;
* 52% of firms will be increasing permanent headcount (mostly fund managers but also investment and retail banks);
* The average salary rise in Scotland's financial services industry is forecast to be 1-2% in 2010 - after a year of no increases for most in 2009.

Margaret Dyer, Director, Joslin Rowe Scotland said: "While there's no doubt that there are now far more job opportunities in the market as we head into 2010, job seeker movement among talented professionals remains muted. People are adopting a 'better the devil you know' career plan through fear of a double dip recession. The recession hangover means even firms with strong employer brands are struggling to entice the best recruits from their competitors."

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