Recruitment Slows in Scotland’s Financial Services Sector, reports Joslin Rowe
Scotland’s key financial services companies are optimistic about business prospects and job retention in 2007 – although banking and investment management recruitment is forecast to slow slightly.
Over 70 financial services companies in Scotland contributed to research during November 2006, designed to gauge perceptions amongst some of the most influential employers in Edinburgh and Glasgow. The majority of firms (84%) described their company’s level of business confidence for 2007 as “optimistic” or “very optimistic”. 13% recorded neutral feelings about the future and although just 3% expressed some negativity this was the first time since 2005 such feelings were apparent. 59% expect to increase the number of investment, insurance and banking jobs as well as other related financial services vacancies available in Glasgow and Edinburgh in 2007 compared with last year’s figure of 82%.
The annual study, published for the sixth year running, was conducted by Joslin Rowe Scotland, the financial services recruitment specialist and supported by Scottish Enterprise.
The main findings of the Joslin Rowe Review are:
- The median rise in staff numbers is expected to be up 5% in 2007, predominately across investment and accountancy recruitment. This is in comparison to 5-10% growth in previous years.
- Just 3% of firms expect to cut headcount – the lowest number ever recorded by the survey.
- 60% of organisations expect to run a graduate recruitment scheme in Scotland 2007 – the highest numbers yet seen.
- 90% of firms said they had recruited non-UK workers in the last 12 months to fill vacancies.
- Responding companies were asked; “what percentage of your current workforce are non-UK employees?” The median average was 2-5% predominately from the EU, Non EU Europe, Australia, Asia and South Africa.
- Most financial services workers in Edinburgh and Glasgow can look forward to a 5-10% salary increase in 2006 – compared with up to 5% in previous years.
- Median bonus payments for directors are teetering on the edge of 30% plus for the first time.
- 44% of companies increased their benefit provision in 2006 and 58% expect to do the same in 2007.
- Respondents are increasing/have increased childcare provision, pension contributions, holiday allowance and bonuses.
- Trainees can expect their salary to rise from the £10,000- £14,999 recorded in 2006 to £15,000 - £19,999 in 2007.
Margaret Dyer, Director, Joslin Rowe Scotland believes: “On the face of it Joslin Rowe’s sixth annual survey paints a mixed picture but alarm bells should not ring just yet. The 59% of companies recruiting this year, although admittedly fewer than last year, all say they are doing so because of business growth. We have also recorded the lowest levels of potential job cuts in the history of our survey and firms are clearly investing in future talent by their focus on graduate recruitment schemes.”
“When we drilled down into the various industry sub sectors there were also clearly some real success stories. For example, of the investment management firms we polled 100% say they will be increasing headcount this year and investment operations firms indicated they could increase headcount by as much as 30% plus.”
Cathy Malone, Scottish Enterprise Financial Services Team, added; “Financial services continues to be a real Scottish success story with employment in the sector of more than 113,000. The challenge for the industry and its public sector partners is to sustain this success in the coming years.
“The Financial Services Advisory Board (FiSAB), chaired by the First Minister, was established to address this challenge and to oversee the Financial Services Strategy for Scotland and its delivery. Scottish Enterprise is pleased to support this initiative by participating actively in FiSAB to ensure the future development and delivery of this initiative.”
Notes to Editors
Established in 1982 The Blomfield Group provides the financial services sector with a comprehensive recruitment and HR service via its three subsidiaries, Joslin Rowe, Origin HR and Firth Ross Martin Associates, across the UK and Ireland. On 7 April 2006, international staffing sevices company Vedior (headquartered in Amsterdam, the Netherlands) raised its stake in The Blomfield Group from 18% to 70%.
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