Lack of available City talent could lead to return of aggressive headhunting tactics

The number of banking and hedge fund staff actively looking for a new City job has dropped 20% over the last year says Astbury Marsden, a leading financial services recruitment firm.

According to Astbury Marsden, in the second quarter of 2011 there was an average of 1.68 qualified candidates for every new City job, down from 2.13 candidates per role in the same period in 2010. The figure represents a 15 month low.

With the number of qualified City staff actively looking to switch jobs having fallen so steeply, whilst the number of new jobs (year on year) remains stable, firms may need to resort to more aggressive headhunting tactics to fill vacant jobs.

Astbury Marsden says that the number of new City jobs created in June 2011 is 5,400 – up from 5,040 in the same month last year.

Mark Cameron, Chief Operating Officer at Astbury Marsden, says: “There are signs that some banks are beginning to resort to pre-credit crunch tactics of targeting competitors’ key employees and teams.”

“City firms had benefited from a steady flow of high quality CVs over the last few years. Now this supply has slowed as staff sit tight, the active poaching of staff from competitors could heat up further throughout the year.  Ironically the war for talent could be turning more hostile just as the growth in new jobs seems to have plateaued.”

Astbury Marsden explains that the second quarter would normally prompt a heavy influx of bankers looking to switch jobs, but this year, City staff have been far more reluctant to enter the jobs market.

Mark Cameron says: “Slowing global growth, inflationary pressures and the Eurozone crisis are all undermining confidence. With a slower deal flow it is difficult for investment banks to deliver on targets. Banks are trimming staff here and there, and in that kind of uncertainty, City workers are far less willing to move.”

“Some bankers feel that they are locked into their long term deferred bonus programmes and others will have decided that they are better off in the short-term with their existing employer.”

Astbury Marsden adds that candidates with regulatory experience still remain in hot demand as financial services firms rush to ensure they are compliant with Solvency II and Basel III minimum requirements.


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