UK finance workers witness strong growth in job market
Employees in the UK’s financial services are experiencing a robust increase in career opportunities.
An increase in permanent vacancies and growing average salaries, it’s all good news for those employed in financial services in the UK, according to reports from recruitment agencies. Furthermore, we should expect to see rising staff turnover this year as the number of alternative jobs appears to be climbing.
According to recruiter Astbury Marsden, the percentage of staff in London’s financial sector who say that a lack of alternative jobs is keeping them with their current employer has nearly halved from 21.2 per cent to 12.9 per cent. The data backs up another report by the Association of Professional Staffing Companies (APSCO), which showed that the number of vacancies for financial staff is up 11 per cent on the year.
“Confidence about career progression appears to be gathering strength in the City, with more and more workers feeling that their employment options at other firms are widening,” said Adam Jackson, managing director of Astbury Marsden.
“Employers will need to be alert to the increasing risk of churn and plan recruitment and retention strategies accordingly,” he added.
The Astbury Marsden report showed that only one in five (22 per cent) workers in the City remained with the same employer for more than five years. The research noted that, out of all front office staff, the most loyal employees worked in private banking and wealth management, as less than half (46 per cent) changed jobs in the last three years.
On the other side, corporate brokers and stockbrokers were the most mobile as two-thirds (67 per cent) switched companies in the same period.
“Private bankers and wealth managers’ employment turnover is well below the industry average, suggesting that they are feeling challenged and rewarded in their jobs for longer than any other client facing or revenue generating role,” said Mr Jackson.
“At the other end of the scale, a far larger proportion of brokers have been enticed away to new posts in the last year, as opportunities increase and loyalty wanes.”
Figures from APSCO showed that median salaries in the finance sector remain robust and are recording growth of 2.3 per cent on the year. This mirrors government statistics and shows that the increasing number of vacancies is making firms boost salaries in order to attract the best talent.
The report highlights that the job market recovery in the financial sector should continue to improve in the wake of the Conservative general election victory, as brokers are now confident that large banks will remain in London in the immediate future.
“The continued rise in employment levels, and associated positivity in the market, is almost tangible to those working within the recruitment profession,” said Ann Swain, chief executive of APSCO.
“Greater stability post-election means that this upward trend looks set to continue.”