Table of Contents
Introduction 3
Operations and Middle Office Overview 4
Middle Office Equity 4 Middle Office Fixed Income 4 Settlements Equity 5 Settlements Fixed Income 5 Foreign Exchange and Money Markets 5 Client Services 6 Corporate Actions and Dividends 7 Derivative and Commodity Middle Office 8 Loans 10 Project Management 12 Collateral Management 14 Pricing and Valuations 15
Corporate Governance and Finance Overview 16
Accounting 17 Audit 18 Compliance 20 Credit and Operational Risk 21 Market and Quantitative Risk 23 Performance / Risk Analytics / Modelling 25 Product Control Overview 26 Human Resources 27
Working with cer The Specialist Recruitment Group 29
Introduction
Introduction
Welcome to the cer Financial Salary Survey 2012. For this edition we have expanded our salary survey and have included relevant market trends and our predictions for the coming year. The UK recruitment industry remained rather stagnant in 2011. A majority of the market movements were a direct implication of bonus allocations. With a candidate saturated market, companies were eager to attract the best professionals there were. At cer Financial we believe the UK recruitment industry will be a mirror image of last year. We anticipate that there will be a big upturn in spring coinciding with bonus season for many of the top and mid tier banks and investment houses. We noticed that in the run up to bonus announcements candidates are tending to be more proactive and we have seen an increase in tentative enquires regarding new job opportunities. Once bonus allocations have been issued for this year, our understanding is that rather than new positions being recreated we may only see like for like movements. This will result from general unrest in the market. A recent LinkedIn survey reported that 83% of fully-employed respondents are not actively looking for work. cer Financial is committed to working predominantly with passive candidates on an exclusive basis. This ensures that you see the best in the market and not just the best of what is proactively looking. Due to a stressful market period, candidates are placing a stronger emphasis on job satisfaction, work life balance and security than ever before. This shift has resulted in skilled workers looking to accept opportunities they would not have previously considered. Following on from this, we believe the market is set to stabilise for the remainder of the year. With one of the largest domestic banks announcing they are beginning proceedings to exit from cash equities, corporate broking, equity capital markets and M&A other financial institutions will be waiting anxiously to see the implications of this. We deem the introduction of the Agency Workers Regulations (AWR) as an initiative by the Government to curtail the overuse of temporary workers in the market. Most of our clients have adapted accordingly to the AWR and are able to support the necessary processes. The result being that we have not seen a decline in the demand for temporary workers. Management at cer Financial have attended several meetings with the Recruitment and Employment Confederation solicitors over the past 18 months to discuss changes that will occur due to the AWR. If you have a question or are worried about how the changes may impact your business please call us and we will provide you with the necessary information. For further information about cer Financials’ service offering or to speak to one of our dedicated technically trained recruitment consultants, please call 0207 626 6065 or visit our new website www.cerfinancial.co.uk Paul MershWith recruitment volumes continuing to be affected by global economic conditions, the operations market will continue to be a challenging area for recruitment throughout 2012, with further outsourcing of a significant proportion of back office functions, coupled with various restructuring/ downsizing strategies being implemented. It is anticipated that it will be equity based back-office roles within Investment Banking that will see the least amount of movement, with a greater demand for experienced Treasury and Fixed Income professionals across settlements, payments, trade support etc. Middle office trade support functions are becoming more hybrid in nature, with genuine scope for career diversification for well-educated, experienced professionals. The need to be able to offer more diversity in skill base will be of ever increasing relevance throughout 2012. Asset Management looks likely to continue at a similar rate in 2012 as in 2011, with Fund Administration, Investment Accounting, Fund Analysis, Portfolio Control etc being of greatest interest, particular for those candidates that are pursuing the CFA and/or accountancy qualifications. Traditional retail fund based roles will be operating at similar levels and more likely to be influenced by attrition rates rather than any significant growth. Again early indications are that those individuals that have a wider range of skills will continue to be of particular interest, due to the changes in role/team dynamics.
Operations and Middle Office Overview
Middle Office
Equity Role 2012 2011 Head of Department 90k-105k 90k–105k Manager 75k-90k 80k -90k Supervisor 50k-75k 65k-75k 3+ yrs’ exp 40k-50k 40k-50k 0 – 3 yrs’ exp 25k-35k 23k-30k Fixed Income Role 2012 2011 Head of Department 90k-105k 90k-105k Manager 80k -90k 80k -90k Supervisor 65k-75k 65k-75k 3+ yrs’ exp 40k-50k 40k-50k 0 – 3 yrs’ exp 23k-30k 23k-30kSettlements
Equity Role 2012 2011 Head of Department 85k-100k 85k-100k Manager 70k-85k 70k-85k Supervisor 50k-70k 50k-70k 3+ yrs’ exp 40k-50k 40k-50k 0 – 3 yrs’ exp 23k-40k 23k-40k Fixed Income Role 2012 2011 Head of Department 85k-100k 85k-100k Manager 70k-85k 70k-85k Supervisor 50k-70k 50k-70k 3+ yrs’ exp 40k-50k 40k-50k 0 – 3 yrs’ exp 23k-40k 23k-40kForeign Exchange and Money Markets
Role 2012 2011 Head of Department 80k-100k 80k-100k Manager 60k-80k 60k-80k Supervisor 50k-70k 50k-70k 3+ yrs’ exp 35k-50k 35k-50k 0 – 3 yrs’ exp 25k-35k 25k-35k
Operations and Middle Office Overview
Client services within the financial services industry is used as a collective term as it is incumbent to Investment Banks, Asset Managers, Hedge Funds and Banks and differs slightly depending on company structure. Recruitment appears to be ongoing and even within the current financial climate, client service and relationship managers are still very much in demand. Throughout the financial services market, many institutions appear to be hiring on at least one level. That said a comparison with last year shows that hiring is not as aggressive, portraying that people are still cautious about the market and volumes have declined. With regards to Retail/Private Banking, Fund Managers, Investment Managers, Wealth Managers etc there are many rules and regulations that have been introduced into the market. This includes The FSA’s Retail Distribution Review (RDR) which intends to improve public trust and confidence in the financial advice sector by bringing about a step-change in professional standards. This incorporates an increase in the minimum level of benchmark qualifications to be held by advisers, meaning that many client service candidates are having to “up there game”. The wider reaching implications of RDR are difficult to fully ascertain at this stage, however, there is no doubt that this piece of legislation will reshape the Client Service/Relationship Management landscape. Investment Banks and Global Custodians are always on the lookout for good Client Service professionals, as more often than not they are the first point of contact for internal and external clients. It is vital to maintain a good image of the bank, as well as making sure the clients are getting the service they would expect/sign up for. As above many regulations are continually being rolled out to the market including the Dodd Frank which is a United States federal law that places regulation of the financial industry in the hands of the government. This legislation, enacted in July 2010, aims to prevent another significant financial crisis by creating new financial regulatory processes that enforce transparency and accountability while implementing rules for consumer protection. This is just one example of how companies are continuously adjusting to market procedures. A direct knock on effect is that more and more client service teams are being rolled out to support this. Outsourcing has had a huge impact on the financial industry in London. Many companies are choosing to near shore to cheaper locations within the UK and also to offshore to overseas locations. However many customers and clients still appreciate having a main point of contact and from this we are noticing more client service hubs being created.
Client Services
Client Services Role 2012 2011 Head of Department 80k-100k 80k Manager 60k-80k 58k-78k 3+ yrs’ exp 40k-55k 45k-55k 0 – 3 yrs’ exp 28k-40k 30k-42kClient Services
Corporate Actions and Dividends
While the Corporate Actions and Dividends market remains predominately quiet, there are a number of institutions who continue to hire. This is evident of many of the custodians and buy side institutions who in a candidate rich market are very keen to attract experienced Corporate Actions candidates. We are seeing that a majority of the positions are replacement hires rather than the generation of new roles. Our experience of the industry shows that on the sell side institutions prefer candidates who have good solid Investment Banking experience. In addition to this, organisations tend to recruit candidates who have a minimum of 2-3 years experience in processing front to back events across all markets. We have seen a small amount of senior hires over the past six months. However as these positions are vital to any financial institution buy side still appears to be quite fruitful from a senior hiring manager’s perspective. Large Investment Banks and Custodians are also still hiring in this area but usually on a replacement basis only. It is hard to predict the next 12-24 months within the asset servicing environment. As stated above many firms are continuing to recruit but not as aggressively as previous years. This is a knock on effect of the current financial climate. Over the last five years there has also been a big push on Straight Through Processing (STP) providing new jobs in the short term through hiring people who will implement these systems. As many institutions now have their STP processes in place, jobs have unfortunately been curtailed. While advantages of this process include the reduction of human error and faster application of processes for Corporate Actions events it does not bode well for the recruitment industry. This married with outsourcing has dramatically cut down the number of Corporate Actions clerks on UK shores. Having spoken to most of the hiring managers within the market good experienced Corporate Actions clerks are still at times extremely hard to find. We anticipate that 2012 will bring some movement to the Corporate Actions and Dividends market but believe that for the beginning of the year a majority of these roles will be replacement positions rather than a natural expansion of companies.Corporate Actions and Dividends
Role 2012 2011 Head of Department 80k-110k 80k-110k Manager 65k-90k 65k-90k Supervisor 50k-70k 50k-70k 3+ yrs’ exp 35k-52k 35k-52k 0 – 3 yrs’ exp 25k-35k 25k-35k
The Derivative and Commodity Middle Office endured a tough end to 2011 in terms of live role volumes and we anticipate this is likely to be a continuing trend for the early part of 2012. The opening half of the year we expect to be busy across Rates and Commodity product lines with the need for like for like replacements after the inevitable corporate re-shuffle off the back of 2011 bonuses. We don’t envisage a wealth of newly created positions for 2012, however imagine there will be an abundance of like for like replacements given candidates expectations bonus wise and the indication that there is a strong willingness to move on should bonuses be low. Credit Derivatives are likely to endure a tough time given the world’s economic state and negative media coverage potentially spooking the market. This may be further exasperated by rising credit costs due to downgraded credit ratings for both businesses and indeed the states themselves. Additionally the new Basel 3 regulations are likely to further restrict Credit and Commodity trading given the capital that these products require and the need to ensure balance sheets are adequately capitalised. That said Commodities does appear a buzz area at the moment with many institutions making good ground in this genre. Should that trend continue, hiring companies may decide that the costs associated with the physical business are worthwhile given the rewards. Commodities candidates in my opinion will continue to earn slightly more than their Derivative counterparts and the 2011 gold rush will no doubt see demand for precious metals support candidates remain high. This should be the case even if some business’ step away from the area. Sticking with Commodities, London is likely to be the main growth area for Renewable Energy’s over the next 12 months with utilities companies playing a prominent role in this increase. Government indecision has of course dampened the demand from the retail consumer perspective, specifically within solar power. From a corporate point of view carbon credit instruments look to be a 2012 driver given state backed initiatives to increase their appeal and the need globally to reduce emissions. This has certainly not escaped leading investment companies with many creating new banners under which these instruments are now traded and consequently, we would be surprised if we don’t see further demand for candidates with tangible experience within emissions related products. Investment Banks continue to lead the way in terms of off shoring or indeed near shoring with many Investment Banks now up and running in low cost alternatives within the UK as opposed to the traditional Eastern outposts. Whilst this is a cause for concern to those in middle office functions in London, there does seem to be a genuine belief that these areas will return to London as has happened in previous similar initiatives. Candidate outlook in this sense remains positive, as does the commitment to London as a business hub. Additionally numerous candidates in the traditional UK outposts such as Bournemouth and Birmingham and to a lesser extent, north of the border, continue to seek work in the capital where they believe their experiences will be more keenly rewarded. We imagine compensation will rise slightly as end of year reviews take place, especially as if expected this year’s bonus pots are low. This in turn should drive businesses to providing reasonable rises as a gesture of faith to the strongest candidates on their desks. In this economic climate, that may well ensure staff attrition is kept to a minimum.
Derivative and Commodity Middle Office
Derivative and Commodity Middle Office
Middle Office - Interest Rate Derivatives
Role 2012 2011 Head of Department 85k-120k 90k–105k Manager 75k-95k 80k-90k Supervisor 60k-75k 65k-75k 3+ yrs’ exp 40k-60k 40k-50k 0 – 3 yrs’ exp 25k-45k 23k-30k
Middle Office - Futures and Options Operations
Role 2012 2011 Head of Department 90k-120k 90k–105k Manager 75k-95k 80k-90k Supervisor 60k-75k 65k-75k 3+ yrs’ exp 40k-60k 40k-50k 0 – 3 yrs’ exp 25k-45k 23k-30k
Middle Office - Equity Derivatives
Role 2012 2011 Head of Department 90k-120k 90k–105k Manager 70k-95k 80k-90k Supervisor 60k-70k 65k-75k 3+ yrs’ exp 40k-60k 40k-50k 0 – 3 yrs’ exp 25k-45k 23k-30k Settlement Derivatives Role 2012 2011 Head of Department 90k–105k 90k–105k Manager 70k -90k 80k -90k Supervisor 50k-70k 65k-75k 3+ yrs’ exp 40k-50k 40k-50k 0 – 3 yrs’ exp 23k-40k 23k-30k Commodities Role 2012 2011 Head of Department 90k-120k 90k–105k Manager 80k-90k 80k-90k Supervisor 60k-80k 65k-75k 3+ yrs’ exp 40k-60k 40k-50k 0 – 3 yrs’ exp 23k-40k 23k-30k
In comparison to 2008 the Loans market could not look more different. In the past four years we have seen Loan traded volumes fluctuate. Most significantly is the slow decline due to the credit crisis. Present market conditions have resulted in fewer organisations having sufficient confidence to become involved in primary deals. The direct knock on effect of this, means that most activity is taking place within the Secondary Market and Restructuring arena. However, volumes within these areas still remain low compared to 2008 figures. In conjunction with the credit crisis, the Loans market on a whole has seen some significant changes. These consist of outsourcing, off and near shoring. Some banks have moved their entire Loans Administration, Loans Agency and Loans Closing functions out of London. Other banks have not taken such drastic measures but have moved what they deem to be there more vanilla functions. Another aspect of the market has seen banks working in conjunction with companies such as DTCC and Markit to improve the trade flow and eliminate certain aspects of the role to Straight Through Processing. This will enable departments to centralise, standardise and streamline processes that are critical to the safety and soundness of mitigating against loss. This is resulting in a considerable amount of change to the Loan’s life cycle. In brief much of this means fewer roles are now available for Loans professionals. The market is becoming saturated with larger pools of candidates allowing hiring managers to source candidates that match exactly their requirements with regards to skills, level of experience, educational background, systems or language skills. There was no movement in salaries across 2010 and 2011 within the Loans discipline. In 2012 we estimate that this will be the first time in cer Financial’s history that we will see a decline in Loans Administration and Loan Closing salaries. For the few top tier banks salaries remain consistent year on year. In general, we will see a decline of up to 10% as candidates place job security as a number one priority and salary expectations now fall further down the ‘wish list‘.
Loans
Loans
Loans
Loan Administration Role 2012 2011 Head of Department 80k+ 80k+ Manager 60k-80k 60k-80k Supervisor 45k-60k 50k-60k 3+ yrs’ exp 40k-50k 40k-50k 0 – 3 yrs’ exp 22k-40k 22k-40kLoan Agency Administration
Role 2012 2011 Head of Department 80k+ 80k+ Manager 60k-80k 60k-80k Supervisor 50k-60k 50k-60k 3+ yrs’ exp 45k-55k 45k-55k 0 – 3 yrs’ exp 30k-50k 30k-50k
Loan Agency Middle Office
Role 2012 2011 Head of Department 90k+ 90k+ Manager 70k-90k 70k-90k Supervisor 55k-70k 55k-70k 3+ yrs’ exp 40k-60k 40k-60k 0 – 3 yrs’ exp 30k-45k 30k-45k Loan - Closing Role 2012 2011 Head of Department 90k+ 90k+ Manager 70k-90k 70k-90k Supervisor 60k-70k 60k-70k 3+ yrs’ exp 45k-65k 45k-65k 0 – 3 yrs’ exp 38k-50k 38k-50k *Even though clients banding and salaries have remained the same candidates have reduced their expectations with regards to salaries. In some circumstances this has been as much as 20 percent for base salaries depending on their situation.
Loans
The financial discipline of Project Management falls across the areas of Programme Managers, Project Managers, Change Managers and Business Analysts within the industries of Audit, Product Control, Credit Analysis, Credit Risk, Operational Risk, Market Risk, Quantitative Risk, Compliance, Taxation, Financial Control, Financial Accounts, Management Accounts, Fund accounting, Regulatory reporting and Treasury, we are optimistic about the year ahead. The Operations aspect of Project Management relates to Programme Management, Change Management and Business Analysis for Back Office, Middle office and retail functions within Investment Banks, Hedge Funds, Investment Houses, Retail Banks, Consultancies and Cards/Payments institutions. Although we do not imagine there to be a huge amount of new positions created in 2012, we believe that there will be a large amount of movement with “like for like” replacements, whereby many people are waiting to see what the financial reward of their bonus will be, and many candidates will be looking towards their next role if they are unhappy with their bonus remuneration. Admittedly, some of the Investment Banks are quiet and are looking to reduce their overheads, most notably by reducing the amount of contractor staff. However, there is no need to be overly pessimistic about the year ahead. As aforementioned, some financial institutions will have to increase their staffing numbers to hit the desired levels of business growth, and to aid current staff with the ever increasing workload that is placed upon the modern day financial worker. This in turn can produce very experienced specific roles being created, and not all of these roles will have a suitable candidate who is looking for permanent work. This may well lead to an increase in contract or interim roles in specialist sectors. Arguably, we will not see a drastic amount of movement within the realm of senior management on the financial side of Project Management and Business Analysts before the end of bonus season, but this may well change once the bonus season begins in banking. With bonuses and salaries being scrutinised, perhaps in more detail than they ever have been before, the bonus season could well produce some unexpected movement within the senior sector. Candidates may have to readjust their salary expectations in 2012 to make themselves more employable in the year ahead. Salary surveys are still leaning towards a increase of between 0.5% - 3%, indicating that the financial market will still be a hugely rewarding one for the most diligent and applied candidates. We do not see how salary increases such as these are going to be maintained as predicted over the next 12-24 months, with an influx of candidates, which may well make take the level of competition for each new role within finance project management and business analysts to a new level. However, the potential combination of candidates who are unhappy with their bonuses and therefore keen to move, and financial companies looking to recruit to re-direct and progress their prospects and market position for the year ahead, 2012 may well prove not to be the year of doom and gloom that many are already viewing it as.
Project Management – Operations and Corporate Governance
Project Management – Operations
and Corporate Governance
Project Management – Operations and Corporate Governance
Operations Business Analyst/Project Management
Role 2012 2011
Head of Department 85k 90k
Manager 70k-85k 75k-90k
3+ yrs’ exp 50k-70k 55k-70k
0 – 3 yrs’ exp 40k-50k 40k-50k
Finance Business Analyst/Project Management
Role 2012 2011
Head of Department 110k 110k
Manager 80k-110k 80k-110k
3+ yrs’ exp 70k-85k 70k-85k
0 – 3 yrs’ exp 55k-70k 55k-70k
Finance Business Analyst/Project Management - Contractors
Role 2012 2011
Head of Department 650-800 per day 700 per day
Manager 450-600 per day 550-650 per day
3+ yrs’ exp 350-450 per day 450-550 per day
0 – 3 yrs’ exp 250-350 per day 350-450 per day
Operations Business Analyst/Project Management - Contractors
Role 2012 2011
Head of Department 800-1000 per day 1000 per day
Manager 500-800 per day 500 per day
3+ yrs’ exp 400-500 per day 400 per day
0 – 3 yrs’ exp 300-400 per day 300-400 per day
Project Management – Operations
and Corporate Governance
Collateral management in London continues to attract great interest particularly within the OTC space for 2012. In recent times, the use of OTC products by financial institutions has continued to rise which has made the importance of managing the collateral even more important. Incidentally, 70% of OTC exposure is now collateralised, this is a significant increase on previous years which mitigates risk and is assisted by Government drives to clear OTC business through CCPs thus minimising Counterparty risk. In terms of Investment Hire, the London market place is very uncertain given the industry wide initiatives to both off and near shore. Most managing recruiters however suggest the temporary and contract market could well be buoyant as we approach industry deadlines with regards to OTC Clearing. This potentially could give rise to additional positions in the Collateral space where I would imagine candidates with prior experience using Colline of the greatest appeal given its new found popularity with London based financial services firms.
Collateral Management
Collateral Management Role 2012 2011 Head of Department 80k-110k 80k -90k Manager 70k-80k 70k – 80k Supervisor 60k-75k 65k – 75k 3+ yrs’ exp 40k-50k 40k – 50k 0 – 3 yrs’ exp 25k-40k 20k – 22kCollateral Management
Pricing and Valuations
Pricing and valuations is still a fundamental part of the fund administration process, however for a significant proportion of the larger investment management businesses this role has been outsourced to the various third-party administrators. Within the smaller businesses, pricing and valuations invariably forms part of the broader ranging fund/investment administration roles, which provides a good platform for candidates from the vertical functionality to enhance their skills further. Over recent times, pricing experience is becoming more of a requirement within the Alternative Investment houses, however this generally forms part of the trade support process. To this end, there is still demand for experienced Pricing Specialists with multi-asset class exposure, particularly derivatives; however the retail fund business is proving equally as popular.Pricing and Valuations
Role 2012 2011 Head of Department 90k-115k 110k-115k Manager 75k-90k 75k-90k Supervisor 55k-75k 55k-75k 3+ yrs’ exp 40k-55k 40k-55k 0 – 3 yrs’ exp 25k-40k 25k-40k
In the current economic climate regulations are ever more critical and constantly evolving. This has lead to Financial Institutions to demand and attract the leading risk professionals from talent pools to support their requirements. The introduction of Basel III will result in tighter regulations being adapted to raise financing in economies. Non-bank financial institutions, such as investment banks and hedge funds, will play an increasingly active role raising the risks associated with this sector. New rules on trade financing are likely to result in tighter trade credit conditions, encouraging companies to use less secure instruments. As trade credit conditions tighten, country risk information is set to become even more essential to companies dealing with foreign counterparties. The outsourcing of roles is become an ever increasing trend in the market. As such the market is now saturated with candidates. Employers have the luxury of being more selective and are negotiating lower salaries. Asset Management looks likely to continue at a similar rate in 2012 as in 2011, with strong interest in candidates studying for professional qualifications such a the CFA looking to progress their careers within Investment Risk and Portfolio Analysis. Following the recent bonus season, there will be natural movement within organisations and hiring managers are in a place to fill roles. Increase in confidence in the market should lead to a raise in recruitment levels.
Corporate Governance and Finance Overview
Accounting
Management/Financial Accounting Role 2012 2011 Head of Department 110k– 140k 110k– 140k Manager 90k–105k 90k–105k Supervisor 80k–90k 80k–90k 3+ yrs’ exp 65k-75k 65k-75k Fund Accounting Role 2012 2011 Head of Department 60k – 80k 60k – 80k Manager 60k – 80k 60k – 80k Supervisor 45k -55k 45k -55k 3+ yrs’ exp 30k -45k 30k -45kRegulatory Reporting / Accounting
Role 2012 2011
Head of Department 65k -75k 65k -75k
Manager 55k -70k 55k -70k
Supervisor 45k -55k 45k -55k
Systems / Project Accounting
Role 2012 2011 5 years + PQE S/VP 70k -100k 70k -100k 3-4 years PQE AVP 50k-75k 50k-75k 1-2 years PQE Analyst 45k -55k 45k -55k ACA/ACCA/CIMA Role 2012 2011 Newly Qualified 40k -55k 40k -55k Finalist 38k -50k 38k -50k Intermediate 30k -45k 30k -45k Finance Manager 28k -55k 28k -55k
Accounting
Audit
cer Financial specialises in the placement of Internal and External Audit professionals within Investment Banking, Corporate Banking, Commercial Banking, Investment Management, Trading Firms, Brokerages and Practices. Over the past 12 months we have all seen news highlighting occurrences of Risk controls failing. With ever increasing regulations and a greater need to negate Risks across their businesses, companies now regard Risk Management and internal business controls as a critical aspect of their operations. Managers across all functions have begun to embrace business controls to mitigate Risk and consider the Audit process and subsequent recommendations as an integral part in the effective running of their businesses department. We have become aware that many of our clients have demonstrated that their businesses are evolving and becoming ever more complex. The result being that many internal Audit functions have had to react with regards to policies that cover new products, new countries and new regulations. Many of their existing Audit professionals have seen their roles and responsibilities develop to meet these new demands. As an organisation we have seen the ramifications of such changes with many of our larger clients recognising the need to restructure their Audit functions in order to meet said changes. The result has seen senior appointments within Audit for many of our larger clients and many smaller clients recruiting strong generalist Audit professionals. We expect this trend will continue throughout 2012 as many companies continue to evolve their Audit proposition to consider new techniques to meet ever changing Risks. Many workers will remain apprehensive about the future and with candidate pools appearing increasingly sparse, those with specialist product knowledge will continue to be in high demand with larger organisations. Those with strong operational control experience across a variety of functions will appeal to smaller Audit departments. We also anticipate staff retention to be high on the agenda for many organisations and with the ongoing reforms to bonus payments creating uncertainties amongst those considering their career options over the coming months, we expect the trend of increasing basic salaries to become a common theme.Audit
Audit
Internal Audit Role 2012 2011 Head of Department 90k -150k 90k -150k Manager 75k-95k 75k-95k Supervisor 60k -85k 60k -85k 3+ yrs’ exp 55k- 65k 55k- 65k 0-3yrs’ exp 40k-60k 40k-60k External Audit Role 2012 2011 Head of Department 80k -110k 80k -110k Manager 70k-80k 70k-80k Supervisor 60k -70k 60k -70k 3+ yrs’ exp 45k- 55k 45k- 55k 0 – 3 yrs’ exp 40k-50k 40k-50kAudit
Compliance
Likely to be one of the most significant areas of growth in 2012, Compliance professionals at all levels will be in much greater demand, with the introduction of further regulatory changes and the impact of much tighter controls in respect of Data Protection and Privacy legislation. Of particular note will be all roles that deal with Financial Crime, including Anti-Money Laundering and Client Money issues. A number of financial institutions are expanding their compliance teams at all levels and the need for a proven working knowledge of KYC/AML for operationally based candidates will also become more of a prerequisite. Compliance Role 2012 2011 Head of Department 120k+ 110k Manager 85k-115k 75k-110k Supervisor 65k-85k 60k-80k 3+ yrs’ exp 45k-55k 40k-50k Up to 3 years exp 25k-40k 25k-40kCompliance
Credit and Operational Risk
cer Financial specialises in the placement of Credit and Operational Risk professionals within Investment Banking, Corporate Banking, Commercial Banking, Investment management, Trading firms and Brokerages. During 2011, the focus on restructuring of distressed debt was in demand. We anticipate within the risk analysis and credit industry that this will continue to be a focal point for 2012. With clients involved in major restructuring projects and impaired lending an ever apparent risk of default, specialists from the restructuring sector are a valuable commodity to many. Many organisations have become involved in major restructuring projects as a direct result of impaired lending, specialists from the this sector are a valuable commodity and are becoming more in demand. The demand for professional experts with this background has exceeded initial market forecasts and we have seen an increase of between 10-30% from restructuring relationship managers for products such as property finance. With ever increasing skepticism coupled with bonuses not being granted the fall back has resulted in more people considering moving into a new position. A direct result of this is clients are able to recruit new hires while keeping financial loss to a minimum. As organisations explored their corporate structures and reorganised reporting lines, we regularly received feedback in 2011 that there was a shortage of candidates within the market who possessed strong leadership qualities to manage teams of risk professionals. For 2012, organisations will need to invest in time and money into training and developing the management skills of of their existing employees coincide with this demand. Should this not be adhered to it may become necessary to look to the market and bring in an external consultant. Throughout 2012, we expect the risk recruitment market to be as active, if not more vigorous than was seen during the course of 2011. As the risk profession gains prominence across many financial services segments, of note is the increasing number of risk professionals being hired into new roles within the Asset Management industry. With expected consolidations and redundancies within many of our banking clients, we envision a strong flow of sell- side risk professionals to the buy-side over the coming 12 months. As candidate pools appear increasingly sparse, those with specialist product knowledge will continue to be in high demand. With the ongoing reforms to bonus payments creating uncertainties amongst those considering their career options over the coming months, we expect the trend of increasing basic salaries only to increase.Credit and Operational Risk
Credit Management Role 2012 2011 Head of Department 85k+ 85k-105k Manager 70k-80k 65k-75k Supervisor 50k-65k 45k-65k 3+ yrs’ exp 40k-55k 35k-55k 0 – 3 yrs’ exp 30k-35k 25k-30kOperational Risk Management
Role 2012 2011 Head of Department 80k+ 85k–105k Manager 65k-80k 65k–75k Supervisor 50-65k 45k-65k 3+ yrs’ exp 40k-50k 35k-55k 0 – 3 yrs’ exp 30k-35k 25k–30k
Market and Quantitative Risk
cer Financial’s Market Risk and Quantitative Risk desk specialises in the placement of these professionals within Buy Side Investment Firms, Investment Banking and Corporate Banking clients and Trading Firms. Throughout 2011, we saw sustained demand across all trading periods for experienced Risk professionals, with many active candidates in niche markets receiving multiple job offers. Salary increases were pronounced and minimum expectations from a candidate standpoint to consider a move averaged at around a 10% uplift in basic wage. Areas that experienced severe shortages in candidate supply were as follows: l Candidates with Liquidity Risk management experience l Those with a Project Management / Business Analyst background l Investment Risk professionals who hold front office experience l Investment Performance Analytics specialists l Market Risk professionals with any significant corporate banking experience As organisations explored their corporate structures and restructured reporting lines, we regularly received feedback in 2011 that there were not enough candidates within the professionals. Organisations will need to invest in developing the potential of their existing employees throughout 2012 to meet this demand, or pay a premium to attract external talent. Throughout 2012, we expect the Risk recruitment market to be as active, if not more active as during the course of 2011. A barrage of new regulations means that Regulatory Risk requirements are at the forefront of business leader’s minds, and this area will command a significant proportion of hiring budgets for this coming year. As the Risk profession gains prominence across many financial services segments, of note is the increasing number of Risk professionals being hired into new roles within the Asset Management industry. With expected consolidations and redundancies within many of our banking clients, we envision a strong flow of sell- side Risk professionals to the buy-side over the coming 12 months. As candidate pools appear increasingly sparse, those with specialist product knowledge will continue to be in high demand. With the ongoing reforms to bonus payments creating uncertainties amongst those considering their career options over the coming months, we expect the trend of increasing basic salaries only to continue.Market and Quantitative Risk
Market Risk Management
Role 2012 2011 Head of Department 90k-110k 90k-110k Manager 70k-90k 70k-90k Supervisor 50k-70k 50k-70k 3+ yrs’ exp 35k-55k 35k-55k 0 – 3 yrs’ exp 25k-30k 25k-30k
Operational Risk Management
Role 2012 2011 Head of Department 130k–150k+ Manager 85k–130k Supervisor 70k-100k 3+ yrs’ exp 55k-80k 0 – 3 yrs’ exp 30k–60k
Performance/ Risk Analytics / Modelling
cer specialises in the placement of Performance Analysis professionals across Buy-side firms including leading Investment Firms, Asset Management, Hedge Funds, Brokers and Trading house. Throughout 2011, we saw sustained demand across all levels for high caliber Performance and Portfolio Analytics professionals. Areas that experienced severe shortages in candidate supply were as follows: l Performance Analysts with experience in business analysis, project management and system integration. l Investment Performance Analytics specialists with Fixed Income attribution expertise. As organisations explored their corporate structures and restructured reporting lines, we regularly received feedback in 2011 that there were not enough candidates within the market who possessed strong enough leadership qualities to manage teams of Performance professionals. In addition there is a continued push towards system improvement and innovation therefore individuals with a background in system integration, BAU and project management remain in high demand. Organisations will need to invest in developing the potential of their existing employees throughout 2012 to meet this demand, or pay a premium to attract external talent. Throughout 2012, we expect the recruitment market to be as active, if not more active as during the course of 2011. As Bonus season comes to an end we expect to see the transfer of individuals between firms opening up opportunities for high calibre professionals seeking both lateral and vertical moves. As candidate pools appear increasingly sparse, those with specialist product knowledge will continue to be in high demand. With the ongoing reforms to bonus payments creating uncertainties amongst those considering their career options over the coming months, we expect the trend of increasing basic salaries only to continue.Performance/ Risk Analytics / Modelling
Role 2012 2011 Head of Department 90k-110k 90k–110k Manager 70k-90k 70k-90k Supervisor 50k-70k 50k-70k 3+ yrs’ exp 35k-55k 35k-55k 0 – 3 yrs’ exp 25k-30k 25k-30k
Product Control Overview
Product Control is an excellent area for accountants to get a thorough understanding of all areas of the Bank. As a Product Controller, it is imperative to build a strong relationship with Front Office as well as liaising with Operations. The key responsibilities of a Product Controller are to analyse the Trader’s P&L in order to lessen the impact of purchasing over-valued or selling under-valued stock. In this current economic climate there has been an increase in demand for tighter controls, reducing risk on exposure for Financial Institutions. As a caveat to an increase in controls, Banks and Financial Services companies have made the role of a Product Controller popular once more. In order to mitigate risks of further Institutions falling flat, accountants have been drafted in to scrutinize activity on the trading floor.Product Control Overview
Product Control Role 2012 2011 Director 99k – 126k 110k – 140k VP 77k – 104k 85k – 115k AVP 63k- 72k 70k – 80k Associate 45k- 59k 50k – 65k 0 – 3 yrs’ exp 27k- 41k 30k – 45k A significant area of change within Financial Services has been the management of companies’ costs. Financial Controllers track and analyze the flow of capital, controlling the global exposure of risk. Financial Control covers a broad spectrum of accountants from reconciliations analysts right up to regulatory reporting officers. In a similar vain to the rise in demand of Product Controllers, we anticipate an increase in activity in Financial Control. As commodities prices rise, it is anticipated that there will be an increase in demand of Product and Financial Controllers to join teams trading Oil, Power and Gas. It is noted that 2012 has seen a rise in demand for Product Controllers and we foresee that trend to continue.
Financial Control Overview
Financial Control Role 2012 2011 Director 95k - 122k 105k - 135k VP 72k - 99k 80k - 110k AVP 54k - 68k 60k - 75k Associate 36k - 54k 40k - 60k 0 – 3 yrs’ exp 21k - 32k 23k - 35k
Our specialist London based HR team recruits across the financial, legal and insurance markets. We place both generalist and specialist HR Professional on both an interim and permanent basis. Roles we recruit for range from HR Assistant to Director level, including specialists in Employee Relations, Compensation and Benefits, Recruitment, Learning and Development. Market Overview The HR recruitment market remained steady throughout 2011. Recruitment activity steadily increased during the first half of year and into the summer months. However, increases in job volumes were not as extreme in the latter half of the year as September, October and November saw a slight decrease in recruitment volumes, fundamentally linked to client confidence and the volatility within the domestic and European economic situations. Niche roles such as Reward, ER and Talent have proved to be particularly sought after compared to more generalist HR roles; this is most noticeable on the Interim side, with day rates increasing for exceptional Reward professionals. We have also seen growth developing in both the internal recruitment and learning and development sectors of the market. Recruitment seems to be undergoing a period of increased movement, particularly in terms of training and up skilling teams and in some cases implementing a new recruitment teams with the aim of cutting costs by bringing the function in house. Looking ahead So, what does the HR market hold for 2012? It is becoming increasingly difficult to predict volumes of recruitment. Inconsistency will still prevalent and will continue to be the major theme for at least Q1 & Q2. Financial Services will still be an area for demand within the HR recruitment market. However, instability within the Eurozone and the potential exposure to “bad debt” still concerns the major brands based within the UK, and this will impact on confidence, growth and hiring strategy. Nevertheless, there will always be demand for the niche areas within HR, particular those HR professionals that can demonstrate commercial awareness and an experience delivering change projects. There is a much greater willingness on the part of HR candidates to consider opportunities, which is a direct contrast to a couple of years ago. We hope that candidate confidence will coincide with an increase in those job opportunities they are searching for, but for that we will have to wait and see.
Human Resources
Human Resources
Human Resources
Generalist Role 2012 HR Director 110 – 200k Head of HR 90 – 160k HR Manager 60 – 90k HR Business Partner 52 – 80k HR Officer/Advisor 30 – 42k HR Administrator/Assistant 20 – 34k Specialisms Role 2012 Head of Comp & Bens 100 – 155k Comp & Bens Manager 70 – 95k Comp & Bens Advisor 33 – 50k Head of Learning & Development 90 – 120k L&D Manager 55 – 85k L&D Coordinator 22 – 35k Employee Relations Specialist 40 – 65k Recruitment Manager 53 – 75k Recruitment Advisor 27 – 35k Project Manager 60 – 85k Programme Manager 85 – 125k Support Role 2012 Executive Assistant/PA 25 to 30k Executive Assistant/PA 28 to 40k Team Secretary 28 to 35k Team Administrator Up to 30kHuman Resources
cer The Specialist Recruitment Group comprises of four additional divisions – cer Human Resources, cer Recruitment to Recruitment, cer Legal and cer Engineering. cer Financial and cer Human Resources recruit for Investment Banking, Corporate Banking, Private banking, Wealth Management, Fund Management, Hedge Funds/alternative Investment houses, Broking and Corporate Trading floor operations. As a niche specialist recruitment consultancy cer Financial recruit within the following disciplines: Operations l Cash Management l Client Services l Commodity Trade Support l Corporate Actions and Dividends l Derivative Settlements, Confirmations, Documentation and Trade Support l Fund/Portfolio Administration l FX, Fixed income and Equity Settlements and Trade support l Loans Administration, Loan Documentation and Loan Closing l Marketing and RFP l Pricing & Valuations Specialists l Project Management and Business Analysts l Trade Finance Corporate Governance l Audit l Compliance l Corporate Governance l Credit Analysis l Operations, Credit, Market and Quantitative Risk l Performance As a niche specialist recruitment consultancy, cer Human Resources recruit within the following disciplines: Human Resources l HR Administrator/Assistant l HR Officer l HR Business Partner l HR Manager l HR Director l Compensation & Benefits l Learning & Development l Employee Relations l Recruitment l Project Management l Diversity At cer The Specialist Recruitment Group we endeavour to ensure clients and candidate’s are at the heart of everything we do. As such we believe our innovative strategy offers an unparalleled level of service. Upon career appraising and technically interviewing candidates, we proactively enter the market promoting candidates to their employers of choice. As a result 90% of the candidates we work with are solely represented by us. Our Operations, Corporate Governance and Human Resources desks currently employ 12 consultants, a majority of whom are ex-industry professionals. Based on their skill set, consultants are assigned one specific division and solely work within these confines. Consultants speak to an average of 50 candidates a day, within their specialist field. This provides them with up to date market knowledge and an insight into market trends. This knowledge leads us to boast that they are a specialist within their area. u
