Tighter City regulation sparks ‘talent war’
Tue, 17 Jun 2014
Tougher regulation in the City of London has brought a ‘talent war’ with fewer jobseekers chasing a growing number of vacancies, according to Morgan McKinley’s London employment monitor.
Its report for May registers a 15% year-on-year increase in City job availability, with 7,410 vacancies. However, there was a decrease of 17% in May 2014 compared to April – when 8,955 vacancies were available – attributed to two bank holidays and employees taking extended leave around school half term.
Only 4,911 job-hunting candidates were recorded in May 2014, down 32% on April’s 7,263 total. Year-on-year numbers were also down, with an 11% drop compared to May 2013 when 5,487 active job-hunters were reported.
Hakan Enver, operations director at Morgan McKinley Financial Services, says there has been a “significant uplift” in regulatory roles in accounting and finance.
“The reason for this is that banking organisations continue to come under fire from the Financial Reporting Council for failing to conduct strong enough internal audits.
“City institutions are definitely feeling the pressure in this area, as regulators ramp up fines for firms who fail to comply, and analysts believe penalties will be twice as high as predicted a year ago.
“At the same time, there are huge skills shortages in this sector, and banks are doing their utmost to keep the specialists they already have, as it is more cost effective than hiring new staff.”
Banks are competing with regulators who are hiring staff to inspect City institutions, he says. The competition for talent means salaries “have risen massively”.