Despite the economic forecast, the market shows no sign of slowing down heading into Q4. Attracting and retaining talent in the compliance and risk market remains challenging for employers. Increasing salary demands from candidates for niche skills or regulatory functions, i.e., Designated Person(s), are largely unattainable or, in most cases, go beyond the budget approved for the position. The cost-of-living crisis and rising inflation impact salary expectations for candidates, particularly at the more junior level, Associate and Analyst. Candidates will look external with an average salary increase of 10-20% at these levels. It remains a competitive, candidate-driven market, with many being offered multiple opportunities during their search. Our advice to hiring managers and businesses is to assess your internal recruitment process, culture, and team values. Ask yourself the question; what makes your company attractive to prospective candidates? Not just from a monetary perspective, but learning and development, career growth and trajectory, team culture and values. What can you offer that truly stands out from the competition?
CHALLENGES IN TODAY’S MARKET
Resourcing and regulation are key challenges clients are facing in the compliance and risk industry. Hiring remains a priority with most clients, coupled with increasing regulatory pressures. Compliance and risk teams are being asked to do more with fewer resources. The market has inflated in more ways than one. Firms must maintain an accurate representation of industry salaries to ensure they are aligned with the current market. Salary expectations for Compliance Associate, Compliance Officer through to Managers and Designated Person have increased. Those that have sustained a degree of flexibility when moving to the offer stage have a distant advantage. We have seen salary increases in many areas up to 15-20%. However, this isn’t sustainable as we head towards turbulent economic challenges. The demand for these skills continues to outweigh the supply, and we expect this to continue into Q4. In a competitive market, reconsider your “essential” list when targeting talent with transferable skills. It has been well-documented in the media and LinkedIn that redundancies in the FinTech and Payments industries are happening ahead of the anticipated recession. Consider candidates outside your usual sector and those with a transferable skill set.
CLIENT HIRING BUDGETS
It is full steam ahead for hiring plans this year that have budget approval. We expect a more conservative approach next year, with hiring markets expected to stabilise, including salaries. Q4 is an important time for recruitment budgets as hiring plans are being discussed and finalised for next year. If you are planning on hiring next year, perhaps consider conducting an audit on your hiring processes this year to confirm either a replication or ways you can improve. Have you assessed the time to hire a particular skill or individual? Recruitment is time-consuming, so you must consider all possibilities and outcomes that affect your return on investment, time, training, and resources. Your investment is long-term and should not be impaired by short-term misjudgement. Bonus season is now on the horizon for most individuals, and for those hiring in the next few months consider if you have the capacity to offer a sign-on bonus or, for more senior hires, a bonus buy-out? If you are a hiring manager interviewing a prospective candidate, ask the question; are they willing to sacrifice next year’s bonus to secure your role?
RECOMMENDATIONS FOR YOUR RECRUITMENT BUDGET
Managing expectations, flexibility and communication will be crucial for a successful hiring process in the remaining months. A streamlined and efficient recruitment process will help reduce your time to hire while demonstrating commitment and that you are well-organised during the process. Flexibility will also be necessary; consider candidates outside your usual industry and those who are determined to learn and develop. Be aware of the current market salaries and company performance amongst your competitors. This will give you an advantage when making an offer to candidates. Ensure that you have a clear hybrid or remote working policy in place that is relevant to the current and future plans of the business. Most importantly, ensure your retention strategy for your top-performing employees is up to par. Managing bonus and promotion expectations now will help mitigate the risk of attrition in your team.
If you are interested in learning more about live opportunities, or you would like to discuss how we can support your hiring processes in the current market, please get in touch with Evan McNeice, Consultant for Compliance & Risk.