Liz Truss’s consideration of removing capped bonuses for bankers presents further challenges to clients in the hedge fund industry when competing for talent, as more attractive opportunities come to the fore. We continue to witness volatile markets as the pound plummets and recession grows ever closer. Attracting talent is now more difficult, and more crucial than ever, and it is vital that competitors assess their needs in order to target talent.

Challenges facing the hiring process

Candidates are less inclined to consider moving roles as stability is a priority. Moreover, a disconnect between client and candidate expectation remains a challenge for some; for the most part, companies offer hybrid flexibility to a certain extent, and those that seek a full return to office will struggle to find candidates willing to commit to this.

The banking industry is presenting an ever-increasing challenge to the hedge fund sector in response to outflows of its star performers witnessed in the past 12-24 months. To do this, banking institutions are raising base salaries and looking to uncap bonuses, meaning hedge funds will further struggle to compete to match these and must review their budget threshold in order to counteract this.

Attracting talent

As we approach the end of the year, larger players in the market remain largely unconstrained by recruitment budget and will continue to be in a strong position to attract talent. Competing between these larger rivals in the industry means smaller firms must assess their needs and where remaining budget is best utilised in order to secure in-demand talent.

Recommendations for your recruitment budget

As we approach the end of 2022, it is vital to consider the outlook of the UK economy when considering hiring plans, and in particular, what asset classes will be in focus. Moves in bond yields means we are seeing an increased appetite for Credit PMs. For clients looking to hire across credit, acting soon is important as competition will continue to increase in this particular sector of the market, especially for those with quasi credit expertise.

For those candidates who are willing to move and do not have a lengthy non-compete, now is a prime time to attract this talent so they can begin the New Year with a new role; assess your hiring needs and get in touch with Coopman to discuss how we can assist.

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 Orla Louden, Senior Consultant in Hedge Funds.