Market Overview
2022 was a tumultuous year, dominated by high levels of recruitment as we emerged out of the pandemic, but with unquestionable uncertainty around political and market volatility.
During the first half of 2022, financial services institutions rolled out large-scale hiring plans, continuing upon the levels of recruitment witnessed at the back end of 2021. As working patterns returned to normal, it became clear that firms were looking to bolster their governance teams to support their post-pandemic growth plans. And whilst the markets are less confident going into 2023, what is apparent is that hiring levels within risk and compliance teams across the buy-side and sell-side remain high, although less predictable, going into next year.
Levels of hiring in 2022 were 31% higher than in 2021, and we have seen little evidence of this slowing down towards the back end of the year. The consistently increased demand for new hires has created fierce competition for the best talent, resulting in higher salaries. Throughout 2022 the average salary increase was 28% when candidates moved from one permanent role to another. The average salary increase is even higher in the investment management space, with candidates securing positions within private equity houses receiving a 33% salary uplift.
The average salary increase in the investment management space.
Whilst increases aren’t as high on the sell-side, salaries are still rising, and where candidates at VP level in investment banks were previously securing salaries between £110,000-120,000, this has now increased to £125,000-135,000, subsequently blurring the line between VP and Director level experience. Firms that cannot promote upon entry struggle to attract the best talent at VP level as their expectations exceed the salary bandings.
Similarly, retention remains a significant factor for businesses across the city. Firms seem to have settled for a ‘3/2’ working pattern, offering flexibility whilst encouraging teams to be in the office. In addition, every candidate we have successfully secured a role for this year has received a significant counteroffer to remain in their current position. This highlights the importance of a swift and decisive hiring approach, teamed with enticing benefits packages to negate the risk of candidates being tempted to stay where they are.
Levels of hiring in 2022 were 31% higher than 2021.
Harry Warwick
Director