Is financial recruitment set for an increase?
There have been mixed reviews of financial recruitment trends for 2011. Will recruitment levels increase; will there be a cut on head counts; or will there just be a freeze on all movement?
Research gathered by PwC suggests the banking industry is cutting back on recruitment in order to cope with the profit collapse and cost of complying with new industry regulations. The research highlighted that in the last quarter of 2010 a total of 30,000 financial service jobs were cut, leading to the prediction that a further 15,000 jobs will be lost in the next three months.
In contrast with this negative outlook, recruitment specialists Poolia say that base salaries in the financial sector are at a four year high, and that the demand for staff has grown due to the result of increased financial regulations. This suggests that with increased salaries and extra staff that are often required for additional projects, there is scope within company budgets for recruitment in 2011.
In a bid to encourage recruitment, specifically in the private sector, the Government are looking to put the newly developed ‘employers’ charter’ into action. Currently if an employee is dismissed in their first year of full time employment they cannot place an unfair dismissal claim against their employer — this one year period could potentially double under the new legislation.
Research conducted by the Tribunal Service found that only one in ten claims in 2010 was completed. The accessibility employees have to a tribunal leads to a huge number of illegitimate claims resulting in costs to both the tax payer and employer. In addition, the government has been encouraged by HR professionals to charge employees a fee of up to £250 when lodging an unemployment tribunal claim, to deter unworthy cases opening.
Enforcing the above changes would make employment regulations far more relaxed for employers which in turn should encourage companies to begin hiring more staff. If enforced and proven successful the ‘employers’ charter’ will play a constructive role in boosting the economy through private sector recruitment of those made redundant by public sector cuts.
Whether or not the financial sector is in trouble, those employed and those job seeking will be put under increased pressure to prove their worth.