These are the most extreme market conditions in living memory
According to Core-Asset Consulting’s “Industry Trends and Salary Guide” there is an enormous shortfall of candidates in Scotland with pressure to significantly increase salaries and perks making grim reading for financial services sector businesses.
Factors causing huge employment gaps in certain sectors are, according to the report, an exodus of international staff due to Brexit, COVID-related career changing and the climate crisis. These have left the industry at an “uncertain crossroads”.
Now in its seventh year, Core-Asset Consulting’s salary guide, a forensic review of salary levels is also a gauge of market sentiment, activity and the themes that are impacting financial services across Scotland.
The guide reports that despite some of the most extreme market conditions in living memory, the Financial Services Asset Management Services industries have remained broadly resilient, with roles such as Business Analysts, Solutions Architects and Regulatory Risk in the highest demand.
However, with vacancies up 52% and applicants down 5% on the previous 12 months, this year’s report has highlighted a burgeoning staffing crisis across multiple sectors caused by the perfect storm of Brexit, increased remote working, the cutting of intern and trainee programmes, and the reluctance of many to relocate for work.
The report found that candidates actively applying for roles was down 35%, while conversely recruiters are having to up the ante to source 57% more candidates than in 2020.
Betsy Williamson, the founder and MD of Core-Asset, said that the latest edition of the annual report, which is eagerly anticipated across the sector, makes alarming reading for its audience.
She commented: “With a predecessor as turbulent as 2020, it was clear that 2021 was going to be another year of unpredictable change within financial services, and the sector is now at an uncertain crossroads with huge hurdles to overcome.
“The reduction in available labour is connected with the UK’s exit from the European Union and the exodus of overseas nationals returning to native soil – with more than 200,000 EU citizens leaving the UK during 2020.”
“Additionally, thousands of workers placed on furlough at the height of the pandemic have since switched careers, leaving massive employment gaps in certain industries, while rising demand across sectors like Fintech and Environmental and Social Governance (ESG) has been driving salaries to unprecedented levels.”