Career Prospects Market Sentiment & Loyalty
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Transcript of Career Prospects Market Sentiment & Loyalty
2
i EMPLOYERS
INSIDE THIS REPORT
As a specialist financial recruitment firm, Selby Jennings recognises the importance of ‘understanding your market.’
To ensure that consultants can provide the best possible advice to candidates and clients for 2013, a survey on
market sentiment, employment prospects and loyalty was commissioned.
The survey was conducted on a global scale across 8 sectors within the financial industry. 23,836 professionals
from New York, London and Singapore were asked to share their opinion between 1st November and 31st
November 2012. The aim of this report is to provide an overview and analysis of the survey findings.
The report is structured in three main sections:
• EconomicConditions,SentimentandConfidence
• EmploymentProspects
• Loyalty
Within each section ‘insights’ provide Selby Jennings interpretation of the findings for employees and employers.
‘Insights’ can be found in boxes highlighted on relevant pages as shown below:
i EMPLOYEES
3
EXECUTIVE SUMMARY
The employment market in 2012 statistically showed that prospects were improving, many organizations focused
on growth as a key objective leading to increased investment in hiring. Despite this, financial professionals still
maintained a negative perception of the market for 2013.
The latter half of 2012 proved more challenging as the volatility of the global economic climate increased. Within
banks and Financial Services institutions employment opportunities were perceived to be decreasing by finance
professionals. Despite this pockets of positivity can be seen and the employment market, while by no means
recovered, will provide new opportunities in 2013.
While 2013 is expected to bring more of the tighter market conditions seen towards the end of 2012, Selby
Jennings believe that the negative perception of the market held by finance professionals is not totally founded as
employment statistics for the coming year look promising.
Key Findings from the Report:
• Globally42%answeredthateconomicconditionsnowareworsethanthistimelastyear.
• Acrossallregions52%believeconfidenceandsentimentwithinthefinancesectortobe
worsening.
• PerspectivesofeconomicconditionsinNewYork(62.7%)weremorepositivethanthosein
London and Singapore.
• Theglobalviewisthatemploymentprospectsaredecreasingwith69%ofthosequestioned
choosing this response.
• RiskManagement/QuantAnalyticsprofessionalswerethemostpositiveaboutemployment
opportunities across all regions and Sales and Trading professionals were the most negative.
• Globallyrespondentsbelievedthattheirpromotionprospectsaregettingworse.46%
answered that promotion prospects are decreasing.
• Whenasked‘ifnotsatisfiedwithyourcurrentcareerprospectswhatwouldyoudo?’the
majority(51%)ofrespondentsansweredthattheywouldactivelystartlookingforanewrole.
• Acrossallsectorsopportunitytoprogresswasthemostimportantdriverforfinance
professionals to remain in their current role.
• Work/lifebalancewasfoundtobemoreimportanttothoseinLondonthanthoseinNew
York or Singapore.
• BonusweremostimportanttothoseinNewYork,aboveSalary.
5
CONTENTS
THE ECONOMY, MARKET SENTIMENT AND CONFIDENCE
GlobalOverview 8 Regional Comparison 9 Sector Comparison 10 o London 11 o New York 11 o Singapore 12 Conclusion 13
EMPLOYMENT PROSPECTS
GlobalOverview 16 Regional Comparison 17 o London 17 o New York 18 o Singapore 19 Sector Comparison 20 o Employment Prospects 20 o BonusProspects 21 o Promotion Prospects 22 o Salary Prospects 23 Conclusion 26 Infographic 27
LOYALTY
Loyalty in a Recession 30 o Globaloverview 31 o Regional Comparison 31 o Sector comparison 32 Loyalty Drivers 33 o GlobalOverview 33 o Regional Comparison 34 o Sector Comparison 35 Conclusion 36
ABOUTSELBYJENNINGS
About Selby Jennings 38 Structure and Coverage 39
8
GLOBALOVERVIEW
At the start of 2012 there was much debate that
the global economy was recovering from its recent
downturn. Development and growth were top
priorities for many organisations and businesses began
hiring new employees. This led to a steady increase in
employment rates for several regions throughout 2012.
Despite this improvement the global survey carried
out by Selby Jennings found that 42% of employees
perceived economic conditions in their country of
work to be showing no signs of recovery, whilst only
20%noticedanimprovement.Astheyearbeganwith
high expectations of a more prosperous economy, this
negative perception may have stemmed from recovery
rates not meeting expectations set out at the start of
the year.
Globally, market sentiment and confidence was also
found to be worsening. When asked ‘compared to
12 months ago, how do you think market sentiment
andconfidenceischanging?52%respondedthatthey
believe confidence and sentiment within the finance
sector to be worsening, with only 17% seeing any
positive change.
Although overall perceptions of economic conditions
were found to be predominantly negative, it seems that
this negativity does not wholly reflect the true state of
the global economy. Many institutions have reported
growth in 2012 and the employment market looks to
be improving, Steve Yendell, Director of Selby Jennings
comments;
“Givenrecenthiringstatisticsworldwide,thisnegativity
seems to be a mere perception, economies are by no
means flourishing, but employers are hiring and things
are not as bad as perceptions would suggest.”
GlobalEconomicConditions
GlobalMarketSentiment&Confidence
Better than this time last year20%
Worse than this time last year42%
The same as this time last year38%
Con�dence &SentimentImproving17%
No change inCon�dence &Sentiment31%
Con�dence & SentimentWorsening52%
9
REGIONALCOMPARISON
Overall Londoners had the most negative perception
oftheireconomy,with40.5%believingthateconomic
conditions are worse now than this time last year and
41.4%thinkingthatmarketsentimentandconfidence
is worsening.
“The UK is showing signs of improvement, however
the EU is still struggling, as these economies are closely
linked, the media portrayal of negativity in the EU seems
to be having a knock on effect on UK perceptions” –
KieranBehan,Director,SelbyJennings.
Perspectives in New York were more positive than
those in London and Singapore. Of those who believed
economic conditions now to be better than this time
lastyear,62.7%werefromNewYorkand49.2%ofNew
Yorkers thought that market sentiment and confidence
was improving. However, New York was hit by the
economic crisis ahead of other regions and seems to
be further along in terms of recovery, having already
implemented much of the necessary regulatory action
in the Financial Services sector. Europe and APAC
however, have yet to implement such regulation and
therefore, market sentiment is perhaps not as positive
as in New York.
“The New York market improved in 2012 with the
easing of the fiscal cliff, this improvement looks to
continue in 2013 with growth a top priority for many
financial institutions” – Harry Youtan, Regional Director,
Americas, Selby Jennings.
Singaporeans remained relatively split about the state
of their economy with 26.2% believing economic
conditionsnowtobeworsethanlastyear,yet24.6%
believe that confidence and sentiment is improving.
It seems New York is the place to
be, with the economy in this region
further ahead in terms of recovery,
NY will offer many opportunities
for the coming year.
i EMPLOYEES
Candidate movement may increase
in 2013 to find new opportunities;
this will mean a fresh influx of talent
and new additions to regional
candidate pools.
i EMPLOYERS
London
Singapore
New York
26.2%
22.0%
33.3%
40.5%
15.3%
62.7%
Economic Conditions
Worsening Improving
London
Singapore
New York
26.3%
26.2%
32.3%
41.4%
24.6%
49.2%
Market Sentiment & Confidence
Worsening Improving
10
SECTOR COMPARISON
Globally professionals that were most positive about
economic conditions in their country of work worked
in the Risk Management/Quant Analytics and Fund
Management sectors. Of those who answered that
market sentiment and confidence was improving, the
majority (26.2%)worked inRiskManagement/Quant
Analytics and those who believed economic conditions
to be better now than this time last year worked
predominantlyinFundManagement(23.7%)
“Media Interest in financial institutions has resulted
in a high level of scrutiny of conduct and a need for
regulation; this has caused a sustained push in demand
for Risk Management professionals explaining the
positivity in this sector” – Matt Nicholson, Head of Risk,
Selby Jennings.
Globally,thoseworking inSalesandTradingwerethe
most negative about economic conditions in their
country of work. Of those who answered that sentiment
andconfidencelookstobeworsening,36.8%worked
inSalesandTrading.Additionally,34.1%ofthosewho
believe economic conditions are worse now than this
time last year, also worked in Sales and Trading.
“It’s not all doom and gloom for those in Sales and
Trading, 2013 will see opportunities increase in
traditional revenue generating functions” – Greg
Beszant,AssociateDirector,SelbyJennings.
Those working in all other sectors perceived conditions
to remain the same over the coming months, with
the majority of respondents answering that they see
no change in either economic conditions or market
sentiment and confidence.
Regulatory positions will offer job
security and increased prospects
during 2013. Opportunities will
continue to grow for those in Risk,
Compliance and Legal roles.
i EMPLOYEES
Technology
Sales and Trading
Corporate Banking
36.8%
10.8%
12.8%
10.5%
15.4%
26.2%
Market Sentiment and Confidence
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
9.2%
7.7%
6.2%
3.0%
13.5%
5.3%
4.6%
20.0%
4.5%
13.5%
Technology
Sales and Trading
Corporate Banking
34.1%
11.9%
15.1%
11.1%
15.3%
18.6%
Economic Conditions
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
10.2%
8.5%
8.5%
1.6%
13.5%
5.6%
3.4%
23.7%
4.5%
14.3%
11
LONDON
Those most positive about economic conditions in London
worked within Risk Management/Quant Analytics roles. 35.3%
of respondents who answered that conditions were improving
worked in these sectors. Fund Management professionals were
also noticeably positive about economic conditions with 23.7%
believing conditions to be improving.
Sales and Trading professionals were the most negative about
economic conditions in London, with 23.1% believing market
sentiment and confidence to be worse now than this time last year.
Of those who believed economic conditions to be worse now
thanthistimelastyear34.1%workedinSalesandTradingroles.
Those working in all other sectors perceived conditions to remain
the same over the coming months, answering predominantly that
they see no change in either economic conditions or market
sentiment and confidence.
NEW YORK
Those working in Risk Management/Quant Analytics were the
mostpositiveabouteconomicconditionsinNewYork.21.9%of
respondents who answered that conditions were improving, and
21.6% of those who thought market sentiment and confidence
wasimproving,workedinRiskManagement/QuantAnalytics.
The Sales and Trading sector were the most negative about
economic conditions in NewYork similar to London. 35.7% of
those who answered that economic conditions are worse now
thanthistimelastyear,and37.2%ofthosewhothinksentiment
and confidence is worsening, worked in Sales and Trading.
Professional’s from all other sectors in New York believe that
conditions will remain the same over the coming months
predominantly answering that they see no change in either
economic conditions or market sentiment and confidence.
Given the negative perceptions of the market, considering how to
ensure employees remain motivated is key. i EMPLOYERS
Technology
Sales and Trading
Corporate Banking
23.1%
2.0%
15.0%
1.0%
23.5%
35.3%
Market Sentiment and Confidence
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
11.8%
1.0%
5.9%
4.0%
7.7%
15.4%
11.8%
11.8%
7.7%
15.4%
Technology
Sales and Trading
Corporate Banking
34.1%
11.9%
15.1%
11.1%
15.3%
18.6%
Economic Conditions
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
10.2%
8.5%
8.5%
1.6%
13.5%
5.6%
3.4%
23.7%
4.8%
14.3%
Technology
Sales and Trading
Corporate Banking
37.2%
18.9%
16.3%
14.0%
8.1%
21.6%
Market Sentiment and Confidence
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
8.1%
8.1%
5.4%
2.3%
14.0%
7.0%
2.7%
21.2%
4.7%
4.7%
Technology
Sales and Trading
Corporate Banking
35.7%
18.8%
16.7%
16.7%
9.4%
21.9%
Economic Conditions
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
9.4%
9.4%
6.3%
2.4%
11.9%
7.1%
3.1%
21.7%
2.4%
7.1%
12
SINGAPORE
Those most positive about economic conditions in Singapore
workedintheRiskManagement/QuantAnalyticssector,ofthose
who answered that market sentiment and confidence is improving,
37.5%workedinRiskManagement/QuantAnalyticsroles.
Sales and Trading professionals were the most negative about
economicconditionsinSingapore.39.4%ofthosewhoanswered
that economic conditions are worse now than this time last year,
and 45.7% of those who answered that market sentiment and
confidence is worsening, worked in Sales and Trading.
Those working in all other Sectors in Singapore perceived
conditions to remain the same over the coming months answering
predominantly that they see no change in either economic
conditions or market sentiment and confidence.
Employers can afford to be highly selective in this economic climate. Have
youconsideredwhatyoucandoensureyoustandout?i EMPLOYEES
Technology
Sales and Trading
Corporate Banking
45.7%
6.3%
11.4%
2.9%
6.3%
37.5%
Market Sentiment and Confidence
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
6.3%
12.5%
6.3%
5.7%
17.1%
0.0%
0.0%
25.0%
2.9%
14.3%
Technology
Sales and Trading
Corporate Banking
39.4%
18.8%
21.2%
6.1%
9.4%
21.9%
Economic Conditions
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
9.4%
9.4%
6.3%
3.0%
15.2%
7.1%
3.1%
21.7%
3.0%
12.1%
13
CONCLUSION
Growthisstillofhighimportancetoinstitutionswithinthefinancialsector.However,therateofeconomicgrowth
in2013 is likely tostabilise.Themajorityof thosequestionedhadnegativeperceptionsof theeconomyand
market sentiment for the coming year. Tightening regulation in the finance sector and negative media attention
could have led to this perception. The implementation of regulatory policies has meant finance sector employees
havefeltthepinchoftherecessionmoresothanothers.Giventhat2012beganwithdiscussionsofimprovement
in economic conditions, recovery not meeting the level expected may again have contributed to the negative
perceptions. While 2013 is expected to bring more of the tighter market conditions seen towards the end of
2012, Selby Jennings believe that the negative perception of the market held by finance professionals is not totally
founded as there are pockets of positivity and employment statistics are looking promising.
New Yorkers were found to be the most positive about economic conditions and Londoners the most negative.
TheSingaporeanmajorityopinionwasthatconditionswill remainmuchthesame.GiventhatNewYorkwas
affected earlier on by the economic crisis than other regions, it can be assumed that they are further ahead in
terms of recovery, hence their more positive outlook. New York has an extensive focus on growth and creation
of new jobs within the marketplace for the coming year. The UK market however is strongly linked to the
performance of other EU economies, some of which are still declining; the widely publicised EU issues look to be
dampening the UK’s perspective of economic conditions.
ThoseworkinginRiskManagement/QuantAnalyticsroleswerenotedasthemostpositiveacrossallregionsand
those working in Sales and Trading were the most negative. Tightening of regulation within the finance sector can
explainwhyRiskManagement/QuantAnalyticsprofessionalswerethemostpositive.Asthelegalrequirements
for regulation increase, professionals in these areas are more in demand and opportunities are increasing. For
those in Sales and Trading, regulation has affected the boundaries within which they operate and many are feeling
more constrained by regulatory action, leading to the negative perceptions. It is likely the optimism of those in
regulatory roles will continue in 2013 as prospects continue to remain positive. For those in more traditional
roles, the coming year will see an increase in opportunities as market conditions stabilise.
16
BonusProspects
Globally,theoutlookonbonusprospectsfor2013ismostlynegative,57%saidbonusprospectsaredecreasing,
30%answeredthattheydonotseetheirbonusprospectschangingoverthecomingyearand13%saidtheythink
prospects are improving.
Salary Prospects
Themajority(49%)ofrespondentsbelievethatasalaryincreasein2013islesslikelythaninthepast12months,
36%answeredthatasalaryincreaseisjustaslikelyinthecomingmonthsand15%thinkasalaryincreaseismore
likely.
“As a rule, there has been far greater focus on the remuneration packages of finance professionals. Institutions are
under increasing pressure to control the percentage of turnover spent on staff compensation. However, where
candidates can prove ability to drive growth, profit and efficiency, significant uplift is still available” – Steve Yendell,
Director, Selby Jennings.
Promotion Prospects
Acrossallregions,respondentsperceivedtheirpromotionprospectstobegettingworse.46%answeredthat
promotionprospectsaredecreasing,47%thinktheirpromotionprospectsarenotchangingand7%answered
that they think their promotion prospects are improving.
Although perceptions of prospects remain low, after several years of recessive conditions in global labour markets
employment rates look to be steadily increasing as we head into 2013. In all three of the major regions surveyed
unemployment has decreased over the past year.
GLOBALOVERVIEW
Globally,discussionsaroundemploymentrateshaveincreasedover
the past few years due to the increased volatility of the economic
climate. Perceptions of employment opportunities for the coming
year were found to be predominantly negative within the finance
sector. The global view is that employment prospects are decreasing
with69%ofthosequestionedchoosingthisresponse.Mediafocus
on the shortcomings of several large institutions coupled with the
tightening of regulation seems to have caused a wave of negativity
about prospects throughout the finance sector.
Focusing on areas of self-development will ensure that you are in a
position to receive monetary rewards above others. i EMPLOYEES
Increasing7%
No Change24%
Decreasing 69%
Employment Prospects
17
Perception vs. Facts
Despite London based finance professionals perceptions being mostly negative, statistics show that conditions are
not as bad as perceptions suggest. The UK Office of National Statistics annual data shows that the unemployment
rate within the UK has decreased steadily over the past year contrary to the perception that employment
prospects have declined. Statistics also show that the number of recorded job vacancies within the UK has steadily
increased over the last year as organisations focused on growth as a key objective for 2012. These trends look to
continue into 2013.
UK Unemployment Rate Job Vacancies
Source: www.tradingeconomics.com
“Employersarestillhiring,growthisstillapriorityandthereareopportunitiesoutthere”–AdamBuck,CEO,
Phaidon International.
REGIONALCOMPARISON
LondonLondon based finance professionals seem to be concerned about
their employment prospects for the coming year. Those in London
had the bleakest outlook compared to New York and Singapore, with
42.5%believingthatemploymentopportunitiesareworsenowthan
12 months ago.
Londoners were negative about bonus, promotion and salary
prospects with 46% believing their promotion prospects to be
worsening,49%thinkingthattheyarelesslikelytoreceiveasalary
increase this year than last year and 57.5% answering that bonus
prospects are getting worse.
35.3%
42.5%
22.2%
New York
Singapore
London
Employment Prospects worsening
18
Perception vs. Facts
Despitethenegativeoutlook,statisticsfromtheUnitedStatesBureaushowthattheunemploymentratedropped
throughout 2012. The number of recorded job vacancies has also increased in 2012 implying that prospects are
improving rather than getting worse as perceptions would suggest. If trends continue like this then 2013 will see
an increase in opportunities available.
US Unemployment Rate US Job Vacancies
Source: www.tradingeconomics.com
“The employment market in New York is going form strength to strength and 2013 should see unemployment
decrease” – Harry Youtan, Regional Director, Americas, Selby Jennings.
New YorkNew York based finance professionals had the most positive outlook
of their employment prospects compared to London and Singapore,
Ofthosequestioned45.9%believethatemploymentopportunities
are better now than this time last year.
The overall opinion in New York is however still predominantly
negative. Those based in this region were negative about promotion,
salaryandbonusprospects.Overall,31.6%believetheirpromotion
prospects tobeworsening,44.6%believe that a salary increase is
lesslikelythisyearthanlastyearand45.1%saidthattheythinkbonus
prospects are getting worse.
45.9%
18.9%
35.1%
New York
Singapore
London
Employment Prospects Worsening
19
Perception vs. Reality
Contrary to the perceptions of those in Singapore, employment opportunities statistically in the region have
been improving. The unemployment rate has been steadily decreasing throughout 2012 and the number of job
vacancies recorded has increased, this implies that prospects cannot be as bleak as many perceive.
Singapore Unemployment Rate Singapore Job Vacancies
Source: www.tradingeconomics.com
SingaporeIn Singapore the perception of employment opportunities was again
negative, with over half (51%) of those questioned thinking that
employment opportunities are worse now than this time last year.
Overall,35.2%believepromotionprospectstobeworsening,43.1%
believe that a salary increase is less likely next year than this year and
46.6%saidthatbonusprospectsaregettingworse.
During these tough economic times, using internal communication is key
to manage expectations and actively promote positivity, keeping negative
morale to a minimum.
i EMPLOYERS
Increasing18%
No Change31%
Decreasing51%
Singapore Employment Opportunities
20
SECTOR COMPARISON
London
In London, Risk Management/Quant Analytics professionals
werethemostpositivesector,40.8%ofthosewhoanswered
that employment prospects are better now than this time last
year worked in this sector
The most negative sector was Sales andTrading. 35.1% of
respondents who answered that they thought employment
prospects are worse now than this time last year worked in
Sales and Trading roles.
New York
In New York the Technology sector was the most positive.
35.3% of those who answered that employment prospects
are better now than 12 months ago worked in Technology
roles.
Those who were most negative about employment prospects
inNewYorkworkedinSalesandTrading,35.6%ofrespondents
who answered that they thought employment prospects were
improving worked in this sector.
“New York is one of the most buoyant markets for Technology,
with many organisations looking to drive competitive
advantage by making key hires across all levels of seniority” –
Clare Cooper, Head of Technology, Selby Jennings.
Singapore
ThoseworkinginRiskManagement/QuantAnalyticswerethe
mostpositiveinSingapore.38%ofthosewhoansweredthat
employment prospects are improving worked in this sector.
Sales and Trading professionals in Singapore were the most
negative, 39.4% of those who answered that they thought
employment opportunities were decreasing worked in Sales
and Trading roles.
Technology
Sales and Trading
Corporate Banking
35.1%
2.0%
13.5%
5.4%
10.8%
40.8%
Employment Prospects London
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
12.7%
7.7%
12.7%
2.7%
21.6%
0.0%
2.0%
15.4%
2.7%
18.9%
Technology
Sales and Trading
Corporate Banking
35.6%
35.3%
18.6%
16.9%
0.0%
23.5%
Employment Prospects New York
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
5.9%
5.9%
0.0%
1.7%
6.8%
10.2%
5.9%
23.5%
1.7%
8.5%
Technology
Sales and Trading
Corporate Banking
39.4%
1.0%
7.8%
13.7%
15.3%
38.0%
Employment Prospects Singapore
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
16.0%
2.0%
2.0%
3.9%
9.8%
12.8%
1.0%
6.7%
7.8%
19.6%
Employment Prospects
21
SECTOR COMPARISON
London
InLondon,thoseworkinginRiskManagement/Quantanalytics
were the most positive about bonus prospects over the
coming year. 34.7% of those who thought bonus prospects
wereimprovingworkedinRiskManagement/QuantAnalytics.
The Private Wealth Management sector was also positive with
24.3%ofthoseansweringthattheythinkbonusprospectsare
improving
Sales and Trading sector employees were the most negative
about their bonus prospects for the coming year. 29.5% of
those who answered that bonus prospects were worsening
worked in this sector.
New York
In New York those that were most positive about their bonus
prospects worked in Risk Management/ Quant Analytics.
(38%) Sales andTrading professionals were also noticeably
positive(28%).
Fund Management professionals were the most negative about
bonusprospects inNewYork.27%of thosewhoanswered
that bonus prospects are worsening worked in this sector.
“Regulation on the visibility of compensation within the US
Fund Management space is leading candidates to believe that
compensation is under bigger threat than before” – Lorianne
Burge,FundManagementSpecialist,SelbyJennings.
Singapore
In Singapore, Finance/Operations professionals were the
most positive about their bonus prospects. 38% of those
who believed bonus prospects to be improving in the coming
months worked in this sector.
The most negative sector in Singapore was Sales and Trading.
41.2% of those who believed that bonus prospects were
decreasing worked in this sector.
Technology
Sales and Trading
Corporate Banking
29.5%
7.1%
9.8%
9.8%
10.4%
34.7%
Bonus Prospects New York
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
24.3%
1.0%
7.1%
1.6%
11.5%
8.2%
1.0%
14.3%
9.8%
19.7%
Technology
Sales and Trading
Corporate Banking
6.0%
2.0%
10.0%
24.0%
28.8%
30.8%
Bonus Prospects New York
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
7.7%
7.7%
9.7%
5.0%
8.0%
15.0%
2.0%
10.4%
6.0%
27.0%
Technology
Sales and Trading
Corporate Banking
41.2%
2.0%
14.7%
5.9%
8.0%
10.0%
Bonus Prospects Singapore
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
3.0%
22.0%
38.0%
5.9%
11.8%
0.0%
2.0%
16.0%
8.8%
11.8%
BonusProspects
22
SECTOR COMPARISON
London
When asked their perception of promotion prospects over the
comingyear,RiskManagement/QuantAnalyticsprofessionals
werethemostpositive.40.3%ofthosewhorespondedthat
they thought promotion prospects were improving worked in
RiskManagement/QuantAnalyticsroles.
The most negative were those working in the Fund Management
sector.30.4%ofthosewhothoughttheirpromotionprospects
were decreasing worked in this sector.
New York
In New York the Technology sector was the most positive
about their promotion prospects. Of those who answered
that they believed their promotion prospects to be increasing,
23.1%workedinTechnology.
Those working in Sales and Trading were the most negative,
41.8%ofthosewhoansweredthatpromotionprospectswere
decreasing worked in this sector.
Singapore
In Singapore, those who believed their promotion prospects
tobeimprovingthemostworkedinRiskManagement/Quant
Analyticsroles.42.9%ofrespondentswhoansweredthattheir
promotion prospects were improving worked in this sector.
Sales and Trading professionals were the most negative about
theirpromotionprospects.40.8%ofthosewhoansweredthat
their prospects were decreasing worked in this sector
“Risk Management is a strong sector at the moment in terms
of hiring, legal requirements for institutions to be regulated
have tightened and demand to fill these role increased” – Matt
Nicholson, Head of Risk, Selby Jennings.
Technology
Sales and Trading
Corporate Banking
18.6%
1.0%
8.2%
10.2%
27.6%
40.3%
Promotion Prospects London
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
13.3%
2.0%
13.3%
4.1%
12.2%
6.1%
1.0%
1.0%
10.2%
30.4%
Technology
Sales and Trading
Corporate Banking
41.8%
23.1%
18.8%
14.6%
10.8%
7.7%
Promotion Prospects New York
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
6.7%
1.0%
7.7%
0.0%
10.4%
8.3%
7.7%
15.4%
0.0%
16.7%
Technology
Sales and Trading
Corporate Banking
40.8%
1.0%
15.4%
7.7%
18.6%
42.9%
Promotion Prospects Singapore
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
1.0%
2.0%
11.3%
1.8%
23.1%
5.8%
1.0%
12.3%
6.7%
8.7%
Promotion Prospects
23
Salary Prospects
London
Londonerswerethemostnegativeabouttheirsalaryprospects,49%ofthoseaskedbelievethatasalaryincrease
in the next 12 months is less likely than in the previous 12 months. Despite this perception, wages in the UK have
steadily increased through 2012 and this trend looks to continue into 2013.
UK Wages
Source: www.tradingeconomics.com
In London those who were the most positive about the likelihood of a salary increase over the coming months
workedinRiskManagement/QuantAnalytics.38%ofthosewhoansweredthatasalaryincreasewasmorelikely
inthecoming12monthswereemployedinRiskManagement/QuantAnalyticsroles.
Sales and Trading professionals in London were the most negative about the likelihood of a salary increase in the
comingmonthswith39.4%ofthosewhorespondednegativelyworkinginthissector.
If your organisation is not in a position to commit to salary increases,
motivating staff through short term benefits and incentives is a good
alternative.
i EMPLOYERS
Technology
Sales and Trading
Corporate Banking
39.4%
1.0%
7.8%
13.7%
15.3%
38.0%
Salary Prospects London
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
16.0%
2.0%
2.0%
3.9%
9.8%
12.8%
1.0%
6.7%
7.8%
19.6%
24
Salary Prospects
New York
NewYorkerswerethemostpositiveaboutSalaryProspectswith18%of thoseaskedbelievingthatasalary
increase in the next 12 months is more likely than in the previous 12 months. Statistics from the United States
Bureaushowthatwageshavedecreasedtowardstheendof2012intheUS,thiscouldresult inperceptions
materializing into reality if this trend continues.
US Wages
Source: www.tradingeconomics.com
In New York those that had the most positive view on the likelihood of a salary increase over the coming year
workedintheRiskManagement/QuantAnalyticssector.38%ofthosewhoansweredthatasalaryincreasewas
more likely in the coming months worked in this sector.
SalesandTradingprofessionalswerethemostnegativeaboutthelikelihoodofasalaryincrease,39.4%ofthose
who answered that a salary increase is less likely in the coming months worked in this sector.
Technology
Sales and Trading
Corporate Banking
39.4%
1.0%
7.8%
13.7%
13.3%
38.0%
Salary Prospects New York
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
16.0%
2.0%
2.0%
3.9%
9.8%
7.8%
1.0%
6.7%
7.8%
19.6%
25
Salary Prospects
Singapore
InSingaporethemajority(43.1%)ofthoseaskedbelievethatasalary increase inthenext12months is less
likely than in the previous 12 months. Statistics show that wages have dropped during 2012 in Singapore, much
like in New York this negative perception of salary prospects for the coming year could materialize if this trend
continues.
Singapore Wages
,
Source: www.tradingeconomics.com
InSingaporethemostpositivesectorwastheRiskManagement/QuantAnalytics.38%ofthosewhothoughtthat
asalaryincreasewasmorelikelyinthecomingmonthsworkedinRiskManagement/QuantAnalyticsroles.
Thosewith themostnegative viewworked in theTechnology sector, 38.5%of thosewhobelieved a salary
increase over the coming months to be unlikely worked in Technology roles.
Technology
Sales and Trading
Corporate Banking
18.5%
1.0%
15.5%
38.5%
33.3%
38.0%
Salary Prospects Singapore
Worsening Improving
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
16.0%
2.0%
2.0%
1.9%
11.1%
7.4%
1.0%
6.7%
1.9%
9.3%
26
CONCLUSION
Globally,perceptionsofemploymentprospectsfor2013weremostlynegative.Itseemsthatthisnegativitystems
from the tightening of regulation within the finance sector. Increased regulation has meant restricted salaries and
bonuses and also stifled opportunities for growth and promotion prospects globally. The dual effect of regulation
and media focus on compensation packages has caused finance professionals to have insecurities about the
likelihood of positive bonus prospects for the coming year. Despite this negative perception, prospects are not as
bad as they are perceived to be, according to global labour statistics, employment rates have increased and there
are still institutions hiring. Pockets of positivity can be seen in terms of hiring and opportunities across all sectors.
Employment prospects in London were perceived to be the most negative, however statistically the London
employment market improved the most during 2012. The negative perception in London seems to be unfounded
and in reality employment opportunities are not as bleak as perceptions suggest. Data from the UK office of
National Statistics shows that the employment rate in the UK has increased and this trend looks to continue into
2013.
While prospects in New York were seen to be predominantly negative, those in this region did have the most
positive outlook of their employment prospects compared to London and Singapore. Given that the US is
focusing on growing their economy and on the creation of new roles and opportunities, New Yorkers are right
to be optimistic about their prospects.
In Singapore, the perception was again mostly negative. However, much like in London the number of job
vacancieshasrisenandtheunemploymentratefallen,contradictingtheperceptionsofthosequestioned.
Acrossallregions,thoseworkinginRiskManagement/QuantAnalyticsroleswerethemostoptimisticabouttheir
employment prospects for the coming year. Professionals in this area had positive perceptions of salary, bonus
and promotion prospects. This can be attributed to the increased focus on regulation within the industry. Those
working in regulatory roles have seen an increase in prospects as the demand for compliance, legal and risk
management professionals has increased.
Those with the most negative perception of employment prospects across all regions worked in Sales and
Trading. Tighter regulation has affected bonuses and growth in this sector leading to a perceived decrease in
prospects. However, with the increased focus on growth, it is predicted for 2013 that opportunities in traditional
revenue generating functions such as Sales and Trading will improve.
27
THE REGION MOST POSITIVE ABOUT EMPLOYMENT PROSPECTS FOR 2013 IS...
New York45.9%
Singapore
THE GLOBAL PERCEPTION IS THAT EMPLOYMENT PROSPECTS IN 2013 WILL...
12.5%
56.4%
31.1%REMAIN THE SAME
DECREASE
INCREASE
35.1%
London16.9%
30
LOYALTY IN A RECESSION
GLOBALOVERVIEW
Selby Jennings expected to see an increase in loyalty given
the current economic conditions. As job prospects decrease,
it would be expected that employees would become more
apprehensive about changing roles and that regardless of job
satisfaction, people would remain loyal to their company. In the
current climate there is an increased possibility of organisational
downsizing and many companies work to a last in first out
policy, hence a career move could be considered too big a
risk to take. However, hen asked ‘if not satisfied with your
currentcareerprospectswhatwouldyoudo?’themajorityof
respondents answered that they would actively start looking
for a new role. Given that across all regions the majority
perspective was found to be that employment prospects are
worsening, it was surprising to see that people would risk a
career move in the face of such turbulent economic times.
Current conditions seem to have fuelled employees’ interest in furthering
their career. Despite tough economic conditions, key talent are still moving
roles,meaningeasieracquisitionofnewpersonnel.
i EMPLOYERS
If unsatisfied in your current role
Remain inyou role22%
De�nitely move27%
Actively look tomove51%
31
LOYALTY IN A RECESSION
REGIONALCOMPARISON
The region in which employees were most likely to remain
loyal was found to be London. Despite the perceived negative
economic conditions, 46% of respondents who said they
would remain in their current position were based in London.
The region where employee loyalty was seen to be the
weakest was New York. Regardless of their perceived struggling
economy, 43% of those asked in NewYork answered that
if they were unsatisfied with their ability to progress in their
current career position they would actively look to move roles.
These findings suggests that finance professionals are focusing strongly
on career progression regardless of economic conditions, providing many
opportunitiestoacquirekeytalent
i EMPLOYERS
Remain in current role
Actively look to move
40.0%
40.6%
14.0%
New York
Singapore
London
43.0%
36.3%
21.3%
New York
Singapore
London
32
SECTOR COMPARISON
London
In London, those most likely to remain loyal in the current
marketworked inRiskManagement/QuantAnalytics.Even if
unsatisfied,27.4%ofLondonbasedprofessionalssaidthatthey
would remain in their role.
Those that work in Sales and Trading appear to be the
least likely to remain loyal. Despite perceiving employment
prospectstobeworsening,ifunsatisfiedintheirrole34.6%of
those asked answered that they would actively look to move
roles.
New York
In New York, those that were most likely to remain loyal in the
current market worked in Sales and Trading. Employees in this
sector were the most positive about conditions globally but
37.5%ofthosequestionedwouldstillremainintheircurrent
role regardless of economic conditions.
The sector found least likely to be loyal to their organisation
was theTechnology sector. Globally the technology sector
percepcieved eomplyment prospects negatively, yet they are
the least likely to remain in their role regardless of the current
economic issues.
Singapore
In Singapore the sector most likely to be loyal in the struggling
market was found to be the Risk Management /Quant
Analytics sector. Respondents in this sector were the most
positive about economic conditions in thier region but despite
their positive outlook, 28.6% of those questioned said that
they would remain in their role.
The sector that was the least likely to remain loyal was the Sales
and Trading sector. Despite the perception of the economy
beingnegative,27.0%ofthoseaskedsaidtheywoulddefinitely
look to move roles.
Technology
Sales and Trading
Corporate Banking
34.6%
1.0%
17.9%
16.4%
14.8%
27.4%
Job Satisfaction London
Move Roles Stay in Role
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
4.3%
4.3%
13.0%
3.0%
11.2%
8.2%
4.3%
20.7%
6.0%
12.7%
Technology
Sales and Trading
Corporate Banking
15.5%
15.0%
11.5%
26.5%
37.5%
18.0%
Job Satisfaction New York
Move Roles Stay in Role
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
0.0%
5.0%
10.0%
2.9%
5.9%
8.8%
5.0%
10.0%
2.9%
5.9%
Technology
Sales and Trading
Corporate Banking
27.0%
2.0%
17.6%
2.0%
14.3%
28.6%
Job Satisfaction Singapore
Move Roles Stay in Role
Risk Management/Quant Analytics
Private Wealth Management
IBD/M&A
Finance/Operations
Fund Management
12.3%
13.3%
15.3%
5.9%
23.5%
0.0%
1.0%
12.3%
5.9%
17.6%
33
LOYALTY DRIVERS
GLOBALOVERVIEW
What is important to people can often change in volatile economic times. Selby Jennings’ survey investigated
finance professionals perspectives on their motivations to remain with their current organisation.
When asked, ‘if offered a position elsewhere, which of the following would be the main driver for your decision to
stayinyourcurrentorganisation,’overhalf(51%)ofrespondentsansweredthatopportunitytoprogresswould
be the main driver, with training and benefits packages being of least importance.
This outcome shows that finance professionals are seeing progression as increasingly important over bonus or
salary prospects. It is likely that those in higher positions of responsibility will be the first to receive any monetary
rewards as the economy recovers. Employees seem to be increasingly accepting that salary increases and bonuses
are less likely in the current climate and as such are focusing on personal development to stand them in good
stead for more prosperous times.
Given these findings, to ensure retention of key talent in the current
economic climate, it is advisable to focus attention on employees personal
development to enable progression, as an alternative to monetary
rewards.
i EMPLOYERS
1.0%
16.3%
51.0%
Work/Life Balance
Opportunity to Progress
Salary
7.1%
5.1%
19.4%
Bonus
Training
Bene�ts Packages
34
REGIONALCOMPARISON
BonusasadriverwasmostimportanttothoseinNew
YorkaboveSalary.18%ofthoseinNewYorksaidthat
bonus was an important driver to remain in their role
whileonly14%saidsalarywas.
Work/Lifebalancewas found tobemore important
to those in London than in New York or Singapore.
For Londoners this was the second most important
drivertoremainintheirrolewith19%ofthoseasked
choosing this response.
Across all regions, opportunity to progress was the
most important to all of those asked across all regions.
InLondon50%, inNewYork54.0%andinSingapore
57.1%,chosethisresponse.
New York
Singapore
London
0.8%
14.0%
54.0%
Work/Life Balance
Opportunity to Progress
Salary
18.0%
5.0%
7.6%
Bonus
Training
Bene�ts Packages
17.1%
57.1%
Work/Life Balance
Opportunity to Progress
Salary
10.0%
4.3%
5.7%
Bonus
Training
Bene�ts Packages
5.7%
18.0%
50.0%
Work/Life Balance
Opportunity to Progress
Salary
7.0%
5.0%
19.0%
Bonus
Training
Bene�ts Packages
1.0%
35
SECTOR COMPARISON
Technology
Sales and trading
Risk
Private Wealth Management
IBD/M&A
Finance/Operations
CorporateBanking
Fund Management
Across all sectors opportunity to progress was the most important driver for finance professionals to remain in
theircurrentrole.Trainingandbenefitspackagesweretheleastimportantdrivers.Bonuswasmoreimportantto
thoseinIBD/M&A,whileSalarywasmostimportanttothoseinPrivateWealthManagement.
24.2%
57.6%
Work/Life Balance
Opportunity to Progress
Salary
9.1%
0.0%
Bonus
Training
Bene�ts Packages
0.0%
9.1%
5.4%
55.4%
Work/Life Balance
Opportunity to Progress
Salary
17.6%
5.4%
14.9%
Bonus
Training
Bene�ts Packages
1.4%
25.0%
61.5%
Work/Life Balance
Opportunity to Progress
Salary
3.8%
5.8%
Bonus
Training
Bene�ts Packages
1.9%
1.9%
30.8%
46.2%
Work/Life Balance
Opportunity to Progress
Salary
7.7%
Bonus
Training
Bene�ts Packages
0.0%
7.7%
7.7%
14.3%
50.0%
Work/Life Balance
Opportunity to Progress
Salary
0.0%
Bonus
Training
Bene�ts Packages
14.3%
7.1%
14.3%
14.3%
50.0%
Work/Life Balance
Opportunity to Progress
Salary
0.0%
Bonus
Training
Bene�ts Packages
14.3%
7.1%
14.3%
25.0%
30.0%
35.0%
Work/Life Balance
Opportunity to Progress
Salary
5.0%
Bonus
Training
Bene�ts Packages
5.0%
0.0%
12.5%
56.3%
Work/Life Balance
Opportunity to Progress
Salary
Bonus
Training
Bene�ts Packages
12.5%
2.1%
12.5%
4.2%
36
CONCLUSION
Acrossallregionsquestioned,itwassurprisingtofindthatfinanceprofessionalsloyaltyhaswanedandthatmany
would risk a career move in the face of turbulent economic times. The majority of respondents answered that
they would actively start looking for a new role if not satisfied with career prospects in their current role.
The region found most loyal was London, professionals here were the least likely to actively look for a new role.
The least loyal region was found to be New York as those working in this area were most likely to actively look
for a new role.
Whenasked‘whatwouldbethemostimportantdriverforyoutoremaininyourcurrentrole?’themajorityof
respondents across all regions and sectors answered ‘opportunity to progress’ with salaries and bonuses being
the next most important. Training and benefits packages were the least important drivers.
ItwasfoundthatbonusesweremoreimportanttothoseworkinginIBD/M&Awhilesalarywasmostimportant
to Private Wealth Management professionals.
Focusing on self development to improve career progression was highlighted as a key course of action for finance
professionals over the coming year. This looks to stem from the recognition of the decrease in likelihood of
monetary rewards.
23,836 finance professionals were surveyed between 1st November and 31st November; the average response
ratewas1.3%.
37
ABOUTSELBYJENNINGS
Selby Jennings is the foremost provider of recruitment solutions to financial institutions across Europe, the US,
Asia and the Middle East. We offer an award-winning, market driven operation, unrivalled by our competitors.
From our Head Office in London and international offices in New York, Singapore, Hong Kong and Dubai we
recruit beyond international boundaries, proactively sourcing the best talent in the industry.
Our holistic approach adds real value to organisations across the finance space, from top tier investment banks
tosmallerhedgefunds,privateequityconsultanciestotradinghouses.
38
STRUCTUREANDCOVERAGE
BuySideSalesandMarketing
- SalesFundraising(Traditional&Alternative)
- PrimeBrokerage
- Relationship Management
- Marketing & Communications
- Corporate Strategy
Capital Markets Structuring and Origination
- Debt
- Equity
- Loans
Commodities Sales and Trading
- Oil
- Gas,Power&Carbon
- Iron Ore, Coal & Steel
- Base&PreciousMetals
- Freight, Shipping and Logistics
- Soft & Agriculture
Compliance
- Product Compliance: Advisory & Surveillance
- AML,KYC,On-boarding&Quality
Assurance
- Regulatory/PolicyAnalysis&Implementation
- RiskGovernance
- Legal
CorporateBanking,Trade&StructuredFinance
- Trade Finance
- Commodity Finance
- Project Finance
- Export Finance
- Aviation & Shipping Finance
- Relationship Management
- Corporate&TransactionBanking
- Structured Finance & Securitisation
Economics and Strategy
- Economics
- Macro Strategy
- QuantitativeStrategy
- Investment Strategy & Asset Allocation
- Trading Strategy
EquitySalesandTrading
- Cash
- Derivatives
Financial Services Sales and Marketing
- Sales
- BusinessDevelopment
- ClientServices/RelationshipManagement
- Marketing Communications
Financial Technology
- Development Languages
- Applications
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- SoftwareTesting&QualityAssurance
- Senior Appointments
Fund Management and Fundamental Research
- Passive & Direct Investing Investment
Management
- DirectionalGlobalMacro
- Distressed, Mezzanine & High Yield
- Long-short, Activist, Event Driven & Special
Situations
- Relative Value
- Fund of Funds, Manager Selection & Due
Diligence
- FixedIncome,Equity&CreditResearch
39
Fixed Income Sales and Trading
- Credit
- Interest Rates
- Treasury
FX Sales and Trading, and E Commerce Sales
- Foreign Exchange
- E Commerce
Insurance
- Financial&BusinessAnalysis
- Broking/Underwriting
- Management Reporting
- Syndicate Accounting
- FP&A
- Actuary
- Compliance, Risk & Solvency
InvestmentBankingandPrivateEquity
- LeveragedBuyOut
- GrowthCapital
- Distressed & Mezzanine
- Secondary Markets
PrivateBankingandWealthManagement
- PrivateBanking&RelationshipManagement
- Investment Advisory
- Wealth & Tax Planners
- PrivateBankerSupport
- Private Client Investment Management
- PrivateClientBusinessDevelopment
- Marketing & Communications for PWM
QuantitativeAnalytics&PriceTesting
- FrontOfficeQuantitativeAnalytics
- ModelValidation/ModelCalibration
- Price Testing and Valuation Control
QuantitativeResearchandTrading
- QuantitativePortfolioManagement
- GlobalMacroPortfolioManagement
- QuantitativeResearch
- QuantitativeSystematicTrading
- HighFrequencyTrading
Risk Management
- Market Risk
- Credit Risk
- Operational Risk
- Regulatory Change Management
Structuring
- EquityDerivatives
- Fixed Income
- FX Derivatives
- Commodities Structuring & Origination
- Fund Structuring
- Pension and ALM
- Credit
Our teams cover all of the above areas on a contract
and permenant basis.
LONDON
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8th Floor
LondonEC4R9AS
T+44(0)2070194100
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NewYork,NY10167
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www.selbyjennings.com