UK banks, asset managers and insurers have no plans to stall hiring next year, despite the ongoing uncertainty surrounding Brexit, a new study shows.
A survey of over 900 employers and employees working in banking and finance, conducted by recruitment firm Hays, found that over two-thirds of employers plan to recruit over the next 12 months, with the majority hoping to hire permanent staff.
It revealed that employers are looking to hire regardless of political and economic factors surrounding the decision to leave the EU. Hays said recruitment is being driven by the need to tackle regulatory changes. Several new pieces of market and data regulation are coming into force next year.
Particularly in demand are professionals with data and analytics knowledge as well as IT infrastructure and cyber security expertise.
Regulatory changes and the need to plan for the future means that competition for talent is rising, with 61 per cent of firms reporting a moderate to extreme skills shortages in 2017.
Over half of firms questioned said skills shortages were having an impact on productivity in their organisation, as well as having an effect on innovation, employee morale, growth and profit.
Mark Staniland, a managing director at Hays, said: “It’s promising that despite market uncertainty, financial organisations are continuing to hire as regulatory changes come into play and digital advancements are creating the need for organisations to constantly adapt and remain up-to-date.
“However, competition for talent is strong and persistent skills shortages have the potential to limit productivity, growth and innovation – all of which could harm the City’s ability to remain competitive on a global scale.”
Meanwhile, over a third of employers in the City said innovation within their organisations was being hampered as a result of skills shortages.
Hays warned that employers need to ensure that the salary and benefits they offer are competitive to attract the talent they need as the industry adapts to change.
“Given how critical innovation is to financial institutions, this should set alarm bells ringing and prompt employers to take action,” said Mr Staniland.
