City jobs market jumps 11%

City jobs market jumps 11%

· Investment banks brace themselves for increase in post-bonus resignations

The City recruitment market has leapt ahead as investment banks put in place contingency plans to deal with post-bonus defections says Astbury Marsden, a leading financial services recruitment firm.

According to Astbury Marsden the number of new City job vacancies created in January 2011 jumped 11% to 5,440 up from 4,920 in January 2010. That is more than twice December 2010’s figure of 2,620.

Astbury Marsden explains that every year those bankers that are disappointed with their bonuses start looking for new jobs. However, this year the level of disappointment may be higher than normal.

Banks have come under increased political and regulatory pressure to keep bonus payments down and, where bonuses are paid, to defer them. The increase in base salaries over the last year and a half also means there is far less in the overall remuneration pot that can go towards bonuses. Salaries have risen by an average of 20% for Vice-Presidents rising to 100% increases for some Managing Directors.

Explains Mark Cameron, Chief Operating Officer, of Astbury Marsden: “Every sensible HR department and line manager goes into bonus season expecting some attrition but this year banks are planning on a lot more than usual.”

“Most of these jobs being recruited for at the moment are there to deal with the churn of staff leaving for other employers rather than being completely new roles being created.”

“The market for bankers is much more buoyant than a year ago. Bankers have also lost their fear about moving to a new employer. During the credit crunch bankers were nervous about leaving a bank they knew well and where they had built up a lot of goodwill to start up with a new employer.”

Planning for possible post-bonus departures will vary from institution to institution and will range from drawing up possible candidate shortlists for particular areas through to full-scale interviewing.

Astbury Marsden says that the number of candidate registrations in January 2011 has increased by 21% on last January which lends support to the idea that bank employees may already be looking for a new role as news on their bonuses begin to filter through.

However, Mark Cameron says that this influx of CVs onto the market does not mean that the challenge of hiring well qualified bankers for specific jobs is going to be greatly reduced. According to Astbury Marsden there are still only an average two qualified candidates actively looking for every one available job.