Executive Corner Major banks looking for specific skill sets by Alex Chan Executives with specialised skills are in big demand within the banking and finance sector Over the past 10 years, the collapse of major corporations and the increase in fraudulent activities in some investment banks has caused a shift in demand for top executives in the banking and financial sectors. The focus is now on compliance-based professionals since many major banks have implemented mandatory compliance programmes in response to new regulations such as the Sarbanes-Oxley Act and Basel II. "There are always regulatory requirements that constantly need to be updated by the banks, and recent developments have caused a high demand for executives who are well versed in the area of compliance," says Richard Herring, managing director of WH Specialist Financial Recruitment Ltd. The past two years have been buoyant for banks overall, with better business leading to increased headcount requirements. Demand for executives with relationship management skills has also seen a dramatic increase. "This time of the year, in particular, sees heightened activity in executive recruitment as a majority of offshore and local banks pay their bonuses between January and March. Many executives take this opportunity to look for better career options," says Mr Herring. Taking an honest approach creates long-term relationships Higher salaries With the financial and business success of banks, executives now have a different set of expectations. "Candidates have been approaching us with more aggressive salary expectations than they had two or three years ago," notes Mr Herring. However, employers are reluctant to pay inflated salaries as they do not want to upset the status quo within their current structure. They need to be sensitive to their current employees and by offering new executives a premium on the market levels, employers will leave their current staff comparatively underpaid. Turnover has also been on the rise as candidates are switching jobs more often. According to Mr Herring, many candidates are looking to upgrade their career skills every two to three years. It is usually around this time that people begin to tire from the lack of challenge being in the same job. "This may seem like a red flag to employers, but it is our job to understand why a candidate has a history of moving on. If it is for genuine reasons, then it is not normally an issue," he says. Same wavelength "The key to successful recruitment is to ensure all parties are on the same wavelength in terms of expectations," says Mr Herring. As such, detailed communication between the candidate and the company is of paramount importance. From the start of the recruitment process, all parties must be clear on issues such as salary expectations, starting dates and technical requirements. Such details are the key to preventing problems later on. Successful recruitment also comes from having the correct attitude. "It is not our responsibility to simply put bums on seats. It is about opportunities for candidates and companies alike," says Mr Herring. With the client's best interests in mind, he has often advised candidates to stay at their existing jobs if remaining there would be a better option. "Taking an honest approach creates long-term relationships and that is how we have kept a strong referral network, by representing people honestly," he says. He also notes that several candidates, whom the company had previously placed, have gone on to become clients of WH. The company's referral network throughout the Asia-Pacific region has been created through nine years of specialist recruiting for the executive support functions behind sales and trading at investments banks and stock brokerages. They will soon be opening an office in Singapore to further expand and utilise the network. "You will find that the depth of our network and the maturity of our client list are both extensive and high-quality because we align ourselves with blue-chip clients. This is attractive to candidates because they want to work for prestigious companies," says Mr Herring. For executives looking to upgrade their career, Mr Herring offers one piece of advice: "Be as realistic as possible. Appreciate that you sometimes have to take one step sideways to take two steps forward," he concludes. Managing expectations Demand in the banking and finance sector is strong for candidates skilled in compliance and regulatory functions Growing salary expectations from candidates cannot always be immediately matched by employers Detailed communication between all parties from the start of the recruitment process will prevent problems later on Keeping the candidate's best interests in mind helps to build a strong referral network In order to progress, it may be necessary to take a step sideways Taken from Career Times 17 March 2006 Your comments are welcome at [email protected]