Salaries for operations positions have experienced a spike in the last month--a trend that follows steady increases of the average permanent financial services salaries across the entire market. Salaries in banking operations roles grew by 4.1% last month, pushing the average salary to GDP 37,372 ($65,563), according to research conducted by London-based the Blomfield Group Financial Services Employment Index. “There is a real anomaly between supply and demand [in the operations space],” said Tara Ricks, managing director at Joslin Rowe Associates, a subsidiary of Blomfield Group, which conducts the employment index and trend tracker. “We’ve seen a real jump in January in both salaries and vacancies.”
December is traditionally quiet, Ricks explains, but there were twice as many jobs available and firms are projecting increases in headcount to come so it is likely growth with be maintained throughout 2006. The report also found there is a shortage of candidates applying for new jobs on the market with operations, sales and trading and investment managers all had the lowest level of applications.
Compliance is also a big growth area in terms of rising salaries and bonuses rising by as much as 25%, according to recruiters in London. Victoria Alkiviades, compliance specialist at recruiter Barclay Simpson, said an increase in enforcement actions and the Financial Services Authority’s new risk-based approach to regulation have added importance to compliance programs. As a result, firms are willing to investment more across the board, including for younger hires.
Recruiters have observed that compared with the previous year, salaries are up 5-10% to a range of £180,000-£250,000 for global heads of compliance at the largest firms or banks. Chris Hickey, director at global recruitment firm Robert Walters, said demand for expertise in equity derivatives and fixed income have helped drive the increases.
Also, average salaries for senior-level compliance officers and mid-level positions at other firms are up by 15-20%, to £150,000. The increase is due in part to healthy markets and the U.K. putting in place pan-European directives, said Fergus Hooley, a consultant with recruitment firm Joslin Rowe.