The financial services industry is currently “overwhelmed with quality and quantity of candidates” at executive levels, Kaizen Recruitment explores.
According to the recruitment agency’s latest financial services quarterly market update, the executive market has become increasingly competitive – particularly for roles with salaries between $200,000 and $600,000.
Kaizen identified that there is a substantial oversupply of highly skilled candidates in the market at the moment, especially in C-suite and senior management positions.
As a result of this, recruitment periods have become increasingly lengthier as employers and recruiters sift through an abundant pool of top-quality candidates.
“Due to a substantial oversupply of highly skilled candidates, especially at senior levels, recruitment processes have become more prolonged. Executives often face extensive job searches, sometimes exceeding a year, compounded by recent industry restructures and a limited number of available roles,” Kaizen explained.
“Executives find it increasingly challenging to secure new roles, often taking over 12 months to land meaningful positions.”
The compounding effect of restructuring and redundancies have led to fewer positions available and fiercer competition, it added. Professional networks have also become more crucial than ever as CEOs use peer recommendations to narrow down their preferred candidates from the large pool available.
“Our team has experienced firsthand the overwhelming and remarkable quality and abundance of candidates seeking opportunities. For instance, during a recent search for a general manager of investments, we shortlisted 15 highly capable candidates (all of them, excellent). Due to the overwhelming volume of interest, this led us to close application processes early.”
Another key factor behind this trend is the number of mergers, acquisitions and overall consolidation occurring in the sector.
In conversation with Money Management, Matt McGilton, managing director at Kaizen Recruitment, explained the high volume of candidates was led by a variety of factors: greater M&A, cost-cutting, moving work offshore, and fewer roles being hired.
“At an executive level, we are overwhelmed with the quality and quantity of candidates so clients have plenty of choice.”
He said that greater M&A and consolidation has meant that a newly merged firm may not need additional people in certain C-level positions, forcing them back into the jobs market.
A Deloitte report previously discovered that inorganic growth strategies are set to double in the year ahead for financial services firms in comparison to last year, so there will likely be no let-up in candidates seeking roles. Two main reasons behind this trend are a focus on succession planning within acquired firms and enthusiasm for product diversification.
Moreover, Kaizen observed that the longer duration of searches and competitive market means executives are finding it more difficult to negotiate higher salary packages. As a result, some are often prioritising securing a role over pushing for superior compensation or benefits.
“Work flexibility – once an important negotiating point – has become less of a priority, with most executives now willing to trade it for job security and a stable position at a reputable organisation.
“In summary, while the current market offers clients a broader selection of executive talent, for candidates, the journey to securing a new role has become more challenging and competitive than ever.”
