Recruitment trends and skills in demand – half year market update 2011
M&A
Much of the hiring burst in H1 2010 was predicated on a rise in M&A activity which has not been fulfilled;
Clients therefore focusing on key and specialist hires;
Compensation patterns have become increasingly complex;
Therefore extremely candidate short market, with frequent complaints from clients that they see the same candidates recycled for each opening.
Equity research and sales
After a very slow period through 2009 and 2010, prospects for 2011 look more promising;
Demand is building at junior level to compensate for lack of 08/09 graduate intakes;
Good sales people with portable clients are, as ever, still in demand;
There is concern compensation maybe starting to lag behind areas such as M&A.
Buy side
The major long only/pension funds have been quiet but there are some signs that hatches are being de-battened. Most have launched new funds investing in riskier products (CMBS, RMBS, convertibles, high yield) and have hired people (in some case whole teams) to manage them;
Hedge funds - during the first half of the year, many took the opportunity to hire at a more senior level but there are still signs of a cautious attitude to hiring. Aside from a few key notable moves, hedge funds on the whole have an appetite for hiring people who have been out of the market for some time, as opposed to buying out the large bonuses of people from competitors. Additionally, with US funds setting up or re-establishing London offices, it has proven more popular to second analysts from wherever their base is. Coupled with what seems to be a slight reluctance to take up permanent office space, it could be argued that there is still a feeling of nervousness about London. However, junior to mid-level analyst hiring is expected to pick up significantly in the second half, following ACA qualification and the end of the IB's analyst programmes during the summer;
PE houses are also generally quiet from a hiring point of view;
There is demand for fundamental analysts and good sales/marketing candidates.
