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City firms prepare for increase in hiring

City firms prepare for steady increase in hiring during the second half of the year, Morgan McKinley, the recruitment consultancy, has found.

The report highlighted:

  • 64% of City firms expect to hire up to 20% more staff in the rest of the year
  • In March the average basic salary increased by 1.6 per cent to £46,990, against £46,251 in March last year.
  • 50% of City employers are finding it harder to hire good candidates than a year ago.
  • The number of job vacancies in the City stands at 10,521 - more than double the number in March last year at 4,593.

Banks are realising the need to move more quickly in order to secure the best talent

Robert Thesiger - CEO Morgan McKinley

Robert Thesiger, chief executive, said staff recruitment was likely to be strongest in areas such as operations and risk management, where hiring was already at its highest level in years.

"Banks are realising the need to move more quickly in order to secure the best talent. The market is now very much candidate-driven and the most talented individuals can demand attractive compensation packages." Mr Thesiger said.

One of the biggest rises in demand has been for skilled IT workers, which is spilling over into increased pay rates particularly in the financial and public services sector.

A study by iProfileStats found that IT contractors in the public sector enjoyed a 33 per cent increase in their average rate last year, rising from £30 to £40 an hour. Financial services has the largest rises, increasing by 25% to £50 an hour.


Sources:

Morgan McKinley - London Employment Monitor March 2005

FT - City firms prepare for hiring spree...

Published: Tuesday, 26 April 2005

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