Regulation impacts the contractor market
The contractor hiring market endured a tough year in 2017 according to a recent UK Salary Guide, with many turning to permanent jobs in accountancy and finance, despite increasing pay rates in regulation, says Victoria Walmsley, Operations Director at Morgan McKinley.
2017 has seen a change in hiring across the temporary and contract market. There has been an appetite within Financial Services to recruit more permanent heads and we have seen an increase in contractors converted to permanent, our highest number in three years.
There has also been an increase in the number of fixed term contracts available, particularly within small and mid-tier organisations and perhaps some of the uncertainty from 2016 seems to give contractors interest in longer term contracts which offer more security.
Morgan McKinley’s 2018 UK salary guide reported slow progress for temporary employment, with contractors turning to permanent jobs in accountancy and finance. This was due to unpredictability in where vacancies would come available and an uncertain market caused by Brexit and a slowing economy.
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However, there was a sharp rise in demand and increase of pay rates for regulation roles due to MiFID II, IFRS 9 and GDPR in Accounting & Finance in Banking, Compliance, Financial Services, Operations and Risk Management. While rates for contractors remained stagnant, the competition for regulatory individuals was fierce, and higher rates were demanded.
Key highlights include:
- 22% year-on-year decrease in temporary compliance job volumes
- High volumes of recruitment across regulatory ‘business as usual’ (BAU) space with an emphasis on capital reporting within Accounting & Finance in Banking
- Investment managers in Financial Services Operations built up regulatory teams with contractors
- 15.7% year-on-year increase around temporary transactional finance roles in London
- Strong Q3 for temporary Compliance hiring as IFRS 9 drove wholesale credit risk recruitment
- Reduction of Risk Management contractor hiring in London as organisations transition business to Ireland, Switzerland, Poland and India
- 16% year-on-year increase in Financial Services temporary jobs
- Decreased demand for Accounting & Finance Banking contract roles across Tier 1 bulge banks and SME boutique banks
Victoria Walmsley is Operations Director at Morgan McKinley
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