In the money

Accountancy SA, May 2008

WITH JOBS ON THE INCREASE AND SALARIES HEADING SKYWARDS, LONDON'S FINANCE SECTOR IS A GOOD PLACE TO BE

London might not be the centre of a massive empire as it was in centuries past, but right now it can lay claim to being the capital of the world's financial markets.

In fact, London has overtaken New York as the world's biggest financial hub, and is well ahead of other big players, such as Tokyo and Frankfurt.

Banking and financial services added a huge £86 billion to the UK economy in 2006, and the money made in the City (as London's financial district is known) - as well as the money loaned to the private sector - is a key contributor to the UK economy.

Despite reports of share price dips and the credit crunch, some of London's leading recruitment firms are predicting anything but a gloomy time for London's finance sector.

PAY IT OFF

An annual salary survey by financial recruiter FSS found 60 per cent of businesses are planning to increase staffing levels in 2008.

Paul Bibby, chief executive of finance recruiter Elements, says he is bullish about the next 12 months. "We have seen little let-up in the demand for staff and hiring plans for 2008, and we have already seen redundancies within the credit markets ... we have also seen the banks curbing their wider hiring plans for the start of 2008," Bibby says.

"But I feel this will only be a temporary blip as they lick their wounds and reassess their position ... the majority of banks have strong enough balance sheets to weather the storm."

Neil Owen, senior regional manager at Robert Half Financial Services Group, also does not buy into the doom and gloom.

"While there has been talk of a slowdown in the UK economy, we are yet to see this from our own business perspective," Owen says.

TEMPING PROSPECTS

While much of the focus on employment in the financial services sector is on permanent jobs, there is a large market for short-term and contract work.

And there are plenty of benefits to this for South Africans who are looking for top-quality work in the UK.

Matthew Wilcox, of financial recruitment firm Marks Sattin, says 2008 has got off to a busy start for temporary and contract workers.

"The benefits of contracting are that candidates can gain experience in some of the top financial institutions, more often than not working on strategic projects that permanent employees of the banks would not normally get considered for," Wilcox says.

"[Pay] rates are still strong and rising fast at the moment, due to demand for professionals in finance remaining high.

"Also, short-term contracts allow people to 'find their feet' within a financial institution and help them make up their minds as to what type of role they want to do longer term."

Wilcox says the demand for contractors could increase, too.

"[Firms] are already bringing in contractors in the interim to cover gaps with a view to either replacing them with permanent people in the long run, or converting the contractor into a permanent role once the freeze has lifted."

Joslin Rowe senior consultant Ellen Mulvey says short-term contracts can be especially useful for those on a visa that only allows them one year's employment in the UK.

Taking a short-term role and impressing your boss may lead to your employer sponsoring you - giving you a long-term foothold in the lucrative UK financial market.

THINK OUTSIDE THE SQUARE

The square mile of the City of London, along with Docklands, may be the nerve centre of the UK's financial services industry - but for finance professionals there are plenty of opportunities outside these areas.

While London still has the lion's share of jobs, there is an increasing amount of work available in Scotland, Dublin and the big English cities.

Steve Carter managing director of recruitment firm Nigel Lynn, says: "If you are on a working holidaymaker visa and want the London experience, then the capital is obviously the place to be.

"But if you are here for more professional reasons, it's worth keeping an open mind on location."

Carter nominates Manchester and Bristol as regional hotspots for financial services jobs.

"Markets outside of London have enjoyed significant commercial investment and many of them have been the focal point of regeneration and modernisation programmes. That has given many of these larger cities a more cosmopolitan buzz," Carter says.

"The previous drawcards of London's nightlife and social scene can now be found across the UK, and while salaries and compensation are slightly discounted when compared to London, the cost of living is certainly more affordable."

Nicola Thomson, team leader of Joslin Rowe Associates (Scotland), says both Edinburgh and Glasgow are booming, with jobs in a wide range of fields for both temporary and permanent positions at varying levels of skill and experience.

You may have to settle for a pay packet 25 per cent lower than in London, though.

"There are various attractions of working outside London, including cost of living and commuting time and costs, which offer a healthier work-life balance, and also continued growth in the finance/investment and banking sector in Scotland," Thomson says.