City jobs are commanding huge salary hikes due to lack of suitable candidates
(Picture: REUTERS)In demand jobs in the City are commanding pay bumps of 30% as finance firms fight a war for talent that helped head hunter Robert Walters to record results today.
While traditional banking and trading jobs are under pressure due to a lack of new stock flotations, in the areas of technology and compliance demand is huge, leading to a salary boom.
The power base of the City has been shifting east for a few years, helping areas such as Aldgate, Old Street and Shoreditch boom thanks to the influx of new tech jobs.
Robert Walters, named for its founder, has just had its best quarter ever aided by that shift.
The recruiter saw its fees jump 25% to £112 million. Since those fees are often a percentage of the first year’s salary, inflation is a boon to the firm.
CEO Robert Walters said: ”The jobs market has remained strong, and I am delighted that the Group has delivered a record second quarter performance.”
The firm is itself hiring apace, with staff numbers up 7% to beyond 4000. He said the “hottest areas” of the City are upping pay for new staff and those they want to keep by between 25-30%.
The figures were cheered in the Square Mile today, the shares rising 21p to 530p, since the outlook is better than expected for the business. Profits will beat analyst forecasts.
The statement said: “Recruitment activity levels continued to increase across both London and the regions. Permanent recruitment activity remains most active as organisations hired for the long-term. Strong rebound in financial services recruitment.”
Robert Walters added there is pent-up demand post lockdown for talent, especially given the so-called “great resign” that has seen many re-evaluate life in the wake of Covid.
He offered an example of one of his own staff, who was on pay of £50,000 but left to a new job – on £110,000.
Law firms recently reported that pay for junior lawyers is up another 10% -- to £160,000.
Some fear booming pay will create a wage-price spiral that will in the end only hurt workers – calls for restraint on pay demands have come from many quarters, including from the governor of the Bank of England.
Robert Walters points out that the issue is not unique to the UK. It has seen business grow in the Middle East, Canada and Chile as companies ask it for help in finding candidates.
All markets saw fees up at least 20%. Robert Walters has just opened an office in Milan, its first move into Italy.
