2018 Hiring Trends │Financial Services

2017 saw robust performance in the asset management sector including investment trust funds and investment advisory firms, and we observed strong demand among asset management companies for sales people, particularly for senior roles. Given the recent challenges for securities firms and investment banks and the positive results enjoyed by asset management companies, there was a notable trend in which professionals were actively looking to change jobs from the former to the latter. Many asset management companies took advantage of this trend and successfully hired young and talented professionals away from banks and securities firms.

As was the case in 2016, the majority of recruitment in 2017 for middle office/operations roles in foreign-affiliated banks and securities firms was of junior-level professionals. In general, 2017 was a busy year for recruitment activities with most vacancies being open on a replacement basis.

Real estate finance sector

In the real estate finance sector, we predict that the high level of demand for bilingual professionals will continue in 2018. Given the soaring asset prices in the real estate market, most fund businesses did not increase acquisition department headcount in 2017. We have, however, seen consistent demand for asset managers. The number of middle office job openings in real estate businesses has remained very similar to 2016 levels, especially in regard to roles related to fund planning and loan administration. The effect of real estate companies’ decision to suspend the hiring of new graduates following the global financial crisis is still being felt, and we expect businesses to continue to face challenges identifying suitable younger bilingual professionals in 2018. Consulting firms are continuing to advertise many openings as they did in 2016, and many of these firms are increasing the number of personnel responsible for engaging in business with financial institutions and insurance companies. A notable area of increased interest in 2017 was the demand among consulting firms for professionals with experience or skills related to the fintech sector.

CONTRACT

Professionals seeking contract employment are becoming increasingly aware of the sellers’ market conditions caused by current labour shortages and they now have higher expectations in terms of wages. More companies are beginning to understand this and they are raising hourly wages accordingly; the hourly wages of KYC analysis, for example, are 15-20% higher than last year. Companies are also offering more direct contract opportunities to candidates instead of hiring them on a temporary basis as a way to gain an advantage over rival companies. The recruitment process in the financial services industry is becoming increasingly complex and rigorous, and many companies are now spending a greater amount of time on recruiting and other types of thorough screening. As a result, we have seen an increasing number of cases in which the schedule of the recruitment process is delayed.

Operations and risk and compliance

Operations and risk and compliance departments are suffering from a serious shortage of candidates for temporary/ contract positions. This is in part due to companies’ tendencies to seek out professionals in their 30s or younger even though the majority of the temporary/contract labour force is in their 50s. More companies are now aware of the current personnel shortages and recruitment of non-Japanese professionals with Japanese language proficiency is increasing.

Companies in the financial services industry with open administrative positions are now asking for not only experience in similar roles, but also wider skill sets, which include, among others, interpretation and translation, research, and client services.

Contact us today. One of our recruitment specialists will find out how we can tailor a recruitment solution to best fit your unique staffing needs.