FINANCIAL SERVICES
Financial institutions and companies related to banking, asset management, securities and insurance are actively hiring employees to replace departed entry-level and mid-tier personnel in both front office and operations roles. Many companies are making particular efforts to acquire talent at an early stage in their careers to serve as candidates for the next generation of company managers. There is also a notable trend of companies selectively choosing not to replace senior-level employees as part of headcount reduction measures in an attempt to rejuvenate their organisations.
General consulting firms also made an increased number of entry-level and midcareer hires in 2018, as work style reform and recent financial conditions encouraged more companies to outsource tasks related to RPA deployment, business improvements and enhancements in productivity to consulting firms. Additionally, the recent financial climate has promoted an increase in M&A across the board, including cross-border deals, factors which have contributed to an increased demand for talent. Consequently, while people coming from consulting firms are in a good position to change jobs, there are also ample opportunities for people at entry-level or mid-tier positions if they have three to six years’ experience working in business planning or general planning functions at commercial companies. There are an increasing number of cases where companies successfully hired employees by offering favourable conditions for work-life balance in addition to a competitive salary.
Meanwhile, wages offered by financial institutions for professionals changing jobs have shown little growth, with a growth rate similar to that of 2017. However, when individuals with backgrounds in other industries change jobs to enter a financial institution, improvements in salaries are often observed. Many candidates also have a preference to avoid future risk when deciding to change their job. Individuals working within operations departments are particularly concerned about the stability of their future careers as they perceive threats from new technologies. In order to alleviate these concerns, companies have been offering salary increases of 10% or more for people willing to move between these functions. These salary increases have often been combined with perceived improvements in work–life balance to secure the best candidates.
A slow increase has been observed in the hiring of non-Japanese talent in the financial sector, which stems from expanding numbers of international students, as well as rising levels of Japanese proficiency and general academic ability among non-Japanese students. Some consulting firms have a number of trilingual employees, including those born in Asia who are hired after graduating from prominent Japanese universities. Consulting firms have also externally hired some senior-level talent who do not possess native-level Japanese proficiency.
CONTRACT
As increasing numbers of start-ups have entered the fintech business, the competition for human resources in the financial services industry, including temporary and contract employees, is intensifying. In 2018, many fintech-related companies hired candidates with work experience in banks and brokerage firms for operations tasks under term-limited contracts. Although there are elements of uncertainty in terms of stability regarding startups, they are popular among candidates due to technological and growth factors. These companies are also able to offer competitive hourly wages, which has led to an increase in hires.
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. For example, the hourly wages of KYC analysis are 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. As a result, requests are concentrated on staffing companies that are familiar with staffing practices among financial services firms and have a successful track record with temporary and contract recruitment.
Operations, 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.
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