People Services - Permanent Recruitment Market Update

The pattern so far

As the economy has started to improve, organisations have started to hire again and most of those individuals who have had their pay reviews this year have received an increase. Significant increases have only been achieved through promotion and salaries are very much driven by demand, so where there are skill shortages in the market e.g. for dual handlers, both companies and accounting firms will be required to pay a premium in order to attract and retain staff with this specialist skill set.

Practice opportunities

We have seen a high demand for expatriate tax jobs across the board however predominately at the Assistant Manager and Manager levels. Within employment tax jobs, we have also experienced a similar level of demand, with recruitment taking place at Manager level or below. The Big 4 firms seem to now be recruiting aggressively across the People Services space and we have noticed an increased demand for these specialist skill sets within both boutiques and Top 50 firms. At Senior Manager level and above, individuals are being sought who have strong business development experience and can effectively create their own roles. Understandably, firms attempt to promote from within as much as possible.

In-house opportunities

The beginning of 2010 saw an increased level of hiring within the financial services sector to bring expertise in-house across global mobility, compensation and reward. This was driven by the lifting of headcount restrictions. Individuals who have made these moves have received reasonable uplifts in total remuneration packages. In addition, more FTSE Listed organisations have either looked to build upon their existing in-house teams or bring the skills in-house for the first time (as tax legislation has become more and more complex and to reduce costs spent on external advisors).

Looking ahead

We expect that demand over the next 12 months will continue within the specialist areas of tax. Competition will still remain as organisations retain a degree of cautiousness around hiring and look to bring on board the very best talent available in the market. In-house roles will continue be sought by those individuals in practice, particularly at the Assistant Manager and Manager level. We anticipate ongoing opportunities within the accountancy firms and this is already evident within the Big 4 and Top 10 firms as they win new work and set about achieving their ambitious growth plans through investing in their people.