You are currently viewing Welcome to 2022: the candidate market for banking professions

Welcome to 2022: the candidate market for banking professions

Full numbers for 2021 and are available, and if in doubt the past year has been absolutely huge in finding new jobs in many areas of banking and financial services. The only problem? Relatively few people wanted to move.

The graph below shows the growth in the number of jobs posted on eFinancialCareers in 2021 compared to 2020. Job opportunities have increased exponentially, especially if you were working in a front office position. Back and middle office jobs were fewer last year, with job opportunities falling in middle office areas like risk, operations and compliance.

While front office job opportunities have grown tremendously, enthusiasm for changing jobs in financial services has waned and candidates’ motivations for changing jobs have become more complex. “It’s not all about the money,” said Mike Karp, CEO of Options Group. Even as banks raised wages in their desperation to hire more juniors in areas like mergers and acquisitions, so they weren’t always answered. Some candidates, for their part, complained bitterly of being victims of incessant approaches from recruiters. “There is a shortage of A players,” adds Karp. “- Everyone wants to hire the best young talent, and it’s not easy to find.”

The result is that we enter 2022 with a hiring hangover from 2021. The graph below also suggests that divisional recruiting lags divisional revenue. – Fixed income sales and trading income grew 41% in 2020 according to data firm Coalition Greenwich, and this has translated into the huge increase in trading job opportunities the year last. In 2021, it’s mergers and acquisitions and capital markets revenues that have skyrocketed, and hires this year are expected to reflect that.

Headhunters in M&A and ECM say both areas are already very busy. There is no sign of a hiatus in hiring, says Logan Naidu of research firm Dartmouth Partners – January starts while December has come to a halt. Therefore, we are already seeing JPMorgan trying to poach newly qualified accountants to become investment banking analysts in Europe, and we are already seeing shops like Centerview Partners raising analyst starting salaries to $ 130,000, $ 10,000. more than the upper limit set last year. .

However, it is not just about the investment banking divisions. In most front office areas of finance, 2022 is shaping up to be a candidate market. If you want a new role, now is the time to bargain hard. Pay inflation is a real problem, and Karp says expectations are already unrealistic, so banks can resist more savage attempts to secure pay increases, but lifestyle is the new advantage. If you want to work remotely, part-time, or flexible hours, now is the time to file those requests and contract them out. Banking is a cyclical industry; the winds may not always be so mild for job seekers, and banks may be less willing to make lifestyle concessions six months from now.

Photo by ÉMILE SÉGUIN 🇨🇦 on Unsplash

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