| New legislation creates increased demand for pension administrators |
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| Emer Cassidy examines recruitment trends in the financial services sector - who’s hiring, what they’re looking for, the skills in demand, what candidates can earn and expectations for the coming year. |
Recruitment in the financial industry has been notably one of the stronger sectors in the Irish economy. It has consistently showed a good level of growth over the past number of years. As of late, the level of growth has tapered off in comparison to its historic boom period. However, it is still a healthy competitor in terms of growth and employment but has been surpassed by industries such as pharmaceuticals and certain specialist engineering markets.
Within the financial services and banking sector, fund accountants are again in demand. With most investment banks seeking out administrators and accountants with previous fund experience, those without previous experience are generally recruited directly on the basis of numerical or business related degrees.
New Government legislation has changed the recruitment environment. Improved customer friendly pensions have been introduced - Pensions Retirement Savings Accounts - which has resulted in more and more people being attracted to setting up new, flexible, low-cost pensions and this has resulted in an increase in the demand for pensions administrators. This is reflected in increased salaries, in comparison with last year, when a junior administrator would have earned E20,000. This has now increased to E21,500.
There is also an increase in the demand for insurance brokers, claims and liability staff. Some of the non-core business has been downsized within US companies after September 11th 2001, but this will eventually even out, as there will always be a demand for insurance candidates.
Credit analysis is also another area, which has seen an upward slant and salaries are definitely on the increase. A credit analyst with three years plus experience is now looking at a salary of E38k + which is an increase from last year and salaries can reach in excess of E55k. There is also an increase in demand for regulatory staff within the funds industry and there will always be a demand for fund accountants with NAVs experience and particularly for candidates that are studying towards the ACCA qualification. Audit and legal staff are also in demand.
Candidates with asset backed securities, derivatives and modelling experience are all sought after within the funds Industry, and such candidates are plentiful in the UK. Solicitors with funds and international experience and fluent German speakers are all skills sets very much in demand.
Banking
There is a particular upward trend in this sector, but companies are offering more flexibility and improved benefits packages.
Fund administrator: up to E25k - 2001 (1-3 years experience); Fund administrator: up to E28k - 2002 (1-3 years experience); Fund accountant: up to E33k - 2001 (1-3 years experience); Fund accountant: up to E35k - 2002 (1-3years experience); Custody administration: E22k - 30k (1-3 years experience). No real change from 2001;
Credit analyst: E38k (3 to 5 years experience), salaries seem to be on the rise, with a strong demand for credit analysts with languages, particularly German.
Treasury
No real change in salaries, they seem to have remained the same for the last year and there has also been a reduction in bonuses due to a slowdown, which has affected the dealing area; Cash management: including fx, reconciliations, settlement of US Dollars: E25 - E27k (1-2 years experience).
Insurance
The insurance market in Ireland is still strong and new companies are continuing to be attracted into Ireland and the IFSC, however premiums are increasing, above European averages.
There is a steady increase in demand for pension administrators, as once taxation barriers have been removed, and tax is harmonised across Europe, we should be able to avail of portable pensions, so you will be able to transfer your pension from Ireland to any EU country. So salaries will remain on the up as demand increases for pensions administrators.
Commercial underwriters
With 3 years plus experience, commercial underwriters can earn up to E38k, which is an increase on last year. Salaries will probably continue to increase. This is because there is a shortage of underwriters in the Irish market and companies have to source overseas for candidates.
Overview
Looking to the future, I believe there will be further consolidation, with more key players moving into the Dublin market. There will be more candidature movement within Europe, which in turn will bring more fluent German speakers, hedge funds and UCITS specialists into Dublin. There is a steady increase in new companies setting up in Dublin due to the improved efficiency in the approvals procedure of funds and the continued low rate of tax at 12.5 per cent.
There may be an increase in business over the coming months due to more main players moving into Ireland within the insurance and funds industries, new legislation and new products. |
Emer Cassidy is a financial services consultant at SkillsGroup.
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| Article appeared in the September 2002 issue.
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