| Credit firms set for a ‘hiring freeze’ |
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| The effect on the credit and liquidity crisis is being felt in Dublin as credit institutions in the IFSC are putting a ‘hiring freeze’ in place, according to David Hannon of Deloitte Executive Search and Selection. |
Fears that the fallout of the sub-prime crisis and subsequent freezing up of liquidity in the banking system will give managers more leeway when negotiating salaries and bonuses, according to an industry expert.
David Hannon, manager of Deloitte Executive Search and Selection feels that professional in the credit industry will receive their yearly bonuses, although they may be affected by the last few months of uncertainty.
‘Senior management will have more latitude when dealing with employees over bonuses and salary increases. The days when an employee can demand a pay rise or leave have gone for the moment. Companies are cautious about salaries and bonuses. However, there will not be a mass exodus in February when it is time for bonuses to be paid. They will be paid,’ said Hannon.
Hannnon also disclosed that certain credit companies in the IFSC have put a ‘hiring freeze’ in place for the time being. This means that all staff will retain their jobs, but some companies will not be hiring additional staff for some time.
This pause in the recruitment race will see more and more people staying in their roles, waiting for the credit storm to abate. ‘The people involved in investment banking are not going to be able to change jobs to maximise their salaries. I believe that they will sit on their hands and ride the situation out, in my opinion,’ added Hannon.
Hannon added that the major effect of the crisis will be felt in other financial jurisdictions and in roles closer to the source of the problem than in the IFSC. ‘The fallout of the sub-prime will hit the mortgage consultants and other people who deal more directly with the mortgage industry. I also think that the fallout will be felt more internationally than locally. Many investment bankers are located in London and other financial centres, so i don’t think that Dublin will hit too hard,’ commented Hannon. |
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| Article appeared in the October 2007 issue.
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