Whilst the prolonged period of uncertainty and upheaval isn’t quite over, the UK financial services industry appears to be returning to a sentiment of cautious optimism.

1. hiring intentions
our Q1 2013 update for the UK financial services sector

2. 2 hiring intentions – our Q1 2013 update for the UK financial services sector

3. welcome to
our Q1 update Tara Ricks
Whilst the prolonged period of uncertainty As a specialist recruitment agency with over 30
and upheaval isn’t quite over, the UK financial years experience, we understand the difficulty
services industry appears to be returning to a our clients face when searching for the right
sentiment of cautious optimism. A view shared candidate. Our wealth of experience, dexterity
widely amongst the individuals we surveyed, and market knowledge opens the door to a
this positivity can be attributed to a number of pool of the finest talent, including ‘hibernating
converging factors. Improved macroeconomic candidates’ who are not actively seeking a new
indicators, better-than-expected company role. Our expertise can meet your recruitment
results, stronger demand, and a recovering needs or complement your direct resourcing
stock market all contribute to the prevailing initiatives.
buoyant mood. Once-terrifying words like
‘Grexit’ and ‘fiscal cliff’ have been put to bed Time will tell if 2013 will be seen as a year of
– for now. Even the appointment of Mark convalescence but the confidence expressed
Carney, the first ever non-British governor at by our clients demonstrates a resilience shown
the Bank of England, appears to have lifted across the industry. We welcome the results
spirits. of this survey and are committed to delivering
unsurpassed recruitment solutions.
One of the outcomes of this optimism is an
anticipated increase in permanent recruitment With best wishes for a successful and
activity in 2013. Our evidence suggests that prosperous year ahead,
many companies are expecting to hire more
staff whether it is to meet demand or to
comply with new regulations. In the main our
clients foresee two main obstacles to securing
talent over the year: budget constraints
and headcount approval, and the limited
availability of suitable talent. While an uplift in Tara Ricks
business confidence may help with the former, Managing Director
it is our expertise that will assist with the latter. Randstad Financial & Professional
Key findings from our survey
• 71% believe 2013 will be a better year for their company than 2012
• Anticipated increase in permanent hiring
• The key challenge this year will be to source quality candidates
* Survey of 208 respondents from asset management, investment banking,
asset servicing and insurance in London and Scotland conducted in December 2012.
hiring intentions – our Q1 2013 update for the UK financial services sector 3

4. is there an improved outlook in 2013?
Key findings overview
• 70.9% believe that 2013 will be better than 2012
Yes
29.1%
No
70.9%
Our view
It is reassuring that almost 71% of were compelled to implement during the
respondents believe that 2013 will be a turmoil of recent years. We believe that an
better year for their business than 2012. increase in recruitment activity is linked with
Although this is a broad statement we feel stronger business performance; aggregated
this figure underlines a returning sentiment hiring intentions are a bellwether for a wider
of cautious optimism to the sector. External recovery. By examining the expectations of
factors such as improved macroeconomic hiring managers for the year ahead we identify
conditions and a recovering stock market are the factors behind this optimism and the
playing a role. Companies are also reaping challenges anticipated on the road ahead.
the rewards of internal efficiencies they
Client comments from the survey:
“Same as 2012 – tough – but with growth”
“The economy is looking up”
“I’m confident this year will be better”
4 hiring intentions – our Q1 2013 update for the UK financial services sector

5. increased headcount in 2012
Key findings overview
• 55% noted an increased headcount over 2012, less than 16% said their
headcount decreased
• Offshoring of some banking functions accounts for some of these increases
1.9%
Increased by more than 25%
5.8%
Increased by between 10% - 24% 10.7%
8.2%
Increased by 1% - 9%
No change 15.4%
Decreased by between 1% - 9%
Decreased by between 10% - 24% 29.1%
Decreased by more than 25% 28.9%
Our view
Increased headcount in 2012 presents an demand is bubbling away for many of our
interesting picture. In the wake of company clients. There is an expectation that many
restructuring and shifting strategies, internal contract roles will become permanent during
mobility has become more prevalent. So while 2013, subject to overall performance and
headcount of a particular division may have company-wide recruitment strategies.
increased this isn’t necessarily indicative of the
company as a whole. Expansion of offshore Encouragingly an optimistic foundation has
teams was also mentioned here by many been laid for the year ahead in the UK, even
respondents so while this may contribute to if an air of caution remains. Companies have
overall company profitability, it shouldn’t be been evolving and innovating to succeed in
mistaken for a recovery in the UK financial a competitive market. We will continue to
services sector. The picture isn’t entirely bleak: monitor headcount trends amongst our clients
real growth driven by a rise in customer as a litmus test of wider industry performance.
Client comments from the survey:
“Things will be busier due to increasing client demand”
“Businesses are innovating and are introducing new revenue streams which adds to the
confidence we are feeling”
hiring intentions – our Q1 2013 update for the UK financial services sector 5

6. expectations for the year ahead -
will headcounts continue to grow
in 2013?
Key findings overview
• 57.7% of respondents feel headcount in their business will grow in 2013
• Of those anticipating growth, almost a quarter expect it will be significant in scale
• 24.9% believe there will be no change; 17.4% expect a decrease
3.3%
13.7%
14.1%
Increase significantly
Increase slightly
No change
Decrease slightly 24.9%
44%
Decrease significantly
Our view
We believe that improved market conditions competitive market requires companies to be
encourage a confidence to recruit new ever more precise and agile when recruiting.
staff. The 57% of respondents expecting Until stronger confidence returns to the
an increase in headcount, compared to just sector, top talent is likely to remain dormant
17% foreseeing a decline, can be seen as a or seek career advancement through internal
barometer of the optimism filtering through promotion. This presents a challenge to hiring
the sector. When adding new headcount managers as rival firms vie for the limited
or replacing outgoing staff, the highly number of available, high-calibre candidates.
Client comments from the survey:
“We need fresh blood to take us where we want to go; this hasn’t been possible in the last few years”
“Mid-year requirements in regulatory reporting, risk and clearing may increase headcount”
6 hiring intentions – our Q1 2013 update for the UK financial services sector

7. permanent or contractor mix –
will there be a change in 2013?
Key findings overview
• 35.6% believe permanent recruitment will be higher in 2013
• 55.2% are unsure or see no change ahead
• 9.2% foresee an increase in use of contractors
Increase in ratio of permanent
35.6% recruitment compared to 2012
55.2% Increase in ratio of contractor
recruitment compared to 2012
No change
9.2%
Our view
While the majority expecting to maintain improving remains subject to debate but
the status quo alludes to a continuing air of a significant number of our respondents
caution, the ratio in favour of permanent feel that when talent is recruited, it will be
recruitment over contract placements suggests on a permanent basis. This longer term
an optimistic sentiment. In 2012, some commitment to headcount indicates that
headcounts increased with contract and client demand is expected to stabilise and even
temporary roles. A growing number, business grow over the year. We are encouraged that
performance-permitting, are expected to only 9% of respondents felt there will be an
become permanent positions during 2013. increase in contractor reliance, often required
Whether the macroeconomic landscape is for short-term demands and project work.
Client comments from the survey:
“The team’s strong growth was made up of a mix of contract and permanent roles. With market
uncertainty (in recent years) contract resource was relied on. With more confidence, these roles will
turn into permanent positions.”
hiring intentions – our Q1 2013 update for the UK financial services sector 7

8. challenges to recruiting
Key findings overview
• 38.9% struggled to find the ‘right’ candidate
• 41.2% of respondents found headcount approvals and budgetary constraints
to be the key challenge when recruiting
• 7.5% felt that lengthy recruitment processes hindered their hiring activity
• 4.8% faced changing business needs during the recruitment process
4.8% 3.8%
7.5%
Unreasonable expectations from candidates
Lengthy recruitment process
Headcount approvals and budget
Strong competition for candidates 38.9%
The ‘right’ candidate not available 41.2%
Changing business needs
Our view 3.8%
Two key themes dominated our respondents Professionals are still showing a reluctance
views on the challenges faced when to seek new opportunities, choosing instead
recruiting new staff: budgetary constraints to stay in their current positions or move
and headcount approval, and finding the internally. This ‘hibernation’ from the job
‘right’ candidate. market has been attributed to the enduring
difficulties in the economy. A widely held view
These factors are often out of a hiring of many professionals is that moving to a new
manager’s control but trying to align them is company no longer guarantees increased
crucial and increasingly difficult in the current earning potential, or other non-monetary
climate. The elusive ‘right’ candidate may be benefits. Should the optimism expressed in
found but by the time approval is granted, the our findings come to fruition, companies will
candidate may have already accepted an offer be able to offer more competitive packages
from a competitor. and professionals will become more receptive
to them.
Client comments from the survey:
“Training on the product is always provided, so the skill set is less important. It’s the attitude
and soft skills of people joining our team that we look for. You can’t teach team fit.”
8 hiring intentions – our Q1 2013 update for the UK financial services sector

9. will resignations be a factor
in the first half of 2013?
Key findings overview
• 70.3% felt resignations will not be a factor in the first six months of 2013
29.7%
Yes
70.3% No
Our view
Even in a bullish climate, professionals in the Natural attrition is unavoidable, but strategic
financial services industry tend to defer their changes or restructuring can greatly impact
search while their company approaches the the shape and size of teams. Market
end of bonus and incentive cycles. In a bearish intelligence suggests that merger and
climate internal mobility is a safer route for acquisition activity is likely to escalate in 2013.
career progression until more confidence Where this triggers a wholesale change of
returns. In the unique circumstances faced company culture, a degree of consequential
by the financial services sector, feedback staff turnover is inevitable.
received shows that fresh talent from outside
the business is essential to innovate and
implement new strategies.
Client comments from the survey:
“There will be natural attrition, but we need to replace these people with fresh blood to take our business
forward”
“There will be some internal mobility – there always is. Compensation will always make people move; they
think they’re missing out. The likelihood is they aren’t”
“When people leave, we need fresh thinking and fresh enthusiasm for the challenge ahead”
hiring intentions – our Q1 2013 update for the UK financial services sector 9

10. the impact of regulation on
financial services businesses in 2013
Key findings overview
• 19.8% believe that regulation will affect their business in 2013
• 36.4% believe it won’t have any impact at all
• 43.8% are maintaining a ‘wait and see’ approach
19.8%
Yes
43.8%
No
Unsure
36.4%
Our view
Almost 20% of respondents believe that higher rates of attrition. A sentiment expressed
ongoing regulatory changes will further impact by a significant number of respondents was
their business in 2013. Whether the changes a lack of visibility as to the eventual impact
will create more work or just a new way of of ongoing regulatory change in their
working will influence the hiring patterns business. Many felt they should have a better
of those firms directly affected. If workloads understanding at this stage than they actually
increase, current teams will either need to do and this is largely why over 43% are still in
absorb the impact or be expanded. If the wait and see mode.
workload is too much some fear it will lead to
Client comments from the survey:
“Regulation is increasing, but its impact will take time to settle”
“I’m not as directly affected due to my client base. But I am constantly monitoring the situation”
“Increased regulatory demands on the finance industry will increase workloads”
10 hiring intentions – our Q1 2013 update for the UK financial services sector

11. building the perfect team is a
critical factor for success in 2013
With 57% of our respondents indicating their If you want to find the best person ‘in the
headcount will increase to some extent in market’ and not just the best person ‘on the
2013, the results of our survey demonstrate a market’ then the only way to do this is through
shared optimism about an improving climate the extensive network of an experienced
in financial services, despite wider talk of a market specialist. For a hiring manager, there is
‘triple dip’. no substitute for a trusted recruiter. Someone
that knows and understands your business
However it seems there are still some and represents your brand in the marketplace,
significant barriers for hiring managers providing you access to their relationships with
attempting to build the perfect team. As the best suited candidates for your role. These
budget constraints and headcount approval are relationships that have been forged over
ease with improving confidence, the age old years and reveal a deeper understanding of
problem remains: finding the ‘right’ person a candidate, rather than simply matching an
who not only has the required skill set but fits online CV to your job specifications.
with the team and the company culture.
The financial services sector continues to
Given the seeming ease of direct hire evolve in 2013 and the best recruiters must
nowadays with the proliferation of in-house evolve with it. At Randstad Financial &
recruiters using tools such as LinkedIn, it is Professional we continue to build on our
interesting that 38.9% of our respondents thirty year heritage as Joslin Rowe and strive
still felt they couldn’t find the ‘right’ person. to provide the best service for our clients. Our
We believe that this clearly highlights the survey tells us that the approach of listening
importance of working with a trusted to our clients’ needs and building personal
external recruiter. relationships with the best candidates remains
the best way to build the perfect team.
We wish you all the best for a successful 2013. If you want to find out more about
working with Randstad Financial & Professional then don’t hesitate to contact us
London Scotland
Tom Forrest Margaret Dyer
T: +44 (0) 207 786 6466 T: +44 (0) 141 202 2812
E: tom.forrest@randstadfp.com E margaret.dyer@randstadfp.com
Michele Bloomfield
T: +44 (0) 207 786 6452
E: michele.bloomfield@randstadfp.com
hiring intentions – our Q1 2013 update for the UK financial services sector 11

12. Randstad Financial & Professional
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