Scottish staff shortages not a problem

Scotland's financial services growth is unlikely to be derailed by a skills shortage, despite finance firms being concerned about a dearth of key workers.

In its latest snapshot of the Scottish financial services industry, covering the last quarter of 2006, SFE said most firms expect their business prospects to improve this year on the back of a strong finish to last year.

But although the report, compiled with Capgemini, also revealed that 41% of companies plan to take on additional staff this year - primarily to serve fast-expanding asset servicing and investment management operations - almost 60% of firms say they are concerned about the availability of skilled back-office staff in this sector.

Commenting on the issue, SFE chief executive Amanda Harvie said: "This is a reflection of an industry that is continuing to grow in Scotland, but it is a concern."

However, Edinburgh executive recruitment firm Cairns Bond has played down talk of the shortage damaging growth. Cairns Bond executive director David Bond says: "There has been a consistent pressure on salaries in these areas and shortages will only continue that. But I would be surprised if growth was held back. Looking at it in the broader business context there are always ways to deal with constraints, whether this is re-scoping requirements or reshaping a team. There is still lots of opportunity within Scotland."

Bond adds that reshaping teams would lead to improved opportunities for junior workers to improve their salaries and prospects.

Capgemini vice president for financial services, Rosemary Stark, says: "Increased competition and ongoing concerns about levels of customer demand mean that financial services companies will need to keep the focus on cost efficiency, particularly for high-volume, low-margin retail business."