Temp roles on the up, but pay remains stubbornly low

Temporary staff have been one of the beneficiaries of banks' need to bolster their teams quickly in the last few months. However, after a torrid year during which daily rates shrunk by about 20%, pay has yet to rebound.

Figures released a few weeks ago by Hays suggest that the number of people employed in the City on a temporary basis is 30% up year on year. However, Paul Venables, finance director at the firm, suggests that six-nine months ago, temp job volumes were around 80% lower than the highs of 2007.

"It's a rebound off a low level of activity, but demonstrates that confidence is returning," he says. "We've seen a marked improvement within risk management, regulatory reporting, change management and middle office banking roles."

Oliver Harris, managing director, contract at Robert Walters, believes that investment banks have regained their appetite for taking on temps: "From the lows of Q1 2009 to the highs of Q4, we've seen a 40% rise in contract positions."

But towards the tail end of 2008, daily rates within the financial sector temp market were cut from between 10-20%. Despite the increase in demand, these have yet to recover.

"It's reaching tipping point," says Tom Forrest, associate director of Joslin Rowe Temporaries. "Clients are more flexible about increasing rates for the right candidates, while good people are being counter-offered by their existing employer."

He adds that the upswing in temporary roles within investment banking is largely restricted to risk, regulatory and finite roles such as change management. Investment banking operations roles are still few and far between.

"Any increase in demand and subsequent shortage in a particular skill set will inevitably increase rates," adds Victoria Walmsley, operational director, Morgan McKinley.

Contractor pay within financial services:

Source: Robert Walters