It's ok: banks are still hiring, for the moment

27 May 2010

2 minute read

It's ok: banks are still hiring, for the moment

Markets are nervous, LIBOR is rising, and comparisons persist with the Lehman crisis.

Do banks really want to recruit in this environment?

Apparently, yes.

Seasonal slowdowns not withstanding, a straw poll of five heads of recruitment at major investment banks in London suggests most banks have either made no alterations whatsoever to this year's hiring plans, or have failed to communicate any changes to their most senior recruiters. Four out of five of those we asked said everything is continuing as normal. Only one reported a, "re-evaluation" in light of recent events.

Reassuring comments emanating from the 'everything's fine' contingent, included such platitudes as, "It's business as usual," and, "Our hiring plans haven't changed at all since the beginning of the year."

There may be good reason for this. The 2010 hiring season started late this year in the UK: banks were constrained from recruiting by the bonus tax until April 6th. As a result, hiring has been compressed into the post-April period, and there's now a need to fill the gaps left by those who've moved in the past eight weeks.

Set against this, however, the outlook is increasingly uncertain. Prior to today's rebound, the sovereign debt crisis was thought to be taking a toll on sales and trading revenues. Earlier this week, Morgan Stanley analysts said they expected underlying investment banking revenues at Credit Suisse to be down 23% year on year.

"All banks are re-evaluating their hiring plans," says the head of recruitment at one investment bank.

Maybe they're just not admitting it.

AUTHORSarah Butcher

Global Editor

Ot
Otterfabulous
27 May 2010
Asking recruiters if hiring is stopping is pointless. They are the last to know about it. By the end of June almost every major bank in the City will have a hiring freeze on - starting tomorrow.
If you are a recruiter and didn't make your annual P&L in the first 4-5 months then you are going to struggle.....
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Al
AliDesai
27 May 2010
i suppose given that we are managing everything on a day to day basis then I suspect recruitment will jump tomorrow given the pop in equity markets today.
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gr
grizzly
27 May 2010
Errr I work for one such 'head of recruitment' at a leading US bank. This is a smoke-screen. Of course rec has slowed down. We always have recs for temps and interns and to some extent internal transfers etc but real serious recruitment has not picked up at all. They will never admit it because their job becomes absolute the minute they do. I know this first hand. They are all trying to justify their existence within HR and to the business. But frankly they are usually glorified admin with a few temps working for them. Not reliable for a pulse of the market at all.
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Go
Goldy Locks
27 May 2010
There are signs that we are heading into a new phase of this financial crisis. So, they are still hirng but layoffs, regulations, tax increases, global agreements, public anger on bonsuses, capital requirements are looming.
They probably will have to focus on more regulation and compliance teams than front office.
Hedge funds, PE, and VC are looking better options increasingly!
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