Higher salaries in Edinburgh mean Glasgow is losing out on investment ops staff

Most investment operations firms are now recruiting again in Scotland, and Glasgow in particular has benefitted from the government's Regional Selective Assistance programme attracting jobs in this sector.

But while investment operations firms in Scotland compete against one another to secure the best talent, it also seems like there's something of a battle going on between Edinburgh and Glasgow as the best place to work.

One financial services recruiter, who specialises in hiring for investment ops, suggests that increasing numbers of candidates are commuting from Glasgow to Edinburgh, because of the bigger pay packets on offer.

"There's anything between a 10-20% mark-up taking a role in Edinburgh, which is a significant incentive, particularly at the junior end," they say. "Once people take a role there, it's very difficult to persuade them back to Glasgow."

This is something of an about turn. When Glasgow was attempting to establish itself as a centre for investment operations and attract candidates in 2007, roles in the city paid more than those in the capital, suggest recruiters.

"Higher salaries are on offer in Edinburgh, but this is largely down to the increased cost of living," says Mike Stirton, associate director, financial services at Change Recruitment. "It's much like the London differential in England. Unfortunately, it is making it more challenging for the Glasgow market to attract people."

There has, of course, been a lot of positive sentiment around investment operations job creation in Glasgow. Most recently, Barclays' major recruitment spree, but the likes of Morgan Stanley and BNP Paribas are also hiring.

In Edinburgh, meanwhile, BlackRock has been expanding its investment operations functions in recent months, according to recruitment sources, and State Street and Citigroup are both currently hiring.