Back in January of this year when stocks were charging upwards and the sky seemed the limit, hiring expectations in the financial services industry remained, well, sky high.
But what about now? Has the employment outlook changed at all since the market’s March reversal?
Wall Street job hoppers - and seekers - need to know.
John Lane, co-founder and partner at financial recruiter Landing Point, for one, said that news cycles and periods of volatility “don't drive the hiring market as much as people think.” Right now, he said the hedge funds, private equity funds and other financial clients he deals with every day remain confident and bullish in their own internal growth forecasts. As a result, he has not changed his outlook either. In the first two months of the year, he says his placement efforts are up about 20 percent.
As to the positions that are most in demand, Lane said he is seeing large calls for project-based consultants.
“Asset managers have really gravitated towards this strategy where they don't have to add full-time headcount, and they can bring in a seasoned professional that is a subject matter expert who can lead a project or help solve a problem that they feel has a defined timeline,” Lane said.
“So it could be three months out to three years, but they come to us because they know we have a pool of these people who we vetted, who can be there on a day or two's notice so they can ramp up as needed. And they stay flexible and nimble in their headcount,” added Lane.
They also want that talent to be in the office, as opposed to working remotely.
“Asset managers know their businesses are built on trust and relationships, and that only gets built in face to face interactions. So they're coming to us looking for top talent. And they want talent who wants to be in the office,” Lane said.
Along similar lines, Ben Hodzic, head of Selby Jennings North America, said the hiring process for Wall Street firms has remained stable despite the recent market churn. While the volatility has sparked a surge of awareness about potential long and short-term implications, it has not negatively impacted hiring, according to Hodzic.
“Whether it’s multi-hire campaigns, or simply engagements, hiring on Wall Street is currently characterized by a sense of urgency. The primary focus for many firms is to fill headcount as quickly as possible,” Hodzic said.
Right now, Hodzic said the demand for top talent can be broken down into three core sectors: Technology, risk management, and traditional investment banking.
With the integration of AI on Wall Street, there's a pressing need for talent with machine learning and data science backgrounds, Hodzic said. To stay ahead of the curve – and the competition - financial institutions are investing in tech-savvy talent, focusing on building teams with these specific skills.
Furthermore, the demand for risk management talent is on a steep incline, driven by evolving regulatory landscapes. Wall Street is actively seeking market risk, operational risk, and audit and compliance professionals.
“One particular area we are seeing a lot of demand is in data governance,” Hodzic said. “As more Wall Street firms continue to invest in data, they are staffing up their support teams in order to remain compliant and within regulation to their auditors and governing bodies.”
Finally, with traditional capital markets M&A hiring hitting a two-year high, Hodzic said the demand for old school investment bankers remains healthy.
“Private Credit continues to be an area where we see a lot of demand as some of the largest players out there continue to invest in this market,” Hodzic said.
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