Trouble seeing something? view it online
 
Issue #13 03/2017
Placed!
latest news in the world of executive search from InterExec
 
 
Welcome to Placed!

The latest issue of our newsletter which this month takes a special look at the news, issues and trends affecting international recruitment in the finance sector at senior level. We would welcome your feedback – please send any comments to jane@emggb.com
Circulation 14,192
//
 

International Candidates Grow

 

Client Director Jon Bryce comments on InterExec’s unexpected growth in international enquires:

“Since the UK voted to leave the EU, we expected our overall number of international enquiries to fall, but the opposite is in fact true.

“I joined InterExec six years ago and historically we have always had more candidates based in the UK than internationally. It is only now that we have seen this shift the other way. Less than half of the candidates we currently represent are UK based and our portfolio of candidates is now spread across six of the seven continents - the vast majority have international experience and are extremely flexible on location.

“As a result of working with an increasing number of international candidates, we are now building relationships with more international recruiters and in turn this gives us access to more exec level vacancies outside of the UK.

“The international market as a whole is strong, but as with the UK market, some sectors are performing better than others. This will always be the case and as we know, markets are cyclical. The Oil & Gas market for example has been sluggish for months now due to the crash in the oil price.

“The general feeling in the market however, is one of optimism for 2017, but it may still take some time for this optimism to translate into an uptake in mandates.”

 
//
 

Investment Banking Gloom

Business Insider magazine recently reports that despite the strong rebound in Wall Street trading revenues at the end of 2016, investment banks still had a lousy year.

It says that data from Coalition saw 2016 revenues at the 12 largest investment banks in the world drop by 3% last year, making for a fourth consecutive decrease in revenues.

One bright spot was fixed income, currencies and commodities revenues, which were up 9%, driven by a big rebound in rates and credit revenues.

Still, Business Insider says, that couldn’t offset a weak performance in equities and investment banking. Equities revenues fell 13%, with equity derivatives especially weak. Investment banking revenues also declined, with equity capital markets revenues dropping more than a third.

There were job cuts too. Total headcount fell 4%, equivalent to more than 2,000 job cuts.

uk.businessinsider.com
//
 

World Economic Growth Underperforms

The ILO’s report ‘World Employment and Social Outlook Trends 2017’ finds that economic growth continues to disappoint - both in terms of its level and its ability to make important inroads to making growth more inclusive.

Economic growth is not leading to enough quality job creation and the ILO expects this to worsen this year as the deep recessions in major emerging economies in 2016, will wreak havoc on labour markets in 2017.

As a result, global unemployment is expected to rise by 3.4 million in 2017 to top 201 million, with an additional rise of 2.7 million foreseen for 2018. Most of this increase will take place in the emerging economies.

By contrast, unemployment should fall slightly in 2017 among developed countries, bringing their rate down to 6.2% (from 6.3%). But the pace of improvement is slowing and in both Europe and North America, long-term unemployment remains stubbornly high – and in Europe, continues to climb despite the receding unemployment rates.

But the ILO warns that unemployment is just the tip of the iceberg. The quality of jobs being created remains a pressing issue worldwide and the number of people in vulnerable forms of employment is expected to reach 1.4 billion in 2017. In addition, more than 780 million will be working but will earn less than 3 dollars and 10 cents per day. Policies that address the root cause of disconnects between growth and employment and between growth and equity will help offset the rise in unemployment.

www.ilo.org
//
 

Technology Takes Off

 

Technology looks set to have a big impact on the future of workforce planning with HR leaders around the world expecting automation and artificial intelligence (AI) to impact their organisations in the next five years.

The sixth annual Harvey Nash ‘Human Resources Survey,’ representing the views of more than 1,000 HR leaders from over 40 countries found that 15% said their plans were being affected right now, and a further 40% believe this will happen within the next two to five years.

Technology as a whole is revolutionising how today’s HR departments are operating, with 60% of respondents saying the importance of technology-enabled HR has increased within the past year. Over half of respondents understood that innovation for their organisation was ‘very important’ and the vast majority (86%) believe that HR has its own role in promoting and supporting innovation.

The current economic uncertainty is reflected in the decreased focus on training and recruitment as priorities. This year training and education was considered a priority by 4% fewer HR leaders than last year. With recruitment, the drop was even greater at 8%. Succession was also less of a priority, which may be explained by those in senior positions not being quite so keen to move on.

www.harveynash.com
//
 

Boom in Billionaires

Data prepared for Knight Franks ‘2017 Global Wealth Report’ by New World Wealth highlights that the number of individuals with US$30 million or more in net assets, defined as UHNWIs (Ultra High Net Worth Individuals), has risen by 6,340, boosting the total ultra-wealthy population to 193,490. Some 60 people saw their wealth move past the US$1 billion mark, taking the total number of billionaires to 2,024, an increase of 45% in the past decade.

The dramatic growth of UHNWIs in Asia is set to be reinforced by stellar growth rates in several countries, including Vietnam, which is expected to see its ultra-wealthy population rise by 170% to 540 in the next decade – the highest growth rate in the world. In Europe, the number of UHNWIs is predicted to climb by an average of 12%, compared with a forecast 91% growth in Asia over the same period. Overall, the number of ultrawealthy people worldwide is expected to grow by 43%.

In China, despite indications that economic growth is slowing, the sheer scale of the economy, coupled with strong growth in the local high-tech, media, entertainment and healthcare sectors, will deliver 140% growth in ultrawealthy populations, New World Wealth forecasts.

North America may not be topping the charts with its predicted 31% rate of growth over the next 10 years, but it will still be the key hub for UHNWIs in 2026, with a population of 95,860. Canada is expected to see a 50% increase in its ultra-wealthy population, reflecting its growing status as a “safe haven” from political upheaval.

Australasia is expected to see a 70% rise in UHNWIs between now and 2026, thanks not only to its healthy economy but also the attractive lifestyle it offers.

In Europe, the UK will remain the front-runner in terms of UHNWI numbers in 2026, with a predicted population of 12,310, up 30% from today. By contrast, New World Wealth forecasts little growth in the ultra-wealthy populations of Germany, France, Italy and Spain.

The number of ultra-wealthy people in Russia and the CIS is forecast to rise by 60% over the next decade, with Azerbaijan and Kazakhstan matching the growth rate expected in the Russian Federation. This will take the total number of UHNWIs in the region to 5,170.

content.knightfrank.com
//
 

Challenges for Private Equity CFOs

Private equity firms have had to dedicate significant resources to non-investment-related tasks such as regulatory reporting and increased investor reporting. As CFOs answered these challenges, they put the raw materials in place to allow them to deal with tomorrow’s challenges.

EY Global’s ‘2017 Global Private Equity Survey’ reveals that CFOs believe the way ahead means making their teams more professional by retaining and developing key talent and adding leverage technology to create better investment opportunities and automate many of the time consuming manual processes.

In many ways, says EY Global, success in the future will depend as much on flawless operational efficiency as great ideas and innovative thinking. The challenge for CFOs, is in using their current resources to build tomorrow’s private equity firm operating model.

  • Many CFOs still rely on old-fashioned spreadsheets, with data and digital investments to date being largely tactical in nature. Although firms have started to invest in new programmes, CFOs are sceptical of a one-size-fits-all solution.
  • 90% of CFOs expect new hires to stay for less than five years which makes developing talent difficult and the logic behind it questionable.
  • Outsourcing administrative and tactical tasks was identified by CFOs as significantly improving the efficiency of their operating model. EY Global says concerns about the delivery of consistently high quality service means CFOs need to select and manage these external colleagues even more carefully.

www.ey.com
//
 

Dublin Benefits post-Brexit

 

Instant Offices reports that Dublin has become increasingly attractive for businesses looking at new locations for their European headquarters following the UK’s decision to leave the EU, with over 12 million sq. ft. of office space set to hit the Irish capital’s market over the next five years.

It says that flexible workspace centres across Dublin boast occupancy levels of around 90%. They charge top-end rates of up to €900 per workstation, which is a rate comparable to most areas in central London. Companies looking for space include those in the law, technology and finance sectors.

Instant Offices say the shift is mainly due to Ireland having the lowest corporation tax rate of major European countries. Other EU hubs to benefit are Paris and Frankfurt – with some large US firms looking to establish themselves in Europe also flocking to these EU cities as opposed to London.

www.instantoffices.com
//
 

Insights in brief…

  • Levels of job satisfaction vary significantly across Europe, with Dutch, Polish and Swiss employees being the most satisfied, according to research by ADP. The new study of nearly 10,000 European working adults explores how employees across Europe feel about the future of work www.adp.co.uk
  • A new study by Imperial College London and the WHO in 35 industrialised countries predicts that average life expectancy will increase in many countries by 2030, with South Korea set to boost life expectancy the most - a girl born there in 2030 will live to 90. Strikingly, the study predicts that life expectancy in poorer countries like Mexico and Croatia will soon overtake that of America, the only country in the OECD without universal health care. www3.imperial.ac.uk
  • With the value of the world’s income closing in on a total of $70 trillion a year, Ecard Shack has created The Global Payscale to identify the countries which pay the most. They say the top ten are: 1 Luxembourg; 2 USA; 3 Switzerland; 4 Norway; 5 The Netherlands; 6 Australia; 7 Denmark; 8 Canada; 9 Belgium; 10 Austria www.ecardshack.com
//
 
 
© InterExec 2017, All rights reserved