eFinancialCareers

Banks are deliberating for longer than they used to about whether to hire in new accountants.

Last month’s Employment Index from financial services recruiter Joslin Rowe showed City salaries are up year-on-year by 10.8%, while the time taken to fill permanent jobs has gone down – from 87 days to 72.

The survey covers operations, corporate banking, insurance and compliance staff, amongst others. Yet drill down to accountants, and both statistics are more modest.

Simon Humphreys, Joslin Rowe’s accountancy recruitment manager, says salaries for accountants in banks rose 10% between 2006 and 2007, but have increased more slowly recently: “The figure of around 10% more resembles the difference between £50k in 2006 and £55k in 2007. But newly qualifieds aren’t typically earning £60k right now.”

Slowing salary growth may be down to the fact that banks are finally putting the brakes on accounting recruitment. P&L considerations may also play a role – recruiters say canny hiring managers prefer placement fees and higher starting salaries not to show up until notice periods are completed – after the first quarter.

“We had a massive influx of new roles in January, less in top-tier banks than in investment management and hedge funds,” reports Humphreys. “Yet the time between sending CVs and receiving feedback has been longer. It may pick up after the post-bonus merry-go-round.”

But holding off could be a false economy, says Laura Kirk of Marks Sattin: “There seems to be a feeling that they can afford to wait until the second quarter before getting recruitment back up to speed,” she explains. “The problem is that by then, more active players will have gained a real advantage and snapped up the best people.”