The financial crisis of 2008 ushered in an era of regulation, making household names of “too big to fail” and Dodd-Frank. The focus on compliance that followed impacted hiring in the asset management sector in predictable ways. Companies invested significantly in risk and compliance staffing and in building cultures of stability and transparency.
Although issues related to regulatory oversight, risk management and compliance will always be important considerations, the strength — and length — of the economic recovery has allowed the pendulum to swing back towards revenue generation. As a result, hiring today includes a focus on personnel who can add to the bottom line.
We spoke with Chike Ubu, Aston Carter practice lead, to learn more about the shifting priorities in asset management.
The Financial Crisis a Decade Later
When Dodd-Frank and the Volcker Rule passed in 2010, hiring in compliance and risk assessment roles ramped up exponentially.
“There were a considerable number of risk-related jobs coming out after Dodd-Frank,” says Ubu, “and a lot of different risk segments where they were hiring frantically in order keep up with government regulations.”
That “frantic” hiring has subsided due to multiple factors, including the fact that many companies now have significant compliance-related capacity. A 2016 Aston Carter white paper on hiring trends cited a company that went from 50 compliance positions to more than 1,000 in three years.
In addition, some regulations have been scaled back as a result of policy changes, which contributes to the present shift in hiring. Some of the personnel funding previously dedicated to the risk and compliance segments has been redeployed to the business side.
Ubu explains, “there’s more emphasis now on research and understanding investment and asset management trends — more hiring related to impacting income.”
As a result, successful hiring managers and the recruiters they work with have adjusted their approach to find candidates with the right skill sets and experience.
The Shift to Revenue-Impacting Roles
What is the profile of the revenue-impacting candidate?
The short answer: professionals with one to three years’ experience who are interested in a contract-to-hire opportunity.
“Companies may want these positions to be permanent at some point,” says Ubu, “so they're starting them off on the contract basis as a way of vetting their talent.”
As for necessary skills, Excel tops the list, but not the ability simply to input numbers in a spreadsheet. Fluency with macros, pivot tables, and VLOOKUPs are must-have skills in financial services jobs.
Ubu adds that programming, SQL-type experience is becoming a prerequisite for many positions: “What we've looked at in the past to be a very good marketable skill is likely to become an essential skill in the next few years. The good-to-have will become another must-have.”
And soft skills continue to be in demand, as hiring managers look for “plug and play” candidates who are team players and can balance professional ambition with the ability to accept feedback.
Strategies to Identify Best Fit Candidates
Given the highly competitive financial analyst market, companies need to have proven strategies in place to land top talent.
Ubu, who is based in New York City, uses the considerable Aston Carter network to keep tabs on recent hires in the area’s large financial services and investment banking companies, who receive rotational training that prepares them for more substantive analyst positions. Over time, he is able to connect candidates who have completed training with openings that provide them with opportunities for professional growth.
“Firms with rotational programs tend to be large, and because of that, people often want situations where they can make a name for themselves and have a faster trajectory towards management,” says Ubu. “That’s a major selling point we use to secure the best possible candidates for our clients.”
Professional advancement aside, Ubu believes that the most significant advantage he provides is rooted in the relationships he forms with candidates.
“We are able to build trust with the candidates we work with,” says Ubu. “We’re not just salespeople or even recruiters. We are really career consultants, and because of that, we build trust and loyalty in the sector.” As he describes, if there is a “secret sauce” to effective recruitment, it’s not about selling, it’s about matching a candidate’s professional goals with a prospective employer’s opportunity.
What the Future Holds
Looking ahead, Ubu brings up a question that’s on a lot of minds: Is there an inevitable market correction in our collective economic future? Clearly, any downturn will have an impact on the asset management market.
But that uncertainty may be an asset — no pun intended — when hiring today.
“I can advise a candidate who is considering a long-term opportunity that it may be better to have stability now then to chase a bigger paycheck that may never come,” says Ubu. “We just don't know what the market will look like in 12 to 18 months."
Whatever the future holds, having a partner who functions as a recruiter and career coach can provide a real competitive advantage.
If your business could benefit from a consultation about how best to find your most sought-after candidate skill set in the finance and accounting labor market, contact Aston Carter now.
US - EN
