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Has hiring shut down?

Is hiring really in the deep freeze, or are we just experiencing the usual 3Q chill in the run up to bonuses?

Let us know what you think – despite rumours that just about every bank we can think of has closed the door to new hires, some of you seem to think we’re exaggerating the extent of the problem.

The reality is that banks always rein in hiring in the third quarter in order to a) avoid diluting existing bonus pools and b) avoid buying out the full-year bonus of the person hired – particularly when there’s not much chance of a payback before year end.

Is any reticence about recruiting therefore down to the time of year, rather than sub-prime angst? And will hiring pick up again come the first quarter of 2008?

Comments (5)

  1. Recruitment will always be necessary and when I put that director specialist in front of 10 managers. I will still get 5 requests. Banks need people to make money, and banks need even better poeple to make even more money!

  2. HH’s will always make money from the market, if they know what they are doing. Instead of being reactive we positively assist with the reduction of headcount, with the replacement of more able and profitable people.

    so we hope the crdit crunh has two fold effect – one; it will weed out poor consultants in our field and secondly will shake the tree of all the overpaid, moaning, underperforming bankers. I am not alone in our industry when i say – bring on the correction !!!

    i have a valid point Reply
  3. Wouldn’t call it a freeze, more of a chill. Hiring at this point of the year would compress the bonus pool and in the current climate senior management are avoiding any more commitment. There has been a lot of hiring this year and there are many people sitting on big guarantees.

  4. We’re still busy, having an amazing year, well on target to double our turnover from last year’s figures.

    Suffering a bit from the credit crunch though, a lot of our clients are credit hedge funds and therefore recruitment’s being frozen. One person’s loss is another persons gain however, especially in the volatile HF space.

  5. I don’t think recruitment has shut down its more like cooling down which I think will last till the end of the winter season with most banks restructuring and possibly down sizing in reaction to the current credit crisis.

    The real effects of this current tamoil on the recruitment industry might be felt some time early next year as banks and insurance companies report their figures, these will indicate who are those likely to follow UBS in Slashing Jobs.

    Edwin Mangheni Reply

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