5 major recruitment struggles facing compliance managers
Corporate governance is arguably more important today than ever before. In a post-recession world, companies are more eager than ever to demonstrate that they are operating in a responsible manner, and compliance professionals have a major role to play in this. Indeed, Barclay Simpson research indicates that budgets for compliance recruitment are more likely to have risen than in any other area of corporate governance.
However, simply throwing money at the matter is no guarantee of attracting the best compliance workers. Managers are finding it increasingly difficult to recruit suitably talented people to their teams. Here, we take a look at some of the biggest problems they are facing.
Demand for compliance staff outstripping supply
Levels of demand for skilled compliance professionals are higher now than at any point since the financial crash. This is no surprise, given that many banks have almost felt an obligation to boost their compliance teams in a bid to demonstrate their conviction to prevent those same failings recurring.
Less than one in 30 respondents to our study said they found compliance candidates to be in plentiful supply, while more than two in three admitted candidates were difficult to find.
Intense competition for top compliance talent
The shortage of compliance candidates has inevitably led to significant competition among firms looking to recruit. Four-fifths of compliance managers believe it is now difficult to recruit – a trend that is no doubt influenced by the fact that companies are often trying to attract the same staff. As such, counter-offers have become increasingly prevalent as employers fight to keep hold of their best staff.
High salary expectations
Clearly, many of these challenges are related. The shortage of supply has increased competition, which in turn has resulted in more counter-offers and ultimately driven salary expectations higher.
One in four managers believe salary expectations are excessive and beyond their budget, up from one in six when the study was last carried out. Despite this, it should be pointed out that three-quarters feel salaries are still within their capabilities.
The widespread regulatory pressure facing the financial services industry means many companies are looking to bolster their compliance operations. It is clear that both the Financial Conduct Authority and the Prudential Regulation Authority are looking to see clear signs of a change in corporate attitudes. The UK’s banks have already racked up billions of pounds in fines for regulatory failures – such as the forex rate-rigging scandal – and increasing the size and quality of compliance teams is seen as an effective way to minimise the chances of such issues occurring again.
Reputational damage an issue in some sectors
Some of the problems affecting compliance recruitment are related to the reputational damage suffered by certain sectors following the global economic downturn. In some instances, it is all but impossible for companies to attract the compliance staff they most want to recruit. For instance, banks with poor reputations are finding it very difficult to make new hires, almost regardless of the salaries they are prepared to offer.