Over the last 12 months, the pressures on risk and compliance professionals have been intensifying. The Royal Commission has thrown fuel on the fire. There is now an increased awareness with boards and senior management which has significantly impacted recruitment activity. From a candidate perspective, this has certainly increased the number of opportunities for high performers and threats for those not hitting the mark.
In the context of the last 10 years, this is the most active we have seen the market.
Supply and demand is increasingly out of balance and significantly favours the candidate. We are seeing more activity at the $150K to $180K levels in comparison to the previous years at $120K to $150K. We are noticing new roles being created along with an upgrading of talent in the smaller to medium sized organisations and in the non-financial sectors. Additionally, there are more Chief Risk Officer roles being created. On the candidate side, they are more active, however there is a degree of caution in terms of who they align with. Our advice to candidates has been to NOT chase the $$$ but instead, “look to re-position”.
The opportunity to re-position
PUSH FACTORS – why candidates consider re-positioning
PULL FACTORS – what is attracting candidates
Fundamentally, candidates are more aware of their return on effort (RoE).
Change is genuinely being driven from the top
Accountability is at the forefront!
This is driving “clear outcomes” and therefore an emphasis on candidates who deliver. Senior leadership teams and boards have raised the bar and there is a readiness to act. This is evident in their greater involvement in the candidate selection process.
- the “professional contractor” and,
- “in-betweeners” (candidates in-between jobs)
There is an increasing supply of professional contractors, however this is not meeting the high levels of demand. These candidates are typically of a higher quality as they consider contracting a career option. They value the flexibility, variety as well as the rate premium.
The supply of candidates in-between jobs has reduced as candidates are spending less time on the bench.
There are differing views on the 2-year outlook for the risk and compliance professions.
One view is that the current increased recruitment activity will lead to a downsizing in 2 years. The other view is that there has been an initial knee jerk reaction to the Royal Commission and there will be a significant second wave of change in the next 18 months to 3 years.
Some other predictions:
- The cost of risk and compliance will continue to rise; for both, organisations as well as from a candidate remuneration perspective
- There will be continued growth in the smaller financial services sectors and outside of financial services
- Influencing skills and commercial acumen are the key attributes for success
- There will be four categories of risk and compliance professionals;
- The BIG company person
- The Small to Midsize operator
- The Contractor / Consultant
- The All-Rounder