It was a challenging year for risk and compliance professionals. There was a noticeable knee jerk reaction to the Royal Commission which increased demand, leaving a gap on the supply side. We saw the creation of substantial resourcing budgets to respond to the impact. This has had a knock-on effect across the broader risk and compliance market.
The majority of Risk and Compliance professionals had to work harder even as the resource plans were being put in place. There were changes at the leadership levels and subsequent restructures. Some of our senior clients are questioning whether the spend will ultimately be effective.
On a positive note, the consultants and contractors are enjoying the volume of work and they are able to charge a premium.
Through the year we saw an overall uplift in remuneration, however, it doesn’t seem to be keeping up with candidates’ expectations. Top tier candidates are commanding larger premiums and there are premiums at the Senior Consultant, Manager and Senior Manager levels.
As the year progressed, candidates became aware of the booming market and have been seeking to leverage this. We have had a significant number of career planning conversations with candidates and our advice has been to NOT chase the dollars but instead focus on “Positioning”.
The question on everyone’s mind is – when will this bubble of activity pop?
2019 – Predictions & Challenges
We anticipate a continued shake up of leadership and resources as the flight to quality gains momentum. There will be high levels of demand for the strategic thinker, influencer, the change agent and those that will “get things done”.
There will be two factors driving supply;
- The fallout from the change and restructures
- Candidates sensing the opportunity to leverage the demand
As the challenges of the risk and compliance role increases, the quality benchmark will also shift. Our prediction is that the market will not be able to match the demand for quality.
The “EXPECTATION GAP” will continue as the imbalance between candidates’ remuneration expectations, the role requirements and the budgeted remuneration continues.
“If you see a high performer, make sure you hold on to them”.
When the activity bubble bursts, the lower performers and those not well positioned will be left exposed.
The recruitment process will take longer as employers try and ensure they have the best candidate in front of them. Unfortunately, through this process, the better candidates may get engaged elsewhere.
The Recruiter’s role will become increasingly challenging in identifying, differentiating and delivering the best candidates.
In many ways, 2019 will be similar to 2018. It will remain challenging to attract the top tier. On the flip side, candidates will be looking to take advantage of the opportunities out there. The expectation gap will continue.