NAVIGATION

Risk & Compliance – Market Commentary – Demand & Supply

By admin on July 26, 2019 in Uncategorised

Market Commentary

It has been a busy year for risk and compliance professionals. There were a significant number of changes at the CEO and CRO level which has accelerated change and recruitment activity in the risk and compliance professions. The Royal Commission was the obvious catalyst and this raised consciousness at board level in all sectors.
 
We have noticed a genuine appreciation for candidates that can “demonstrate” delivery. Candidates at all levels that can influence and drive change, can expect a premium. For these candidates, it is a sellers’ market!
 
There has been a conscious push for women in risk and compliance positions and in leadership roles. Organisations are more aware of gender and cultural diversity when recruiting.
 
From a remuneration perspective, there has been a slight upward movement at the senior ends although the biggest jump is between the $130K and $180K band. It is most difficult to recruit at the $90K to $120K levels as candidates have plenty of choice and you can end up paying more for less.

What is driving demand?

  • The volume of work post Royal Commission has been a key driver for risk and compliance resources.
  • Upskilling of teams is a consistent theme.
  • Risk and compliance functions are looking to restructure or reinvent which feeds into recruitment activity.
  • Structural change i.e. divestments, acquisitions, etc.
  • Small to mid-sized organisations are building their functions from a low base.
  • There is growth outside of the financial services sector.
 

How is supply meeting demand?

  • As the expectations of the role have increased, the candidate market is struggling to adapt and meet these expectations. The better candidates are being recognized and locked in.
  • Everyone is looking for top 20% of the market.
  • There is a greater emphasis on the soft skills and supply is lagging behind.
  • At the $90K to $130K levels, supply is scarce as these candidates have plenty of choice and they are attracting premiums.
  • There have been some early signs of lateral movement within the business.
  • As the profession matures, there is a greater appreciation for candidates with business knowledge.
Some good news is that candidates are lifting their heads up as they sense the opportunity to leverage.
 

How to navigate a candidate short market?

In short, please feel free to give us a call on 02 9223 8200.

Some other points are:

    • When recruiting, it is important to sell the story i.e. “WHY” join us?
    • The ability to move quickly is essential as good candidates will have multiple opportunities. We have had examples where candidates have had one interview and have been offered the role within a week. 
    • The reason the process is slow is because hiring managers are unaware of the candidate market and first look to establish a benchmark, prior to selecting their preferred candidate.
    • Open up your brief, compromise on technical skills, not on attitude or soft skills.
 
 
When recruiting … pick a recruiter and go exclusive for a period to ensure that they spend the time talking to the passive candidates.