n demanding jobs in the city lead to pay rises of 30%, while financial firms wage a war for talent that helped headhunter Robert Walters achieve results today.
While traditional jobs in banking and commerce are under pressure from a lack of new IPOs, demand in technology and compliance is huge, leading to a salary boom.
The power base of the city has been shifting east for a few years now, causing areas like Aldgate, Old Street and Shoreditch to boom thanks to the influx of new tech jobs†
Named after its founder, Robert Walters just had its best quarter ever from that shift.
The recruiter saw his fees rise by 25% to £112 million. Since those fees are often a percentage of first-year salary, inflation is a boon to the company.
CEO Robert Walters said:The job market has remained strong and I am pleased that the Group delivered a record performance in the second quarter†
The company is rapidly hiring itself, with headcount rising 7% to more than 4,000. He said the city’s “hottest areas” are increasing wages for new hires and those who want to retain them by 25-30%.
The numbers were cheered in the Square Mile today, with shares rising 21p to 530p as the outlook is better than expected for the company. Earnings will exceed analyst forecasts.
The statement read: “The level of recruiting activity continued to increase in both London and the regions. Permanent recruiting activities remain most active as long-term hiring organizations. Strong recovery in financial services recruitment.”
Robert Walters added there is pent-up demand for talent after lockdown, especially given the so-called “big layoff” that has caused many to re-evaluate life in the wake of Covid†
He gave an example of one of his own employees, who had a salary of £50,000, but left for a new job – £110,000.
Law firms recently reported that pay for junior lawyers has increased by a further 10% – to £160,000.
Some fear the high wages will spark a wage-price spiral that will ultimately only hurt workers – calls for restraint on wage demands have come from many quarters, including the governor of the Bank of England.
Robert Walters points out that the problem is not unique to the UK. It has seen business grow in the Middle East, Canada and Chile as companies turn to it for help finding candidates.
All markets saw fees rise by at least 20%. Robert Walters has just opened an office in Milan, its first move to Italy.