Along with several (recently interviewed) top bankers, it’s easy to wonder how on earth we have ended up in this economic crisis. But does this uncertainty mean crunch time for the jobs market? 

and how can struggling companies and those in the market for new challenges survive in stormy times? Bonnie Yuill assesses the situation.

In all probability it’s not as bad as it seems. The finance industry, resilient and innovative as ever, is getting back to basics and swiftly taking stock of its position. Rebranding and redeployment will probably be the name of the game for some time to come as companies are increasingly finding it difficult to access trained and experienced staff. Recycling, another popular buzzword, makes good business sense in the current economic climate especially when it comes to recruitment. 

As the economy slows and insolvencies are on the rise, it makes sense to recycle proven workers by retraining them for recoveries, turnarounds and insolvency work. It’s no secret that we are in the midst of an insolvency epidemic, thus far largely confined to the retail, property and automotive sectors but, as with all epidemics, it is spreading rapidly. 

The goldrush is over 

Without a doubt, the changing need for certain types of skills means that the way business has been done recently will need to change, possibly forever. If it hasn’t already been swept away, cosy relationship-driven business development and the influx of sales-focused bankers is rapidly faltering in the cold light of dawn and an urgent need for other skills has become apparent. 

But there’s no need to panic. A steady hand, a steeling of nerves and some expert up-skilling will oil the wheels of the finance industry in its bid to rebuild once again. Now that the gold rush is over, professionals of whatever age are needed to roll up their sleeves and get stuck in as reinforcements in the risk, compliance, credit, collections, restructuring, turnarounds, recovery and insolvency job sectors are now needed more than ever. Of course, it may take a while for adjustments to be made. Even with the best will in the world, these vacancies cannot be filled by those currently being made redundant, as they are unlikely to have the right skills. A limited talent pipeline is therefore inevitable for some time to come, but the good news for clients and candidates alike is that these slots can be filled with the minimum fuss and delay. 

The banking and finance sector may be the hardest hit by the current global economic downturn, but with all of the aplomb expected of such venerable institutions, organisations such as large accountancy firms and banks are getting all hands on deck and redeploying where possible. 

In some of the larger mergers and acquisitions teams, for instance, the business has slowed considerably. In the past, that would have resulted in a round of redundancies. Now the firms are wisely using this time to develop their staff further and are giving them the opportunity to take secondments in other business areas or to work in more buoyant markets abroad. On the upside, they are developing their future business leaders in ways that would never have arisen without the current market conditions. 

Transferable skills 

The truth is that for many employees in the banking and finance industry, career stability is a thing of the past.  Most people in today’s workforce will have multiple careers across a number of organisations, and often several industries, throughout their working lives. As time goes on, it is likely that the financial organisations, accountants and recovery firms affected will also need to widen the net and reassess candidates’ transferable skills and marketable assets. (And, as has recently been demonstrated when certain bank bosses were grilled live on national TV, formal banking qualifications aren’t always necessary in order to secure a top job in banking…) 

By noting transferable skills such as project management, team building, and communications, while downplaying a specific industry focus, it’s always possible for candidates to be successful in other areas. Once transferable skills have been identified, running a critical eye over possible deficits in experience and/or knowledge is crucial and the right training will soon remedy the situation. 

Plenty of research into a prospective job is a good investment in order to avoid an unrealistic image of what working in a different sector involves. It is common for candidates to underestimate the value of their existing talents, so a week or so spent shadowing someone, if possible, is recommended. It’s all about matching current skill sets with current market needs. Marketing expertise, commercial acumen and sales experience are a good basis for many disciplines. Communication skills, team work, IT skills and evidence of problem solving also provide an excellent starting point for most careers. 

Article written by BONNIE YUILL (commissioned by Commercial Finance People)

For any information on recruitment issues contact Prue Heron on 0845 260 2525