GAAPweb Quarterly Survey ñ July-September 2004

Despite the traditional perception of Quarter 3 being slow in terms of overall recruitment activity, almost 70% of clients who responded to GAAPwebís quarterly ìFinancial Recruitment Market Surveyî reported that they received more requirements and made more overall placements than in the second quarter of 2004. Despite the usual increase in people taking time off through the summer months, recruiters referred to the job market as ìsurprisingly buoyantî and noted the ìincreased activityî and ìpositive movementî that took place compared with the third quarter of 2003.

One reason for this appears to be the approaching deadline for companies to attain compliance with IAS/IFRS or Sarbanes-Oxley regulations. Over 9% of jobs published on GAAPweb at present time require knowledge/experience of these international reporting standards. Furthermore, the fact that the majority of these roles are project-based contracts partly explains the vibrancy of the temporary/contract market reported by our clients throughout 2004ís 3rd quarter.

The sustained activity in the UK job market can also be credited to the number of compliance roles available. The FSA is now responsible for regulating a greater range of businesses from fund managers and banks to financial advisors and spread betting bookmakers. Compliance roles currently make up 5% of the total number of vacancies published on the GAAPweb site and are generally thought to constitute 5% of all jobs within the financial services sector. With mortgage firms and insurance companies about to fall under the remit of the FSA, recruitment in the compliance sector looks set to increase for some time to come.

The unexpected vibrancy of the job market throughout Q3 does not extend across all financial and accountancy sectors. Following on from anecdotal reports in quarters 1 and 2, 49% of our surveyed clients attested that they had experienced a shortage of both internal and external audit personnel. One client stated that they had ìnot received a suitable CV for a couple of monthsî. Another trend shown was the presence in the market of many senior financial personnel. 66% of clients surveyed acknowledged a surplus of Financial Controllers and Finance Directors on their books. Worryingly for these candidates, many of our clients conceded they had ìvery little available at senior levelî throughout Q3.

The number of high level candidates available is also reflective of the traditional caution shown by companies at this time of year. With budgets for 2005 not confirmed until late September, many companies are unable to commit to increasing their permanent headcount as early as the third quarter. Many of our clients report that ìclient requirements are very specific with not much flexibilityî. This, coupled with assertion that there is an overall lack of quality in part-qualified and newly qualified candidates, illustrate companiesí willingness to wait for the ìperfect candidateî.

GAAPweb General Manager Rob Schofield summarises his experience of Q3 2004:

ìGAAPwebís record summer has been reflected in the relative buoyancy of the financial recruitment sector. Despite healthy increases in opportunities across the board, candidate shortages in key areas mean that recruiters will remain challenged for some time to come.î