Increased investment into HR reflects expected growth across all areas, driven in part by the legislative changes required to comply with the Senior Managers Regime (SMR), which comes into effect in March 2017.
In order to meet the principles of the SMR, many companies have made a push for more temporary staff to assist with the change. We’ve seen fewer generalist HR roles than we have come to expect over the last few years and more specialist positions, such as dedicated recruiters or human resources management information roles. Despite the renewed push in recruitment roles, we’ve seen fewer entry level HR roles being created within investment management and hedge fund companies. In these areas, HR professionals are expected to incorporate administration into their role.
We have seen a higher volume of fixed-term contracts being offered than temporary positions, most frequently spanning 6-12 months. Uniquely within financial markets, there is a 50/50 split between permanent and temporary positions available within HR.
Pay for temporary staff is also beginning to stabilise after a reactionary increase last year due to an acute shortage of candidates. For permanent staff, salaries have remained steady since last year, with no dramatic increase.
The unpredictable finance market still presents challenges. Top tier banks and financial institutions will frequently have recruitment freezes followed by heavy recruitment drives. Smaller businesses too are often hesitant to make meaningful investment into building a permanent HR headcount. Typically, they rely on hybrid roles or temporary staff to manage without admin support.
Throughout 2016, HR will need to adapt to regulatory changes, and continue to drive a high-performance culture and to accomplish more with fewer resources.