An “unprecedented” shortage of skilled labour will be the defining issue of the coming year, according to a new report on Scotland’s financial services sector.
The struggle to meet staff expectations is symptomatic of a jobs market whereby employees still hold the balance of power, despite the country’s economic woes, states the eighth annual Industry Trends and Salary Guide from Edinburgh-based recruitment firm Core-Asset Consulting.
The industry analysis also argues that decreased reliance on face-to-face work means that firms in Scotland must compete with London and other financial hubs for available talent.
Those offering roles north of the border have been left struggling to fill vacancies, which have risen 23% over 2022 compared to the previous year, while the number of applicants is down by 19%.
The time taken to fill a vacancy has also risen, with many firms forced to review and hike initial salary levels, forcing difficult conversations internally with existing staff on similar pay brackets.
Betsy Williamson, founder and chief executive of Core-Asset Consulting, said: “Flexibility is the name of the game, but as a basic benefit, not a nice to have – flexible working is now the norm for many and organisations must reposition and reinvent themselves to compete effectively.
“Ultimately, businesses must be prepared to market themselves to candidates just as they would to potential customers – as candidates know their value and they know that many skills face a supply shortfall.”
The guide states that the causes of labour market deficiencies are layered, although the reduction in available labour is interconnected with Brexit and the subsequent exodus of overseas nationals during the pandemic.
It advises that to be successful in hiring, firms must be closely attuned to the needs of the pool of labour, with salaries meeting rising inflation, a focus on employee wellbeing, investment in training and support with the cost of living expected.
A straw poll of 43 recent Core-Asset Consulting candidates revealed that 39.5% would not entertain a role that offered no flexible working, while 79% would be willing to travel to London two day per week in return for flexibility, over a role necessitating five days in the office.
Core-Asset Consulting was formed in 2005 and now employs 23 people working across the entire financial services sector, with recent moves into accounting, investment operations and the legal sector.
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