Industry Trends & Salary Guide 2021-2022 - EXPECTATIONS EXCEEDED | ASPIRATIONS ASSURED - The Edinburgh ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Industry Trends &
Salary Guide
2021-2022
E X P E C TAT I O N S E XC E E D E D | A S P I R AT I O N S A S S U R E D
W W W . C O R E - A S S E T. C O . U K
CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 1
I N TR O D U C T I O N
Core-Asset Consulting’s
Industry Trends and S E C T I O N 0 1
Salary Guide, Scotland
Overview:
The UK’s exit from the European Union 2
Looking back: The retrospective view
2021 - 2022, is a
of 2019 and 2020 4
COVID-19 6
Equality, diversity and working women 10
combination of market
Fund Management: Front office
Environmental, social and corporate
governance investing (ESG) 14
intelligence, salary
S E C T I O N 0 2
Market Commentary:
data, and insights
Fund Management and front office 18
Legal 26
Investment Operations 32
and analysis from our
Risk & Compliance 36
Business Support Services 40
Private Wealth 42
Accounting and Finance 46
consultants, clients
Pensions and Fintech 50
Interim, Temporary & Contract 56
and candidates.
S E C T I O N 0 3
About:
Core–Asset Consulting 62
Methodology 63
Giving a breadth of analysis and insight
into sector trends and strategic activity, it is
designed to assist clients in setting competitive
remuneration levels in the year ahead, as well as
helping candidates assess their career path and
inform their next move.
Whether you are looking to strengthen your
business or enhance your career, we hope you
will find this guide of value.
2 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 3
OV E RV I E W key issues around the import and export of The current agreement focuses on traded goods.
The UK’s exit from
goods and services, the free movement of Imports and exports will face amplified customs
people, tax, laws and regulation, supply chain, checks, additional regulatory barriers, proof of
business provision, and market registration and origin paperwork and increased
distribution. Collectively speaking, uncertainty red tape.
the European Union
around these factors resulted in companies
adopting a ‘wait-and-see’ approach as the UK Whilst an agreement has been reached on
Government waded its way towards the current goods, conversely, no agreement has yet been
agreement. Many took the stance that a hard reached on services.
exit was a distinct possibility and worked towards
contingency plans on this basis. Most importantly, the EU has largely not
deemed the UK rules for financial services as
There was almost an audible sigh of relief equivalent, despite ongoing calls from the
when the new trade deal was finalised, helping industry (given its scale, size and importance
to bolster the UK’s standing with the EU, to national GDP) for some form of specialist
however, the details of the agreement were arrangement or ‘enhanced equivalence’.
buried in a 1,500-page document released What has been agreed is that there will be
on Christmas day. ‘structured regulatory cooperation on financial
services’ which will cover any future equivalence
A new immigration system applies to people decisions. The framework for this will be set out
arriving in the UK from 1st January 2021, with in a ‘Memorandum of Understanding’, to be
EU citizens moving to the UK requiring a visa finalised in March 2021.
in advance of arriving. Those applying for a
skilled worker visa need to show they have a job ‘Passporting rights’ can no longer be relied upon
offer from an approved employment sponsor as a means for investment and financial services
to be considered, and with few exceptions, companies to conduct business in Europe. This
national professional qualifications will no change has been anticipated for some time
longer be recognised. There will no longer be and contingency strategies were put in place
any automatic entry rights to the UK under EU by investment and financial services businesses.
membership. Alternatively, if an EU citizen is Many chose the route of setting up European
currently resident in the UK they have until June bases of operations and/or regionally-based fund
2021 to apply for settled or pre-settled status, registration structures.
the latter being the option if they have been
resident in the UK for fewer than five years. After There has been a lot of discussion around
the end of the transition period, people from all delegation of asset management activities from
EU countries, with the exception of Ireland, who the EU to the UK. It is important to recognise
want to live or work in the UK will need to qualify that this does not depend on an equivalence
TH E UK ’S EXIT F R OM THE EURO P EAN UNI O N under the new UK migration scheme. ruling, however, it does require cooperation
arrangements between EU and UK regulators.
The UK’s exit from the European Union was exit, has most definitely had a negative impact In 2020, the UK’s trade with the 27 member With the ‘Memorandum of Understanding’
effective from the 31st of December, a deal was on the investments and financial services sectors states of the European Union accounted for in place, delegation can continue for now,
agreed at the last minute, effectively avoiding a in Scotland. There is a direct correlation between 49% of total UK exports and 52% of imports. The although in the future this will most likely have
‘hard exit’. Whilst this new agreement provides political instability and levels of corporate Services sector dominated, contributing around to be addressed on a country-by-country basis
a structure for the United Kingdom as a whole, confidence, especially so in the investments and 80% of the UK’s gross domestic product (GDP), as companies assess what this new landscape
for Scotland it will undoubtably bring its own financial services markets which tends to operate with London being the second-largest financial means for their respective markets
national challenges. with a global lens. services centre in the world. and businesses.
The political and economic situation surrounding The number of variables that this uncertainty
Brexit over the last four years, together with the produced was complex and both industry and
prolonged period of inertia leading up to the sector specific. Companies needed to consider
4 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 5
A DA P T I NG TO C HA NG E
As a result of the preceding political and Many larger companies started to move
economic situation caused by Brexit, cost- towards a ‘dress for your day’ policy. While still
cutting was the dominant theme in the financial professional, this transitioned away from formal
services sector within Scotland. This was driven business attire, leveraging the benefits of a
by a number of large industry mergers and a smaller company. A focus was placed on office
focus on controlling costs. Sector consolidation logistics and layout, with break out zones and
created an hourglass shaped market, with soft meeting areas, encouraging employee
well-established global players at the top, a few collaboration and wellbeing. Enhancing flexibility
mid-sized companies in the middle and a large was viewed as a step towards differentiation and
number of boutiques and fintech start-ups at competitive advantage.
the bottom.
However, a common theme across all sectors
For some candidates, there were limited career was static renumeration. Faced with limited
options or the career ‘catch 22’, with most facing salary increases, candidates continued to seek
the dilemma of limited progression in a small out employers with strength and security across
company or risk becoming a cog in the wheel in brand and reputation, at either end of the scale.
a larger organisation, The development of new products or markets
and/or unique market disruption strategies were
Diversity was also a key focus; attracting, key attractions.
retaining, and hiring female candidates into
traditionally male dominated fields took centre As challenging as these market conditions were,
stage, however, there was also a focus on unbeknown to all, the biggest challenge was yet
positively increasing diversity agendas across all to come.
areas. In support of this, during 2019 and early
2020, companies were more open to offering In December 2019, the world witnessed the
flexible working in recognition of the importance emergence of a new coronavirus strain in Wuhan,
of work/life balance. With companies realising China and on 11th March 2020, the World Health
that people were less willing to live for work, Organization (WHO) declared COVID-19 a global
there was a shift that sparked a change in pandemic.
working patterns with a focus on the importance
of health and wellbeing.
“T H E R E WAS A SHIF T
OV E RV I E W
T H AT S PA R K ED A C HAN GE
Looking back: The I N WO R K I N G PAT T ERN S
W I T H A F OC U S O N T HE
retrospective view
I M P O R TA N C E O F HEALT H
A N D W E L L BE IN G. ”
of 2019 and 2020
6 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 7
OV E RV I E W
COVID-19
WO RK - L I F E B AL AN CE
To control the global spread of the virus, a number Although in a corporate sense there has been
of precautionary measures were implemented a slow shift towards flexible working, historically
by the UK and Scottish Governments, effectively there was a general reluctance in many sectors
leading us into a set of enforced national to fully embrace the concept. Whether it was the
lockdowns. Physical distancing, the wearing of face view that employees who worked flexibly lacked
masks in public places, frequent hand washing the drive and motivation to be productive, or
and sanitation and the closing of mass gathering an unwillingness of the employer to relinquish
spaces including offices, schools, universities, management control, many companies failed to
shopping centres and leisure facilities, have all engage with the positive side of not being ‘tied
become an integral part of ‘normal’ life. to a desk’. COVID has forced a change to this
collective mindset.
The economic impact of the lockdown
measures for many industry sectors, specifically Retrospectively, it would have been normal to
travel, hospitality, retail and leisure, has been suggest that a strong, traditional, corporate culture
catastrophic. The forced closures have led to helped to attract potential employees, and to COVID has distorted this vision almost completely. spectrum, it can turn into a form of electronic-
widespread business failures, redundancies and retain them. A culture based on valuing the To survive in the current environment companies presenteeism, where employees feel that they
increased job insecurity. The Government has employee instilled loyalty and a strong working and their employees have had to adapt should always be available, even if feeling unwell
extended income support to affected business ethic. The way that people interacted with each themselves towards home-based working. or when they require rest.
and individuals by way of furlough schemes, other in the office, the day-to-day norm of how Technology has acted as a centre point, driving
loans and deferral programmes for business tax the business conducted itself, acted as a form of normal day-to-day office interactions and For junior employees, it may result in a form of
and rates, however, it is too early to say what the meetings online. People and businesses have had ‘imposter syndrome’ with feelings and worry
to modify their processes and procedures as a about the potential lack of support or guidance/
longer-term ramifications to these sectors will be
or what increased financial stimulus packages
“ A CULT UR E B AS E D ON new remote-based culture has started to emerge. mentoring that is available. The type of daily
will be required to reignite the embers of the VA LUI NG T H E E M P LOY E E engagement they would normally benefit from
At a time of such economic uncertainty the in a one-to-one capacity in the office, the learning
economy.
I NS T I LS LOYA LT Y A ND A concept of ‘all hands on deck’ springs to mind. through office osmosis which at early career
The measures implemented to control the spread S T R ONG WOR KI NG E T H I C” Pushing forward as hard as possible to ensure stages is invaluable, is inaccessible.
of the virus have completely disrupted our homes the highest levels of productivity from employees,
and workplaces, and for many, merged them especially if the business is projecting a drop in For senior employees or managers, working
together, altering the view of the traditional office competitive advantage. Job satisfaction tended revenues. These intensified work pressures can from home may result in increased physical and
and normal working patterns. to be higher at companies with a positive culture, manifest themselves in many ways. emotional labour, balancing direct customer/
with research supporting the concept that people client demands and requests against the need to
were happier, enjoyed work more and tended to For those who live alone, spending their working continually check in and support junior colleagues
suffer from less absence days and/or stress related days in isolation, only interacting electronically, and peers. Emotional exhaustion is a ‘specific
issues in ‘happy’ office environments. the connection to the outside world is entirely stress-related reaction’ and is a key component of
virtual. It can result in feeling pressurised to always burnout.
be available and switched on, with the need to
respond instantly or more quickly than normal
to work requests. At the extreme end of the
8 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 9
For some, juggling these increased work and home schooling means that mental
pressures from home, alongside full-time health issues remain a very real possibility. It’s
childcare responsibilities and potentially other important to remember that in all the studies
family-related demands, has resulted in a longer measuring the productivity of remote working,
working day, or split shifts, where early mornings none have been conducted in the light of
and late nights dominate. Childcare and home a global pandemic, whilst also juggling the
schooling are sandwiched in between meetings responsibilities of full-time childcare and the
and deadlines. Days blend into nights and delivery of home education.
weekdays are mixed up with weekends. There
is very little sense of ‘time off’ and the concept Right now, our computer screens are our
of the eight-hour standard business day has workplaces. As a result, many people will find
disappeared. The boundaries between personal themselves examining their work/life balance, or
and professional time have blurred completely. indeed, the lack of.
An increase in working time, however, does not As we continue to adapt to this new world order,
always correlate with an increase in productivity. it’s likely that workforces will start to resist any
The IES Working at Home Wellbeing Survey attempt to impose a return to the old ways.
(Interim Findings) revealed that 48% of COVID has forced all employers to rapidly adopt
employees are working longer and irregular a flexible working approach and businesses,
hours at home, with 46% feeling that they do therefore, need to prepare themselves for an
not have enough time to get work done, and influx of flexible working requests in the post-
36% feeling under too much pressure. lockdown world. In a recent YouGov poll of 4,500
employees, 81% of respondents expected to
Because the needs of working parents vary work from home at least one day post-lockdown,
greatly depending on the construct of the with 33% expecting to work from home at least
individual family unit, different types of flexible three days. Corporate giants such as Google,
work arrangements are required to meet family Amazon and Microsoft have already noted
commitments. Flexibility allows the individual such a sentiment and declared their current
freedom over when and where they can flexible working arrangements will continue for
undertake their job responsibilities. the foreseeable future. It is not unreasonable
for employees who have managed throughout
For parents balancing round-the-clock childcare lock-down to balance their various personal
whilst trying to meet deadlines, keeping commitments and childcare responsibilities, to
connected to colleagues, and completing the expect or ask for plasticity to core hours, indeed,
tasks of their respective jobs, this has been for many, to be transnormal to their work/life
exceptionally challenging. The mental load balance.
required to manage, coordinate and complete
desk work, household requirements, childcare
1 0 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 1 1
OV E RV I E W
Equality,
diversity and
working women
A DA P T I N G TO CH AN GE
There is ample professional and academic Over the last decade, UK companies have
research which supports the concept that a worked hard to implement polices to increase
diverse and inclusive workforce contributes female representation at a senior level and
different perspectives on problem solving and address the problems of female under-
creativity, enhancing corporate innovation representation in Board-level roles. This culture
and avoiding group thinking. Diverse working shift is coinciding with a more digital-based
groups tend to have a well-rounded views on society, all of which is being propelled forward by
business issues and risks, and a greater diversity the impact of the global pandemic we now face.
of thought results in better decision-making
and improved corporate governance and risk Reflecting and respecting diversity in our online
management. work environments is as equally important now
as it was within our previous working constructs.
It is argued that if the composition of a With much of the working world now digitally-
firm’s leadership team is representative of its based, activists and experts have begun calling
shareholders, employees and customers, it will attention to how gender bias and discrimination
aid companies in better understanding their can also occur in virtual space.
customers and in retaining the best talent.
At the risk of generalisation, women bring
There is a strong correlation between diversity different things to the corporate table than
and positive company performance. A balanced men do. The issues which inhabit the traditional
workforce is increasingly a key differentiator office environment can also be transferred into
and a requirement sought out by investors, the digital world. Prior research has shown
employees and customers. There is a growing that men’s networks benefit from tighter,
expectation that workforces should reflect more personal ties with work colleagues, while
wider global demographics and society as a women’s relationships with co-workers tend to
whole, whether this is gender, ethnicity, age, be less close and more transactional. Women’s
beliefs or socioeconomic background. Clients linguistic behaviour tends to be based on a
and investors are also demanding better desire to be seen as likable, whereas men tend
corporate governance, compliance, regulation, to lean towards more authoritarian stances.
transparency and reporting on these issues.
1 2 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 1 3
With pressure to make decisions as efficiently of succeeding in one environment means
as possible, and response times to work issues sacrifices in the other. Cultural norms and the
a priority, this softer approach can result expectation women place on themselves can
in women’s ideas and contributions being mean they are psychologically pushing against
easily side-lined by louder, more aggressive personal barriers, with the worst-case scenario
approaches. In the virtual setting it’s even being that women’s careers become additional
easier to glide over individual contributions casualties of this crisis.
if no one is mindful of acknowledging them.
Meeting facilitators need to keep track of who Employers may be completely unaware of these
participates and solicit input from those who potential difficulties in corporate connectivity
have not spoken to ensure equality and balance. as they focus their efforts on the more pressing
basic needs such as the requirement to adapt
Forcing all employees to work remotely in a to new ways of working, consolidate workforce
bid to stem the spread of COVID-19, runs the capacity or maintaining productivity.
risk of reinforcing any pre-existing cultural and
behaviour biases and undermining inclusive These issues can only be addressed through a
workplace cultures. highlighted awareness of the potential issue,
then through ensuring the right online culture
There is a very real probability that women could exists. Tone from the top plays a vital role,
be disproportionately affected in the current encouraging all employees to be mindful about
working environment given need to address the inclusion when it comes to working online, team
challenges posed by childcare obligations. The building and/or virtual social events.
sudden and total disappearance of childcare
options has placed enormous pressure on Companies need to provide a supportive culture
working women as they need to cope with that enables women to continue to work
virtually two full-time jobs, both blended as their personal circumstances morph and
together in one space. Individual personal change, whether this be in the physical office
conflict can arise where the challenge or the virtual one. Employers must ensure they
establish a culture where people treat each
other with mutual respect, and where bias,
“ T HER E IS A VERY REA L bullying, discrimination and micro-aggressions
are actively tackled. This is important for creating
P ROB AB IL I TY TH AT trust and is crucial in dispelling any views
WO M EN CO ULD BE that suggest women, or working part-time or
indeed flexibly, reflects a lack of focus on career
D I SPR OPO RTI O NATEL Y development or professionalism.
A F FEC TE D I N TH E Companies could find themselves on the brink
CU RR ENT WO RKI NG of inadvertently pushing out waves of women
E NVIRONMENT GI VEN if they don’t acknowledge cultural barriers
online and accommodate the challenges faced
N EED TO A DDRESS by working parents, especially for those with
T HE C HALL ENG ES relatively young children. Failure to do so could
reverse the hard work and ground gained in
P O S ED B Y CH I L DCA RE increasing diversity agendas over the last
O BLIGATI O NS.” ten years.
1 4 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 1 5
2021–22 A ND BEYO ND
In November 2020, in Glasgow, the UK was due The impact of COVID-19 has continued the
to host the United Nations Climate Change trend of drawing employees towards socially
Conference (COP 26), however, COVID-19 forced responsible organisations and opportunities.
a postponement until November 2021. As the How we live and work and the collective impact
OV E RV I E W
host and chair, the UK is keen to promote its of our actions on each other is more evident now
Fund Management:
credentials as a global leader in decarbonisation. in the wake of the global pandemic. We are all
It is therefore no surprise that we can expect to experiencing the global effects of our collective
see climate change continue to feature strongly actions. Finally, we are seeing the ‘bigger picture’.
Front office
(as indeed it should) in both UK and global Prior to the current global health crisis, many
Government policy. Indeed, one of the first acts firms dedicated a huge number of resources
of the new incoming President of the United to the ‘environmental’ element of ESG. Moving
States, Joe Biden, was to re-enter the Paris forward, the ‘social’ and ‘governance’ elements
Environmental,
Agreement which seeks to limit global warming will become increasingly important.
and reduce greenhouse gas emissions. The US
was among 194 countries that initially signed the The pressure for fund managers to comply
Agreement in December 2015 under the then with ESG principles is now a pincer effect.
social and corporate
President, Barack Obama. There is increased expectation from clients and
investors for companies and stocks to meet with
changing perceptions on green, renewable and
climate-based issues, together with enhanced
governance investing
UK, EU and global directives on climate change.
(ESG)
“H OW W E L I V E AN D
WO R K A N D T HE
CO L L E C T I V E IMPAC T
O F O U R AC T IO N S
O N E AC H OT HER IS
M O R E E V I D EN T N OW
I N T H E WA K E O F T HE
G L O BA L PA N DEMIC . ”
1 61
6 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 1 7
To remain relevant and avoid the risk of Universal asset owners and mammoth
becoming obsolete, fund managers and global investors with trillions of assets under
investment portfolios need to continue to management operating passive and active
enhance and increase the factoring of ESG strategies, are too big to let the planet fail.
issues and frameworks into their investment COVID-19 has clearly shone a light on the
construction process via investment research, interconnected nature of our plant. Global Asset
theses and financial models. Historically, ESG Managers are collectively invested in multiple
was separated from portfolio management and asset classes, across numerous sectors and
sector analytics, however, from a recruitment regions; a global failure would be catastrophic on
perspective, we are starting to see this change. portfolios. There is no hedge for the polar icecaps
melting overnight or the temperature in Australia
ESG is no longer a box-ticking exercise where rising 50 degrees at the coast or America and
investment houses can take the path of least Asia being ravaged by forest fires and hurricanes.
resistance, it is expected that it is now an integral These events impact hundreds, if not thousands
part of the investment process. The days of of firms, stocks and investments.
only questioning the CFO’s on the company’s
financial considerations are swiftly passing. Whether the stance is to eliminate companies,
industries and/or countries which are
On the active investment front, there are objectionable, norm screening using EU
a number of challenges to be considered principles, positive screening for ESG-focused
as the focus and views change. Historically, companies or theme-based investing in
sustainability reporting was aimed at investors renewables, engaging deeply with portfolio
and not shareholders and there was very little companies on ESG issues is a behavioural and
standardisation of information. Regulation mindset change which needs to be addressed.
and reporting are like plumbing, it’s the The investment industry standard demographic
infrastructure. If companies have the base of men from a certain era who see the world
line framework in place then they have data through set eyes, may find this exceptionally
to compare and contrast and improve on. It’s challenging.
difficult for fund managers to pick stocks and
investment options that meet the required This is truly where succession planning and
criteria if there is no actual data available. There recruitment come into their own. Women and
are also regional considerations; in Europe, millennials have natural different views of the
the focus tends to be on strong corporate world; diversity of thought breeds diversity of
governance, whereas in North America, it’s on opportunity which in turn breeds strength and
environmental factors. Then there are sector conviction in portfolio selections.
considerations; greenhouse gas emissions are
less material considerations for banks than they
would be for manufacturing companies, and the
governance of supply chains in India and China
are more important for apparel production than
they would be for insurance houses. Granted it’s
not an easy equation to balance.1 8 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 1 9
Betsy Williamson Kamilla Mathias
M A N AG I N G D I R E C TO R AS S OC I AT E CO N S U L TA N T
E X E C U T I V E S E A R C H E X E C U T I V E S E A R C H
M A R K E T CO M M E N TA RY
Betsy is the founder and Managing Director of
Core-Asset Consulting. She is also responsible
for the company’s Executive Search capabilities,
Kamilla joined Core-Asset Consulting in 2012 and
has been working closely with the Managing
Director, Betsy Williamson, in a number of
Fund Management
and front office
where she has built up a reputation as one of roles, most recently in leading recruitment
Scotland’s premier investment recruiters. assignments in the asset management sector.
Her key focus is supporting with front office and
Betsy has spent her entire career within product specialist roles.
recruitment. While completing a Masters in
Human Capital Management, she launched CO N TAC T
Core-Asset Consulting in 2005.
Email kamilla@core-asset.co.uk
CON TAC T Telephone +44 (0) 131 718 4600 Providing investment services to UK, regional Over the preceding years, as a direct result of
and global clients, Fund Management in market consolidation and polarisation, many of
Email betsy@core-asset.co.uk Scotland encompasses of a mix of large the larger companies have been in cost cutting
Telephone +44 (0) 131 718 4600 institutional and retail-focused companies, mode. Head count reduction and streamlining
smaller boutique firms, family offices and local of processes has been a key focus as operational
authority in house managed teams. Assets cost versus income equations were sought.
under management (AUM) are estimated to sit With the longer-term impact of these strategies
at c.£800 billion. Scotland employs more than starting to have a positive effect by Q1 of 2020
100,000 people directly in the sector with the many of the larger houses had started to
same number again indirectly via an extensive rebalance and stabilise. The constant flow of
chain of service providers spanning institutional market redundancies had started to abate
middle office and back office administration, somewhat, turning into a slow drip.
retail administration, legal, accounting, finance,
IT, investment consulting and operational With this backdrop in place, during early
support services. 2020, vacancies across all sectors had started
to gain traction with a specific focus on
regulatory risk, investment risk and market risk.
Fund compliance, fund registration and key
“AS S E T S U N D E R operational roles also took centre stage. Retail
M A N AG E M E N T ( AU M ) and institutional marketing, technical sales,
client service and investment specialist positions
A R E E S T I M AT E D TO (ideally for those with European language
S I T AT C . £ 80 0 BI L L I O N ” skills) were also in relatively high demand. The
Investment Management Certificate (IMC) and
Chartered Financial Analyst (CFA) qualification
Market consolidation has been a major theme were required for those operating in front office
in the industry over the last five years and has and middle office positions. The highest volumes
resulted in a limited number of mid-sized of hiring was at mid to senior level, with those
market players, with larger AUM houses at the having 5-10+ years’ experience being in peak
top and boutique players at the bottom. Head demand.
count in these organisations range from c.1,500+
to five, offering divergent career options between The volume of vacancies for experienced
boutiques or independent teams and global investment analysts, portfolio managers and
operators. fund managers was stable during 2020. A
number of senior level positions were required2 0 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 2 1
by some houses, refilling the gaps left by As a backdrop, during 2019, investment houses
senior industry individuals who had exited to had started to slowly move towards flexible
set up owner-run businesses, and junior level working with a recognition of the importance
recruitment in this area was predominantly of culture and work/life balance to attract a
achieved directly via the use of in-house more diverse employee base, simultaneously
graduate or development programmes. addressing one of the most critical factors facing
Discussions on succession planning and the industry: attracting, retaining and hiring
diversity in investment teams continued to be more female candidates into traditionally male-
top agenda items that required addressing. dominated fields.
Excluding the above, the biggest driver
for recruitment in the front office was the It may have been a result of generational creep
impending impact of Brexit on operational fund or the spotlight and regulatory requirement
and registration capabilities and wider company to report on diversity statistics and equal pay,
mergers and/or consolidation. Having weathered regardless, there was a definitive shift in the
the continual hiatus around the exit from the realisation that flexibility mattered. This had
European Union, and implemented as many started to spark a change in working patterns
contingencies options as possible, the collective and a focus on the importance of health and
mindset of ‘move forward regardless’ seemed to wellbeing. Employers were becoming aware of
prevail. the need to offer more than just high salaries
to attract the best candidates. Flexible working
“I N S O ME I NSTA NC E S , hours, holiday allowances, maternity and
paternity benefits packages were also important
CAN DI DATES W ERE elements of the employer proposition. Working
WILL I NG TO TAKE culture had taken centre stage, and, in some
instances, candidates were willing to take a lower
A LOW ER SA L A RY salary if is deemed there was a ‘good’ company
IF IS DEEMED TH E R E culture.
WAS A ‘GOO D ’ COVID-19 propelled the investment industry
COMPANY CULTURE .” forward in the acceptance of non-office-based
working in a way that no policy, government or
The national lockdown in March 2020 forced corporate had been able to do until that point.
the closure of all offices and as a result many
mandates to recruit were placed on hold as With all companies operating remotely, from
the sector collectively moved towards remote October 2020, recruitment activity started to
working. build traction. Interestingly, companies that were
independent and/or operated with an employee
To its benefit, Fund Management operates with ownership or partnership structure, were some
an inherent interconnectivity to technology, the of the quickest to restart, perhaps due to the
very global nature of the industry has always ability to make quick and immediate response
meant a reliance on IT infrastructure, as such, decisions without the need for external investor
the ability to position itself towards a home- or shareholder approval.
based model was easier to implement and
more possible than perhaps many had initially
conceived.2 2 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 2 3
Looking
Servicing global clients without the ability to
travel will continue to require the business and
its employees to hold meetings and take calls
outside of traditional business hours. Road
Forward
shows, finials pitches and company visits will
continue to be held online. Standard office
hours may be a thing of the past, bring its own
work/life balance challenges. Companies will
need to review how they manage productivity
whilst ensuring employee wellbeing. Measuring
It is estimated that up to a third of employees With increased remote working on the employees on their outputs, rather than hours
may continue to work from home post- horizon, businesses will need to move quickly worked, could be a critical move to ensure
COVID-19, which could be a huge strategic to understand their employee’s training and organisations adapt to these changes at a
benefit to many large investment houses who development needs. One definitive industry pace that meets employee expectations and
are still in the integration phase post-acquisition trend will be the continued requirement for capability.
or international-merge. Home working can companies to invest and implement new
reduce fixed costs; physical office spaces can be technology and infrastructure platforms, New employees will continue to be interviewed
smaller and overheads could be dramatically enhancing remote working frameworks. Up via technology and onboarding remotely will
reduced (rent, electricity, static phones skilling employees will be critical to allow them be the new norm. The increased capability of
lines, square footage for desks and building to become familiar with new digital tools and remote working will allow companies to hire
infrastructure/maintenance). There could be a platforms. the best talent from anywhere in the world.
saving on employee productivity, commuting Employment regulations aside, it’s quite possible
time to the office would be reduced and work/ Whilst these could be positive impacts for the employees could be less tied to the physical
life balance issues could be addressed for investment industry and indeed, potentially all location of their employer than ever before.
working parents, aiding diversity agendas. There office-based companies, the nature of managing
may be less stress in managing family life and investment funds, selecting stocks, researching Succession planning and diversity, together
potentially less office distractions, resulting in investment cases and managing technically with ‘online’ corporate governance and
increased workforce productivity. Every coin has sophisticated clients, means there is always the enhanced technical security will require ongoing
two sides. requirement for teams and employees to share, consideration. It is anticipated that the top talent
collaborate, debate and discuss, challenging will continue to be passive and in all likelihood,
each other and respective business processes will take convincing to change career paths.
towards the best possible outcome for both the
company and its clients. The very nature of the These themes will not dissipate quickly and will
industry benefits from face-to face interaction, as roll over into a large proportion of 2021, 2022 and
many service-based industries do. beyond.
We anticipate that during 2021 and into 2022,
the market will continue to be client-driven with
more candidates seeking employment than
“ U P S KI LL I NG EMP LOY E E S vacancies available.
WILL BE CRI TI CAL TO
ALLOW TH EM TO BECOM E
FAMILI AR W I TH NEW
DIGITAL TOO L S A ND
PL ATFO RMS.”2 4 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 2 5
PERMANENT SALARY PER ANNUM (£’000s)
Experience
Role 1-3 Years 3-5 Years 5-8 Years 8 Years +
Front Office
Investment Manager/Fund Manager - n/a n/a 80-130 130-190
Equity/ Fixed Income
Investment Analyst/Research Analyst/Sector 32-55 55-80 80-120 120-140
Specalist
Real Estate - Analyst/Portfolio Manager 25-35 35-55 55-85 85-120
Private Equity & Venture Capital - Analyst/ 25-35 35-55 55-95 95-125
Portfolio Manager
ESG Analyst/Manager 30-45 45-55 55-90 90-140
Trainee Fund Manager - all asset classes 32-55 55-79 n/a n/a
Head of Function/Desk Head n/a n/a 95-110 120-180
Chief Investment Officer n/a n/a n/a 180-240
Chief Operating Officer n/a n/a n/a 180-210
Client Relations
Client Management 32-45 45-65 65-90 90-110
Business Development/Sales n/a 55-80 80-100 100-140
Product Specialist/Client Portfolio Manager 45-55 55-75 75-90 90-140
Head of Function/Departmental Management n/a n/a n/a 120-160
Front Office Support/Middle Office Support
Investment Assistant 25-35 35-48 48-70 70-85
Quantitative Analyst / Financial Modelling 35-49 50-80 80-100 100-140
Front Office Investment Support (Technical) 33-45 45-60 60 - 80 80-110
Investment Risk 30-49 50-80 85-100 100-130
Fund Governance n/a 40-52 55-75 75-120
Dealing / Trading 30-55 55-75 75-95 95-110
Head of Function n/a n/a n/a 90-1102 6 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 2 7
M A R K E T CO M M E N TA RY
Legal
Like every part of society, the global spread of COVID-19 has accelerated changing attitudes
COVID-19 has had a significant impact on the to the importance of good mental health and
Legal sector. The effect was sharp and sudden home working. Creating an effective work life
and caused an abrupt halt to the vast majority balance will be increasingly important for legal
of transactions. Business was suspended, the firms and their employees. Flexible and remote
property market all but ceased and substantial working is likely to become the norm rather
Kim Bower elements of commercial and private client work
was cancelled or postponed. Many firms were
than the exception, the way that advice is given,
clients are advised and cases are managed
B U S I N E S S M A N AG E R ‑ forced to implement the Government’s furlough will need to continue to adapt. Shifts in both
AS S E T M A N AG E M E N T , scheme, traineeships were deferred, head count working practice and the operation of the justice
L E G A L & F I N A N C I A L reduction plans were executed, and partnership sector means legal firms need to be realistic
S E RV I C E S drawings, working hours and salary cuts were about the scale of the challenges facing their
widespread. sector and the speed of technological change
Kim specialises in recruiting experienced required.
individuals within the asset management
and legal sectors in Scotland. “C R E AT I N G A N E F F E C T I V E Generally speaking, pre-pandemic, the
WO R K L I F E BA L A N C E profitability of legal firms in Scotland was
She works hard to provide a professional and lower than the rest of the UK. Analysis of
proactive approach to all client recruitment W I L L BE I N C R E AS I N G L Y historic income and profit and loss accounts
needs and ensures that candidates receive I M P O R TA N T F O R L E G A L demonstrate that whilst legal firms in Scotland
a high standard and supportive service. Kim
has been recruiting at Core-Asset Consulting FIRMS AND THEIR were generating increased volumes of work in
the lead up to the pandemic, overall, this work
since 2008. E M P L OYE E S ” was priced at a lower profit margin. In part, this
was due to clients seeking more clarity on fee
levels, the demand for fixed-fee models and
CO N TAC T
Within just a few short months, Scotland and the tighter control on client budgets. This, together
rest of the UK went from small but steady rates with economic disparities on salary levels and
Email kim@core-asset.co.uk the cost-of-operation differences between
of economic growth to the largest and deepest
Telephone +44 (0) 131 718 4600 Scotland and cities such as London, resulted in
recession ever recorded. Current economic
forecasts are encumbered by huge uncertainty relatively significant commercial impacts to the
and drastically impacted by strategies to curb firms based here.
the spread of the virus. As with all sectors of
industry the restrictions around the movement As a direct result of this financial pressure on
of people aimed at preventing increased profitability, over recent years, a number of global
infection rates will have a significant effect on the law firms have merged with well-established
speed of recovery in the Legal sector. Scottish practices. These mergers offered
financial stability, growth and the maximisation
of client propositions via a global and/or UK-wide
service network.2 8 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 2 9
Excluding the cultural and people elements Increased technological advancements will likely
of integration, one of the key platforms for create new roles and opportunities in the Legal
success is technology. IT integration can dictate sector. For the clients of legal firms and in-
merger timetables. The smooth and functional house lawyers, the increased global connectivity
importance of operating platforms, workflow and reliance on technology highlights the
management, document creation and billing importance of lawyers in identifying and
systems are all critical components to be reporting on money laundering and other forms
correctly managed. Partly driven by industry of fraud, together with issues such as cyber
consolidation and propelled forward by COVID security, compliance and business ethics.
restrictions the speed of technological change
and innovation in the legal services market Indeed, Brexit, increased regulation, GDPR and
needs to pick up pace. Scottish legal firms corporate governance have continued to dictate
still have ground to make up before they can the direction of the legal market. Legal firms
claim to have fully revolutionised case load have shown resilience in using these changes
management and workflow through the use of to their benefit. Clients have required additional
“ T EC HNO L OGY O FFE R S NE W
OPPORTUNI TI ES AND GR E AT E R E FFI CI E NCY
TO BE EMBRACED. ”
technology. At its best, once captured at source, support and advice around the potential
information should never have to be retyped or impact of impending regulations and the
reformatted. Technology and automation should implementation of new frameworks and this has
encourage and enable everyone – secretaries, led to an increased demand for solicitors with
paralegals and partners – to work at the higher regulatory and immigration experience, ensuring
level of productivity, removing the need for the companies do not fall foul of regulatory changes,
repetitive tasks that still permeate the profession. and that their workforces are fully protected.
Technology offers new opportunities and greater
efficiency to be embraced.3 0 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 3 1
M A R K E T CO M M E N TA RY : to navigate these difficult waters. The current From an agenda perspective climate issues have
L E G A L commercial and personal turmoil will result been somewhat hampered by the immediate
Looking
in increased demand for skill sets in corporate threat of COVID-19. However, this topic will soon
restructuring, insolvency, litigation and family regain is place on the centre stage. As such there
law. In addition, there will be a continuous flow will be reignited demand in legal support in the
of demand for lawyers to advise clients on Brexit renewables sector.
Forward
as the current arrangements unfold and evolve.
Advising clients on employment rights, imports,
exports, expansion, registrations and the legal
operating models of other countries. There will
also be an increased demand on governance
as more clarity is required on how businesses
should be operating, and what should be
reported on.
The main challenge for private practice firms Whilst there is a strong female representation in
remains retaining the best talent in a limited the Legal sector, the progression of women to
candidate pool. Individuals will continue to move more senior roles remains a challenge. Female
companies for good opportunities but only solicitors still only represent around 30% of
those that offer development and progression. partnership positions. Whilst research indicates
Firms have to be aware of how to attract the that black, asian and minority ethnic (BAME)
best talent over and above their competitors, numbers are broadly in line with the Scottish
differentiating themselves by offering flexibility, population, there are still issues around career PERMANENT SALARY PER ANNUM (£’000s)
access to cutting edge technology and clear progression which need to be addressed. These
points are magnified by the 20% gender pay Experience (Years)
outlines on progression.
gap in the Legal sector and the emerging Role 1 Year 2 Years 3 Years 4 Years 5 Years 6 Years 7 Years +
For those organisations with in-house legal evidence on the disproportionate impact of Private Practice
representation, the challenge will be how to COVID on working women.
retain and engage mid to senior level staff who Civil Litigation 26-35 28-35 32-37 34-38 36-40 38-42 40-45 44-50
may be seeking the next step on the career Despite the global and national impact of Commercial Litigation 34-40 35-42 40-43 41-45 42-47 44-50 48-55 52-62
ladder. Observationally, in-house legal teams COVID-19, Brexit and the continued threat of an
Commercial Property 35-46 36-44 39-44 41-46 43-48 47-53 50-56 54-65
tend to be relatively small. Many operate as part additional vote on Scottish Independence, the
of a micro team or are standalone. Individuals Legal sector should remain in a relatively positive Private Client 31-38 32-39 34-41 38-42 40-44 42-47 44-49 48-56
in these positions may potentially hit a career stance. The sector has rebounded and stabilised Corporate 38-46 37-43 41-45 42-48 46-50 48-56 53-63 61-72
ceiling more quickly than in private practice. quickly since the initial March 2020 lockdown
That said, the percentage of the profession made and adapted positively since this point. It has
up of in-house lawyers, both public and private, showed overall resilience and tenacity. Industry In-house
is expected to grow. This reflects the changing turnover is yet to fully recover; indeed, it may take Financial Services 35-42 37-42 40-43 42-47 46-56 52-58 56-64 62-74
requirements of companies and organisations some time to do so, but the tide will turn.
Public Sector 31-34 32-35 33-36 35-39 37-40 38-42 40-45 44-50
on legal representation and reporting, and
the increasing attractiveness of these roles for From a corporate perspective the demand Industry & Commerce 34-40 36-41 37-42 40-46 44-53 50-56 55-63 64-70
practising lawyers. However, the dual pressures of for legal support and representation is
strained private and public sector resources and closely aligned to the Scottish economy.
the drive towards corporate efficiency will result Unemployment levels, as a direct result of
in these role holders being expected to do more, COVID, have been pronounced in Scotland given
with less. its reliance on the hospitality, retail, tourism and
the services sectors. Companies and individuals
will require legal help, support and assistance3 2 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 3 3
Rachael O’Neill M A R K E T CO M M E N TA RY
AS S OC I AT E D I R E C TO R ,
I N V E S T M E N T O P E R ATI O N S
Investment
Rachael has been recruiting since 2004,
specialising in permanent roles within financial
services. She has wide ranging experience in
Operations
asset servicing, asset management and financial
service operations.
Scotland is, and will remain, a strong centre of At the start of lockdown in March 2020, a
Rachael focuses on all levels across investment excellence for Investment Operations, this is number of the investment operations businesses
operations, both in asset management and primarily due to the historic roots of the sector, in Edinburgh placed recruitment on hold as
asset servicing. She is passionate about always established talent pool and well-established they facilitated the transition to remote working
ensuring candidates and clients receive a truly footprint of the companies located here. and focused on the process of simplifying the
consultative service. Generally, Scotland continues to be a key hub for onboarding of any new starters. Interestingly,
larger, more global companies in this space and for new starters there was the introduction of
from an investment operations perspective there ‘expectations’ within the referencing process,
CO N TAC T
is a continued trend to relocate more technical specifically around Disclosure Scotland and
roles to Edinburgh and Glasgow from other educational checks. This enabled candidates to
Email rachael@core-asset.co.uk
global processing hubs. start their new positions within a relatively tight
Telephone +44 (0) 131 718 4600
timescale, and to balanced out the verification
In a constrained market, where companies process, given the overall slowing down of
are competing for talent, looking to attract reference responses times as a direct result of
niche skills, and where there are limitations on COVID restrictions.
salaries, employer brand, market reputation and
employee benefits are key differentiating tools, Once this initial transition period had lapsed,
as is the need to move quickly when suitable there was a consistent flow of roles being
candidates are identified. released. Vacancies spanned a number of
sectors including asset management, smaller
During 2020, the recruitment market remained asset servicing firms, wealth management,
relatively constant with both global businesses the investment trust sector and fintech firms.
and boutiques looking to add specialist head There was, however, a definitive deceleration
count. This created an interesting divergence of recruitment levels within some of the
of career choices and cultural options for those larger more globally based third-party
seeking to move roles. For many, the opportunity administrators, primarily as a result of planned
to work in a smaller business held appeal, restructuring, wider global influencing factors
allowing direct ownership of tasks/projects and and the increased reliance of automation of
exposure to senior management. For others, the administration processes.
structured career paths that larger companies
offer allowed a clear development path. It Those market skill sets in demand included fund
was encouraging to see both these types of accounting, pricing, investment administration,
businesses growing head count requirements settlements, transitions, client service and
within early 2020. corporate actions. The level of these positions
was heavily spaced, with vacancies at the more3 4 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 3 5
junior and senior end of the scale; the largest PERMANENT SALARY PER ANNUM (£’000s)
market void was for mid-level head count and a
Experience
senior executive level.
Role 1-3 Years 3-5 Years 5-8 Years 8 Years +
With respect to candidate availability, there Market Data 22-28 30-35 35-45 50 plus
has been an increased concentration of senior Settlements 22-30 33-45 45-55 50 plus
level candidates available; a direct result of Treasury Settlements 22-30 33-40 40-50 50 plus
the aforementioned restructuring and global
Reconciliations 22-30 32-38 40-50 50 plus
mergers, specially within the asset management
sector. For those individuals who have been Corporate Actions 22-28 28-38 40-50 50 plus
directly affected by these market changes, the Fund Pricing / Valuations 22-30 30-36 37-45 45 plus
recommendation is to widen both their location
Data Management 22-28 30-38 40-50 50 plus
and sector criteria. It is not anticipated that we
will see a recovery in either the upper mid-level Trade Support 22-30 30-40 40-50 50 plus
or executive level recruitment (within investment Cash Management 20-30 32-38 40-48 50 plus
operations) for a significant period of time. Derivatives 25-30 30-40 40-50 50 plus
Collateral Management 26-32 32-40 40-50 50 plus
Trustee and Depositary/Fiduciary 22-26 27-35 36-50 55 plus
M A R K E T CO M M E N TA RY :
I N V E S T M E N T O P E R AT I O N S Client Reporting 22-30 32-40 45-50 50 plus
Looking
Fund Performance 22-35 35-45 45-55 55 plus
Investment Restrictions/ Mandate Compliance 25-30 30-38 38-45 50 plus
Regulatory Risk 23-27 28-35 35-45 50 plus
Forward
On Desk / Investment Support 23-32 32-40 40-50 55 plus
CASS Specialist 30-45 45-70 70-85 100-160
Team Manager/ VP n/a n/a 60-80 n/a
Head of Function n/a n/a 90-120 90-120
Salary levels are expected to remain static It is worth noting that we did not see many Middle Office
in 2021, in line with 2020. During the candidates put their search on hold due Fund Accountant 25-28 28-35 35-45 50 plus
preceding months, as the focus on cost to COVID-19. It was only a small pool of
Transfer Agency 25-28 28-35 35-45 50 plus
cutting and process automation continued, candidates who were nervous about leaving
there were a number of occasions where their roles. Progression opportunities Project Manager 25-30 30-40 40-50 50 plus
clients moved towards offering their second and flexible working remained high on Business Analyst 25-30 30-40 40-50 50 plus
choice candidates the position, if the first candidates’ criteria to move roles.
PMO 25-30 30-40 40-50 50 plus
choice candidate challenged the basic
salary offered. The phrase ‘take it or leave it’, It is anticipated that a continued trend
seems to be one which is permutating the post-COVID-19 will be the ability for
world of investment operations at present. employees to work from home, together
This ensures that salary benchmarks and with clear career progression opportunities.
bandings are maintained at a time of These will remain key drivers in attracting,
increased financial pressure for those and more importantly retaining talent in
operators within the sector. 2021 and into 2022.3 6 CO RE- ASSET CO NSU L T I NG SA L A RY G U I D E 2021 - 2022 3 7
M A R K E T CO M M E N TA RY As a direct result of the pandemic, recruitment During Q4 2020 and into Q1 of 2021, there was
Risk & Compliance
within the Scottish Risk and Compliance sector also increased demand for individuals with
was relatively quiet during 2020. As lockdown UK regulatory compliance knowledge, again
took effect in March 2020, a number of at mid to senior level, together with overseas
mandates to recruit were placed on hold regulatory exposure. Knowledge of European
and overall, recruitment in the sector was market regulation, including the experience of
in low demand for the remaining proportion marketing or passporting into other countries,
of the year. was in particular demand, specifically by firms
wishing to expand operations in light of the
However, as Q4 2020 started to emerge there current economic operating climate. US market
was increased activity in this space. A small experience was also of particular interest.
Titta Hukkanen proportion of the larger financial services
organisations started to seek support with
S E N I O R CO N S U L TA N T issues related to financial crime, and as a result,
B U S I N E S S S E RV I C E S headcount increases in this area were required.
These additional resources (people) were
required as a direct result of increased online
Titta specialises in recruiting individuals activity by customers and users and were in
into experienced positions within asset part driven by regulatory changes to operating
management and financial services with a models in light of Brexit. Predominantly, these
focus on business support, marketing and roles were at the mid to senior end of the scale
compliance. where professionals had experience of drafting
policies and/or implementing best practice
Titta has worked at Core-Asset Consulting frameworks.
since 2008. She joined the company after
graduating from Napier University with a 2.1
degree in Business Management. Titta moved “A S L OC K DOW N TOO K E F F E C T I N M A RC H
to Edinburgh from Finland in 2002.
20 20 , A N U M BE R O F M A N DAT E S TO
R E C R U I T W E R E P L AC E D O N H O L D
A N D OV E R A L L , R E C R U I T M E N T I N T H E
CON TAC T
Email titta@core-asset.co.uk S E C TO R WAS I N L OW D E M A N D F O R THE
Telephone +44 (0) 131 718 4600
R E M A I N I N G P R O P O R T I O N O F T H E YEAR. ”You can also read
