According to Astbury Marsden, in the second quarter of 2011 there was an average of 1.68 qualified candidates for every new City job, down from 2.13 candidates per role in the same period in 2010. The figure represents a 15 month low. With the number of qualified City staff actively looking to switch jobs having fallen so steeply, whilst the number of new jobs (year on year) remains stable, firms may need to resort to more aggressive headhunting tactics to fill vacant jobs.
Astbury Marsden says that the number of new City jobs created in June 2011 is 5,400, up from 5,040 in the same month last year.
Mark Cameron, COO at Astbury Marsden, said: "There are signs that some banks are beginning to resort to pre-credit crunch tactics of targeting competitors key employees and teams.
"City firms had benefited from a steady flow of high quality CVs over the last few years. Now this supply has slowed. As staff sit tight, the active poaching of staff from competitors could heat up further throughout the year. Ironically the war for talent could be turning more hostile just as the growth in new jobs seems to have plateaued.
"Slowing global growth, inflationary pressures and the Eurozone crisis are all undermining confidence. With a slower deal flow, it is difficult for investment banks to deliver on targets. Banks are trimming staff here and there, and in that kind of uncertainty, City workers are far less willing to move.
"Some bankers feel that they are locked into their long term deferred bonus programmes and others will have decided that they are better off in the short-term with their existing employer."
