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Increased hiring fuels optimistic outlook for 2013 in financial services, says Randstad

Financial services firms believe that 2013 will be a better year for their company than 2012, according to recruitment consultancy firm Randstad.

More than 200 financial services executives, from heads of HR to European CFOs across the asset management, investment banking, asset services and insurance industries, were surveyed by Randstad on their hiring intentions and their outlook for 2013.

The main reasons given by respondents for their optimistic mood included "businesses are innovating and are introducing new revenue streams, which adds to the confidence we are feeling" and "things will be busier due to increasing client demand".

More than half of respondents also pointed to increased headcount in 2012 as a positive indicator for the year ahead.

Some respondents did point to barriers to the growth they seek in 2013: unreasonable expectations of candidates (4%), lengthy interview processes internally (8%), strong competition for candidates (4%) and the changing needs of their business (5%).

Tara Ricks, managing director of Randstad, said: "The current prognosis is more encouraging than at any point since 2007. Companies are finally reaping the rewards of the internal efficiencies they were compelled to implement post-credit crunch.

"A rise in demand for their services in the latter part of 2012 suggests a good start to 2013. Their optimism is filtering through to hiring intentions, where the ratio is swinging in favour of a longer-term commitment to permanent hires - another sure sign of confidence."

Ricks added: "Finding the elusive 'right' candidate is clearly the key to maintaining a healthy City heartbeat. But talented people have become ever more elusive as they continue their long hibernations in their current firms after bunkering down at the start of the credit crunch.

"Lack of budget and lower salary enticements to move to a competitor have played their part, as have fears over job security. However, should the optimism expressed in our findings come to fruition, companies will be able to offer more competitive packages and professionals will become more receptive to them after this year's bonus season."