Asset and liability management: 2001 and beyond
Asset and liability management: 2001 and beyond
Keywords: Asset management, Liability, Remuneration, Globalization,Recruitment
Over the last year we have seen remuneration for high calibre professionals within the asset and liability sector increase and I feel that this trend will continue. The asset and liability management (ALM) function has continued to evolve into a sophisticated and key area and it is crucial to the ongoing success of any company. As we continue to see organisations increase in size both organically and through acquisition, entering new markets and so on, it becomes even more important to senior management that the ALM division is staffed with appropriate professionals who can identify, establish and implement key financial strategies to ensure success. It is also just as important for professionals to continue to upskill themselves in order to continue to be an attractive proposition to companies seeking people.
The main factors driving the overall increase in salaries from junior roles to senior management are as follows:
An increase in the technology and products available resulting in more sophisticated ALM.
An increase in companies entering new markets.
An increase in competition.
An increase in merger and acquisition activity resulting in bigger companies with greater reach.
A continued increase in the "transient" executive.
Candidates working shorter stints with organisations is becoming more prevalent.
There are undoubtedly other reasons which are contributing to salary pressures but I feel that those above are the most significant. An increase in the technology and more sophisticated products available means that companies need to source professionals who fully understand them. As companies enter new marketplaces they need professionals who can understand the new markets as well as understanding the added financial pressures. This also happens when companies increase in size.
The last two points listed above have probably been the greatest contributors in the increase in remuneration packages. As countries and companies strive to secure highly skilled executives, we have seen the emergence of a new phrase and that is the "transient" executive. Just as markets are being affected by globalisation, the workforce is no different. Now more than any other time we are seeing executives seriously considering and seeking potential employment opportunities in foreign markets. In the past, this really was generally restricted to the upper tiers of senior management; however, we are regularly seeing newly qualifieds right through to senior management moving country. Robert Walters are advising potential candidates on a daily basis about opportunities in foreign countries as well as also advising companies on a daily basis about securing talented professionals from abroad. With this comes a cost and that cost is reflected in increased remuneration packages.
The other major factor is that we are seeing professionals willing to move companies within shorter time frames. The days of the gold watch as a result of long service have definitely disappeared! Candidates are now, more than ever,planning their careers and are happy to change organisations if they feel that their progression upwards is stifled by staying with their current company. Unfortunately this manifests itself in an increased turnover of staff, loss of knowledge and can lead to an unsettled company culture. As a result of this remuneration and packages have increased to both attract and retain key skills and knowledge. The upside of people working shorter stints is that companies are placing ever more importance on the issue of retention – and as well as this having a positive effect on people's salaries, they are also benefiting from the company investing in training and career development planning (see Table I).
Robert Walters is a leading global recruitment consultancy, specialising in placing high calibre professionals into permanent, contract and temporary positions at all management levels. The group specialises in the accounting,finance, banking, IT, management consultancy, general management, legal, sales and marketing, human resources, call centre and support fields. Robert Walters'blue-chip client base ranges across leading investment banks and multi-national corporations covering all market sectors.
Table I Global salary outlines for asset and liability management
Established in 1985, Robert Walters has built a global presence with 23 offices spanning five continents. It employs over 1,000 staff worldwide generating turnover in 2000 of £216.8 million.
In 1997, Robert Walters established its outsourcing division, Resource Solutions, to provide HR consultancy and services. At the forefront of recruitment outsourcing, Resource Solutions currently operates contracts throughout Europe, Australasia, Asia and the USA.
For more information, please contact Marisa Kacary on 020 7509 8112 or e-mail: marisa.kacary@robertwalters.com; http://www.robertwalters.com http://www.resourcesolutions.com
Richard Fisher
