Quarterly Market Update
Good afternoon,
Welcome to the first edition of the Goodman Masson Finanical Services Tax quarterly update. I would like to take the opportunity once again to update you on the Financial Services Tax recruitment market. My aim is to give an overview of the recruitment market and identify any trends or developments in local markets throughout the UK.
Please scroll down to read the update in full, or use the quick links below to navigate to the most relevant sections.
As this is the first time i have sent this to you i would be keen to hear your thoughts and comments on this update, whether or not you find it useful, and what you would like to see included in future editions. If you would like to give feedback, please reply to this email with your comments, and I will try to incorporate any suggestions in future.
Should you have any questions, please do not hesitate to contact me.
Kind regards,
Alex
Alex Stirling | Manager
Tax
Direct: +44 (0)20 7019 8831
Email: alex.stirling@goodmanmasson.com
Market Update
The tax recruitment market continues to show signs of recovery. Since the end of quarter three 2009 the Goodman Masson Tax team have seen a marked increase in the number of roles that we have been instructed to work on. It must be remembered of course that it is all relative and this increase is set against a static first half of the year. Across all sectors the most noticeable increase has been within the Financial Services sector with recruitment happening across a selection of the retail, investment and custodian banks as well as the insurance and re-insurance businesses.
The roles that we have been instructed to work on have been a combination of additional headcount and of backfilling roles that have been vacated by someones departure. Where a budget exists to recruit additional headcount the most noticeable trend has been the need to plug very specific skill gaps and this is the advantage of recruiting in a market where there is a greater spectrum of candidates available. There has been an upward trend in recruiting professionals with very strong Compliance and Reporting or Transfer Pricing or VAT systems experience to work on very specific projects. Apart from the potential cost savings and the importance of non-compliance in the current climate, In-House Tax advisors working alongside the financial management team can respond quickly to differing market conditions and corporate plans. They can also develop a holistic understanding of a business and contribute to its commercial direction which shows a clear critical business benefit for this trend.
Furthermore 2009 saw a raft of changes to many International Assignment and Rewards teams throughout the Financial Services Sector. 2010 appears to be a year of even greater change with the execution of plans across many of the large Financial Services providers to tackle the ramifications of the recent PBR and other circumstances. With a focus on seeing real value from associated International Mobility costs we have advised on developing International Mobility teams and have been instructed to work on a range of specialist vacancies (from International Assignment VPs within the HR tax function to Global Mobility Technology specialists) to help stream-line the current International Mobility process. In addition Global Rewards appears to be a really hot topic at this present time with Financial Service providers looking to retain the top talent across the business at a time when traditional methods of reward are subject to intense public and political scrutiny. Many Financial Institutions are looking to strengthen their teams in this area and have focused on recruiting individuals who have significant off-shore trusts and share schemes experience.
Despite the increase in activity it is still difficult for some back and middle office teams that are below critical mass to get sign off to recruit business critical roles particularly where there have been redundancy programmes in other parts of the business. Where additional workloads can’t be spread out internally, Group FDs are more than happy to outsource work given the very favorable rates on offer from the Big 4 accountancy firms and it is likely that this will continue through the course of 2010.
Looking Ahead
The outlook for the first half of 2010
Moving towards the end of quarter one we expect some movement between the banks post bonus round and we expect financial services tax experience to be in demand in quarter two. During the course of 2010 there will be an increase in demand for tax professionals in fee generating areas in particular the front office tax product arena.
Our outlook is that recruitment will remain steady rather than dramatic. Niche areas will continue to show activity. Furthermore as the market continues to pick up so will the charge out rates of external advisors so there is likely to be a need to backfill jobs that have been vacated.
Market Insights
The Demand for Transfer Pricing Professionals Remains High
London, 12 February 2010
In a recent article, CFO.com predicted another unwelcome side effect of the global recession - hungrier international tax authorities. Countries such as India and China, which previously were regarded as "tax-friendly", are now subjecting corporates to increased scrutiny.
Increasing the Tax Take means Increased Controversy
Tax authorities around the globe are under increasing pressure and are responding in part by being tougher on the taxation of transfer pricing. Last year China's authorities issued new rules requiring foreign multinationals to submit extensive transfer-pricing documentation by the end of the year. India, Canada, Turkey and Greece can be added to the list.
What will be the result of this? In 2010 it is expected that corporates will be faced with an increased number of transfer pricing audits. They are expecting to be challenged on their documentation and methodologies. Will these challenges end up in a courtroom? Certainly some of the law firms think so with a number of notable firms recruiting senior transfer pricing resource in the last 6 months.
2010 Goodman Masson Salary Guide
This comprehensive document will be available in the coming week. Should you be interested in receiving a copy, please register your interest with alex.stirling@goodmanmasson.com.
Goodman Masson
The Tax Team
Our dedicated Tax Division has been established since 2000 and is made up 6 Consultants all of whom have spent many years recruiting into the tax area. As a result we have experience of recruiting at all levels from newly qualified through to Head of Tax within industry and from part qualified through to Partner grade within the professional services.
Since its inception the Tax Division has worked with some of the leading UK and multinational organisations, Professional Services firms; Big 4, Top 50 and boutique tax firms. We recruit at all levels from newly qualified up to Director of Tax for in-house roles and from Trainee to Partner level within Practice, Corporate Tax, International Tax, Transfer Pricing, Personal / Partnerships / Private Client Taxes, Expatriate Tax, Employment Tax and Indirect Tax.
Our success has been built on our honest approach in dealing with each mandate we recruit for and every candidate we help. As our reputation is vital to our success we will genuinely give our clients advice that is designed to help any recruitment campaign. Our success has been built on a market leading research capability combined with investment in our candidate acquisition model, which will continue throughout 2009. In the last 6 months we have worked on 74 opportunities with 48 leading organisations and have spoken to over 492 qualified tax professionals, 115 of whom are actively seeking new opportunities through us.
About Goodman Masson
Goodman Masson is the largest Independent Financial Recruiter in the UK and has been recruiting professionally qualified accountants and other finance professionals for over 16 years. With a team of over 80 we hold annual revenues exceeding £15m.
Our growth has been built around our knowledge and expertise within the Finance markets and in 2009 alone we successfully worked with 991 separate organisations. Our client portfolio ranges from the FTSE 100 (67 out of 100) to small entrepreneurial start ups and from Government bodies through to independent media houses.
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