A shortage of skills and bonuses not matching expectations will be leading factors in a faster moving recruitment market over the forthcoming months, according to Emma Charnock, Regional Director of Hays Banking in Hong Kong, who here discusses this trend

The recruitment market traditionally receives an injection of candidates following the awarding of bonuses. But this year, the overall market uncertainty in terms of bonus allocations means this injection of candidates will be significantly higher than usual.

One major investment bank has already advised they will not be allocating any bonuses this year. If other employers follow suit, the number of vacancies will increase as staff resign and seek another role elsewhere and employers start competing for the same available talent.

We've already noted an increase in candidate interest in job vacancies following speculation that bonuses will not be as high as previous years. It's already a tight labour market in Hong Kong's banking sector though and it's only going to get tighter as candidates start reassessing their options.

Employers have also indicated to us that they will create new positions to enable planned expansions. The lack of bonuses will only add fuel to the fire, increasing the number of candidates looking for a new job and tightening the already existing demand from employers in the market for suitable skills.

Given this level of activity, solid candidates will be snapped up with speed, and provided jobseekers know what they want and why they want it, the first quarter of 2008 will provide prime opportunities to advance your career.

Jobseekers can get ahead of the game though with a significant advantage. Given the impending rush of candidate applications, those candidates that enter the job market now, and start looking for their next role before the post-bonus recruitment rush, will find themselves in a distinct advantage.

In the latest Hays Quarterly Forecast, employment expectations for the quarter to March are up. The Forecast ranks vacancy activity and reveals the following hotspots of candidate demand:

• Within corporate finance, a booming economy has seen a large amount of money flowing into Hong Kong and the mainland and the relatively low cost of borrowing has resulted in the increased structuring of some major finance deals in Hong Kong with a mainland focus. Corporate finance M&A in particular focuses on raising capital to broker acquisitions and these have been numerous in the positive economic climate.

• Another hotspot exists within credit, as leverage and project finance deals have been more numerous recently. Credit approval for these large borrowings is necessary so there is an array of vacancies in credit at the moment to cope with this large deal flow.

• Compliance candidates are also required from junior analysts right up to department heads to keep the lending and investment in line with bank policy.

• Finally, and as a knock-on effect from the above, demand exists within operations. These candidates are crucial to support a bank’s increased activity. Hence roles are available from junior support roles to Head of Operations.

• Meanwhile increased legislation has created hotspots of candidate demand for accountancy skills such as internal audit, risk management, accounting policy, compliance and regulatory reporting. Demand also exists within financial reporting, particularly on a regional basis due to expansions across the Asian region, for IFRS, US GAAP, SOX and Basel II specialists. Meanwhile the shortage of product control specialists, particularly in equity derivatives, has created a further hotspot.

• Senior finance professionals with specialist knowledge in the banking industry and strong management experience are also in demand. Candidates that have international exposure, particularly those with experience growing and expanding business operations, will be keenly sought.

Source: Hays Hong Kong