City firms believe they will face a battle to recruit the right staff in 2007

Eight in 10 City firms expect major problems finding the right people to fill vacancies in 2007, according to research.


The Morgan McKinley Employment Monitor found that strong market conditions and a skills shortage have led to a fierce battle for talented financial workers.


Investment bank Goldman Sachs this week revealed it was paying out £8.3bn in bonuses and other financial rewards as City fortunes soared in 2006.


And three in four high-volume City employers said they expect hiring activity to rise in 2007.


But with Lord Sandy Leitch this month warning that the UK has a severe skills shortage, finding the right people for new jobs is a major challenge.  


Robert Thesiger, chief executive of Morgan McKinley, said: “The past 12 months have seen the City economy remain buoyant, and the majority of financial services institutions are confident this trend will continue well into next year.


“The challenge will be sourcing the talent required to facilitate growth. The ‘war for talent’ has been a constant theme in the City throughout 2006 and this will continue in 2007.”


City firms are likely to be forced to hire from outside the UK, according to Thesiger.


“Attraction and retention will remain at the top of the HR agenda, with organisations looking outside traditional candidate pools and to the global marketplace in their search to secure the talent they need,” he said. 


 


 


 

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