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Job Searches: Look at the Entire Package (Not Just the Salary!)

Job Searches: Look at the Entire Package (Not Just the Salary!)

The start of a new year often coincides with a spike in job searches. In fact, more than half of the UK population will look for a new job in 2018. It can be tempting to focus solely on the offered salary. However, a wider perspective which takes into account the entire package being offered is advisable. Other factors to be considered include:

Pension Contributions

It can be important to consider whether your employer is using a defined contribution (DC) pension or a defined benefit (DB) pension scheme. The average employer for a DC scheme puts in 3.2% of salary, but this number can range from the minimum 1% to 10%. The average employer for a DB scheme, conversely, puts on 16.9%. If you seek a greater reward for your work, rather than additional cash, this can be a way of getting more money from your employer by diverting a greater amount of your salary into your pension.

Life Cover

Almost all employers offer a payment of several times your salary if you die while performing contractual duties. The majority will also pay for income protection; this will provide you with a regular income if you are unable to work for a while.

Medical Insurance

One-fifth of employees have private medical insurance. To replace this benefit, it would cost an average of just under £1,500. The benefits outweigh the payment of tax on their cover.

Save as You Earn Schemes

After paying a monthly sum into such schemes for a period of three to five years, you will be given a bonus. You can then buy shares in your employer at a fixed price. If the share price has increased during the period you can buy the shares at a large discount. If share price has fallen, you simply get your savings back with the addition of the bonus.

If you are currently involved in such schemes and decide to move employers, you will only get your savings back and no longer have the option to buy shares. Occasionally a new employer will compensate you for the forgone share options.

Other Benefits on Offer

These include:

  • Tax-free childcare vouchers;
  • Tax-efficient computer or bike schemes;
  • Season ticket loans;
  • Cheaper insurance cover;
  • Discounted shopping vouchers;
  • Free parking.

In conclusion, it is important to compare ALL the benefits offered by an existing and potential employer before deciding to accept a new job. There may be the possibility to negotiate with your current employer over the benefits offered.

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Permanent placements rise to greatest extent since August

Key Points from the November Survey:

  • Permanent placements rise at a quicker pace;
  • Availability of candidates continues to decline sharply;
  • High demand for staff leads to further increases in pay;
  • The unemployment rate remains low.

Staff Appointments Rise Further…

The growth in permanent placements has reached a three-month high across the UK. The rise has been attributed to an increased demand for staff and company expansion plans.

The number of permanent placements in the South, conversely, is increasing at a slower rate.

Vacancies…

Staff vacancies have continued to rise sharply. The rate of growth since October, however, has slackened slightly.

Across all sectors, the number of permanent staff vacancies has increased. In descending order, the sectors with the greatest number are:

  • Accounting/Finance;
  • IT and Computing;
  • Engineering;
  • Executive/Professional.

Staff Availability…

Across the UK the availability of candidates to fill permanent roles has continued to decline. The South has recorded the steepest decline in permanent labour supply. The key permanents staff skills reported to be in short supply include:

  • Accounting/Finance:
    • Audit, Estimators, Insurance, Paraplanners, Payroll.
  • Blue Collar:
    • HGV and LGV Drivers, Production and Distribution.
  • Construction:
    • Construction, conveyancing, Quantity Surveyors.
  • Engineering:
    • Aerospace, Engineers, Technicians.

Pay Pressures…

The average starting salaries for permanents jobs has continued to increase, resulting in a growth which has lasted for just over five-and-a-half years. The increase is salary has been attributed to low candidate availability combined with a strong demand for staff. The quickest rate of inflation has been recorded in the North.

Unemployment…

The unemployment rate and claimant count for the UK remains historically low.

The unemployment rate stands at the lowest level it has been since 1975. It is virtually identical for both men and women.

In October, approximately 806,000 people claimed out-of-work benefits. Although a rise by around 24,000 people compared to last year, the claimant count has remained close to its lowest level recorded in the early 1970s.

 

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Concern about Compliance with MiFID II

Concern that over one third of financial services are unsure if they are MiFID II compliant

What is MiFID II?

MiFID II is an EU Directive which comes into force January 3rd 2018. Its purpose is to offer greater protection for investors and create greater transparency in all asset classes: from equities to fixed income, exchange traded funds and foreign exchange.

How will it affect investment decisions?

The legislation will change how Asset Managers pay for the research they use to make investment decisions. Prior to the Directive, Asset Managers received research for free, although the cost of this service was paid into trading fees. This is generally is paid by Fund Managers’ clients. In a process called unbundling, under MiFID II Fund Managers will have to budget separately for research and trading costs.

Concern over compliance with the Directive

A recent survey, conducted by managed cloud service provider Timico, found 39% of UK financial firms are not sure whether their organisation is compliant with the new regulations, while just 8% of companies said their employees were fully aware of MiFID II’s legal implications and had received relevant training.

MiFID II also places strict controls on all communications; regulated firms will be obliged to document all communications that are intended to result in a transaction.

However, Timico found 42% of respondents said their firms do not currently have a mobile compliant platform in place to record calls, 25% said they are not yet compliant with recording requirements and 29% are still going through the compliance process.

Penalty for failing to adhere to MiFID II

Companies can be fined up to 5m Euros, or 10% of annual turnover, for non-compliance.

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Brexit: A Ticking Time-Bomb for London’s Financial Industry?

Brexit: A Ticking Time-Bomb for London’s Financial Industry?

Fears are escalating as there are concerns that Britain’s vote to leave the EU in 2019 will harm one of its most successful industries…

The Impact of Brexit on the Financial Sector

The industry is crucial to Britain’s economy, accounting for 12% of Britain’s economic output and paying more tax than any other industry. Roughly one-third of the transactions within this sector involve clients in the EU.

There is a division among the population as to the impact Brexit will have on the industry. Politicians and economists warn that London may lose its renowned position as a financial centre. Conversely, those who voted leave support their decision, arguing that Britain will benefit through becoming more self-sufficient.

Indicators

The exact impact of Brexit cannot be predicted. However, below are some indicators to show that leaving the EU will encourage a slowdown in the economy but no drastic decline.

  1. Commercial Property

Highly-respected estate agents record that commercial property prices in London have dropped more since the Brexit vote than during the global financial crisis of 2009.

In terms of figures, the price renting of real estate has dropped by about 5% since last year. However, leasing activity in this area was 17% higher than the long term average in the first three-quarters of 2017.

  1. The Tube

Apart from a few exceptions, in general fewer people are using the tubes. The number of people using Bank and Monument stations is facing its first fall since 2009. A spokesman for Transport for London denies that the closure of some escalators at Bank station in response to the expansion was a significant cause of this change.

In terms of figures, the number of people using the above station declined by 2.7% from 2016-2017.

Although the number of people who using Canary Wharf station has continued to rise, the pace has slackened.

  1. Bars and Restaurants

Currently there appears to be no impact from Brexit of premises applying or renewing their licences to sell alcohol. In fact, the first eight months of 2017 showed these figures to be at a record high.

However, London’s night life no longer focuses on finance workers but attracts a diverse array of individuals. These findings may not be entirely pertinent for this study.

  1. London City Airport

This airport is selected especially by executives for flights to European cities and beyond. Statistics suggest that the number of such people using this airport faces its slowest increase in five years.

In terms of figures, the increase in passengers in the first six months of 2017 was only 0.9% compared to the average annual increase of 10% in the previous four years.

  1. Job Availability

The number of available jobs in London’s Financial Services has fallen the most in the five years.

A survey concluded that 51,922 new financial jobs were created in the first seven months of 2017. This is a 10% decrease in comparison to 2016.

It is estimated that around 10,000 finance jobs will be transferred out of Britain and placed overseas in the near future if Britain is denied access to Europe’s single market. The first type of jobs to be transferred may be at the lower end of firms, meaning that in the short term London may still cling onto its status as a financial centre.

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Decline in Availability of Candidates and Increased Starting Salaries!

Key points from the October survey:

  • Continued growth of appointments but at a softer pace
  • Availability falls sharply
  • Starting salaries increase at second-quickest rate since November 2015!

Commentary “Its great news that employers are continuing to hire. However, that growth is slowing down and one of the reasons is that we simply do not have enough people for all the roles that are out there at the moment. And the number of vacancies is still getting higher. For jobseekers this is good news as employers are willing to pay higher starting wages to attract the right candidates. 

EU workers are leaving because of the uncertainties they are facing right now so the situation may well get worse and employers will face even more staff shortages.”

Appointments/Vacancies…

A strong underlying demand for permanent workers has created the continued growth in recruitment. However, shortage of suitable candidates and concerns over
the UK economic outlook has been detrimental to the overall pace of expansion.

This trend occurred throughout all of England; however permanent job vacancies in the South of England continued to increase at a faster rate than the national average.

Increased Demand in Workers Juxtaposed with Declined Availability of Workers…

Since October 2016 to October 2017 there has been an increased demand in workers across all sectors, in particular:

  • Accounting/Financial – increase of 9.1%
  • IT & Computing – increase of 4.1%
  • Engineering – increase of 3.3%

The problem is compounded by the lack of availability of workers throughout the UK. The sharpest drop in permanent candidate availability continued to be seen in the South of England.

Pay Pressures…

Starting salaries for people placed in permanent jobs has increased further.

The rate of pay inflation has also quickened throughout the UK and was the second-strongest recorded since November 2015. The steepest increase in rate of pay inflation was in the South of England.

Earnings and Inflation…

Average weekly earnings have continued to increase but at a slower pace than living costs. Higher fuel and food costs have been key culprits in the inflation. Combined with the concerns that real pay will continue to decline, there will be further pressure exerted on household budgets and spending.

 

 

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IFAs remain resilient despite rise in robo-advice

Despite the rise in the use of robots as employees in the workplace, IFAs remain adamant that such technology will not replace their human face-to-face investment advice.

Although robots and automation are increasingly infiltrating the financial services industry, experts argue that there are certain matters which robot advice cannot be used for; robo-advice generally focuses on investments which relate more to saving money rather than providing advice. For the sale of financial final products, clients require face-to-face advice…

Additionally, robo-advisers lack the learning and experience which is picked up on the job while working in the marketplace. Robo-advisers also lack the ability to adapt to a client’s response and body-language during meetings…

However, there remains the argument that robo-advisers will save people money and may be appropriate for the absolute bare basic investor. The robo-advisers have proved that they are able to look at volatility in the market and allocate accordingly…

The conclusion appears to be that if people want to pay a low price they’ll choose the robots. Conversely, those wanting  a more detailed report will be willing to pay for a higher price and choose face-to-face advisers…

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FCA Announces that IFAs are to Disclose Esoteric Investment Recommendations

 

The FCA has recently announced that IFAs are to disclose more risky investment strategies which they have recommended to their clients

The FCA’s reforms follows its review of the Financial Services Compensation Scheme (FSCS); from 2013-2016 around a third of FSCS claims were linked to the sale of esoteric investment plans by Advisers.

During the consultation The FCA did not address the proposal that Advisers selling higher-risk products were to pay more towards the money pooled in the Scheme.

However, The FCA has agreed to such reforms as adding a new section to their online reporting system, GABRIEL, for calculating risky future levies. This will come into force on 1 April 2018. Other confirmed reforms include ordering Llyod’s of London to contribute to the funding that comes from retail firms.

A full list of the reforms will be accessible when The FCA publishes its papers….

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Business Quick Stats..

A Snapshot of Statistics from Recent Months

84% of small businesses have no official ransomware policy. Staff are put at risk of cyber attacks….

92% of cyber attacks suffered by UK businesses were targeted at connected devices such as networked security cameras….

5 million working hours are lost every week by small businesses due to everyday IT issues

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4 Qualities Top CEOs Look for in Leadership Roles

Want to make your CV stand out? 4 Crucial Qualities Top CEOs Look for in Leadership Roles!

  • Purpose

The more successful companies strive to make a difference; their focus is not solely on making money.

How can candidates show this?

Their purpose for being hired is more than simply making money and hitting targets…

  • Empowering Employees

CEOs want to hire employees who will have a positive influence on the rest of the workforce.

How can candidates show this?

They are eager to learn, possess critical thinking skills and will empower the rest of the workforce to develop through providing them with learning opportunities…

  • A Bias Towards Learning

A leader in a company must show a desire to constantly learn and develop. Industries and business are forever adapting and changing in relation to market trends, political upheavals, changes in law etc. A leader himself must also evolve symbiotically.

How can candidates show this?

Past academic achievements and experience are vital, but so too must the candidate show relevant future ambitions and plans…

  • Good Knowledge of Social Media

Recruiters frequently spot potential candidates for roles through social media sites such as LinkedIn, Twitter, etc. It is important to make the use of such sites so that your competitors do not fill up vacancies before you.

How can candidates show this?

Sign up to as many social media platforms as possible, highlighting your key strengths on it and putting as many relevant keywords in the post to attract as many recruiters as possible…

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