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  • Eva Keogan
    Eva Keogan

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    Brexit highlights existing skills shortage

    The question of what Brexit will mean for staffing in the financial services sector is a hard question to answer given so little is known of what Brexit itself really means.  What it does do however is dramatically highlight a much broader industry issue – the shrinking talent pool and growing skills shortage.

     

    So how does the industry intend to approach this issue and along with it, the vast considerations and ramifications of impending Brexit?

     

    First, let’s look at the facts. In its 2017 financial services 20th CEO Survey report PwC warns: “New strategies to find and train people won’t be enough. Organisations will have to collaborate with government, educational and vocational institutes and employees to redesign the entire system within which people work.”

     

    77% of the CEOs surveyed, are worried that skills shortages would impede their companies’ future growth. The skills shortage in asset management could certainly be exacerbated by a Brexit brain drain, but it is not a new problem. Automation may take up some of the slack, but PwC’s research suggests asset management bosses don’t want to replace talent with technology, they want both.

     

    Just 16% of CEOs surveyed said they plan to cut their company’s headcount over the next 12 months, and only a quarter of them said this is because of technology. Conversely, 52% plan to hire more employees, if only they can find them.

     

    In an ideal world, the broader talent pool could easily be recruited from the new generation of workers coming out of colleges and universities or further afield from outside of the UK.  As per PwC’s report, financial services and Asset Management might get involved in government-sponsored apprentice schemes, which are traditionally oriented towards manual or vocational trades. Companies could also widen the search and attract graduates at university ‘milk rounds’, lining up alongside Accenture and Goldman Sachs to woo the brightest young minds.

     

    There is one sticking point. The government’s new apprenticeship levy is not going to bring employer investment in skills up to levels seen before the financial crisis, according to the Institute for Public Policy Research (IPPR) as reported in CityAM. There is still a gap to fill and experienced professionals rather than career starters, are what’s needed.

     

    Turn this situation on its head and there is a massive opportunity for people to fill this skills gap and make not just a sideways move, but an upward one into the Asset Management space. It’s highly plausible that professionals from the shrinking world of banking might be able to develop the new skills necessary to move into Asset Management and bring with them new insight and experience, but only if the industry is open to this.

     

    One way to embrace this opportunity is AlgoMe which provides tools for people to tailor job searches to match specific needs and skill sets to potential employers using algorithms and smart technology. Additionally, it provides the access to mentoring and learning support on the platform too, creating a unique and new way for people to manage their careers now and in the future. This means it will be easier to develop new skills and open up new career opportunities.

     

    And so to Brexit.

     

    Post-Brexit the future may not be all doom and gloom for the Asset Management community in London according to a recent report from Investment Week, but reaching any form of understanding or agreement will take time.

     

    Firms may need to focus more on nurturing home grown talent if Brexit stems the flow of skilled people from the EU. Depending on the post-Brexit model with which we end up, there may well be a talent drain as Asset Managers find it harder to recruit or move skilled people between the UK and the EU. There may be expensive administrative headaches and additional costs for many international businesses whose employees travel frequently for work. The other push factor for EU nationals working in London is they may get the feeling that they’re no longer wanted. Any loss of that perception of diversity in the UK may make people want to move, even though the main financial centres of London and Edinburgh voted ‘remain’.

     

    While Brexit and its associated uncertainties maybe top of mind for the business community, especially in the City, one thing is guaranteed – it’s going to take time to work through the structural changes and their implications. For the skills gap however, time is not standing still.  One thing is clear, big opportunities lie ahead for the individuals who are fleet of foot and constantly evolving their skills and experience to meet market demands.



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    • I've been trying to track down details on that statement from the CBI, but I'm not sure they elaborated on what the "unintended consequences" could be - I assume one could be wage inflation due to reduction in the negotiation advantage of the employer.
       
      Whether this is a bad thing is debatable when (by some measures) wage growth has been stagnant in the UK for longer than any time since the Napoleonic wars..
       
      Reality Check: Is pay growth the worst since Napoleon?
      WWW.BBC.CO.UK Reality Check examines the claim that real-wage growth is at its worst since the 18th Century.  
    • How do we solve the the Asset Management industry issues of today and tomorrow?
       
      We think we might just have the answer.
       
      When we created AlgoMe, we set out to empower professionals so they can manage their careers through technology, data and industry insight. With our career management platform, we‘ve delivered this but we know there‘s much more to be done.
       
      The Asset Management industry is in a state of flux. Right now lower fees, higher costs, new technology and increasing regulation, along with changes to the workforce, mean we need access to technology, data and industry insight more than ever before. This is why we‘re taking an exciting step by opening AlgoMe Community, the place that brings the Asset Management industry together to drive open conversation and essential innovation.
       
      AlgoMe Community is a members-only community exclusive to the industry and associated professions.
       
      Membership is free, members are verified and use their own names to create a profile – here are the key benefits:
       
      1. A community for Asset Management
      We have created a standalone space for asset managers meaning discussions and groups are centred around highly relevant areas and get to the heart of issues quickly. We will also be hosting regular events both online and offline to address industry challenges and help our members drive the agenda.
       
      2. Keep your finger on the pulse
      Not sure about Brexit or SMCR? Want to know what the latest research on AI is? The AlgoMe Community gives you direct access to all of these discussions. AlgoMe is working with a number of partner organisations to bring you the latest thought leadership, insights, blog posts and white papers to keep you abreast of the latest trends in Asset Management.
       
      3. Grow Your connections outside of your existing network
      There are a lot of bright minds out there. Over 40,000* people are currently working within the Asset Management industry according to the Investment Association. This number is likely to be 200k+ across Europe with the firms and organisations that make up Asset Management ecosystem. That’s a lot of new connections to make.
       
      4. Grow your personal brand
      Building your personal brand is critical to a successful career. AlgoMe Community gives you a platform to build your credibility and authority among your peers. It’s also easy to start your own blog to get ideas a wider audience and build up a following of other members.
       
      Join AlgoMe Community for free today and connect with the Asset Management industry.
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    • Revolt announced it will be offering ETFs to its customers....
      http://igniteseurope.com/c/2090843/247783/revolut_offering_bound_appeal_investors?referrer_module=emailMorningNews&module_order=3&code=WTI5c2FXNHVibWRBWVd4bmIyMWxMbU52YlN3Z01UQTROemN5TURRc0lERXlNVFV4TkRjMk5EWT0
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