THE OUTLOOK

FOR 2016

Change Management

Financial Sector Employees | The outlook for 2016

Change management

We have had a positive 2015 in Change Management seeing key market trends linked to new regulations, cost saving and an increase in strategic initiatives as the economy improves. The majority of demand has been at AVP and VP level primarily Business Analyst and Project Manager roles with a continued shift towards permanent hires. Key regulations this year have been:

- Mifid II

- Dodd Frank/EMIR

- Banking Reform Act/Structural reform

The Banking Reform Act is a government led initiative to separate or “Ring Fence” the retail and small

corporate customers from the “Casino” element of the bank including the large corporate, asset management and investment banking areas. This will create two separate banks to protect the retail and small corporate customers. With Banks needing to be compliant by 2019 we have seen a significant increase in the need of project managers and business analysts from a strong regulatory background.

On the Investment Banking side there has been a continued focus on ensuring compliance with regulations such as Dodd Frank and EMIR. OTC derivative and collateral skill set has been in high demand due to the effect of the new regulations on the business and the new clearing processes being imbedded correctly.

As with previous years there has been a focus on streamlining processes and cost saving across Financial Services. Lean and six sigma professionals are in high demand. The aim is to create more efficient processes as well as training staff to adopt a more efficient approach in their day to day roles. Candidates may have financial services experience but equally often come from manufacturing and industry backgrounds where these project methodologies were initiated.

We have experienced a continued increase demand for permanent hires across the majority of our clients. One of the reasons for this is that projects and programmes often have longer life cycles; therefore employers are keen to retain skill sets and knowledge within the company. A number of our clients have formed and increased the size of central project/change teams. This allows them to create a team of change professionals that they can allocate to a number of projects across the bank and ensure they can offer permanent employees long term opportunities. Bringing employee in on a permanent basis also allows companies to create more stable teams with less attrition. Financial Services remains a cost sensitive industry so increasing permanent headcount allows companies to reduce their spend on relatively expensive contractors.

There is still a high demand for the contractor skill set particularly in projects where strong SME knowledge is required such as risk, stress testing and regulatory. The roles tend to be at a senior level and often on a short term basis.

1

Permanent

Role type Analyst (£) AVP (£) VP (£) Director (£)

Business analyst 35,000 – 50,000 50,000 – 70,000 65,000 – 100,000 N/A

Project manager 35,000 – 50,000 55,000 – 70,000 65,000 – 100,000 100,000 – 130,000

Programme manager N/A N/A 80,000 – 110,000 110,000 – 160,000

PMO 35,000 – 50,000 50,000 – 70,000 65,000 – 90,000 100,000 – 130,000

Six sigma black belt N/A 50,000 – 75,000 70,000 – 100,000 100,000 – 140,000

Six sigma master black belt N/A N/A 75,000 – 110,000 110,000 – 160,000

Financial Sector Employees | The outlook for 2016

Change management (cont/d)

2016 Outlook

Looking toward 2016 there will be a continued focus on regulatory changes across our Financial Services clients. Current regulations such as banking reform, Dodd Frank and EMIR will continue to be embedded into the business and new regulations such as MiFID 2 and IFRS9 likely to be a major focus. Project candidates with regulatory, compliance, counterparty and Credit Risk will continue to be in high demand in an already saturated market. Candidates from a consultancy background are sought after by our clients due to their exposure to regulatory changes across a number of organisations, particularly within the initiation and design phase of the regulatory projects.

Towards the end of 2015 we have seen an increase in demand for strategic driven projects such as systems implementation, new product launches and new start up firms entering the market particularly within our corporate, retail and wealth clients. We expect this trend to continue into 2016 as the markets recover and companies look to take advantage. This will result in an increase in demand for strategic and business architecture roles with the view of expanding current business capabilities and a focus on improving the service to the customer.

The retail and corporate banking functions are becoming a core part of our clients strategy particularly UK Banks. As a result we are seeing an increased focus on improved customer engagement and experience. We expect this trend to continue into 2016 with a focus particularly on online and digital platforms as well as improving products to customers such as lending and onboarding processes.

Having seen an improvement in market conditions and recruitment demand in 2015 we expect this to continue into 2016 . We expect to see our clients take advantage of the continued economic recovery and grow in their core markets.

If you would like any further information on our view of the market and candidates or have any questions please feel free to contact us.

2

For more information please contact David Stansfield: t: 020 7776 5959 e: davidstansfield@michaelpage.com

For more information please contact Michael Warren: t: 020 7645 1464 e: michaelwarren@michaelpage.com

w: www.michaelpage.co.uk/bankingandfinancialservices

Temporary

Role type Min (£) Mid (£) Max (£)

PMO support 150 225 275

PMO analyst 250 350 450

PMO manager 450 550 650

Business analyst 350 450 550

Senior business analyst 500 600 700

Project manager 450 600 800

Programme manager 700 850 1200

Six sigma black belt 550 650 850

Six sigma master black belt 650 800 1000