Competition for banking jobs


Competition for banking jobs

A recent survey showed that more people were looking for jobs in London's financial services industry last month than at any time in the past three and a half years. About 11,840 people were looking for banking jobs in April, 20% more than in March and outnumbered the 8,946 finance jobs advertised. The survey also showed that the average time taken to get a new job has increased to almost 57 days in April – up from 50 days a year ago. (The Times, 17 May 2008)

As a result of the sub-prime crisis, financial companies in the United States and Europe have cut at least 70,000 jobs. Experian, the data provider, expects the final could be 240,000 by the end of the year. According to JPMorgan Chase, job losses in London banks may total 40,000 by the year end. Robert Thesiger, the chief executive officer of Imprint, Morgan McKinley's parent company, said: 'Market sentiment and confidence is of paramount importance within the City and there will need to be continued improvements before robust levels of hiring are restored.' (The Times, 17 May 2008)

US-based Citigroup, one of the world's biggest banks, has suffered huge losses as a result of the sub-prime crisis and announced 13,200 jobs cuts since the credit crisis struck and is proposing to close two of its companies – Future Mortgages and CitiFinancial. Bert Pijls, business manager for Citi's UK consumer business said: 'Future Mortgages and CitiFinancial were not identified as areas for strategic growth. We are committed to ensuring that staff who are potentially impacted by these proposals are treated fairly and made aware of all the options open to them.' (BBC News Online 19 May 2008)

See The Times 100 case study on Experian, which provides credit information to banks, and that on Lloyds TSB, an old established bank which recognises the benefits of diversity in its employees to meet the needs of its diverse customer base.

Experian operates in more than 60 countries. It has over 20 years' experience in providing financial, statistical and marketing information to businesses and consumers. Building partnerships with companies is Experian's core business. For example, when banks, credit card companies and other financial services organisations lend money, they need information they can rely on. Lending money involves an element of risk. Experian's information helps them with the decisions they have to take.

The origins of Lloyds TSB stretch back to 1765, when John Taylor and Sampson Lloyd set up a private banking business in Birmingham, England. Over the years, Lloyds Bank expanded through a series of mergers and by 1923 had made some fifty take-overs. In 1995 Lloyds Bank Group merged with TSB Group to form Lloyds TSB Group plc.


The Times Online – Bankers are taking 57 days to get new posts, 17 May 2008

BBC News – Citi move puts jobs under threat, 20 May 2008

The Times 100 – Experian, Entering a new market with a new product

The Times 100 – Lloyds TSB, The business benefits of diversity

Potential Study Questions:

  • Give four pieces of information which a Human Resources Management Department might use to predict how many workers are needed.
  • What methods can a business use to reduce the size of the workforce?