INTRODUCTION
The market was back it is best position since the start of the global pandemic. We saw clients not only position themselves to make hires that were previously on hold, but strategic growth plans were beginning as global organisations expanded. Across risk and compliance, talent pools seemed smaller as companies seemed inclined to look for very specific skill sets, companies that were more adaptable managed to secure better quality candidates in a short period of search time.
The importance of relationships with candidates dictated a lot of moves within the industry in Q4. Most candidates in the Luxembourg Risk/Compliance market were limiting themselves to interviewing with a maximum of 2 companies at a time during processes. Having a strong relationship with candidates as a recruiter was important in helping to expand this, to provide advice on searches.
ROLE PROFILES
Risk:
The most prominent positions within Risk in Q4 were Investment Risk profiles with 3-5 years experience (associate/AVP). More specifically candidates that were experienced with alternative investment funds, ideally with multiple asset classes exposure. Key requirements that set apart candidates from the competition were: additional qualifications (CAIA, CFA or FRM), Private Equity and Real Estate asset class exposure, additional language skill (German preferred) and technical ability (programming and data skills).
Next was senior risk managers (head of risk) towards conducting officer level. The majority of profiles that were more attractive to clients were Operational Risk/Investment Risk profiles that have had some AML exposure previously. The AML exposure did not necessarily have to be through work life practice but could have been through AML courses. The rationale for this being an interesting piece for clients was that with smaller organisations you see some employers at senior/conducting officer level having dual responsibilities, i.e Head of Risk and Compliance. It was apparent that candidates that were more hands on with Risk Management as opposed to heads of large teams, that are more leadership focused and managing/co-ordinating large teams were more favourable to the markets needs.
Compliance:
MLRO mandates with previous experience in a similar position or RC role were thriving. The ideal candidates for these positions were candidates that were able to communicate effectively with internal and external stakeholders. Within the communication part, the ability to influence senior business professionals when interacting with Board Members and being able to show clear track record of doing so. The fund side was to be exposed primarily to Luxembourg UCITS funds or AIFs within Luxembourg, candidates who had both were able to attract more attention from clients.
FEES
In a hiring market as competitive as this one, it is important for firms to ensure that the vacancies they are looking to fill are top of the priority list of the external recruiters they engage. As a team with over 25 years
combined experience, and a consistent track record of delivery over the last decade, our team are currently in a privileged position of having a large volume of mandates to source for. It should come as no surprise that higher resource allocation will be given to those mandates which maximise potential revenue. There are three ways for clients to ensure that their roles are being prioritised: higher fee percentages; vacancy exclusivity and retained fee structures.
Higher fee percentages are attractive for firms recruiting on a contingent basis, and in candidate-short markets it’s important that firms are competitive with their peers and rewarding of the recruiters time in cultivating a network through years and years of relationship building in the market.
Vacancy exclusivity (where “exclusivity” = sole agency mandated to source candidates for the position where no agency search has already taken place) ensures that the recruiting firm can take time to provide an in-depth search of the market before presenting tailored shortlists of ideas, knowing that there aren’t multiple other agencies trying to speak to exactly the same people about the exact same job, which cheapens the brand image of the firm. A candidate saying “you’re the third agency who’s contacted me about this role” doesn’t make anyone look good, and can significantly confuse the narrative around a hire, which reduces chances of a successful filling of the vacancy.
Retained fee structures cover the costs of a recruiters’ time, show commitment from the client to filling the vacancy, and cement standards for both sides to be held accountable to during the process. With an up-front fee, the recruiter has been paid for their time up-front, and will prioritise the vacancy over others.
Luxembourg Risk and Compliance current live roles:
- Investment Risk Associate (Private Markets) – Luxembourg
- Compliance Officer Regulatory Reporting (Asset Management) – Luxembourg
- Information Security Officer (Asset Management) – Luxembourg
- Risk Manager (Real Assets) – Luxembourg
- Head of Risk (Asset Management) – Luxembourg
- Head of Compliance (Private Equity) – Luxembourg