Investment volumes may have boomed in the UK and much of Europe last year, but that does not mean that employers have been desperate to put their hands in their pockets and flash the cash.
According to property recruitment firm Bohill Partners’ annual market and compensation review, salaries and bonuses have remained broadly flat since last year as firms are cautious of the late-cycle market in which they are operating.
Bohill managing partner Emily Bohill and partner Thomas Hughes told EG 10 things you need to know to make sure you as an employee or employer are getting your fair dibs.
1. Local expertise in demand
Senior managers continue to be in demand as international players attracted to the UK and Europe for the first time have been looking to get boots on the ground and they want the best people who have been through a number of cycles.
“A lot of capital continues to be attracted to the UK and since the start of the year we have been mandated by a number of new entrants,” says Hughes.
2. Downsides of M&A activity
Fund manager mergers and acquisitions are likely to lead to efficiency savings and redundancies that could cause downward pressure on salaries, although there have not been mass exoduses yet as deals are still being worked through.
“Doubtless there will be experienced people looking for new opportunities. They may struggle to find a similar role in a competitor and that is going to mean that there may well be more of those types of people in the market,” says Hughes.
3. Bringing expertise in-house
A series of factors are keeping capital raisers in high demand. Institutions are increasingly looking to bring expertise in-house as they professionalise, and new players are expanding into alternatives and real estate for the first time.
“Capabilities are being brought in-house in part because of demands from some institutional investors that would rather not be dealt with through placement agents. In order to raise capital, fund managers know they need to bring in experienced, credible people who are specialists,” Hughes says.
4. Push to squeeze value
Fund managers and private equity firms are also increasingly bringing development expertise in-house as they look to squeeze value out of the late point of the cycle.
“It’s happening in part to manage risk of development but also as they can’t just sit and count on capital growth and specialist developers are finding it harder to secure deals that are being taken on by big fund managers,” says Hughes.
5. Rise in alternative finance
Movements between lenders have been relatively subdued but those with development expertise are increasingly heading to alternative finance providers.
“A number of clients in the alternative lending space are seeing opportunities pick up, and are getting more enquiries from blue chip borrowers than they did a few years ago as banks are often not there to deliver it,” says Hughes.
6. Rewarding diversification
Those with experience in alternative asset classes are being rewarded well as investors increasingly diversify.
“It is an industry-wide issue that there is a lack of expertise in alternatives where there is a more complicated revenue model at the heart of investments,” Hughes says.
7. Fight for talent in logistics
The surge of capital into the logistics sector, driven by the growth of online retailing, has been reflected in the jobs market.
“Salaries have definitely gone up on the logistics side and there is a bit of a bubble there and a fight for talent,” says Hughes.
8. Experience is key
The recruitment of non-executives is becoming increasingly common as the industry’s most senior figures increasingly see a plural lifestyle as attractive.
“Demand is definitely growing and there is an awareness that your money can go a lot further [as an employer] and pitch above your weight and get people in who are well experienced and have been through many cycles,” says Bohill.
9. Women making it happen
Women, in particular, are increasingly taking on non-executive roles in order to secure top roles as their career goes on.
“Women are being a bit more proactive in going for non-executive positions earlier in their careers as opportunities are not coming through the old boys’ network and they are going out and making it happen,” says Bohill.
10. Balance and diversity
Companies are starting to get serious about making changes to the balance of their staff at the top level and often explicitly state a preference for female candidates.
“The real challenge comes when there is a lack of supply to answer the diversity piece. We have been drilling down to what clients are really looking for and thinking creatively and putting forward wild card ideas at times and they are becoming increasingly open-minded and thinking hard about what is really required in the role.
“What changes things and is actually really healthy is not hiring the obvious person,” says Bohill.
Main image: Imagesource/REX/Shutterstock
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