Top developers are turning down digital jobs at big banks in favor of opportunities at fintech companies and startup enterprises, according to the latest London Employment Monitor from Morgan McKinley.
Unpacking the ‘interesting shift’
So, what’s behind the phenomenon that FTSE Global Markets called an “interesting shift“? According to Morgan McKinley, there are several factors at play.
Unpacking the ‘interesting shift’
So, what’s behind the phenomenon that FTSE Global Markets called an “interesting shift“? According to Morgan McKinley, there are several factors at play.
- Innovative compensation packages: With the recession in the rearview mirror, many professionals aren’t as focused on monetary compensation as they would have been as recently as a couple of years ago. Smaller firms are taking advantage of this situation by getting creative with their salary packages to make the jobs they have on offer seem more enticing. In one example cited by Hakan Enver, operations director for Morgan McKinley Financial Services, a tech company offered a data developer £60,000 in shares on top of his £60,000 base salary.
- A position at the cutting edge: Big banks are not known for being early adopters of technology, which can be frustrating for a digital guru working at such an enterprise. Smaller companies tend to adapt more quickly, and their willingness to embrace new technological developments is attractive.
- The small business dynamic: Employees tend to have more say at smaller companies – an enticing prospect for tech-savvy professionals eager to share their knowledge and ideas. At big banks, there’s less room to maneuver, and managers eager to adhere to company-wide policies are often less open to suggestions.
As we noted in a previous article, the most recent edition of the KPMG/Markit Tech Monitor UK report predicted that hiring numbers for Q2 of this year would likely dip in comparison to those of the previous quarter due to the fact that many firms were waiting for the general election to pass before launching recruitment efforts. Although the three months prior to May saw employment growth, organizations seem not to have leapt into action fast enough in the wake of the May 7 election, as Morgan McKinley’s figures showed a month-over-month decrease of 20 per cent in professional opportunities in May. However, Enver was unconcerned.
Going to the pub
“It appears as if everyone went to the pub to celebrate that the elections were finally over and by the time they’d recovered it was half-term and time to take the kids to Disneyland Paris,” he said in a statement. “Remember, when it came to days in the office, it was a short month with the two bank holidays. There is definitely an element of ‘If they’re not working, then they are not hiring’ at play in last month’s numbers.”
The Morgan McKinley operations director went on to opine that declaring a reversal of the employment uptick would be premature as growth rates are likely to bounce back as the year wears on.