BWD H1 2021 Confidence Index

BWD CONFIDENCE INDEX H1 2021 INTRODUCTION PENSIONS & INVESTMENT SALES & DISTRIBUTION ACTUARIAL REGULATORY, RISK & COMPLIANCE WEALTH MANAGEMENT At the start of this year, we introduced our Confidence Index, which is a visual aid to show whether hiring trends are up or down as compared to 2019 averages. We looked at data relating to new assignments, 1st interviews and job offers as these are the best indicators as to whether clients are hiring, and to overall levels of confidence in the sector. As we move into H2 2021, we thought that now would be a good time to reflect on how recruitment markets have fared in the first half of the year and to share some analysis with you from our specialist desks. As recruiters, we often take for granted the details that we pick during our day-to-day activities, so this is an opportunity to share some brief insights into what is happening in the FS market from a hiring perspective. Look out for our more detailed sector-specific analysis which we will share with you shortly. 200% 180% 160% 140% 120% 100% 80% JAN-21 FEB-21 MAR-21 APR-21 MAY-21 JUN-21 1ST INTERVIEWS OFFERS MADE NEW ASSIGNMENTS 2019 MONTHLY AVERAGE BWD | CONFIDENCE INDEX | JAN - JUNE 2021

PENSIONS & INVESTMENT In 2020 the pension market like many sectors focused on retention and stability rather than growth, particularly amongst the consultancies. However, since the turn of the year the sector has come back with a vengeance! This has resulted in a talent crunch at part and newly qualified level, which has led to an increase in aggressive counter-offers as firms fight to keep a hold of their staff. In pensions admin the story is similar, the biggest growth area has been in the search for senior pensions administrators. Firms have focused on recruiting talent that can work independently from home. Flexible home working can be a real differentiator when commuting time and costs are taken into account, and those firms who are not offering the same flexibility are struggling to recruit. In Investment Consulting, the volatile market has led to a significant increase in demand for advice which has resulted in double digit revenue growth on average across the sector, which inevitably has seen an uptick in demand for talent to support the increased workloads from new and existing clients. SALES & DISTRIBUTION ACTUARIAL Activity in 2020 was quiet for S&D, as most firms accepted that Demand for Actuaries in 2021 has surpassed 2019 levels, and one of the new business was hard to come by and focused their energy on biggest reasons for this is that businesses performed better than expected existing client relationships. in 2020, and therefore had not maximised their hiring budgets leaving a In contrast H1 2021 has been remarkably positive with a surge in need to hire and grow. As a result, we have seen a significant increase in activity which is a great barometer of industry confidence and an the number of new assignments especially in Q1. insight into how clients are performing. Another reason is the higher than usual demand for pricing expertise, 60% The indicators are that H1 has been largely positive, with some of all of the new assignments we have worked on since the turn of the year strong performances which has led to growth. Interestingly 70% of have been within pricing, both life and non-life, as consumer demands and the roles we have worked on this year have been created due to buying habits mean firms need to understand and carry out effective pricing growth and only 30% replacement. There has been an even spread modelling. of roles across all areas of the BDM sector, whereas in 2020 it is We expect the Actuarial market to continue to be buoyant for the remainder was virtually all in the DFM space. of this year and thereafter as there are no signs of the markets regressing at this point. BWD | CONFIDENCE INDEX | JAN - JUNE 2021

REGULATION, RISK & COMPLIANCE BWD Search & Selection 0113 274 3000 There has been a gradual upward trend in metrics since January 2021 to the end of June, with the number of new assignments and 1st interviews reaching a peak in May, along with the most number of jobs offers [email protected] extended in June. www.bwd-search.co.uk A noticeable observation is the increase in demand for interim/contract staff during H1 in the RRC sector, this can be attributed to a number of things, but a higher demand from clients, and a low supply of good talent has meant clients have had to be creative, and where they would have ordinarily looked to make a perm hire, they have had to consider interim as alternative. We have also seen clients going the extra mile to secure the best talent, this has included extending higher offers and moving more quickly, as candidates quite often have more than one offer to consider. WEALTH MANAGEMENT A very strong start to the year. All metrics up and job offers 30% higher than the 2019 average. During H1, the appetite for firms hiring and candidates moving was noticeable, it feels like confidence has returned to the sector, which has led to a surge in vacancies. We have also noticed that there has been a shift in the geographic focus from London to the regions, where we have seen a record number of hires, fuelled by several large firms opening new regional hubs. In summary, a very positive H1 within Wealth Management and, whilst we undoubtedly face a bumpy road ahead, economic indicators and market sentiment point to continued growth. BWD | CONFIDENCE INDEX | JAN - JUNE 2021