Banking buy-backs have hit the temporary accounting market.

Mon 29 Oct 2007

Banking buy-backs have hit the temporary accounting market.

Buybacks – namely payouts from existing employers to induce footloose employees not to move to a new job – are well established in the permanent accountancy job market, but recruiters say they're now being offered to temps too.

"The buy-back and bidding war that has been prevalent in the permanent market for some time has now spread to temporary workers, contractors and even interim managers," says Steve Forro, of recruiters Indigo City.

According to Forro, the likes of product controllers working on a contract basis, particularly those with exotics experience, often find themselves poached by competing institutions and then offered higher rates and benefits to stay put.

Victoria Walmsley, associate director of Morgan McKinley's finance temporary division agrees. She says hourly rates for newly-qualified Big Four accountants with previous financial services experience can be as high as £35 working on product control in an investment bank, and buybacks typically involve an extra £2 per hour being added to this. "In the current climate there is an expectation that a counter-offer will happen, as opposed to it being the exception to the rule." Like Forro, Walmsley says such offers are particularly prevalent in areas such as product control.

Sensing their strength, perhaps, it seems contract accountants are demanding more than mere financial incentives to stay put. Walmsley says they're also scrutinising things like the 'scope' of the role. Meanwhile, some City firms are reportedly prepared to invest in training temporary candidates in an effort to win their commitment – or nab them from competitors.

Quoted from eFinancial News 12/07/2007

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