Further evidence of a growing talent drought in compliance and risk management came recently in the shape of a new survey that found skilled compliance professionals are in greater demand than ever.
According to Resources Global Professionals’ report, the US Sarbanes-Oxley Act and CLERP9 compliance projects resulted in 77 per cent of respondents being in greater demand and 55 per cent reporting pay increases. The financial services sector is leading the charge.
“The financial services sector has been very active in the roll-out of legislative initiatives. In addition to Sarbanes-Oxley, IFRS and CLERP 9, which many industries are dealing with, the financial services sector has also to contend with Basel II, the demands of APRA and FSR requirements,” Rob Clemesha, managing director at Resources Global Professionals, said.
Other studies on the trend have suggested that with demand for experienced compliance professionals also on the rise in Europe, the US and Canada, Australian firms will struggle to source talent without paying a significant premium.
“Organisations need to harness the skills and strengths of contractors to provide profitable and professional project teams so they can deal with the raft of compliance projects,”Clemesha said.
Resources Global Professionals’ findings echo several other recent reports.
A report from Robert Walters earlier this year found that shortages exist in the areas of compliance, operational risk and audit. The area of financial reporting has also provided a boom for qualified accountants and auditors.
A further study from compliance recruiter Taylor Root, meanwhile, found that a combination of increased regulation and buoyant market conditions in the banking and finance sectors has led to great demand for risk and compliance specialists.
As a result, Taylor Root said, competition is fierce, salaries are rising and premiums are being increasingly paid to attract staff.
Taylor Root also reported that demand is strong across the board, with comparatively equal demand for junior, mid-level and senior positions. Moreover, demand is likely to continue to outstrip supply particularly in the areas of insurance, funds management and research.
Meanwhile, accountants and auditors are also in short supply according to Robert Half International. It reported recently that the shortage could ultimately damage Australia’s broader economy if it is left unchecked. The firm also reported that the first signs of a trend towards hybrid auditor roles due to Sarbanes Oxley in the US are making themselves known. “In north America, the ongoing effort to comply with Sarbanes-Oxley is leading to a hybrid accountant/auditor/IT specialist coming in to deal with that ongoing compliance,” David Jones, managing director of Robert Half International said. “In some ways it is similar to an IT auditor, because all of the compliance work is tied up with ERP systems. Now in North America there is high demand for these people. There has been a switch from demand for compliance readiness to ensuring ongoing compliance. We haven’t seen that in Europe or here, but it is a trend in North America.”