Benelux Risk Market Update – Navigating Compensation Trends and Hiring Strategies
In the ever-evolving landscape of the Benelux risk market, firms are treading cautiously, exhibiting a tempered approach to candidate salaries compared to the previous year. This update delves into the prevailing market trends, shedding light on compensation strategies, hiring practices, and the shifting dynamics in the region.
Firms in the current landscape are exercising caution in determining salaries for candidates, displaying a diminished appetite for providing the level of increases observed a year ago.
Rather than deviating from their internal compensation structures, firms are actively adhering to these frameworks.
Notably, strategies such as elevating Collective Labour Agreement (CLA) levels, particularly prominent in The Netherlands, are being employed to address the rising cost of living.
In instances where CLA payments have increased, as seen in The Netherlands, candidates at larger institutions witness a notable uptick in their total compensation. This serves to effectively narrow the gap between their current compensation and the offers they receive.
The modest reduction in hiring activities across Benelux has led to a less competitive landscape for candidates, consequently tempering the aggressiveness of salary increases compared to the preceding year.
Over the past year, large technology companies have emerged as significant challengers to big banks in terms of compensation. Actively recruiting credit risk quantitative talent, these companies are strategically repositioning individuals to focus on developing non-financial risk models.
Big banks, having fortified their capabilities, are now better equipped to navigate key regulatory implementations. This has diminished their propensity to seek external candidates with specific skillsets at a premium. Instead, they are leveraging internal teams, capitalising on past hires, including graduate analysts who have progressed to AVP equivalent levels over the past four to five years.
The global economic slowdown has led to a tangible decrease in expected attrition over the past year. Candidates, prioritising the preservation of current job security, are less open to considering career moves.
This trend aligns with a significant decline in the number of banks willing to hire day rate contractors, illustrating broader shifts in the economic landscape and a recalibration of priorities in banks’ hiring practices.
With institutions tightening on their consulting spend, the big winners have been the Boutique firms that offer a similar level of technical expertise at a much lower price point. This has significantly increased the number of projects won by these firms across the region especially in the liquidity and IRRBB space, where the candidate pools are much leaner.
For tailored solutions to your hiring needs in this dynamic Benelux risk market, contact Peter today. His expertise and insights can guide you through navigating the current landscape and securing the right talent for your team.
Peter Umesi
Director, Danos Group
Head of Risk Analytics, EMEA
