Mapping Global Talent: Essays and Insights - Heidrick & Struggles

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Financial Services
Accounting
for talent
Valerie Germain
Financial Services practice
vgermain@heidrick.com
Heidrick & Struggles Mapping Global Talent: Essays and Insights
Over the past two decades young graduates
have been attracted to the challenge and
wealth creation opportunities that have
resulted from an evolving global financial
services sector. The US has been a dominant
source of talent, but several factors have
resulted in an increasing demand for fresh
skill sets and talent from different countries.
These factors include the continued growth
of European markets, a rise in opportunities
across Asia and other emerging markets,
and the growth of a new group of top
financial service firms not domiciled in
the US.
In the future, a number of market risks will rebalance
the opportunities that have existed in this sector. Slower
global economic growth and rising interest rates, credit
defaults and issues stemming from a lack of market
liquidity – following the sub-prime mortgage collapse
– will, in the short-term lead firms to reevaluate their
portfolios, product mix and pace of expansion. A
slowdown in the global property market, particularly
in developed economies, will put financial pressure
on banks that have enjoyed strong returns from real
estate lending. As the economy slows and the debt
markets become less attractive, M&A activities, led
in part by private equity funds, will lessen, causing
investment banks to rethink their ongoing growth plans
in investment banking and capital markets. The sharp
rise in debt associated with leveraged buyouts by private
equity firms will increasingly become a source of risk
to lenders.
To combat this, many banks will continue to diversify
their businesses, strengthen reserves and improve the
quality of loan recipients. A high premium will be
placed on new product development, emerging markets,
and increasingly sophisticated risk management and
transfer techniques. The appetite will be for multi-
lingual candidates with international experience who
possess a strong combination of technical experience
and education.
The Global Talent Index (GTI) shows that the historic
dominance of US talent will continue but also reveals
the rise of several European countries as European
financial services firms emerge as dominant global
players. Over the next five years, it is predicted that
France will leap three places to rank 2 nd behind the
US in the proclivity to attracting talent measurement
– this vital indicator assesses the technical skills of the
workforce, personal disposable income, employment
growth and GDP data. Canada, Germany, Australia and
the UK follow in 3 rd , 4 th , 5 th , and 6 th places, respectively.
Japan will also gain competitive advantage, jumping
from 14 th to 11 th place in its proclivity to attract talent
over the next five years.