Auditors in hot demand in Singapore

With the increasing regulations being imposed on the banking industry, banks are now facing a shortage of candidates for internal audit roles.  Its not everyones cup of tea but it does offer good job security and a healthy compensation package.  Unfortunately, you're often the person people hate to hear from and avoid your calls!

http://news.efinancialcareers.com/uk-en/167348/shock-banks-singapore-target-front-office-candidates-back-office-roles/

HK bankers get stress compensation - should Singapore bankers get the same?

I might be biased but I think Singapore workers deserve a share of any stress compensation thats getting paid out. HK definitely has tough working conditions but Singapore is fast catching up and isn't too far behind. However, the answer lies in addressing the root causes of the increasing stress levels rather then throwing more money at the problem.  Senior management in both locations need to find solutions to excessive long working hours, capacity constraints and a disengaged workforce.

http://www.scmp.com/business/banking-finance/article/1433887/hong-kong-bankers-paid-extra-compensate-stress

Just how is your bonus calculated if you work in Operations?

According to efinancialcareers’ banking bonus survey released this week, global bonuses increased in 2013 by 29% compared to the previous year.  With London leading the way with a 30% increase on 2012, HK and Singapore fell to the wayside with a 3% increase and 2% decrease respectively.  Analysts have commented that the success of the top investment bankers in London has skewed the results whilst many are left disappointed again with their share.

So, with the top bankers taking the lion’s share, where does this leave Operations staff in Asia.  Investment Banks are still recovering from the recession years where job cuts and “doughnuts” (zero bonuses) replaced the traditional year-end windfall.   Speaking with staff at some of the large US investment banks, revealed that bonuses are steadily increasing again but still some way off the heady days where 3-4 months pay were common for the higher performers.  However, those types of figures can still be found at select asset managers and high performing hedge funds, offsetting the traditionally lower base pay.

Depending on where you work, unless you are at VP or above, you probably don’t know how your bonus is calculated.  If you’re a departmental manager, then you might get to help rank your employees, which your senior management will then use to start dividing the bonus pool.  The process will never be 100% transparent until you reach the very top but below are some the steps taken in the compensation process prior to the announcement on “Comp Day”.

•  Your firm will set aside money for the compensation pool on a monthly or quarterly basis.  The bonus pool will only be finalised once Q4 results are known and this will then get divided up between the different departments, often based on performance.
• Front Office will always get the largest tranche, with Operations competing against IT, HR etc. 
• The HR department will review market trends, surveys, and competitor’s figures to ensure that your remains competitive.
• The Operations senior management team will then look at a number of factors including personal performance.  This is where your manager has an important say but you should not be overly surprised at the amount in question.  Good managers will manage your expectations through 1-on-1 meetings in the latter half of the year.
• Historically, everyone from Analyst through to Managing Director would get something but the last five years re-introduced the zero bonuses, serving as a slap in the face to the more experienced staff.  It wasn’t uncommon for 25-40% of Operations staff to receive nothing during the particularly bad years.

When it comes to bonus day, if you receive disappointing figures, then it’s not the time nor place to start disputing and venting your frustration.  Your senior manager will have a busy and stressful day to get through and will only have time for a few minutes with each person.  The best way is to communicate your disappointment and ask for a meeting on a later date to discuss why you received what you did.  And never forget the number one rule – do not discuss your bonus with your colleagues, nothing good ever comes from it.

Bonus payments in good years naturally increase morale and reduces attrition, but don’t think you have to jump ship just because it didn’t meet your expectations (more on when to move firms in a later article).   It should only be one factor to consider and I always found it best to view a bonus for what it is; a bonus.  The moment you start relying on it is the moment it becomes an overriding factor in making a potentially ill-fated decision.  Enjoy them in the good years and miss them in the bad years!

Hong Kong – the best place for contract banking roles?

In a survey of 25 job markets carried out in January by Manpower Group, Hong Kong ranked as the best place for employing contractors, based on factors such as talent availability, labour regulation and productivity. 

Historically Hong Kong was never seen as an attractive location for contracting roles.  Up until a couple of years ago, contractors’ pay would lag behind permanent employees and companies wouldn’t grant them the same health and vacation benefits.  There was also a shortage of suitable talent as the term ‘contractor’ was still viewed negatively amongst the market despite the obvious the flexibility it creates for both parties.  This is now changing with wages reaching parity and the benefits afforded to contractors being on par with permanent employees.

With most firms still under headcount constraints, employing contractors allows firms to retain capacity without eating into headcount costs and obtaining signoff from head office.  The increasing regulation around Dodd-Frank, FATCA and Basel III is creating a wave of short-term assignments to help get firms ready for impending compliance dates.  With the Hong Kong market changing its mindset, this is a win-win for both employers and budding contract staff.

This report is based on an article originally published by efinancialcareers - click here to read

Key traits of successful Operations staff

Often referred to as a ‘back-office role’, Operations is the engine room of an investment firm and the success of its staff has a huge impact on the overall efficiency and cost to the business unit.  With over 10 years hiring experience in Operations, I’ve been able to narrow down the 4 key traits that successful hires display, or should at least develop within their first 12 months. 

Attention to detail

With most roles requiring a high degree of processing, attention to detail is a basic but critical skill to master.  When working in investment banking you’re often dealing with large numbers containing far too many zeros for your liking, handling legal contracts where one omission could cost thousands, or settling payments larger than your parents house.   Getting something wrong here can have a huge impact on your traders’ PnL so you want to ensure a high degree of accuracy.

Customer service

Not all Operations roles are directly client facing but all are customer facing in some way, whether internal or external.  New employees need to be able to confidently work with other internal teams and see them as their customer.  If you are facing off against external clients, then you have the ability to make or break a firm relationship across a range of products.  At the end of the day, the same customer service skills can be applied in both an investment bank and a retail store.

Initiative

In order to develop from just an efficient processor into more of a change agent or future leader, you need to show initiative in your role.  This is one of the most important skills to display if you want to move into management.  New scenarios, or curveballs as I like to call them, can pop up at anytime in banking and there’s not always a procedure or precedent to tell you how to handle it.  By understanding your product, process and systems, and then applying some initiative, you should be able to resolve most incidents with no operational risk.

Risk Management

Almost everything you do, in any role in banking, has a risk element to it.  Understanding operational risk, how it fits in to your role, and what you can do to reduce it, is critical to your success.  If you’re unsure, ask your manager to explain the key risk areas for your team but it's crucial to understand how your actions can increase or decrease operational risk.  As a manager, this will be one of your most important responsibilities.  Key risk areas could be trade booking errors, incorrect or missed payments, legal document oversights, or poor client service.

Hiring candidates who fulfill the above criteria doesn’t guarantee a successful employee but your odds of success will be greatly improved.

Welcome to Asia Banking Insider

Welcome to the first post on Asia Banking Insider.  This blog will provide you with an insight into working in investment banks across Asia and will cover topics such as market updates, recruitment, learning and development, and company news.  Some examples include:

•         Recruitment trends
•         Outsourcing
•         Regulatory updates
•         Market commentary
•         Training and career progression
•     Banking operations

The opinions expressed are gained from my 15 years experience within investment banking operations in 3 continents and as a corporate trainer in Asia.  I’ve been fortunate to work for some of the largest investment banks and also for a global investment manager so have seen both sides of the industry.  My involvement in recruitment, outsourcing of departments, together with my corporate/financial training experience, has given me great exposure to an often under-appreciated part of the market.  I’ll also be covering recent developments in the OTC derivative markets; an area I was previously heavily involved in.

Your participation is welcome through comments on the blog posts or using the contact form with suggestions for future posts.  I look forward to hearing from you!