City firms risk brain drain as staff feel pressure of the credit crunch

A PREDICTED brain drain of talent from London’s financial services sector is in danger of becoming a reality if City firms do not help staff adapt to changes brought about by the credit crunch, new research warned yesterday.

According to a study by recruitment firm Badenoch & Clark (B&C), 77 per cent of financial services staff in the UK are concerned about their professional future, while nearly half are experiencing unusually high pressure at work.

B&C executive director Alison Burgin said the results showed that companies risked losing staff if they failed to look after them amid rapid changes in the industry.

“Workers are facing longer working hours, increased responsibility and fewer rewards. With this comes added pressure and high levels of job security,” she said.

“Unless banking and financial services employers face up to this reality, the sector will be facing up to a brain drain at the precise moment it needs the best talent to rebuild in the post credit-crunch era,” she added.

The study’s findings chime with the latest London Employment Monitor from recruitment consultants Morgan McKinley.

The late arrival of Easter and the bank holiday saw the number of job vacancies fall by 20 per cent in April compared to the previous month, ending three consecutive months of increase.

Managing director Andrew Evans said: “It is clear from these figures that recruitment activity continues to be at reduced levels compared with a year ago.”