Increased hiring of senior IT Audit and Internal Audit professionals

Andrew Kitchen 16.10.2018

After a slow start to summer, hiring picked up significantly with a particular focus on VP level roles and above. Banks also continue to move resources away from the capital.

Internal Audit and IT Audit recruitment trends

Despite the inevitable lull encountered during the summer break, internal audit recruitment throughout Q3 was pleasantly buoyant. We have noticed a move away from traditional newly qualified AVP level hiring within core internal audit, with a much higher number of VP and director level positions available. Tier 1 banks have hired significantly, but the most notable increase throughout the quarter was within the smaller Tier 2 institutions.

Across IT audit, the majority of hiring was predominantly at AVP levels, providing opportunities for candidates from the Big 4 who are looking to make a first move across to banking. We have also seen several smaller organisations committing to bringing Technology & Change audit in-house rather than relying on existing co-source arrangements.

A number of banks continue to move resources to lower cost centers based in cities such as Edinburgh, Birmingham, Manchester, Sheffield, Dublin, Belfast, Warsaw and Budapest. As a result, there have been redundancies in London.

Healthy flow of jobs at senior levels

The job flow in Q3 was up 14% on the previous quarter, with almost two thirds of these jobs at VP level and above. Particular skills that were in demand included:

  • IT Audit Applications (particularly SME product knowledge)
  • Innovation Technology (around Robotics & AI)
  • Global Markets Audit (predominantly FX, rates and equities)
  • Market Risk Audit
  • Compliance/Regulatory Audit (including financial crime)

Decreased number of professionals actively seeking work

Whilst flow of available jobs was steady, the number of active job seekers was noticeably down at the height of summer; 15% fewer registrations compared to the same period of last year. September did, however, see a strong recovery with the highest number of applicants of 2018 so far.

Despite September’s encouraging numbers, employers need to aware of an abundance of buy-backs and counter-offers preventing candidates from moving.

Top paying roles seen throughout Q3

  1. AVP level IT Auditors - The increased demand for IT Auditors has created competition amongst banks to attract the best talent and subsequently driven up salaries.
  2. VP level Model Risk Auditors - These roles have been paying above the standard bracket in order to bring in true SME knowledge. In certain cases, salaries have increased by as much as 20%.
  3. Director roles - Whilst junior director roles are often filled by internal moves and promotions, those roles that do come to the wider market are typically positioned at the mid-to-senior end of the scale. This implies a need for seniority and technical experience, both of which come at a cost.

Internal Audit jobs available

What will contribute to success for the rest of 2018?

As always, the obvious challenges facing employers in Q4 revolve around bonuses. Candidates at VP level and above may well be expecting significant sums early next year and will, understandably, be reluctant to walk away from the cash pot they’ve been working towards for 9 months. Whilst it’s not always practical, businesses should be aware of this and open to creative solutions if they require someone to start urgently.

With less than six months until the Brexit deadline, and with no clear solution in sight, job seekers are understandably wary of what lies ahead. Employers, therefore, need to address this with prospective candidates and give assurances of stability and display how their business is preparing for life beyond March 2019.

Andrew Kitchen's picture
Manager | Internal Audit
akitchen@morganmckinley.co.uk