Small investment banks and brokerages in Europe are taking advantage of a hiring freeze and cuts at larger competitor banks, Reuters has reported. They are choosing staff from laid-off workers that are either unhappy about new pay guidelines or unsure about strategy.
Supposedly, some headhunters are saying that those workers still in jobs are now asking more than ever about other vacancies and are more willing to leaving for smaller companies.
John Axworthy, a recruiter at Wheat Search in London, says "People are judging opportunities on their merits. They are more positive about smaller and independent firms nowadays - that conversation used to last 30 seconds before."
In Europe, major investment banks revealed plans to cut over 86,000 jobs in the last year, while a comparable number of positions were slashed in Britain's financial sector since the end of 2008.
Companies are still trying to control costs as business fails to improve. Corporations such as Germany's Deutsche Bank and Switzerland's UBS, are restructuring their business in attempts to adapt to harsher capital rules.
Furthermore, small hiring waves since 2008 financial crisis have not really paid off. Some companies have completely shut down or cut staff, which means that less-established companies are a risk for those not unemployed.
But with bigger banks now cutting for the long term, there may be more room for specialist firms to succeed.
David Silver, head of European investment banking at Baird admits "There are a lot of people looking (for jobs). It's clear that the uncertainty within much of the banking market is destabilizing." He added that "We're sticking to our knitting in terms of strategy and focus while others are distracted."
Most companies that are looking to expand still see the present as the perfect time to hire. Recruiters are admitting that they could be more adaptable when it comes to the amount of starting salaries and bonuses. Smaller companies would also be more willing to offer senior bankers 150,000 pound or $237,000 salaries. After they have gone up the ranks at larger banks, they can receive a salary close to the 350,000 pounds.
The intention according to Steve Starker, co-founder of BTIG, is to "replicate the success we've had in the United States... and take advantage of the current dislocation in Europe at a time when there is a huge talent pool available."
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