Considering the Sub-prime crisis and the sharp competition along with increases in cost, the banking industry is changing their game. Private Banks of Singapore are growing cautious with how they recruit their staff. Singapore private banks, due to the effects of the sub-prime crisis are taking a look at just how aggressive they need to be in today’s market concerning the recruitment of new staff.
In Singapore, private banks have soared in the last few years. Assets have grown under better management to approximately $500 billion (US) this year alone. This alone has lead to a shortage of staff and lead to a hiring boom for new potential recruits. They will be offered a irresistible salary, plus in order to keep the established employees they will double the their salary. Recruitment firms were barely able to keep up with the demands of the private banks. But, with the economy still in a down-turn, most private banks have reduced their demands on hiring. Singapore, even though is faring well during the economic down-turn, will implement caution when it comes to their hiring practice.
One reason is because of the intense competition and the high cost to recruit exceptional staff. But, with the collapse of the US sub-prime mortgage market, there isn’t a shortage of qualified potential staff. Most US banks, like UBS, Citigroup and Bank of America had to write down more that $45 billion of assets in the forth quarter of last year. These amounts make other losses, like HSBC’s $3.4 billion, and Barclays’ $1.3 billion, and Credit Suisse’s $2.2 billion Swiss Francs, look small by comparison.
Turmoil at many corporate headquarters will affect the aggressive hiring practices in other parts of the world, especially all the banks hit by the sub-prime fiasco. According to recruitment firms, all major banks around the world have stopped aggressively looking for staff.