International Recruitment: Feeding the Celtic-Tiger
Go west young man !
The world is
truly getting smaller. The all-consuming
trend of globalisation is dramatically changing peoples' attitudes to where
they will work and live.
Whereas a job in
a ‘high-growth’ market like the Far East might have traditionally seemed like
an indeterminate exile, it is now a potentially shrewd and enriching step in a
high-flying career.
Rather then
considering why they should travel,
actuaries are now asking themselves the question of why they should
stay. No amount of talent and ability
can overcome a lack of real opportunity in a given market.
Actuaries who
view their potential employer market on a global scale are getting access to an
incredible range of skills and experience with major global financial
institutions. They can expose themselves
to the excitement and energy of a high-growth economy, the business and culture
of a major financial player and the experience of a role that they could not
access in their domestic market.
Mutual Recognition
In addition,
recent mutual recognition agreements were signed by the Faculty and Institute
of Actuaries, the Canadian Institute of Actuaries, the Institute of Actuaries
of Australia and the Society of Actuaries in the US. These agreements will facilitate global trade
in actuarial services, allowing actuaries access to a professional marketplace
on a scale not seen before.
International recruitment as a solution
Ireland’s booming
‘celtic-tiger’ economy has led to dramatic talent
shortages in almost every major industry as institutions struggle to scale up
in order to meet increasing market demand.
The actuarial profession is no exception in this regard. The additional success of Ireland’s
International Financial Services Centre (known as the IFSC) in Dublin has
placed an even greater strain on available actuarial resources.
Domestic and IFSC
based institutions are increasingly turning to ‘international recruitment’ as a
solution.
Finding talent through networks
The key role of
the international recruitment agency is to source talent from abroad.
Once of the main
tools that they use is a database network of affiliates around the world
through which the right talent can be matched with the right roles. It means that the search for talent can be
conducted both quickly and on a broad scale.
This network
consequently enables actuaries around the world to identify and assess
opportunities outside their own local market easily and efficiently. By sharing common practices and techniques,
the networks can ensure that a particular client profile is suited to specific
international roles, resulting in fewer
surprises or potential disappointment for clients and employers alike.
The network
concept has allowed domestic recruitment agencies to gear up their operation
and access the globalisation trend,
whether by finding talent for their own market or supplying talent to
international markets. Indeed it has
become an essential tool for any agency in meeting the demands of
multi-national clients.
Using the internet
The arrival of
the internet has created an additional powerful tool for the international
recruitment agencies. It gives them
instant access to the global market for talent,
a platform from which they can provide an exceptionally quick yet
confidential service and all at a reasonable cost.
By creating well
managed web-sites, the search for talent
can be brought directly to the individual in a non-intrusive and casual
environment. People interested in
working internationally can discretely make their own enquiries and searches
through the web before directly approaching agencies.
By looking at a
given agency’s web-site, people can
assess the type of roles the agency is offering. Such an assessment would cover location, job description and benefits. They would also get a feel for the business
the agency may specialise in. Examples
might be consultancy or contract work or seniority of roles. A good web-site can also give a basic feel –
I emphasise the word basic ! - for the way the agency operates and conducts its
business.
E-mail allows
agencies to update potential clients anywhere in the world on new positions and
opportunities in a fast yet fully confidential manner. Without necessarily wanting to make a career
move in the near term, clients can keep
in real-time contact with the global recruitment market. If something interesting comes in, they can
decide whether to pursue it further.
Is Ireland becoming one big financial services
centre ?
Dublin's
phenomenally successful International Financial Services Centre offers a
location from which a wide range of financial services business can be conducted
with the benefit of a 10% tax rate.
Since it’s creation in 1987,
Irish authorities have shown a commitment to develop this initiative by
implementing an impressive programme of legislative change designed to address
perceived barriers to its development.
This has culminated with the proposed introduction of one low tax rate
of 12.5% for all institutions operating from Ireland (IFSC and non-IFSC based)
in the year 2003, potentially turning the island into one big IFSC !
Big Names, Big Plans
One of the most
striking recent features is the number of ‘big-name’ global financial players
using the IFSC as the base from which to develop their pan-European
businesses. This includes major life and
general insurers, re-insurers and asset
managers looking to sell their products across Europe through partnership
arrangements with local distribution channels.
Growth rates can
be phenomenal. There are many examples
of offices in the IFSC expanding from a starting staff of under 10 to well over
100 within 2 years and some again where the numbers total well over 1,000.
It gives Irish
based actuaries a unique opportunity to get in on the ‘ground-floor’ with
quality financial institutions that have the brand name and financial muscle to
build successful businesses selling into the European market.
Seniority of Roles
While the IFSC
presents opportunities to actuaries of all levels, the number of senior roles being filled is
particularly noteworthy. Fully qualified
actuaries with over 5 years experience are taking up positions such as Chief
Executive, Chief Financial Officer and Appointed Actuary, while actuaries with
up to 2 to 5 years experience are managing sizeable business units. This has been a tremendous opportunity for
Irish actuaries in particular who might have been forced to look abroad in the
past to access such positions.
Remuneration
As the barriers
to travelling come down, salaries go up.
Employers increasingly find themselves competing for employees
interested in working in a variety of different countries and therefore the
company has to take cognisance of salary levels in these overseas markets. And while local conditions still influence,
there has been a noticeable "internationalisation" (upwards!) of
salaries and benefit packages.
And now for something completely different ……
As well as
providing traditional actuarial opportunities, the IFSC has opened up a huge
variety of alternative roles for actuaries working in Ireland.
There is a strong
emphasis on product and marketing innovation through a variety of European
distribution channels attracting actuaries who enjoy the cut and thrust of a
brave new sales environment.
Actuaries who
want to broaden their professional skills base and gain experience in wider
fields have a choice of roles in structured finance, venture capital, asset
management and financial re-insurance.
Knock on effect for the non-IFSC market
The strong growth
of the ‘Celtic-Tiger’ has led to a significant scaling up by domestic Irish
institutions creating even more demand for actuaries of all levels particular
in the product and marketing disciplines.
A good sign of
this growth has been the rise in Irish and international actuarial consultancy
firms setting up offices in Dublin to service domestic and IFSC based insurance
companies. Again, more opportunities for
Irish based actuaries !
Should I stay or should I go ?
Ireland’s
high-growth economy and its strategic position as a platform to develop
European markets offers actuaries tremendous opportunities that they might not
be able to access in their local market.
With the rise in
globalisation, actuaries are becoming
much more critical of the rationale for only working in their own local
market. The ability of international
recruitment agencies to keep in closer ongoing contact through the internet and
e-mail has strengthened this issue.
Demand for
actuaries in the Irish market far exceeds the supply at all levels, providing
great opportunities for both junior student and senior actuary alike.
The next step is
down to you !
Paul Walsh FIA is Managing
Director of Acumen Resources, the specialist actuarial recruitment company