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CorporateGovernanceInternal Audit ReportOctober 2016
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Contents
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Overview and IT Audit
General Audit
Geographic Analysis
Analysis by Company and Sector
About Barclay Simpson
About Vacancysoft
About Vacancysoft DataOur data set for this report contains information on 3,000 vacancies. These vacancies were found during normal Vacancysoft operations; duplicates were eliminated and the vacancies were processed according to our proprietary rules.
All of the vacancies in the data set were found between January 2014 and June 2016, and all came from companies that had posted at least one job before the start of that period. Vacancies from some companies were excluded because it was not possible to produce a consistent data set..
We are delighted to be partnering with Vacancysoft to provide insight on recruitment activity in Corporate Governance.
For this report we have analysed advertised vacancies in internal audit, for the ten quarters between Q1 2014 and Q2 2016, identifying any key trends.
I hope you find it interesting and, should you wish to know more about current market activity, please do contact me at [email protected].
Tim SandwellDirector
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OverviewIn this report we have focused on both general and IT audit vacancies. Across England and Wales we found 3,000 vacancies between January 2014 and June 2016. This period includes the run up to the EU referendum, and the first week afterwards. Of those 3,000 vacancies, 87% were for general auditors and 13% for IT auditors. The ratio of advertised vacancies is not representative of the actual percentage of general and IT auditors employed in the economy, which is nearer an 80/20 split. Given this and our insight that IT auditors change jobs more regularly, the most obvious conclusion is that companies are less likely to advertise their IT audit vacancies.
Notwithstanding a fallback in the number of advertised IT audit vacancies in the first half of 2015, the overall trend between Q1 2014 and Q2 2016 has been positive, with the number of IT audit vacancies up almost 50% during the period under review.
The majority of IT audit vacancies were placed by the financial services industry. Within the industry, 55% of the vacancies during the period under review were generated by commercial banks. Half of these vacancies were offered by domestic UK-based banks, with HSBC, Lloyds and RBS the predominant advertisers. Santander was also a major advertiser, with JP Morgan the leading US bank.
Outside of financial services, the other leading industries were Technology, Media, and Telecoms (TMT), Consumer Goods & Services (CGS), and Professional Services. However, all of these industries followed a similar pattern with advertised vacancies peaking in the second half of 2015 and then, possibly in anticipation of the EU referendum, falling back in the first half of 2016.
Vacancy Volumes by SpecialismTrailing Ten Quarters, England and Wales
IT Audit Vacancies in Sectors within FinanceTrailing Ten Quarters, England and Wales
Gen
eral
Aud
it Va
canc
ies
per
Qua
rter
300
350
50
0
100
150
200
250
IT A
udit
Vaca
ncie
s pe
r Q
uart
er
60
10
0
20
30
40
50
2014 20162015 2015
Q4Q3Q2 Q2Q1Q4Q3Q2Q1 Q1
GENERAL AUDIT IT AUDIT
IT Audit Vacancies in Selected IndustriesTrailing Ten Quarters, England and Wales
0
5
10
15
20
25
TECHNOLOGY, MEDIA & TELECOMS
CONSUMERGOODS & SERVICES
PROFESSIONAL SERVICES
Vaca
ncie
s pe
r Si
x M
onth
s
2014Q1-2014Q2 2014Q3-2014Q4 2015Q1-2015Q2
2015Q3-2015Q4 2016Q1-2016Q2
0
5
10
15
20
25
30
35
40
COMMERCIAL BANKING INSURANCE INVESTMENT FINANCE
Vaca
ncie
s pe
r Si
x M
onth
s
2014Q1-2014Q2 2014Q3-2014Q4 2015Q1-2015Q2
2015Q3-2015Q4 2016Q1-2016Q2
IT Audit
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General Audit Vacancies by SeniorityTrailing Ten Quarters, England and Wales
0
50
100
150
200
250
300
350
Vaca
ncie
s pe
r Q
uart
er
Mid-level or lower Senior-level or management
2014 20162015 2015
Q4Q3Q2 Q2Q1Q4Q3Q2Q1 Q1
General Audit Vacancies in Selected IndustriesTrailing Eight Quarters, England and Wales
0
20
40
60
80
100
120
PROFESSIONAL SERVICES
CONSUMER GOODS & SERVICES
TECHNOLOGY, MEDIA & TELECOMS
PUBLIC SECTOR / NFP
Vaca
ncie
s pe
r Si
x M
onth
s
2014Q3-2014Q4 2015Q1-2015Q2
2015Q3-2015Q4 2016Q1-2016Q2
2014Q1-2014Q2 2014Q3-2014Q4 2015Q1-2015Q2
2015Q3-2015Q4 2016Q1-2016Q2
General Audit Vacancies in Sectors within FinanceTrailing Ten Quarters, England and Walest
0
50
100
150
200
250
Vaca
ncie
s pe
r Si
x M
onth
s
COMMERCIAL BANKING INSURANCE INVESTMENT FINANCE
General Audit2,600 general audit vacancies were advertised during the ten quarters from Q1 2014 to Q2 2016. 61% of those vacancies, not hugely dissimilar from IT audit, were placed by the financial services industry. However, during the period under review, the number of vacancies advertised in financial services, as a proportion of the total number of vacancies advertised across all industry sectors, fell.
Vacancies in commercial banking again dominated within the financial services sector. However, they did decline, from an average of 110 per quarter at the start of the period under review, to an average of 85 at the end. These vacancies accounted for almost 70% of all those advertised throughout the period.
Outside of commercial banking the number of advertised vacancies grew slowly but steadily in the insurance sector, whilst vacancies in the investment sector remained broadly stable. Both sectors advertised approximately 15% of the total number of vacancies advertised within financial services.
Growth in general audit vacancies in professional services has been rapid; for the last 18 months the sector has advertised more vacancies for general internal auditors than any other sector outside of financial services. Professional services continue to grow strongly in 2016. The majority of these vacancies are being generated by consultancies looking for general auditors to work in their financial services practices.
The Consumer Goods & Services (CGS) sector has experienced recent growth in the number of vacancies it is advertising. Much of this growth has come from retailers, which together with the travel and leisure groups have provided 75% of general internal audit vacancies in the CGS sector.
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Vacancy Volumes by Region
Vaca
ncie
s pe
r Q
uart
er
2014 20162015 2015
Q4Q3Q2 Q2Q1Q4Q3Q2Q1 Q1
GREATER LONDON REGIONALSOUTH EAST ENGLAND
0
50
100
150
200
250
Year-on-Year Vacancy Volumes for Selected Regions
NORTH WEST ENGLAND
SOUTH WEST ENGLAND
WEST MIDLANDS
YORKSHIRE AND THE HUMBER
EAST OFENGLAND
Vaca
ncie
s pe
r Ye
ar
2014Q3-2015Q2 2015Q3-2016Q2
0
20
40
60
80
100
120
Year-on-Year Vacancy Volumes for Selected Cities
MANCHESTER LEEDS BIRMINGHAM SWINDON BRISTOL
Vaca
ncie
s pe
r Ye
ar
2014Q3-2015Q2 2015Q3-2016Q2
0
10
20
30
40
50
60
70
80
Geographic Analysis London has been responsible for the majority of advertised general audit vacancies in the period under review, contributing 62% of all vacancies. However, whilst the number of vacancies advertised in London has remained relatively flat, averaging over 180 per quarter, advertisements in regions outside of London have been increasing and proportionately accounting for a larger percentage of the total. This would be consistent with the financial services industry increasingly looking to relocate support functions away from London to regional centres.
The second most important region in the UK for advertised general audit vacancies is the South East. Although there have been quarters when the number of vacancies has declined, the overall trend is clearly positive. A recent burst of growth has resulted in 16% more advertised vacancies in the first half of 2016 against the first half of 2015 and more than double the number of vacancies against the first half of 2014.
However, it is the remaining regions of England and Wales where the vacancy growth has been most striking. Taken together they accounted for the largest proportion of growth in the number of vacancies between the first half of 2014 and the first half of 2016. In fact, year on year growth in the North West, South West and Wales and the West Midlands was up 65% in the last year.
On a city by city basis, Manchester is the standout winner, with Leeds showing a rather surprising fall in the number of advertised vacancies. On closer analysis, vacancies from RBS and BNY Mellon have been particularly notable.
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Analysis by Company and Sector General Audit Vacancy Changes in Selected Large Companies
IT Audit Vacancy Changes in Selected Large Companies
Vacancy Changes in Selected Sectors
COMPANYYear-on-Year
Change (%)
RBS -68
HSBC -18
JP Morgan Chase 78
Citi -30
PwC 62
Nationwide 23
Deloitte -11
Lloyds -37
COMPANYYear-on-Year
Change (%)
JP Morgan Chase 133
RBS -25
Lloyds 300
Santander -67
Tesco -56
Deutsche Bank 14
Barclays 14
PwC 220
SECTORYear-on-Year
Change (%)
Commercial Banking -14
Insurance 29
Investment Finance -24
Accountancy -12
Retail 16
Telecomms -21
Consulting 400
Travel & Leisure 38
From a total of 3,000 vacancies, 530 companies placed at least one audit advertisement during the period under review. The financial services sector dominated and, perhaps not surprisingly, is disproportionately biased towards larger groups. Seven of the top ten advertisers were major banking groups. However, the sector with the largest year on year increase in the number of advertised vacancies was consulting, which grew by 400%.
The same pattern, of a few large financial services employers being responsible for much of the market, is seen both for general audit and for IT audit vacancies. Within this pattern, individual employers can show a great deal of variation from year to year. For example, RBS, Citi, and Lloyds have all offered at least 30% fewer general audit vacancies in the last four quarters than in the previous four quarters.
Within general audit, JP Morgan has recently demonstrated the highest growth with many of its recent vacancies focused on investor services or its European business. Outside of financial services, PwC has demonstrated the highest year on year growth and is continuing to grow.
Lloyds has recently demonstrated the most growth within IT audit. Advertised vacancies have focused on infrastructure, security and operations. PwC again demonstrated the highest growth outside of financial services.
Within financial services, the insurance sector is demonstrating strong growth, whereas both commercial banking and the investment sectors have advertised fewer vacancies. In the insurance sector, it is larger groups such as Aviva, AXA and Prudential who have placed the highest number of advertisements.
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About Barclay Simpson
About Us
Barclay Simpson is an international corporate governance recruitment consultancy specializing in internalaudit, risk, compliance, security & resilience, business continuity, legal and treasury appointments. Established in 1989, Barclay Simpson works with clients in all sectors throughout the UK, Europe, Middle East, North America and Asia-Pacific from our offices in London, New York, Dubai, Hong Kong and Singapore.
For further information about our services or to arrange a discussion with one of our consultants, pleasecontact Tim Sandwell at [email protected]
BARCLAY SIMPSON
Bridewell Gate,
9 Bridewell Place,
London EC4V 6AW.
Tel: 0207 936 2601
www.barclaysimpson.com
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