MORGAN MCKINLEY LONDON EMPLOYMENT MONITOR
London Employment Monitor December 2015 highlights:
Decrease of 33% in available jobs month-on-month
Year-on-year figures for available jobs showed a 7% decrease
Jobs seekers decreased month-on-month by 32%
Year-on-year job seekers increased by 11%
2015: A Year of Two Halves
The standard year-end dip in employment figures was evident again in December. As in previous years, the Christmas holidays and upcoming bonus season caused professionals to hold off on seeking new opportunities. However, unlike last year, the dip follows months of a disappointing downward trend both in terms of jobs available and the amount of job seekers.
“Over the course of 2015, we saw a tale of two halves,” says Hakan Enver, Operations Director, Morgan McKinley Financial Services. “In the first half (H1), there was a general positive growth in sentiment and an overall appetite to hire. Things took a turn during the summer period, particularly when heading into September, where we didn’t see the anticipated increase in volumes. In fact, numbers decreased even further. H2 almost wiped out the positive H1 six-to-twelve month trend.”
From a jobs availability standpoint, 2015 saw hiring freezes by many institutions as well as scaling back, such as Barclays’ announcement of a 20% workforce reduction in China. With commodities spiralling down and the price of oil approaching $30, commodity hiring has decreased and businesses are reducing their commodity related units.
Hiring sentiments clearly trickled down to job seekers who opted by and large to hold off on seeking new opportunities. Month-on-month numbers continued to fall by a third – an excessive drop. Save for a slight increase from September to October as expected, the general H2 trend has been downward, but year-on-year has fallen by a smaller amount of 11%.
Many of the challenges that have contributed to the lower than anticipated numbers of H2 2015 will continue into 2016 and are likely to impact future trends with varying degrees of magnitude: a market that remains challenged, interest rate hikes in the US and UK, the Brexit vote now anticipated in June/July 2017 and the commodities dip. The debate concerning finance institutions leaving the City is still ongoing and if HSBC decides to move its headquarters from London to Asia, it will take a significant toll on numbers. Despite this threat, the warning of moving HQ has softened, particularly with the ongoing current troubles faced in the Asian markets.
The biggest and perhaps most awaited news event of the year passed without much trouble as the Federal Reserve raised interest rates for the first time since 2006 and many market participants experienced the first Fed rate hike of their careers. The Fed had been careful to communicate their intentions throughout the year and since they did not hike rates in November, it became clear that December would be the month that they did.
“Now we’ve had the hike, the question is what will happen in 2016?” said Enver. “The market’s perception and what the Federal Reserve is communicating in regards to how many rate hikes can be expected in 2016 differ somewhat, so we should prepare for some volatility.”
Bright Spots and a Strong Start to 2016
Whilst H2 2015 was a tough environment for financial services, there were some bright spots. In December, the Bank of England announced the official end of the banking crisis and all of Britain’s seven largest lenders passed stress test assessments, albeit without consistently flying colours. This should pave the way for businesses to commit to their hiring plans for 2016.
From a finance-sector job market standpoint, January has gotten off to a promising start. “Despite a rude awakening to the start of the year from financial markets, we’ve actually had a record number of interviews requested in the first week of January, indicating an uptick could be ahead,” said Enver. “There’s enough evidence to suggest, going into the new year, that we could expect that trend to continue upward for both jobs open and professionals seeking new positions.”
Whilst UK economic growth overall was weaker than expected, in part due to the finance sector and though Storm Eva threatens to shave as much as 0.25% off UK growth, private sector job growth made for a strong year-end finish for the UK economy overall. The upturn, which the Confederation of British Industry’s director-general Carolyn Fairbairn credits to growth in business services is expected to continue into 2016.
The regulators signalled that they are taking a more accommodating attitude to financial institutions, at the very end of the year with the FCA reporting that it would not publish its findings into British banking culture. The move can be viewed as surprising, since the study was one of the regulator’s key aims for 2016. “One can only speculate as to why this statement was made right at the end of the year. Due to the timing, many will have completely missed this bit of news,” says Enver.
Average Salary Change
The average salary change for those moving from one organisation to another dropped considerably to 12% in December. It hasn’t been at this level since October 2013. There is no evidence to suggest this may be a trend, particularly as the month not only proved to show more junior and intermediate level hires being made, but those hires were coming from more support and administrative lead functions. It appears that many banking organisations held back on making offers to those in projects and regulatory aligned disciplines. These areas, amongst others, are what have fuelled a salary boom in the last couple of years, particularly with the necessity to satisfy demand from the regulators, as well as the impact of regulation around the limiting of bonus pools to individuals.
Alice Leguay, co-founder and COO of Emolument.com commented: “Since 2008, when banks saw the value, first-hand, of having effective managers in risk and compliance departments during a crisis, they managed to build up their teams substantially thereby scaling up demand for senior professionals. This is reflected in the high salaries and bonuses paid to managing directors in risk (£75,000 – over three times the amount paid to senior accounting professionals), showing how hot the market for such profiles is. The shrinking of the pay gap between front office and support functions is likely to continue as more of the non-technical tasks are automated and jobs evolve towards highly complex tasks and decision-making, with a direct impact on a financial institution’s strategy and outlook.”
Financial services jobs new to the market December ‘15
Professionals seeking new roles December 2015
Average change in salary each month December 2015
Accounting and Audit Median Bonuses in Financial Services, December 2015
IT & Software Development Median Bonuses in Investment Banking, December 2015
Risk Median Bonuses in Investment Banking, December 2015
Legal and Compliance Median Bonuses, Financial Services, December 2015
Middle & Back Office Median Bonuses in Investment Banking, December 2015
Front Office Median Bonuses in Investment Banking, December 2015
EU Commission sets out new intellectual property action plan affecting SEPs, patent pooling and EU design protection
The EU Commission published a new intellectual property action plan. The action plan, touted as “an intellectual property action plan to support the EU’s recovery and resilience” outlines possible future moves, noting that intangible assets are “the cornerstone of today’s economy”, with IPR-intensive industries generating 29.2% (63 million) of all jobs in the EU during the period 2014-2016, and contributing 45% of the total economic activity (GDP) in the EU worth €6 trillion.
The action plan also notes that the quality of patents granted in Europe is among the highest in the world, and that European innovators are frontrunners in green technologies, and leaders in specific digital technologies, such as connectivity technologies. That being said, the action plan notes that while smart intellectual property (IP) strategies can act as a catalyst for growth, European innovators and creators often fail to grasp the benefits of IP.
The action plan indicates that the Commission is willing to take stronger measures to protect European IP, to increase IP protection amongst European SMEs and to help European companies capitalise on their inventions and creations.
Ambitiously, the action plan also notes that the EU aspires “to be a norm-setter, not a norm-taker” and is keen to seek ambitious IP chapters with high standards of protection in the context of Free Trade Agreements, to help promote a global level playing field.
Some of the key takeaways are noted below.
Unified Patent (UP)
The implementation of the Unified Patent is seen as a priority in the action plan, indicating that it will reduce fragmentation and complexity, and will reduce costs for participants, as well as bridging “the gap between the cost of patent protection in Europe when compared with the US, Japan and other countries”. The action plan also indicates that it will “foster investment in R&D and facilitate the transfer of knowledge across the Single Market”.
With the introduction of 5G and beyond, the number of standard essential patents (SEPs), as well as the number of SEP holders and implementers, is increasing (for instance, there are over 95,000 unique patents and patent applications supporting 5G). The action plan notes that many of the new players are not familiar with SEP licensing, but will need to enter into SEP arrangements, and that this is particularly challenging for smaller businesses.
One area that has garnered a lot of press attention recently relating to the licensing of SEPs, and in particular to businesses that are perhaps not as familiar with SEP licensing, is that of the automotive sector. The action plan acknowledges this and notes that “although currently the biggest disputes seem to occur in the automotive sector, they may extend further as SEP licensing is relevant also in the health, energy, smart manufacturing, digital and electronics ecosystems.”
To this end, the Commission is considering reforms to further “clarify and improve” the framework governing the declaration, licensing and enforcement of SEPs. This includes potentially creating an independent system of third-party essentiality checks, and follows off the back of a pilot study for essentiality assessments of Standards Essential Patents and a landscape study of potentially essential patents disclosed to ETSI also published alongside the action plan.
Modernising EU design protection
The Commission has indicated that it wants to “modernise” EU design protection “to better reflect the important role design-intensive industries play in the EU economy”. At present, the Commission is asking for stakeholder feedback on the options for future reform. Recent results of an EU evaluation show that the current legislation works well overall and is still broadly fit for purpose. However, the evaluation has also revealed a number of shortcomings, including the fact that design protection is not yet fully “adapted to the digital age” and lacks clarity and robustness in terms of eligible subject matter, scope of rights conferred and their limitations. The Commission also considers that it further involves partly outdated or overly complicated procedures, inappropriate fee levels and fee structure, lack of coherence of the procedural rules at Union and national level, and an incomplete single market for spare parts.
Updating the SPC system
While the Commission notes that, following an evaluation, the Supplementary Protection Certificate (SPC) framework finds that the EU SPC Regulations “appear to effectively support research on new active ingredient, and thus remain largely fit for purpose”, it believes the EU SPC regime could be strengthened to reduce red tape, improve legal certainty and reduce costs for business. One option being touted is to introduce a centralised (‘unified’) grant procedure, under which a single application would be subjected to a single examination that, if positive, would result in the granting of national SPCs for each of the Member States designated in the application. The creation of a unitary SPC, complementing the future unitary patent, is listed as another option.
Patent pooling in times of crisis
The EU Commission notes how the pandemic has highlighted the importance of effective IP rules and tools to boost innovation and secure fast deployment of critical innovations and technologies, both in Europe and across the globe, but that it sees a need to improve the tools in place to cope with crisis situations. To this end, the action plan includes proposals to introduce possible mechanisms for rapid voluntary IP pooling and better coordination if compulsory licensing is to be used.
Increasing access for SMEs to IP protection and the introduction of an “IP voucher”
The action plan notes that only 9% of EU SMEs have registered IP rights. It aims to help SMEs better manage their IP and improve their competitiveness by giving EU SMEs easier access to information and advice on IP. Through the EU’s public funding programmes and further rolled-out at a national level, EU SMEs will get financial aid to finance so-called IP scans (comprehensive, initial, strategic and professional advice on the added value of IP for the individual SME’s business), as well as certain costs related to IP filings.
This will happen through the implementation of an “IP voucher”, which is made available in co-operation with the EUIPO, providing co-funding of up to €1,500 for:
- IP Scans: up to 75% of the cost and/or
- registration of trade marks and design rights in the EU and its Member States: up to 50% of the application fees.
SMEs will be able to apply as of mid-January for the IP voucher, through a dedicated website. We understand that the voucher will be provided on a “first come first served” basis.
The action plan also indicates the EU Commission’s intention to make it easier for SMEs to leverage their IP when trying to get access to finance, and that this may be done for example through the use of IP valuations.
EU toolbox against counterfeiting
The EU commission notes that counterfeiting is still a major problem for European businesses and proposes that an “EU toolbox” is set up to set out a co-ordinated European approach on counterfeiting. The goal of this EU toolbox should be to specify principles for how rights holders, intermediaries and law enforcement authorities should act, co-operate and share data.
AI and blockchain technologies
The action plan notes that in the current digital revolution, there needs to be a reflection on how and what is to be protected – perhaps a nod to the recent litigation we have seen regarding whether an AI can be considered as an inventor. The action plan in particular notes that questions need to be answered as to whether, and what protection should be given to, products created with the help of AI technologies. A distinction is made between inventions and creations generated with the help of AI and the ones solely created by AI. The action plan notes that the EU Commission’s view is that AI systems should not be treated as authors or inventors, which is the approach taken by the EPO, but that harmonisation gaps and room for improvement remain and the EU Commission has indicated that it intends to engage in stakeholder discussions in this respect.
There is much to take in from the action plan, and we will closely monitor developments in all of the above areas to see what will be implemented and when.
Tech talent visa sees 48% increase in applications over one year as global founders look to the UK
- Demand for Global Talent Visa applications has increased over two consecutive years since 2018 – up 45% and 48% respectively
- Demand is expected to increase from 2021as, from January, the Tech Nation Visa will be opening up applications to exceptional tech talent from the EU hoping to work in the UK
- 52% of those endorsed for the Tech Nation Global Talent Visa are employees, while 28% of those endorsed are tech founders
- App & software development, AI & machine learning,and fintech are the most common sectors for visa holders. Most endorsed applications come from India, the US and Nigeria
- 41% of Global Talent Visa applicantschose to reside outside of London to work in the UK’s strong regional tech hubs
Today, Tech Nation, the growth platform for tech companies and leaders, launches a new report, which reveals changes in the international talent landscape and growing interest in the Global Talent Visa.
The Tech Nation Global Talent Visa
As the race for global tech talent heats up, many countries have been making their pitch to attract the best and brightest tech talent to grow their tech industries and create jobs. The Global Talent Visa, for which Tech Nation is the official endorsing body for Digital Technology, plays a key role in enabling international tech talent to contribute to the UK economy and to the growth of high priority sectors such as AI and Cyber.
The visa has seen applications increase significantly over the past two years, with 45% and 48% increases respectively. Since November 2018, the Tech Nation Global Talent Visa has received 1,975 applications and endorsed 920 visas from over 50 countries worldwide. Demand is expected to increase in 2021 with the EU coming into the route.
52% of those endorsed for the Tech Nation Global Talent Visa since 2014 are employees at some of the UK’s leading tech firms, helping to fill existing talent gaps, while 28% are tech founders bringing ideas, talent and capital into the UK’s fast growing tech sector. In 2020, the visa enabled 421 founders to set up business in the UK, up from 400 in 2019.
This global talent is distributed right across the UK. 41% of endorsed applicants for the visa are based outside of London, working in the UK’s strong regional tech hubs. App & software development, AI & machine learning, and fintech are the most popular sector destinations for visa holders, reflecting growth in those tech sub-sectors. India, the US, and Nigeria are the top three countries from which exceptional talent has come into the UK with the Tech Nation visa.
A surge in demand and interest
Labour markets around the world and in the UK have undergone profound shifts in 2020. The data released today shows that there has been a 200% increase in the volume of users in the UK searching online for terms explicitly related to ‘UK tech visas’ between April and September 20201. This surge in interest to work in the UK’s digital tech sector is reflected globally too, with a 100% increase in users internationally searching for these terms in countries like the US and India.
Digital tech roles remain in high demand in the UK. Cyber skills are becoming increasingly important within the UK, particularly in regions such as Wales and the East and West Midlands where there has been a huge increase in demand between 2017 and 2019 (351%, 140%, and 86% respectively). Demand for AI skills has increased by 111% from 2017 to 2019, with Northern Ireland and Wales seeing the greatest increases in demand – 418% and 200% respectively.
Minister for Digital and Culture Caroline Dinenage said: “It’s no surprise the UK’s world-beating technology sector appeals to international talent. Our dynamic companies reflect the UK’s long-standing reputation for innovation and are renowned on the global stage. We are open to the brightest and the best talent, and this visa scheme makes it easier for companies across the country to recruit the talent they need to grow.”
Stephen Kelly, Chair of Tech Nation, comments: “The UK is a global talent magnet for Tech founders. The UK provides rich opportunities for entrepreneurs to set up, flourish and scale a business. The Global Talent Visa is crucial to making this process easy and accessible. Tech Nation’s Visa Report shows that, despite the pandemic, international interest to work in the UK tech sector has never been higher. Attracting tomorrow’s tech leaders to the UK is crucial to the continued growth of the sector, the UK’s place in the world, and driving the nation through recovery to growth in the digital age.”
Trecilla Lobo, SVP, People at BenevolentAI and Tech Nation Board Director, said: “The UK tech ecosystem continues to contribute to the creation of jobs and to innovative products and services. The Tech Nation Visa enables the UK tech sector to maintain its competitive advantage by attracting the best talent in specialist skills in tech, research and AI and a more globally diverse perspective to help us innovate and create amazing products and services. As an immigrant to the UK in my late teens, the UK visa scheme has enabled me to bring my experience, expertise and contribute to the people agenda for tech scale-ups in the UK, and helped me build a successful career in tech. I am really excited that the Tech Nation Visa will open opportunities and streamline the visa process for future global tech talent.”
Hao Zheng, Co-founder & CEO at RoboK, based in Cambridge and Newcastle, said: “I decided to work in UK tech because of the well-established ecosystem, world-class research and innovation and the high-level of experience that is extremely valuable for startup technology companies.”
Congcong Wang, Head of Operations at TusPark, based in Cambridge, said: “The UK is a world leading innovation hub, particularly in the fields of AI and Healthcare. Its environment fosters young talent, breeds disruptive innovation and creates amazing companies. Also, the culture of the UK is nurturing and tolerant for innovation, as it is considered a “safe place” for those inspired to take on the more risky route of entrepreneurship.”
Sumit Janmejai, Data-Driven Cybersecurity Professional at Capgemini, based in London said: “Having studied in the UK and worked with UK professionals, I could appreciate the fact that the UK is fast becoming the center of innovation, research and development in the Tech Industry. Besides that, the country offers an excellent life, welcoming culture, and a safe environment. It was an easy choice.”
Are bots eating your Facebook budget?
By Mike Townend, founding CMO of Beaconsoft Ltd
In an increasingly digitised world, social media has arguably become the most powerful and influential tool at the disposal of businesses, both large and small.
With more than 3.6 billion active social media users worldwide today, it is no surprise that many companies view it as an unparalleled means of marketing their products and services to new and otherwise unreachable audiences, as well as an opportunity to better understand consumer demand and habits.
Facebook is often regarded as one of the very best social media platforms for marketers – not least because of its targeted digital advertising service – but many firms using it may not realise just how much of their budget could be being wasted due to ad fraud.
Numerous studies suggest digital ad fraud affects between 10% and 60% of all types of digital advertising, with businesses of every size falling prey to so-called ‘bots’ – automated programs used by scammers to undercut deals, divert visitors or steal clicks.
But how do bots work, how might they be affecting businesses’ Facebook budgets, data and analytics, and what can be done to combat them?
How do bots work?
A report published by security firm Imperva found that bots – both good and bad – are responsible for 52% of all web traffic, while a separate study by White Ops concluded that as much as 20% of websites that serve ads are visited exclusively by fraudulent click bots.
In simple terms, a click bot is specially designed to carry out click fraud – in other words, the bot poses as a legitimate visitor to a webpage and automatically clicks on pay-per-click [PPC] ads, buttons or other types of hyperlinks.
Their purpose is to trick a platform or service – in this case, Facebook – into believing that real users are interacting with the webpage, app or ad in question.
Usually, bots will not just click a link once; they will click it over and over again to give the impression that the webpage is receiving a high level of traffic.
Why is this a problem?
The presence of click bots on Facebook is particularly problematic because they can effectively drain a business’ online marketing budget without many of its targeted ads reaching real users who might have a genuine interest.
There are a number of reasons why click fraud could be used – for example, competitors may employ a ‘click farm’ – a group of low-paid workers or bots hired to click on paid advertising links – or organised criminals may have found a way to profit from clicking on a business’ links.
In other cases, apps and software are created to collect the payout for a company’s ads, often with the help of bots.
Considering the average cost per click in the UK is £0.78, according to Hubspot, with some ad campaigns for popular key phrases running at £10 per click, or even more, it is clear to see how easily this could mount up if a firm’s budget were to be hijacked by scammers.
How might bots affect data and analytics?
Negative click bots have the potential to produce skewed analytics from Facebook advertising campaigns.
Because many businesses are unable to distinguish between fake clicks and legitimate ones, the data that they collect can lead to false conclusions and decisions that could have a detrimental impact on the business. For example, firms may choose to overspend or under-invest on a campaign based on findings that are substantially erroneous.
Businesses must be confident that they are making sound decisions that are informed by reliable data and analytics – and fortunately, there is a way that they can do this.
Taking the fight to the bots
There are a number of methods that firms can use to identify bot clicks, some more straightforward than others.
Frequently checking Facebook analytics for irregularities in traffic that could be attributable to bots can make this task considerably easier.
Specific things to monitor include the average number of page views, the average session time, and the source of referrer traffic – if there are any glaring anomalies in the data, bots could be the source.
Big spikes in page views caused by a higher number of visits than usual can also be indicative of bot activity and are especially dangerous given their propensity to slow down the page for genuine visitors.
Once malicious traffic has been identified, steps can then be taken in blocking it at source, although this is not a simple process and requires technical knowledge and know-how.
After removing negative click bots, companies can take comfort in knowing they are optimising their campaigns by gaining accurate insights that help to increase efficiency, lower the cost per visit, and improve return on investment.
Defeating the bots that are impairing a business’ performance on Facebook is by no means easy, and it requires time and effort to keep malicious traffic under constant surveillance.
Having experts on your side who are well versed in identifying and removing instances of click fraud can help to turn the tide in the battle against bots and ultimately allow a company to make big savings on its advertising spend.
Firms not only owe it to themselves, but to their customers also, to knock these harmful and disruptive programs offline for good.
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