Post Brexit part 1 : Time and where to go , Some food for thought.
Between reluctance and pragmatism, most Brits have surprisingly not chosen the latter.
That happens ….rarely in this country’s history. Due to a real lack of information regarding the pros and cons of the European integration process for the UK as a whole and also due to the most successive laid back and/or skeptical ruling parties for years and years since the end of the Thatcher’s era, preference has been given to uncertainty. Something financial markets dislike.
It s now time for “Core Europeans” and Global financial Firms to implement their “Plan B” and prepare the transfer of whoever will soon become irrelevant in the City of London, there are thousands of jobs at stake. Even if this is not the end of the City of London, it is most probably the time for a geographic reallocation of human capital resources for these financial institutions. What is the point of maintaining non UK EU Nationals in the City to deal with their home markets out of a financial platform no longer part of the EU?
Will the JP Morgan , HSBC , SG, BNPP of this world reinvest in Paris and Frankfurt in the next few months? Who really knows. In that light, Continental Europe could show up with a number of compelling advantages to attract top talents. There is actually a huge opportunity to reinforce and upgrade Continental European platforms to welcome or welcome back a number of market operators. Paris, Frankfurt, and even Madrid and Milan as generalist or multi-specialist market places have a lot to offer and will surely have the appetite to attract a proportion of these highly regarded professionals and potential new tax payers back to their respective home countries. Other platforms such as Dublin or Luxembourg have over time strongly anchored themselves in the Investment Management related services industry.
Anyway, the decision of the British people offers a unique momentum for other Europeans to relaunch, renovate and reinvent the Continental European Markets. They have space, real estate, well educated and trained talent, good living standards, lower real estate prices .
They have infrastructure, track record, expertise and could operate in full subsidiarity if they were to go for some kind of resources optimization and international specialization via the development of strong centers of excellence within the European Union. A lot to do? It’s a work in progress!
We are somehow probably writing an additional chapter of the 2008 crisis and this time, the regulator is determined to win the battle. This newly created situation makes it easier within the EU. In this context, the core countries have a role to play and a future to evolve jointly.
Post Brexit part 2: How to Get there. Practical Advice.
If you are an EU candidate currently based in the UK, covering clients in your home country, be quick to ask for your return ticket internally unless you are willing to change job, activity, client base etc .. and/or run to the competition to be among the first to be considered for well suited comparable Continental Europe based positions. It’s not too late. But there is no time to lose as the UK based financial institutions will soon see the so called European passport allowing them to operate in the EU withdrawn. Prepare your move right now and use your summer to take steps and pave the way to your next career move. Compare the living standards of your various geographic options. See your Line Manager, your HR, send you resume to your preferred headhunter in London, Paris , Frankfurt, Madrid, Milan, … and start interviewing ASAP . Take some days off to find a nice place to settle, visit the real estate agencies, check the schools for the kids and start to tell “your qualified nanny” you might not need her next year.
If you are an Institution, assess the costs of transferring large teams or individuals back to their home countries in the EU if relevant.
Check the cost of hiring new blood and local players. Use your competitive edge locally in each constituency of interest in the UE, compare the market places both using objective criteria, don’t spend too much trying to maintain the standards of an ancient world . Exchange terms will change drastically supported by the overall environment. Contact a selection of qualified headhunters and relocation agencies. Be focused . Give precise guidelines to your external recruiters in order to avoid messy situations and overlaps given the upcoming chaos. You’ll have to be quick and determined during summer time to initiate the right strategies to retain and attract the best.
Jean François Monteil, Managing Director Morgan Philips Executive Search Banking, City & Fintech