Navigating the Challenges of Hiring in Compliance and Risk

Compliance and risk have long been some of the most challenging areas to recruit for, especially at senior levels. Demand for talent in these sectors consistently outstrips supply, making it a competitive and complex space for employers. In this blog, I’ll break down why hiring in compliance and risk is so difficult and offer key insights for companies looking to attract top-tier talent. To get a deeper understanding of these challenges, watch the accompanying video with Paul Smyth of Nexus Search, where he discusses the intricacies of executive hiring in compliance and risk.

The Talent Shortage in Compliance and Risk

For nearly 20 years, the compliance and risk sectors have been some of the most competitive spaces to recruit in. The talent pool is limited, and companies regularly struggle to find the right candidates, particularly for senior positions. This scarcity is driven by several factors.

After the financial crisis, the demand for compliance and risk professionals increased dramatically, as regulatory scrutiny intensified across all financial services sectors. However, before this shift, the number of professionals in these areas was relatively low. As regulatory demands have continued to rise, the pool of experienced professionals has struggled to keep up, leaving companies competing for a small group of highly sought-after individuals.

Watch the Video

For more on how to effectively navigate hiring challenges in compliance and risk, watch the video featuring Paul Smyth of Nexus Search. Paul shares his expert perspective on how to approach the hiring process in a highly competitive market, and the importance of trust and strategy in attracting top talent.

Why You’ll Pay a Premium

If you’re in the market for someone with senior-level experience in compliance and risk, particularly in sectors like VASP, MIFID, or EMI, you should be prepared to pay a premium. These are regulated positions that often require candidates to hold one or more Pre-Approval Controlled Functions (PCF) from the Central Bank of Ireland. Because of the increased responsibility and the necessary experience, finding someone who can meet these stringent requirements is a challenge.

However, paying that premium is not just about securing someone who ticks the regulatory boxes. You need someone who can navigate the PCF process with the Central Bank and who is of sufficient calibre to manage compliance and risk at a senior level. In many cases, this will involve hiring from a small, highly experienced talent pool, and that will naturally drive up costs.

The Importance of Trust in the Process

Hiring for compliance and risk is not just about finding someone with the right qualifications—it’s also about understanding the nature of the people in these roles. Compliance and risk professionals tend to be risk-averse by nature, which makes sense given their job function. They are naturally cautious and often sceptical of new opportunities, making it difficult to attract them into new roles without building a strong foundation of trust.

The compliance and risk community is also incredibly tight-knit, where most professionals know each other. Therefore, when someone does receive an approach for a new role, the trust factor becomes critical. If that approach comes from someone they know and trust, they are much more likely to engage in a conversation about the opportunity. This is where working with a trusted executive search firm like Nexus Search becomes invaluable.

Approaching the Market Strategically

To successfully hire in compliance and risk, companies must approach the market with a realistic mindset. You need to be aware of what’s available, what you’ll need to offer in terms of compensation and benefits, and how long the hiring process might take. A rushed process, or one that doesn’t account for the specific dynamics of the compliance and risk community, is unlikely to result in a successful hire.

Moreover, working with a partner like Nexus Search, which has built long-standing relationships within the compliance and risk space, can make a significant difference. As Paul Smyth, Managing Partner of Nexus Search, mentions in the video, that trust is key to starting meaningful conversations with potential candidates in this close-knit community.

Conclusion

Hiring in compliance and risk is challenging, but with the right approach and understanding of the market dynamics, it’s possible to attract the top talent you need. Be prepared to offer competitive compensation and work with trusted partners who know the industry inside and out. At Nexus Search, we specialize in financial services executive search and FinTech executive search, with extensive experience in finding the right talent for senior compliance and risk roles in Ireland.