As we approach the end of 2024, I feel optimistic that we may finally be out of the tunnel and into the light! It’s a great message to share at this time of year, especially as some people are still struggling to secure a role. We definitely feel like we’ve weathered the worst.

There’s no denying that the past couple of years have been tough for those in financial services and for those of us in financial services recruitment. Share prices of listed firms in both sectors are down significantly, and redundancies have been widespread. That said, I’m proud to share that at Fram, we haven’t made any redundancies. This is largely thanks to the wonderful clients and candidates who continue to place their trust in us. To everyone who has partnered with us, thank you. As a privately owned, self-funded firm, the journey has been challenging, but your support has made it manageable. We’ve also taken our own advice—investing in colleagues and our brand during downtimes to position ourselves strongly for recovery—and it seems that recovery is finally here. While we specialise in the highly cyclical permanent and fixed-term contract market and feel every up and down, the ups now far outnumber the downs.

Active asset management has been particularly hard hit. There are multiple reasons for this: the industry is somewhat out of fashion, and firms allowed their cost/income ratios to drift during the pandemic. However, for individuals facing redundancy, the cause matters little; the lack of hiring has been terrifying. The constant political turmoil hasn’t helped, either. While I wasn’t a fan of Sunak or Hunt, the recruitment market was recovering under their tenure. However, the recent change in government disrupted this momentum. Mismanaged pre-Budget communication led to a 40% drop in assignments registered with us in the run-up to the Budget. Fortunately, things have rebounded at an impressive pace since then. Recruitment activity has surged, and firms are moving quickly to secure candidates—positive signs all around. Is this a vote of confidence in the Budget? Hardly. I’ve yet to meet anyone who finds it particularly inspiring. Instead, the market’s recovery seems driven by the certainty we’ve gained. After years of upheaval, I think we can all agree: no more elections for a while, please.

Of course, certainty comes at a cost. The prospect of the green belt being developed, super-prisons springing up, and landscapes marred by endless pylons feels dispiriting. In my view, the next few years could be hard to watch - hearing employers demonised or watching wealth creators depart for friendlier environments. Still, I take some comfort in the democratic process. Whether or not I agree with the government’s policies, they have a mandate to implement them. For now, what’s clear is that talented financial services professionals who faced long-term unemployment are finally finding opportunities. It’s often said that financial services enters a recession first and recovers first, and that pattern seems to be playing out now. Borrowing a phrase from our friends across the Atlantic: Wall Street may be okay, but Main Street may not be.

2024 has also been a year of innovation. Wealth management—a standout performer in hiring this year—has seen firms experimenting extensively with AI. If you work in finance transformation, such as implementing new accounting systems, you’ve been in demand. Product development has been another area of focus. While this isn’t the glamorous work of winning new mandates, it’s the crucial, often overlooked task of making firms more efficient and repositioning them for a rapidly changing world. Earlier in the year, we saw tentative signs of recovery in distribution (capital raising), and this is now in full swing. Venture capital, which Fram works closely with, is back on the front foot. Even compliance hiring, which had stalled, has roared back to life. Astonishingly, we’ve even seen firms hiring executives and senior managers again.

If the industry is now in growth mode, it’s vital for firms to recognise that the landscape has changed. Many of us were caught off guard by the slowdown; let’s not make the same mistake with the upturn. While it may take time for this recovery to translate into higher salaries and bonuses, the career options for your colleagues will improve as the market strengthens. Some will stay to see the fruits of their hard work, but others may move on. Competition for candidates will also intensify. Regularly reviewing your talent strategy and employer brand will be crucial to staying ahead.

At Fram, we’ve long supported Teenage Cancer Trust as our corporate charity, and we’ll continue this commitment in 2025. While we’ve always operated across the UK, we’re now handling more roles outside London and the Southeast than ever before. This shift has brought new energy and variety to our business, and we’re enjoying the change.

Speaking of enjoyment, we have our Christmas party this evening. There are few advantages of being self-employed in the UK at the moment. You'd be insane to put your capital at risk daily in the current climate, as many entrepreneurs do, but one of the few advantages is you get to choose your colleagues. So, I'm excited about spending time together later today.

I hope you and your loved ones have a wonderful Christmas. I also hope this newsletter brings some cheer. While it may be too early to declare victory, the indicators we’re seeing point to a much-improved environment in 2025.