What awaits the compliance job market in 2017 and the years to come? Compliance placement is particularly important for recruiters due to the importance of experience and the shifting nature of the field. So lets look at the current pressures shaping that field, and what they mean for new compliance needs and goals.
To understand where compliance is heading in the future, we need to look at the past. You see, the compliance field has had an unusual era of growth in recent years. Following the financial crisis and new regulations, there was a sudden and ubiquitous desire for more accurate compliance: in fact, it is part of the triumvirate of disciplines – compliance, risk assessment, and legal – to benefit greatly from recession conditions and new banking regulations.
But if all the recent growth and new need for compliance workers is based on a past financial crisis, the obvious question is, "Are we entering into a compliance bubble?" The answer appears to be yes, at least from a very broad perspective. That bubble comes from several sources:
Despite what might be called a regression to the mean, compliance still has several high-growth opportunities to look forward to, thanks to newer market changes that are shifting compliance needs once again.
So, where does compliance look weak? Two important challenges are liability and retention. When we mention liability, we're talking specifically about personal liability among compliance leaders. There are several reasons behind this – one of the more influential was the Yates Memo from the DOJ, which pointed out that the important of individual accountability. Compliance experts, in a move that should surprise no one, immediately took steps to diminish their own personal accountability. But the result was poor for the overall industry. More compliance experts are refusing to take on new jobs or even new responsibilities for fear of accruing personal liability in the process.
The second challenge is retention, an indication of the competition in certain areas of the market. In the active areas of compliance, there's a compensation race to retain or hunt down the most experienced and skilled compliance workers – a race that smaller companies can't really hope to win, at least in the short term. Part of the reason for this battle of retention is that compliance positions are often based in experience, and even when regulations change, past experience in dealing with compliance updates is invaluable. In other words, there's a lot of value concentrated in the average compliance employee, and companies are recognizing that.
Another trend we're seeing is the movement of compliance jobs out of larger cities and into other areas. Of course, this isn't restricted to only compliance jobs, it's part of a larger trend in the past 2-3 years of moving out of expensive cities and into smaller, growing cities and suburbs that may offer relocation benefits to both the companies and its employees...a move that is made possible by the growing amount of distance and home work possible. This is diversifying the areas where compliance jobs are available, while also making them harder to find in big cities. For example, if you live in New York, you can expect compliance jobs to be harder to find, and this is one of the reasons.
However, the trend is also global, which is yielding plenty of questioning and strategizing about regional vs. international efforts. In which country is compliance most needed? Where will the most compliance work be in the coming years? Where is the company moving, and what sort of compliance efforts will be needed in those regions? These questions need answers for the largest companies.
We've talked about current high point and ongoing trends, but what areas can we expect new growth to show up in the coming years? One option is technology, especially when it comes to skill requirements. Companies will have to decide if they want someone with the skills to help create internal solutions, or someone with experience in a vendor platform that they already use. Either way, technology is going to get even more focus in the future when it's time for new compliance hires.
Second, auditing is getting a lot of attention: We're talking about more advanced auditing models among smaller companies that can, for the first time, afford them. Thanks to growing technology and the presence of more talent in compliance, smaller companies can now consider ordering complex risk assessment, mock federal audits, real third-party or internal audits, and so on. This is helpful to both the company and newer compliance workers who need experience in this very thing. With this kind of win-win, expect new auditing goals for small-to-medium firms everywhere.
The question remains: How will compliance regulations shift in the coming years? It's difficult to predict, traditionally, because so much depends on the political climate and what politicians think will be acceptable or have good "optics." At this point, however, we can make a few more solid predictions: One party controls Congress and has a president that has spoken out against regulation in the past. If things do change, it's likely to be toward deregulation, and less need for compliance hires.
However, how this will affect the talent acquisition market is still uncertain. It's tough to predict if this will be short term or long-term change, or if it will event happen at all. When it comes to politics, most firms have a solid "wait and see" strategy regarding any potential regulation. International compliance requirements are expected to keep on growing as well, so firms that intend to pursue global growth will need to pay attention to compliance no matter what happens.