One of the biggest markets for freelance workers in the UK is the financial services sector. Currently there are 176,000 temp and contract workers in the City and elsewhere in the country, and it is expected that the number will grow at the rate of about 25% each year.
Who Are These Contractors?
Increasing dependence on contractors in financial services has made these companies more conscious about knowing who the contractors are who are working on their mission-critical systems. Gone are the days when an agent can phone up and just send a contractor over without any vetting process.
''On the contrary,'' says Alexandra Kelly, managing director of the London-based employment screening firm Powerchex, ''banks and insurance companies are now creating pools of pre-screened contractors, and actually waiting for the pool to complete a project before starting another one. They know that this slows productivity, but they'd rather have people they know at work on their systems than unscreened contractors.''
Get the CV in Order
This does not mean that financial services providers are not hiring more contractors; actually demand is rising in the sector. But contractors will have to expect their CVs to clear an extensive vetting process before they can go to work.
''Contractors now need to get their CVs in order,'' Kelly insists. ''You simply won't get the benefit of the doubt anymore, no matter how badly your skills are needed.''
Recent high profile cases of misplaced or stolen personal data have increased pressure on financial services providers to control the risk of fraud. The Financial Services Authority, UK watchdog for banks and insurance, has stated that there is evidence that organised crime is deliberately targeting such firms to place contractors to commit financial crime, particularly identity theft. The FSA is warning companies in financial services to vet staff carefully before confirming their appointments or before engaging contractors.
The trend is reaping results. Powerchex research shows a turn-around in the trend in applicant fraud. It recorded a 18% drop in major discrepancies on CVs and applications submitted between July 2006 and June 2007 when compared to the same period the previous year.
Contractors need to get their CVs in order or they will not go to work in financial services
Alexandra Kelly-Powerchex
Keep Good And Accurate Records
This indicates that more stringent vetting procedures are at last having an effect, not only in catching dishonest applicants, but also in getting contractors and permanent employeesto do their CVs properly in the first place.
Contractors will be asked to give permission for an extensive vetting process, and they will be notified of how the information is to be used. ''Everything will be done in conformity with the Data Protection Act, but contractors who want to work in the sector will have to agree to a substantial and intensive vetting, including references from previous employers, personal references, possibly even including due diligence on contractor companies,'' Kelly says.
Contractors do not need to make any special effort in this regard. ''Just make sure that all the dates are right, that the person you reported to is listed, and that, above all, nothing is left out, no matter how short a contract it was,'' Kelly explains.
Contractors should keep good records to facilitate the vetting process
Alexandra Kelly-Powerchex
Kelly also suggests that contractors keep as much proof as they can of previous work, including contracts, notes, email, pay slips, etc. ''Keeping good records will facilitate the vetting process for financial services providers--they can use your records to obtain quicker responses.''
Published: Wednesday, August 08, 2007
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