RBS and panel firms lock horns over secondees
Tension is growing between RBS and the firms pitching for its legal panel as the bank tightens its secondment criteria and firms struggle to manage their streamlined teams.
While the bank is looking for more secondees to maximise the value it gets from its panel members, firms that have undergone widespread redundancies are finding it hard to commit to long-term secondments. This has been exacerbated by the fact that RBS is now being far more proscriptive about the business areas that secondees will be working in.
One magic circle banking partner said: “Workflow is returning and teams are much slimmer now. At the same time financial institutions are asking for more secondees to help them deal with increased workflow. It’s like the imperfect storm for a lot of firms.”
RBS currently has around 100 secondees on its staff, each of whom will work at the bank for between six and nine months. The bank drafted in more secondees from its panel firms since its takeover of ABN Amro in 2007, with the 500-strong legal department experiencing a massive influx of work relating to the deal, the subsequent government bailout and the sell-off of parts of its business.
The bank defended its stance on secondments, saying that given its legal spend firms should be willing to adapt to its changing needs.
An RBS source said: “We just want to be more clear about what we need and in which area. This is a positive thing for the firms as well, because both sides are clear about what’s expected over the next two or three years.”
Readers' comments (6)
Anonymous | 2-Nov-2009 3:51 pm
Why doesn't RBS hire candidates with the relevant experience directly on short term contracts?
There are some high level unemployed candidates out there!
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Derby | 2-Nov-2009 4:59 pm
I've got to agree with Anonymous. It seems RBS is in the same situation as the law firms themselves, trying to find ways to deal with increased work flow but reluctant to actually hire more people.
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WhoopThereItIs | 2-Nov-2009 5:07 pm
Perhaps because, much of the time, they don't have to pay secondees???
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Gen Y angst | 2-Nov-2009 9:06 pm
It's a sad fact of the current downturn that firm (and businesses) are attempting to, as the above two posts state, do more work with less people to increase their margins. This of course means they are better shaped to deal with any further downturns, but it all seems a bit like trying to shut the gate after the horse has already bolted. Of course the situation is difficult, but this hiring freeze is short sighted. I myself am now going abroad-and likely to stay there- because they are hiring. It is not a case anymore of there being no work.
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Anonymous | 3-Nov-2009 0:05 am
Looks like some firms have made a few too many redundancies then.
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It started with the Tower of Babel.. | 7-Nov-2009 0:40 am
How many more banks are posturing until they reveal they are more likely than not, "Lehmans-types in the wings"?
If they are financially well, then the negative press is something people really need to think about given our recent traumatic year or so.
Sentiment affects investment, unfortunately. Cold hard facts should be the only drivers but even those are becoming more sketchy than ever.
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