Solvency II… GDPR… IFRS 15…. regulation is impacting virtually every function within the modern business. With a number of new regulatory initiatives fast-approaching – and putting essential strategic processes in the spotlight – commercial readiness has never been more critical. Businesses are turning to their people for the solution, but finding that skills gaps are creating inefficiencies in the race to be compliant. As a result, Oliver James has seen a rise in demand for technical professionals and change management experts who can ensure expedient implementation, audit and assurance processes.
When IFRS 15 became effective (January 1 2018), it created a new era in the regulatory landscape. Instigated to clarify how businesses recognise contract-driven revenue, IFRS 15 was a staple concern for companies in the years preceding the deadline. In the lead up, many businesses considered whether they should consolidate different revenue streams (like licences and upgrades) or whether performance should be viewed separately. The ambiguity has been felt across numerous markets, and those still likely to face disruption are aerospace and defence, construction and support services.
IFRS 15 will drive clearer and more accurate insights on how and when revenues arise which will certainly benefit investors and their returns. On the other hand, failure to adhere will cause serious repercussions.
In much the same vein, IFRS 17 builds on the reporting and transparency around contract revenue for insurance firms. This is set to have a significant impact on the sector, with the readiness requirements revealing various pain points for a number of our clients in this market. It bears clear similarities to the journey faced by many at the outset of IFRS 15 a few years ago. In these circumstances, we often find that businesses do not have the infrastructure or resource required to navigate all stipulations laid out by these complex regulations.
This has had a knock-on effect on the candidate market in that finance, compliance and change skill sets are becoming increasingly weighted towards technical competency to meet hiring appetite. Regulations are now complex and frequent, creating enough scope for people to move away from generalist roles and into niche specialisms where they can add greater value to businesses.
Oliver James has supported many of the UK’s major sector players with recruitment strategies around IFRS 9, 15 and 17, alongside numerous other regulations affecting the broader marketplace. This provides us with unique insight on the different hiring methodologies from one regulation to the other, as well as the talent profiles required to smooth these periods of transition. After the go live of IFRS 9 and 15, we saw steady rise in requirement for post-implementation support and training professionals, and this need is likely to grow as IFRS 17 comes into effect.
About the Author – Charlotte Rigby
Charlotte Rigby joined Oliver James in February 2016, and has risen in the ranks to lead a number of our expert teams, including Finance, Risk and Compliance, Change Management and IT, and Supply Chain and Procurement. As Associate Director, Charlotte focuses on the strategic development of these teams, supporting in their work as the region’s foremost search specialists.
May 8th, 2018