Recent surveys have shown that regulatory concerns are overwhelming for many major corporations. Studies have also shown that demand outweighs supply for compliance officers on in-house legal teams. Put those two together, and know what you get?
Those compliance officers with jobs are getting paid. Or at least they are in the U.K.
The Financial Times reports that the average salary for compliance staff in the U.K. has risen 11 percent in the past year alone, especially as some smaller firms fear that the lack of supply will force smaller groups out of business. According to research from Astbury Marsden, the average compliance officer in the U.K. made £72,166 ($115,956.33) in the past 12 months.
“Compliance staff are working harder and longer hours to meet the regulations, but that is not a long-term solution,” said Amanda Rowland, a partner with PricewaterhouseCoopers, told The Financial Times. Rowland said that the shortage of compliance staff is expected to last another 2-3 years, which means salaries are expected to rise even further.
Of course, this increase in salary comes at a time when many companies are looking to improve their overall risk and compliance standings, especially with the Department of Justice pushing higher self-regulation duties on many major companies. J.P. Morgan Chase, for one, plans to spend an addition $4 billion and commit up to 5,000 extra employees to its risk and compliance division in the wake of the company’s myriad legal troubles. J.P. Morgan CEO Jamie Dimon called risk and compliance the company’s top priority.
And it’s not just C-suite executives feeling the pressure. One Traveler’s survey recently revealed that 63 percent of consumers believe the business world is riskier than ever, and an Accenture survey revealed that 62 percent of companies expect legal risks to rise in the next two years.
For more risk and compliance news from the past week, take a look at these InsideCounsel stories: