At this halfway point in the year it’s a good time to ask Richard Stevens, CEO, Momenta, to share his vision for the future and outline the opportunities ahead.
How are Momenta looking to tackle change in the business world?
Clearly these are challenging times for the business community. From shifting geopolitics to technology to globalisation we can see that successful companies must adapt to - and embrace - rapid change. Change itself can be positive, and for those that have the right plans in place, it means great opportunity. Our 25 years plus of experience in successfully providing highly skilled, experienced, specialist resources to leading professional services, banking and financial services clients means we have a clear view of what the business world now wants – and how we can add value to our clients and associates. If we add value in the right way we create more opportunities for you - our associates.
What overall trends are you seeing in the workforce?
We are seeing two key movements in our market at the moment.
Firstly, there is a greater desire in business to using a contingent – or variable - workforce. Demand is growing at a phenomenal rate and is showing no signs of slowing down. The financial services contractor workforce has increased by 5.5% according to a recent ONS Labour Force Survey. Broadly this is due is to changing global economic and market conditions, skills shortages and a shift in general working patterns.
Secondly, our strategic partners – through whom we primarily work alongside – are adapting their business models. Reflecting the new realities of the financial and professional services industries, they are examining their own structures.
This is potentially good news for companies like ours because these partners need to be able to offer an increased value proposition. Their historic reluctance to contract resource has changed dramatically.
It’s becoming no longer a ‘nice to do’ but a ‘have to do’.
We are seeing this across the board. Many businesses are lean, carry no excess and operating a ‘just in time’/’just enough’ model which means internal resources are stretched. For many, it’s constantly not BAU (business as usual).
The ability to handle ever-changing capacity and workloads has to be finely judged and the most successful businesses will be the ones that utilise variable cost solutions to business challenges.
How does your growth and diversification strategy reflect market trends?
As you’d expect, these changes are driving our growth and diversification strategy: we want to enter new markets and attract new partners. Our challenge therefore is to find new resources and skillsets for the new verticals and territories we are developing.
We want to replicate the growth of our core associate bank that we have in financial services - in new areas. In so doing this will present new opportunities for associates.
What are the key areas of opportunity?
In our core competency of Financial Services, PPI has driven past recent growth but there are other, newer regulatory moves and initiatives – including Plevin - on the horizon that will replace PPI.
The other interesting development that potentially impacts on Financial Services is the banks’ ring fencing: they have to split their business between investment and retail, creating two completely separate entities – each needing its own resources.
Outside Financial Services there are other developments including Data Protection, Orphan Assets (funds accrued belonging to no specific or traceable investor) and other EU and UK specific legislation that will backfill PPI.
As a result we see increased – and more varied – resourcing opportunities available.
What do you think the impact of Brexit will be?
Much has been talked about this of course but no one knows for sure.
We do know that Financial Services is an industry experiencing globalisation regardless of the precise impact of Brexit. Many regulatory moves are US-driven, for example anti-money laundering legislation which has global reach.
One specific factor that affects the UK might well be location: it is unclear how company re-location plans to Europe might practically affect the UK business community.
Even if there are separate EU and UK locations, most of our clients have to meet regulations in both the EU and UK.
How important is flexible work space becoming?
We are seeing many companies not only examining their workforce but also their workspace.
Business is exploring cost efficient alternative solutions to fixed offices.
It means that we too are considering, as part of our diversification strategy, a contingent flexible space proposition alongside our contingent work model.
The significant efficiencies generated if you have a contingent work force in contingent space will mean bigger opportunities for our partners and clients and therefore for our associates.
We are investigating two areas: either taking our own space to offer clients or an enhanced work-from-home strategy.
Will there be opportunities to work at Momenta too?
In adjusting our own business we will need to recruit new internal talent.
New recruitment teams are being created to work in current Financial Services and new markets.
These new areas – including legal services, IT and asset recovery – will need a different, more bespoke, approach from us.
Can you tell us about Momenta’s global expansion plans?
As part of our strategic growth and diversification strategy we are widening our partnership base. We have recently opened an office in Sydney Australia to replicate our proven route to market and are exploring other international territories.
These include entering the Asia Pacific market as their regulatory system is developing apace, or launching in North America where Canada might prove the best way to first gain a presence.
From there we will be able to introduce Momenta into North America. Of particular interest to us is the ability to respond to changes such as any potential reform of the Dodd-Frank Act, FATCA and similar US legislation in the future.
How is Momenta better placed for the future?
In summary, we see growth derived organically - from new markets, verticals, geographies, existing relationships and internal team building.
We have a non-organic parallel strategy based potentially on acquisition or joint ventures.
It is clear that the global workplace of the future is going to be increasingly characterised by a contingent work force – and potentially contingent space - and our business model speaks to both these developments.
By leading the way in creating new business models, Momenta will be more attractive to our client base thereby gaining more contracts.
Our success has always been based on exploring new ways to develop better, stronger, deeper relationships with our clients and associates, delivering solutions as creatively, responsibly and efficiently as possible.
Put simply, we are aiming for a Win-Win-Win situation for all our stakeholders – Clients, Associates and ourselves: the more opportunity created, the more flexibility and more reward there is for all.
It’s a tremendously exciting time.
If you are interested in knowing more about Momenta click here.