Robert Walters Australia, Banking & Financial Services Market Update -- Q1 2011

Uploaded by RobertWaltersPlc on 03.05.2011

bjbjm KEY TOPIC AREAS TO BE DISCUSSED Overview of Q1 Industries that were busiest in Q1 Professionals
that were most in demand in Q1 Salary movements in Q1 Outlook for Q2 Overview of quarter one
Hiring increased across most markets in the second half of the quarter after a relatively
slow start Some markets experienced candidate shortages, while the wealth management sector
led hiring throughout most regions Adelaide January started slowly due to holidays, February
and March saw greater demand from employers and interest from job-seekers Hiring activity
increased across all market sectors, including retail, business and commercial lending, wealth
management and new business development due to a return in business confidence and a freeing
up of banks credit guidelines to encourage further infrastructure growth As the quarter
progressed the market became increasingly candidate short, and employers increased their
focus on proactively retaining their high performers Brisbane Hiring began slowly due
to the January holiday season and the impact of natural disasters, but increased towards
the back end of the quarter As the quarter progressed the market became more candidate-short
in certain disciplines; the worst shortages were in financial planning, accounting and
relationship management Due to the market becoming more buoyant, professionals that
had not had a salary increase in the past few years looked to move for more money Other
key drivers for job-seekers were opportunities for career progression and company dynamics,
with candidates placing importance on solid leadership and job stability Melbourne Hiring
of permanent professionals increased at the lower end of the market and for operational
roles due to back-fill opportunities created by internal promotions and new roles being
created Hiring was stagnant at the senior end Contract hiring remained steady, with
more organisations favouring internal promotions rather than hiring externally Salary was no
longer the key driver for job-seekers, with most candidates looking for a mix of learning/development
and career progression opportunities; candidates also wanted a strong leader/mentor and began
to more closely scrutinise company brand, reputation and performance Across the market,
more employers found they had to justify the need to recruit externally, which forced them
to be more specific in their requirements as a result, there was a shortage of quality
candidates, particularly at the mid/senior management level Perth After a slow start
to quarter one, hiring activity increased throughout February and March due to more
roles being approved and banks looking to add/replace headcount in the wake of greater
candidate movement across the market The opening of new branches of international banks created
a spike in hiring activity, as did the increased movement of finance professionals out of the
banking and financial services sector and into resources companies As the quarter progressed
the market saw a shortage of quality candidates, particularly within banking, wealth management
and insurance at the senior qualified level as a result, employers in this space had to
become more flexible on the background experience of candidates Operational professionals were
more readily available as a number of candidates had made it a New Year s resolution to assess
alternative employment opportunities There were also a number of international candidates
who had relocated to Perth at the start of the quarter available in the market Sydney
Industries that were busiest in Q1 Adelaide Retail and business banking space drove the
increase in hiring due to interest rates remaining steady and the demand for funding consistent
and spread across most major banking participants The big four in particular entered into an
aggressive marketing phase to win new customers off each other and needed to hire to effectively
capitalise on any new in-flows of business from competitors Brisbane The insurance and
superannuation industries led the increase in hiring activity due to the significant
requirements generated by the floods and cyclone Yasi Organisations in wealth management (private
banking, financial planning and stockbroking) also significantly increased hiring as these
institutions sought to rebuild teams that had been weakened during the downturn Melbourne
The majority of hiring occurred within small- and medium-sized Australia-based organisations
across the lending, superannuation, funds management and custody sectors The big banks
continued to recruit, but at reduced volumes Perth International banks led hiring as they
opened new branches Steadily improving market confidence also led to increased hiring within
financial planning and wealth management organisations, particularly within the major banks Sydney
Professionals that were most in demand in Q1 Adelaide Retail and personal lending managers,
business and commercial lenders, new business development managers and financial planners
Brisbane Financial planners were highly sought-after across Queensland, both in local and regional
areas Other professionals in demand were private bankers with a lending and consultative background,
risk/compliance managers, transactional banking specialists and newly qualified accountants
Melbourne Operational risk and compliance professionals sought-after as organisations
sought to improve processes and consequently created new roles Product control specialists
due to organisations seeking to strengthen teams that had remained stagnant for the last
18 months Audit specialists due to increased focus on risk and control) Lending professionals
as a result of increased competition between the big four banks as well as some international
banks and non-bank lenders) Superannuation specialists following traditional patterns
of natural movement/growth Perth There was high demand for claims officers and financial
planners (particularly within large institutions) due to movement of professionals, coupled
with new roles being created Relationship managers (particularly within business banking)
and para planners due to market movement Sales and distribution specialists within operational
support required to support revenue generators coming back into the market Salary movements
in Q1 Adelaide Throughout the quarter, professionals with new business development responsibilities
and overall leadership of sales teams demanded the highest salaries Brisbane Risk and compliance
managers and regional financial planners with a proven background received the biggest salary
increases, due to candidate shortages Melbourne Salaries remained steady across the board
Perth Senior relationship managers commanded the highest salary increases as they were
most highly valued in the market, and in some cases extra cash incentives were offered to
secure quality candidates Outlook for quarter two Across the market, hiring of banking and
finance professionals should increase as quarter two progresses Candidate shortages will mean
that top talent will receive multiple and counter offers, and employers will have to
streamline their hiring processes Adelaide Hiring levels should remain constant but may
increase slightly if business and consumer confidence returns and interest rates remain
steady Big four banks are expected to drive activity, as increased business and consumer
spending creates demand; financial planning practices will also hire strongly due to the
growing focus on self-funded retirement and increased demand for professional advice Professionals
in new business development roles in commercial/business banking and retail/personal lending will be
in demand, as will wealth management specialists and financial planners Base salaries should
remain steady with the emphasis likely to be focused on offering higher incentives and
commission payments, however senior financial planners and professionals in new business
development roles in mainstream banking could command a premium The market will remain candidate-short
if current economic conditions continue, so employers will need to focus on attracting
professionals away from their existing employers, particularly in the competitive sales and
distribution divisions Brisbane Hiring activity is expected to increase in quarter two as
a number of organisations finalise budgets and gain approval to grow headcounts Insurance,
superannuation and wealth management organisations will lead hiring Financial planners, both
in local and regional areas, private bankers with a lending and consultative background,
risk/compliance managers and transaction banking accountants will be in demand Candidate shortages
in key areas such as relationship management and financial planning will drive salary levels
above traditional market values As the pool of available candidates diminishes due to
increased hiring activity, it will become increasingly important for organisations to
clearly define their recruitment strategies and streamline hiring processes to secure
top talent Melbourne Recruitment levels will stay steady in the first half of quarter two
but pick up towards the end of the quarter due to regained market confidence, natural
attrition and financial year end The stockbroking and private wealth industries will continue
to hire strongly as they gain renewed confidence Risk and compliance will remain strong across
the board and the demand for good project skills should increase Contractors across
accounting, reporting and tax functions will be in demand, due to financial year-end requirements
Operational professionals will be sought-after to support the front office growth experienced
in quarter one The candidate market will continue to tighten and competition for top talent
will become tougher, which will result in increased salaries as organisations use pay
as a bargaining tool in negotiations Candidates will face multiple offers and counter offers,
while employers will need to avoid prolonged recruitment processes and be more flexible
in their requirements It will become harder for retail banks to compete with international
investment banks when they return to market because, contrary to the economic downturn,
they will once again sport stronger balance sheets Perth Hiring activity will replicate,
and perhaps surpass, levels of recruitment seen in the second half of 2010 Major banks
will lead hiring as they seek to build wealth management teams in order to increase sales
revenue The big four and international banks will focus on gaining more market share which
will result in increased hiring in retail banking Relationship managers within banking
(due to continued movement in the market), financial planners (as a result of increased
hiring activity and market movement) and insurance brokers (due to increased hiring activity
amongst nationals) will be most in demand The market will be candidate-short and force
employers to look at candidates from overseas markets Salaries are expected to remain steady
at junior levels, and increase at the senior level; senior relationship managers, associate
directors and directors in banking will receive the biggest increases as organisations seek
to attract staff away from their competitors Top talent will receive counter offers and
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