Banking Sector Commentary

Market changes

Over the last 12 months recruitment activity across the banking and finance industry has remained very buoyant, primarily driven by strong growth across financial markets and wealth management. While the housing market experienced a degree of uncertainty, recruitment in housing related sectors still remains very positive. Funds management remains a strong performer as Australia's managed funds market is currently experiencing exponential growth which has directly influenced administration and client servicing through to investment and performance analysis. One of the key drivers is the superannuation market and recent legislative changes will ensure continued focus in this area. Financial planning remains a huge growth area and this should continue for the foreseeable future. Competition for candidates continues to be fierce and we have seen a strong demand in roles from advice through to paraplanning and compliance.

Prosperous trading conditions over the last year saw the front office of the City's investment banks capitalise on the bull market, resulting in a knock-on effect in the middle office and operations areas. While business banking went through significant growth in the previous year, the last 12 months saw some consolidation, although competition remains rife and some banks have opened new commercial centres and created specialist relationship teams across healthcare, aged care, professional services and other industries. Residential lending has not been as buoyant but recruitment remained on the agenda of many banks as they strengthened personal lender capabilities in branches and the mobile sales forces. Relationship managers dealing with high net worth clients have also been in demand as banks look to capture new customers and cross sell their full range of products and services.

Position in demand

The supply of candidates with specialist skills was outstripped by demand across many of the banking sectors and job types. At the support level there was high demand for mortgage lending, credit analyst, settlements and discharges skills. There has also been a noticeable increase in demand for loan assessment personnel. Candidates with lending experience, assuming satisfactory references and stable work history, were virtually guaranteed a temporary or contract role, if not a permanent role, almost immediately.

At the senior level there was a high demand for business development managers in both corporate and commercial banking, property and construction finance and equipment finance. The desire by companies to capitalise on current favourable market conditions, within the context of a highly competitive marketplace, has led to a premium attached to remuneration levels for business development professionals with established networks and the ability to increase market share. With business lending remaining a major growth sector, competition for proven business developers and relationship managers was strong.

Wealth management continued its buoyancy and we again witnessed huge demand for financial planners, para planners, client services officers, dealer support and equity markets professionals.

Salary movements

Despite severe candidate shortages in many areas, salaries in general rose moderately across NSW, Victoria and South Australia in the past 12 months. There were exceptions in some speciality areas, with wealth management and financial planning the standouts, particularly in Sydney, Brisbane and resources-booming Perth, where typical salaries rose 7.7 percent, 10.5 percent and 22.9 percent respectively as strong demand saw employers prepared to pay a premium to attract these skills.

In Perth and across regional growth areas in Queensland such as Mackay, Townsville, Rockhampton and Cairns there have been significant spikes in salaries. Candidates in the commercial banking, business development, property finance and corporate banking areas were also major salary beneficiaries.

Changes to employer recruitment practices

Attraction and retention have become priorities for most organisations as ways of dealing with the 'war for talent'. Flexibility surrounding candidate experience and the consideration of transferable skills across sectors has enabled companies to expand the pool of available candidates considered, while international candidates returning to Australia are another solution.

Efficiency and streamlining of recruitment processes have enabled companies to achieve greater success within the current climate. Certainly without compromising the quality or thoroughness of the process, the companies that have refined their methodology and minimised lengthy selection processes have reaped the rewards. Losing an excellent candidate in a skills short market due to a rigid or lengthy recruitment process is senseless.

We have also witnessed an ever-increasing number of counter offers from companies desperate to retain talented staff. Selling the brand or image of the company as an employer of choice has also been a successful tactical advantage for employers in the current climate. Differentiating a company from its competitors by highlighting additional benefits, loyalty programs, work/life balance, health and well-being, career progression, training and development and general amenity issues is crucial.

Many employers have become cautious about securing new talent simply through salary, as the last two years have seen increasing turnover of staff seeking a quick pay-rise with little long-term gain.

Advice to candidates

Experience makes you an attractive interview prospect to employers, but cultural fit and long-term value potential were the vital components in employer decision-making over the last 12 months. Candidates should prepare for an interview and remember you still need to impress employers with what you bring to the table.

Candidates are likely to receive more than one offer, and we strongly caution against playing the market. Candidates who attempt to play one organisation off against another, or use an offer as a bargaining tool against their current employer need to be aware that professionalism, credibility and integrity in your dealings are paramount. The best advice we can offer is to register with one quality, high profile recruitment firm who can introduce you to the bulk of employers in the market and who will then manage the process for you and handle multiple offers in a professional and transparent fashion.