Hays Banking
January - March 2012
Hotspots
Corporate Credit Risk Managers are in high demand. Given economic volatility in international markets and fear of further tightening in credit markets, Australian banks need to prepare for reforms in order to ensure they do not impede their ability to grow.
Credit Analysts with strong knowledge of Australian regulatory guidelines are also needed in preparation for Basel 3 requirements. In addition, banks are running competitive campaigns and are therefore experiencing higher volumes than anticipated. With many customers moving their loans, there has been a rise in loan variations and discharge requests.
Experienced Mortgage Credit Analysts with a DLA are sought. We have seen a lift in demand for residential Credit Analysts since competition between domestic banks is very high.
Another area of high demand exists for strong Business Development Managers in corporate and the top tier space. With low consumer confidence and struggling manufacturing and construction activity, banks are fighting hard to obtain business from their competitors and this is fuelling the need for strong BDM's.
Agribusiness Business Development Managers are also needed since Australia's growth is set to leverage off key regional markets.
In other areas of demand, FX and Payments Operations candidates remain in high demand across both the domestic and international banks as Australia continues to seek specialists with exposure to international wholesale markets and specific systems knowledge.
Within wealth management there is a continued push for experienced Paraplanners and Financial Planners. Wealth management remains a strategic growth area for domestic banks since they are deposits focused and so we will see consistent hiring activity this quarter. In addition, accounting firms and financial planning dealerships seek wealth management experts to service existing books of business.
Finally, corporate lending administration candidates at all levels are needed.
Overcoming skills shortages
Experienced wealth management candidates remain in high demand and both boutiques and large banks and financial services firms seek to attract talent by outlining the career progression available, offering competitive remuneration packages and offering flexible working patterns. In addition, many organisations are offering books of business to lure experienced Planners to their team. We have also seen an increase in the utilisation of contract staff to help bridge the skills gap, particularly at the CSO and paraplanning level, so that Financial Planners can focus on servicing clients.
Within lending markets organisations are seeking to position themselves as the employer of choice to attract top talent. When recruiting, they promote their values and career progression opportunities. The banks have attempted to streamline their onboarding process and have also engaged agencies.
Employers are considering overseas candidates and are becoming more flexible regarding a candidate's background.
The coming quarter
While the quarter will start slowly, we expect activity to rise after Australia Day when employers will be back onboard and ready to commence hiring for the year ahead. Wealth management is the area to watch this quarter, and we expect to see employers recruiting new headcount in this area.
A number of large banks have reshaped their management and operational structure and so we expect to see demand for strong candidates. A particular focus will be processing staff since banks now have the budget to hire these candidates.
Outside the larger banks, we expect to see a conservative approach and restructures as a means of cutting costs and improving productivity. Therefore finding candidates with the desired experience may mean managing expectations or increasing salary since the main motivation for candidates at present is stability.
Consumer lending and small business lending will remain focus areas and therefore we should see some recruitment activity within this space. Private banking teams will review headcount in line with productivity targets.
International investment banks continue to focus on offshoring strategies and as a result we do not expect to see a large volume of new roles in this area.
Employer trends
As noted above, employers are focusing on becoming an employer of choice. They are also offering work/life balance and defined career paths to attract candidates.
Given global economic conditions, many employers have increased their recruitment timeframe, however they move very quickly once their ideal candidate is identified.
Towards the end of 2011 we noted a move towards fixed-term contracts of up to 12-months to overcome headcount freezes and keep costs low. Employers also turned to candidates with overseas experience.
Candidate trends
Candidate levels increased as bonuses were paid. Some candidates are looking for their next opportunity because their bonus did not meet their expectations. Others simply want a change and now they have been rewarded for the work they have done they are considering their options.
Also adding to the candidate pool has been the actions of international banks. As these banks either offshore or reduce headcount, the number of available candidates has risen.
As always, candidates within specialist areas such as wealth management, corporate credit risk and mortgage credit analysis and operations remain in high demand.
Early indications suggest that passive jobseekers are starting to look at new opportunities. We expect this target pool of applicants to increase in 2012, although employers will encounter competition and must move quickly to appoint these candidates.
A recent trend has been the number of financial planners migrating towards the big 4 banks. We have also seen planners leave the industry for business development or banking relationship manager roles.
