Crunching the recruitment numbers
Data from SEEK (see figure 2) indicates the financial services and banking industry remains in the top 10 highest paid industries, grabbing spot number nine (average salaries just over $80,000).
However, several reports have indicated that average pay increases in the sector were among the lowest. The Australian Institute of Management National Salary Survey found banking, finance and insurance industries had an average pay increase of 3.62 per cent, lower than the Australian average of 4 per cent. It is forecast to increase to 3.79 per cent in 2011-12, but that would make it middle of the pack compared to other industry sectors.
Jane McNeill from Hays Banking said employers were reconsidering salaries as a result, but stressed that it did not mean employers would pay over-the-market rate.
“But as mentioned, the pressure points of positive hiring intentions (low unemployment and increased job vacancies), skills shortages (a shrinking talent pool has seen candidates start to move back into a position of power in the jobs market) and the widening gap between candidate and employer salary expectations will lead to salary pressure in the year ahead,” she added.
In fact, Hays Salary Survey found only 11 per cent of employers had increased salaries above 6 per cent, while less then half increased them by 3-6 per cent over the past year.
“Such low intentions are at odds with candidate expectations – particularly those of candidates in demand – and so we expect the gap between salary expectations to widen even further,” McNeill said.
It is also important to note that many advisers still receive commissions and sales bonuses on top of their base salaries.
In terms of different roles within the financial planning space, bank aligned planners in some cities around Australia receive higher salaries than those working outside of the banking sector (see figure 3).
Recommended for you
In this episode of Relative Return Unplugged, hosts Maja Garaca Djurdjevic and Keith Ford are joined by AMP chief economist Shane Oliver to take a look at what can be learned from 2024 as attention turns to what markets will do in the new year.
Join us for a special episode of Relative Return Unplugged as hosts Maja Garaca Djurdjevic and Keith Ford are joined by shadow financial services minister Luke Howarth to discuss the Coalition’s goals for financial advice.
In this special episode of Relative Return Unplugged, we are sharing a discussion between Momentum Media’s Steve Kuper, Major General (Ret’d) Marcus Thompson and AMP chief economist Shane Oliver on the latest economic data and what it means for Australia’s economy and national security.
In this episode of Relative Return Unplugged, co-hosts Maja Garaca Djurdjevic and Keith Ford break down some of the legislation that passed during the government’s last-minute guillotine motion, including the measures to restructure the Reserve Bank into a two-board system.
