Financial services employers tightening purse strings
Over half of Australia's financial services workers can expect a salary increase of no more than three per cent as employers were reluctant to "loosen the purse strings" but it was only a matter of time before employees took matters into their own hands," a recruiter warned.
The 2016 Hays Banking Salary Guide showed that while business activity and hiring levels remained high, employers remained conservative in providing salary increases to financial services employees.
The study revealed 25 per cent of financial services employees could expect a salary hike of between three and six per cent in their next review, while four per cent could expect six to 10 per cent.
Only one per cent of employees could expect an increase of over 10 per cent, while 12 per cent would receive no increase.
Director of Hays Banking, Jane McNeill, said employers only made exceptions for professionals who generated revenue and received multiple job offers.
"Overall, it's clear that employers remain reluctant to offer substantial increases unless absolutely necessary to secure a candidate with skills in short supply," McNeill said.
But McNeill warned 41 per cent of employees said they would demand a pay rise in their next review, while a quarter of the 2.6 million employees surveyed across 2,752 organisations said they were unsure if they would raise the salary issue.
Staff turnover had already increased in 29 per cent of organisations.
AUTHOR
Malavika Santhebennur
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
