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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
