Financial services industry cautious on salaries
While most of the financial services industry expects business activity to grow over the next year, most employers continue to remain cautious about increasing salaries in 2013-14.
That’s the findings of the latest Hays Salary Guide, which found that just over half of financial services employers increased salaries by an average of less than 3 per cent, while 35 per cent increased employee salaries between 3 and 6 per cent since the last review. Only 3 per cent of the industry increased salaries by between 6 and 10 per cent.
For their next review though, 58 per cent of employers said they intended to increase salaries by less than 3 per cent, Hays stated.
Employers’ conservative approach towards salary increases comes despite 73 per cent of respondents expecting business activity to pick up over the next 12 months, while another 25 per cent expected business to remain the same.
“Hiring activity within the banking and financial services sector has been erratic for several years as Australia’s domestic market responds to challenges presented by the global economy in general and international banking sector in particular,” the report stated.
“Many organisations started 2013 with a hiring freeze but by the end if the first quarter we saw a move back into the positive with permanent candidates in demand.”
Wealth management and financial planning continue to generate high demand for quality skilled candidates, in particular for financial planners with proven sales skills and strong interpersonal skills, Hays stated.
Those based in regional/rural locations are particularly sought after in most states and are being supplemented by an increasing number of phone-based advisers.
Having proficiency with foreign language, specifically Asian language skills, is proving to be a significant candidate trend within financial planning and private banking as institutions compete to grow their migrant client base, according to the findings.
According to Hays, a qualified financial planner in Sydney takes home an average annual income of $80,000 while a senior paraplanner is commanding anywhere between $75,000 and $90,000. For a bank planner, the average annual income rises to $90,000.
A practice development manager in Sydney should expect to earn between $120,000 and $180,000, while dealership managers are paid between $170,000 and $210,000 a year, the report stated.
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