Australia is currently enjoying the best employment market in years, with a low national unemployment rate. Job seekers in most markets have many choices and career options and the financial planning market is no exception.
For employers though, recruitment can be challenging. As well as a tight candidate pool, industry changes such as the Financial Services Reform Act (FSRA) have improved financial planning services, but consequently reduced the already tight pool of suitable candidates.
The availability of suitably qualified candidates is not expected to increase over the coming year.
While demand is across the board, the major hot spots in the coming 12 months will be for financial advisers/planners at the $80,000 level, with five years advising experience and DFP qualification.
This demand will continue as the wealth management market shows no signs of slowing.
Superannuation choice is particularly increasing public demand for advice and consequently these candidates.
Financial planners with demonstrated experience producing targeted sales results will also be in demand.
While the industry is no longer as sales focused as it once was and candidates now need to be PS 146 compliant to advise clients, employers still value candidates with solid sales skills and the capability to sell an investment product while maintaining the technical ability to advise on the best product for individual requirements.
Paraplanners who are PS 146 compliant will be in demand across the board at all levels, as well as compliance auditors with four years experience and a compliance background due to the increased levels of sales and compliance requirements.
Finally, client services with two years experience who are PS146 compliant will be in demand.
Again, the increased level of public demand for financial advice will continue to drive demand in this area.
Employers require formal industry qualifications for front-line roles and educational requirements will continue to drive market demand over the next 12 months.
As a result of FSRA, importance will remain for qualifications and regular professional development.
Future hiring intentions should remain positive and we expect activity to be steady.
Along with the existing skills shortage, future hiring levels will be affected by increased awareness and demand from the Australian population for unbiased financial planning advice.
While this will increase the number of employment opportunities available in both banks and boutique planning firms, the concern for employers is that demand will outstrip supply.
Recruitment activity over the past three months has been mixed.
At the start of the new financial year, activity was slower than expected. However, hiring levels increased in August and levelled out in September where they remained at a steady level.
As indicated in our 2005 salary survey, educational requirements will continue to determine salary levels over the next 12 months, with CFP planners receiving the highest salaries.
Salaries are expected to continue increasing, with 61 per cent of employers intending to increase salaries in their next review by 3 to 6 per cent.
Qualified and experienced candidates will be able to pick and choose from a job-rich market, meaning attraction and retention will become an increasing priority for employers over the next 12 months.
Due to the candidate shortage, employers will need to focus on improving their attraction strategies and maximising their unique selling points.
In a job seeker’s market, top candidates can ask for more than money, so benefits and a company’s culture and branding will become crucial in successful recruitment.
Retention will also become an increasing focus over the next 12 months.
We would not be surprised to see an increase in counter offers over the next 12 months, despite the fact that the success of this strategy is rare.
As the Hays Salary Survey shows, for 35 per cent of employers who counter-offered staff, the staff member left anyway. In almost one in three cases, the employee stayed less than 12 months.
Finally, we are beginning to see instances of recruitment becoming a protracted experience since managers coping with increased workloads often have limited availability for interview times.
In several cases, this has resulted in employer disappointment as a candidate accepts another opportunity elsewhere before a manager concludes the recruitment process.
In a buoyant market where there is a shortage of candidates, delays should be avoided at all costs to secure the best candidates.
Grahame Doyle is a senior regional director of Hays Banking.
