'Perfect storm' brewing in salary pressure
Long-predicted skills shortages in the financial services sector are finally emerging. When combined with other current market forces, the skills shortages are likely to create a ‘perfect storm’ in salary pressure for the financial services sector.
This is one of the main point flowing from the 2011 Hays Salary Guide, which noted widespread salary increases are yet to be seen despite positive hiring intentions and a shrinking talent pool, which has seen candidates starting to move back into a position of power in the jobs market.
Senior regional director of Hays Banking Jane McNeill (pictured) said only 11 per cent of employers in financial services had increased salaries above 6 per cent. Less than half of them had increased salaries between 3 and 6 per cent, McNeill added.
“Looking ahead, our survey data shows that 45 per cent of financial services employers intend to increase salaries in their next review by between 3 and 6 percent … but 41 per cent intend to increase salaries by less than 3 per cent,” she said.
“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.”
Around three-quarters of financial services firms expect business activity to increase over the next 12 months, with more than half intending to increase permanent headcount.
Bonuses are also back in play, according to the survey, with many candidates holding high expectations for more lucrative bonuses, which if not met “would likely result in higher turnover,” according to McNeill.
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