2009 in review: the losers
It wasn’t a great year for many in the financial services sector, but these guys really found it tough…
Leveraged finance
Leverage finance was the sector of banking hardest hit in terms of employment figures. Teams once as large as 10 to 20 professionals have now shrunk to half that size, or less, says Victoria Biggs, a partner at Platinum Pacific Partners.
“Many leveraged professionals moved internally to ‘high risk investments’ or restructuring teams, instead of writing new loans. The risk profile of banks has seen debt priced far higher in the last 12 months, which has stymied deal activity. The pulling out of some foreign banks has again put downward pressure on demand for debt bankers,” she tells eFinancialCareers.com.au.
Banking operations
The back office was severely affected by the global financial crisis in the first two quarters of 2009 as banks focused on cutbacks, cost management and headcount reduction.
“In addition to many projects losing budget, we saw a number of investment banks increasing their off-shoring activities to minimise costs, which resulted in skill sets that were previously in short supply and high demand (for example derivatives documentation) flooding the market,” says Jacob Smith, manager, risk management and compliance, Robert Walters Sydney.
However, there is now some hope in the back office: from quarter three onwards, recruitment levels have started to rise again.
Actuaries
Actuaries have been the butt of jokes for many years, but at least they always had good employment prospects…then the GFC made insurance companies more cost conscious and less willing to outsource projects. The major consulting firms have generally lost people this year and real vacancies were in short supply, says Barry Harte, director, Pentire Associates Australia.
"Some more junior staff have managed to get into risk roles outside of mainstream insurance. As the effects of the GFC subside, there has been a small increase in hiring activity, but to quote one client ‘only for people who probably have a date on Saturday night and are very commercial,” adds Harte.
Financial analysts
“We have seen a slump in demand for financial analysts, as greater priority is being given to actual reporting and the reduction of add-value analysis expenditure. Pressure on finance managers to reduce headcount means they have trimmed staff in this area,” says Sean Condon, consultant, banking & finance, Manpower Professional.
Unemployed job seekers
Initially, many financial services firms were lining up to offer interviews to those spat out by their top-tier competitors. They hoped to pick up talent that, in more buoyant times, they would have been unable to attract, says Biggs from Platinum Pacific Partners.
“However, as the year now nears its close, many firms who have started hiring again in earnest are wary of those who are not currently employed, perceiving them as poor performers,” she adds.