What banks in Australia really think about 2010 recruitment
Major domestic and international financial institutions in Australia are positive in their employment outlook for 2010, but they caution not to expect a hiring boom. That’s the main message from the 13 senior HR professionals who attended the latest eFinancialCareers recruitment roundtable in Sydney.
While current vacancy levels are much higher than 12 month ago, Q1 2010 hasn’t seen a significant rise compared with Q4 2009. “We’ve been quite busy since late last year, it isn’t as though this year has suddenly triggered the demand. Many of the people joining now were actually recruited back in Q4,” commented one roundtable delegate.
The panelists, who asked not to be named, predicted that recruitment this year will be about half replacement and half growth, with hiring in the former category mainly needed because of job cuts last year.
There was a risk-adverse tone to the roundtable discussions. “We’re expanding only where there is a real need for growth, it’s not a hiring boom,” remarked one attendee.
Generally that need exists in money-making (e.g. sales and distribution) and money-saving (e.g. compliance and risk) functions. Investment banks are also keen on UK returnees. “If they are good quality candidates coming home from London, we will definitely talk to them.”
In contrast to a year ago, current recruitment is not completely focussed at the senior end. “It depends on the team. If senior people were hired in late 2009 then they’ll now be looking for analysts and associates to support them. Otherwise, banks want experienced people.”
While the delegates predicted that overall vacancies levels in financial services this year will be higher than in 2009, continued uncertainty in the global economy means some firms will be making their hiring plans “quarter to quarter”.
Somewhat surprisingly, bonuses haven’t fired up hiring in the current quarter. “I expected more post-bonus movement. I didn’t see many pre-meditated moves – people leaving just after their pay cheque cleared,” said one roundtable panelist.
An investment banking delegate predicted that “new entrants” into Australia [read Barclays and Nomura] might attempt to poach teams from the established players. And for all firms, staff retention is becoming a major concern. As the employment market warms up, counter offers are making a comeback.
Later this week, in the next report from the roundtable, we’ll tell you what the attendees think of candidates in the current market.