Salary growth lags for bankers

Sixty-eight per cent of companies in financial services including the banks will give their staff a pay rise - albeit a meagre one of up to three per cent. 

According to the 2017 Hays Salary Guide, 21 per cent of financial services employers intend to award a salary increase of between three and six per while just three per cent will increase salaries by more than six per cent. Eight per cent of companies will not increase salaries at all. 

The salary guide is based on a survey of more than 2,950 organisations. According to Hays Banking Jane McNeill, while the survey revealed that employers had a positive outlook, many remain cautious when it comes to salaries. 

“The demand for talent across banking and financial services intensified during the last 12 months with ever-increasing vacancy activity on both the temporary and permanent side,” McNeill said. 

“Despite this, salary growth remains stable with only a few notable exceptions.” 

The biggest increase in salaries has been across frontline sales, lending and credit as well as for commercial relationship managers in New South Wales and Victoria. 
 

Strong networks

Banks are offering increasingly high salaries in order to attract and retain lenders who can self-generate business through their own networks rather than rely on branch or contact centre leads.

Paraplanners also enjoyed salary increases and, according to McNeill, technically strong paraplanners and advisers have been able to secure generous daily rates. Business development managers will also be in demand from the growing fintech industry, particularly those with strong networks. 

Banks have also set up new risk operations teams following increased regulatory scrutiny from the Australian Prudential Regulation Authority and Austrac. 

“We expect increased temporary and permanent recruitment in order to meet specific regulatory deadlines,” McNeill said. “We are also seeing an increase in temporary roles in operational risk, enterprise risk management and controls as financial institutions undergo their reviews and revise and upgrade existing frameworks and procedures.” 

Quantitative risk analysts/modellers, particularly in credit risk, are another area of demand due to changing local and global regulatory requirements.

Another notable trend from the survey is that gender diversity continues to be high on the agenda for most employers, not only in the major banks but also in financial planning, investment analytics and fund management firms. 

Upcoming Events
26
Oct
21
Australian Banking Innovation Summit 2021
Sydney, NSW, Australia
See all upcoming events
map4
Subscribe to receive insights delivered straight to your inbox
Latest news, unbiased expert analysis and insights across banking and finance