australian financial recruitment market insights …...both our quantitative research and...

AUSTRALIAN FINANCIAL RECRUITMENT

MARKET INSIGHTS & SALARY GUIDE 2015

WEALTH MANAGEMENT

2

Marks Sattin Market Insights & Salary Guide 2015

Marks Sattin Australiawww.markssattin.com.au @MarkssattinAU Marks Sattin Australia Marks Sattin Australia| | |

CONTENTS

Executive Summary 3

About Marks Sattin 21

Contact Us 22

Market Insights (all industries)

Demographics 4

Market Conditions 6

Job Seeking Behaviour 7

Remuneration 9

Bonus 10

Benefits 11

Internal Processes 12

Future 13

Wealth Management

Executive Summary 15

Market Insights 16

Salary guide 19

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3

Welcome to our Market Insights & Salary Guide 2015.

The future of the Australian and global

economy still has a lot of uncertainty

surrounding it. Much like the globe’s best

economists, the 600+ candidates we

surveyed couldn’t agree on the short to

mid term future of the Australian market.

Many predicted a similar year to last year

with pockets of the economy showing

signs of growth without a wholesale upturn

in positivity.

There have been marginal changes within

our specialist industries with regards to

candidate happiness, bonus expectations

and reasons for leaving over the past

4 years. However, most alarmingly for

businesses is the startling number of

candidates who wouldn’t recommend their

own employer to friends (37%) or even

more so, the small number of candidates

who believe their current employer offers

a good internal rewards and recognition

program (only 35%).

Both our quantitative research and

qualitative market intelligence lends us

to strongly believe that candidates are

becoming increasingly savvy to the market

and the options available to them. For 4

years now, the percentage of candidates

actively looking for a new role has been

above 80%, despite the vast majority of

the candidates surveyed being ‘happy’

and in a permanent role. This presents

both a challenge and an opportunity to

employers. With information being so

freely available to an active candidate

on both employers and managers, the

corporate employment brand has never

been more important.

I hope you find our industry wide results

informative, but I recommend you also

take time to look through the results of

your chosen specialism for a deeper

analysis into what your market is currently

thinking.

The survey was carried out in Q4 2014,

and was distributed in the form of an

online questionnaire. Marks Sattin

received 610 responses from accounting,

finance and insurance professionals

within Australia.

All survey responses, comments and

insights have been consolidated for this

Australian Financial Recruitment Market

Insights and Salary Guide 2015.

These survey results are recognised

throughout the Australian finance

industry as an accurate representation of

the industry and a market leading source

of quality insights and opinions.

EXECUTIVE SUMMARY

Ieuan Williams

Director

[email protected]







DEMOGRAPHICS

4

A total of 610 respondents took part in our survey.

The respondents were from a spread

of ages, however we received a higher

number of respondents aged over 50 this

year than in previous years - 22% vs 17%

in 2013.

Management represented 56% of

responses and two-fifths were female.

This was on par with previous years.

One quarter of respondents were

contractors – the main reason they chose

to contract was due to limited opportunities

to find a permanent role, rather than an

active choice. This was particularly evident

with accounting roles where 76% of those

contracting stated this as their reason.

Which age bracket are you?

How are you currently employed?What level is your current position?

What is your gender?

Over 50 22%

62%30-49

16%Under 30

Male

61% Female

39%

Permanent Contract

77% 23%

SeniorExecutive

SeniorManagement

JuniorManagement

MiddleManagement

Non-Managerial

5%

16%

9%

26%

44%

MARKET INSIGHTS Marks Sattin Market Insights & Salary Guide 2015






5

MARKET INSIGHTS DEMOGRAPHICS

What size is the finance team you work in?

Under 5

6-10

21+

11-20

31%

28%

18%

23%

Which of the following best describes the job you do?

Accounting egManagement Accountant,

Tax Accountant etc

Banking,Risk & Compliance eg

Fund Manager,Settlements, Audit

General Insuranceie. Underwriter,

Claims Manager

Wealth Management egPrivate Banker,

Financial Planner

Life Insurance

Workers Compensation

41%

21%

5%

16%

7%

10%Respondents were from a wide range of

company size and related finance team.

The most represented job type was

accounting followed by banking, risk and

compliance.

The largest finance teams were in the

Wealth Management sector, where 37%

worked in teams of more than 20 staff, and

the smallest were in General Insurance.







6

MARKET INSIGHTS MARKET CONDITIONS

How are you feeling about the future of the economy over the next 12 months?

Do you feel more or less secure in your role now than you did 12 months ago?

Are you worried/concerned your role may be outsourced overseas in the next 12 months?

How would you rate your current job security?

Haven’t reallythought about it

Yes 11%

No 77%

12%

OptimisticACCOUNTING

Neutral

PessimisticBANKING, RISK & COMPLIANCE

GENERAL INSURANCE

LIFE INSURANCE

WORKERS COMPENSATION

WEALTH MANAGEMENT

31% 53% 16%

39% 46% 15%

45% 45%10%

34% 52% 14%

44% 49%

7%

32% 49% 19%

More secure now

Less secure now

26%

50%

24%

About the same

Very Secure

Secure

Insecure

Very Insecure

18%

51%

23%

8%

Optimism appears to be returning to the finance market, with respondents overall more positive about the future of the economy than 12 months ago. In total 34% were optimistic and only 19% pessimistic – this compares to 29% and 29% a year ago, just before the federal election. In particular, Wealth Management and Life Insurance were the most optimistic industries with Accounting and Banking the least.

Despite this economic optimism, a third (31%) of candidates are feeling insecure in their role. This figure has increased in the past 2 years, when only 24% felt insecure. The industry that appears to suffer the most from job insecurity is General Insurance.

Outsourcing is of little concern to the market as a whole, however 16% of those working in Banking fear their job may be outsourced.

Economic optimism up, but job security down.







7

MARKET INSIGHTS

Please identify the CLOSEST reason why you left your last position? (Top 7)

What is the main reason you are actively looking for a new role? (Top 7)

Which of the following best describes your current job seeking behaviour?

Redundancy

Career development

End of contract

Poor management/relationship with manager

New challenge/more interesting work

Better work/life balance

Higher salary

21%

13%

13%

9%

8%

7%

6%

Redundancy

Career development

End of contract

New challenge/more interesting work

Better work/life balance

Higher salary

Job security

17%

16%

14%

14%

9%

6%

5%

42%Actively looking

47%Not activelylooking but

keeping an eyeon the market

11%Not interested

in changingjobs

Career development a key driver to changing jobs.

The main reason for respondents leaving

their last job was redundancy (21%). This

is higher than previous years - 18% stated

redundancy in 2013.

A huge 89% of accounting and finance

candidates are either actively looking for a

job or keeping an eye on the market.

The main reason for this was again

redundancy (17%) and end of contract (16%).

Career development remains a pivotal

motivator to leave a job and seek a new

challenge. When analysing results between

permanent and contract employees,

the key driver for permanent was a new

challenge, followed by a higher salary and

career development. Contractors however

were also seeking job security.

Most active job types were Banking and

Accounting candidates, with Wealth

Management and Workers Compensation

the least.

JOB SEEKING BEHAVIOUR Marks Sattin Market Insights & Salary Guide 2015






8

MARKET INSIGHTS JOB SEEKING BEHAVIOUR

Finance professionals are less happy in

their current role than previous years –

with 20% now unhappy vs 15% in 2012.

Most happy are those aged under 30

(65%), least were those aged over 50

with only 51% stating they were happy.

The size of the team also appears to have

an impact on happiness, with those

working in small teams (under 5) the most

unhappy (26%). Those working in a team

of 11-20 people were most happy - (60%).

Perhaps tied in to job security, a huge

37% of respondents would also not

recommend their employer to a friend/

colleague. This figure has increased

substantially over the past two years – in

2012 the figure was 29%. In particular

junior and middle managers were least

likely to recommend their employer with

40% and 41% respectively.

Would you recommend your current employer to a friend?

63%

37%

YesNo

How happy are you in your current role?

16%Very happy

39%Fairly happy

25%Neutral

16%Fairly unhappy

4%Very unhappy

Jobseekers not as happy with jobs or employers this year.







9

MARKET INSIGHTS REMUNERATION

20%

42%

18%

3%

3%

13%

1%

NO

Yes 4-5%

Yes 11-15%

Yes over 20%

Yes 6-10%

Yes 16-20%

Yes up to 3%

Are you expecting a pay increase in the next 12 months?


If you were considering a new role externally, what would you perceive to be an acceptable increase in basic salary?

11%+4-5% 6-10%< 3% NO

ACCOUNTING

BANKING, RISK & COMPLIANCE

GENERAL INSURANCE

LIFE INSURANCE

WORKERS COMPENSATION

WEALTH MANAGEMENT

51% 10% 14% 21%

39% 24% 11% 21%

58% 21% 16%

42% 25% 8% 8% 17%

35% 13% 10% 15% 27%

38% 22% 18%17%

5%

4%

5%

5%

Up to 3%

5

10

20

25

30

15

4-5% 6-10% 11-15% 16-20% 21-25% 26%+

2012 2013 2014

Salary expectations remain static with

one fifth of candidates not expecting any

pay increase in the next 12 months. A

further 42% are only expecting up to 3%.

Interestingly salary expectations when

changing jobs externally have also

dropped with the majority of respondents

now only seeking up to 10%.

Salary expectations static.







10

MARKET INSIGHTS BONUS

Again in a reflection of the year’s economic

performance, one fifth of bonus’ were

not awarded to those who were entitled.

This is in line with last year’s results.

Of the 46% who did receive one, most

received between 5-9% of their salary.

This resulted in 72% satisfaction with

the amount they received. Expectations

however, as always, remain more

optimistic for next year with most

candidates expecting between 10-19%

of their salary as a bonus.

Unsurprisingly the highest bonus’

were paid to senior executives and

non-managerial received the least.

Those working in Banking and Wealth

Management were most likely to receive

higher bonus’ with 30% and 27%

respectively receiving between 10-19%

of their salary in bonus.

Did you receive a bonus in the last 12 months?

What level was your bonus and what do you expect next year?

How would you assess your level of satisfaction with your last bonus?

16%Highly satisfied

56%Satisfied

18%Dissatisfied

10%Highly dissatisfied

2013 2014 2015 (expected)

1-4%

5

10

20

25

30

35

40

15

5-9% 10-19% 20-29% 30-49% >50%

Bonus levels slightly better than 2013.

46%Yes

21%No, not awarded

33%No, not entitled







11

MARKET INSIGHTS BENEFITS

Benefits seen as most and least important when considering a new role?

When did you last participate in formal training relating to your current role?

Does your company offer a good internal rewards and recognition program?

16%Highly satisfied

56%Satisfied

18%Dissatisfied


Training

Most Important

Annual Bonus Scheme

> 20 days holiday

Additional Super contribution(ie over 9.5%)

Flexible working(homeworking/flexitime)

Car allowance

Least Important

Travel allowance

Mobile phone

Extended Maternity/Paternity leave

Gym membership

0-3 months

7-9 months

4-6 months

10-12 months

1-2 years

2-5 years

Never

41%

17%

15%

6%

6%

6%

9%

35%

21%

44%

YesNo

Not sure

Training remains in the number one spot for the third year running. Pleasingly 73% of permanent candidates received some form of formal training in their role in the past 12 months. This has improved significantly on last year when only 65% of candidates had received any training that year.

Despite only 46% of respondents receiving a bonus, it is considered the second most important benefit to have when seeking a new role. This has risen from last year when bonus was ranked as the third most important benefit.

Unfortunately however, only 35% of respondents believed their company offers a good benefits program. With 21% unsure of their company’s internal rewards and recognition program it would appear there is the need for more internal communication and promotion of exactly what is available to them.

Training key to retaining talent.







12

MARKET INSIGHTS INTERNAL PROCESSES

Forty-seven percent of respondents

have lost interest in a role due to a

lengthy recruitment process. Although

this is a significant improvement on

last year (63%), companies still need to

streamline process work-flows or risk

losing quality candidates to competitors.

Speed to hire remains one of the

cheapest and best advantages in the

employment market.

On-boarding and induction also remains

an ongoing concern with 45% of finance

professionals stating these processes at

their companies are either non-existent

or inadequate. The financial benefits of

having an employee properly inducted

and productive as early as possible,

make this result surprising.

In the last 2 years, have you lost interest in a role because the recruitment process was taking too long?

How would you rate your company’s on-boarding and induction process?

16%Highly satisfied

56%Satisfied

18%Dissatisfied


N/A as I havenot looked atchanging jobs

27%Yes, two ormore times

20%Yes, once

14%

39%No

Non-existent

35%Inadequate

42%Adequate

10%

13%Comprehensive

Processes improving but still too slow.







13

MARKET INSIGHTS FUTURE

Over two-thirds of respondents are

planning to stay in the industry, however

whether they remain in Australia is

yet to be seen with a significant 78%

open to moving overseas for the right

opportunity. Coupled with the increase

in job insecurity, could Australia face a

skills shortage in coming years?

The UK returns to the top destination

after falling to number two behind Asia

last year, no doubt bolstered by news

the economy is improving.

If yes, where would be your first choice

Do you see your longer term career in finance/accounting?

Would you consider moving overseas for the right opportunity?

16%Highly satisfied

56%Satisfied

18%Dissatisfied


Yes

Maybe

55%

23%

No

22%

UK

Asia

North America

Rest of Europe

New Zealand

India

Ireland

Other

Middle East

20%

19%

13%

2%

6%

2%

4%

5%

28%

Skill shortages ahead?

71%Yes

10%No

19%Unsure







AUSTRALIAN FINANCIAL RECRUITMENT

WEALTH MANAGEMENT

MARKET INSIGHTS & SALARY GUIDE 2015

15

2014 provided greater insights into the changing

role of the Financial Planner and the new

improved benchmark of the Adviser, specifically:

• It is very much a candidate led market;

competition has grown between the

corporate brands in their search for talent

in the Wealth space.

• The Big 4 have continued to search in

increasing numbers for up and coming

talent – with an emphasis on the

qualifications and compliance of the

Adviser.

• FOFA has led to an increase in workload

from an operational perspective – leading

to an increase in the benchmark of

Advisers and their client value proposition.

Recruitment in the Wealth market will always be

dictated by the candidate, as quality advisers are

very hard to find. The boutique brands remain

selective in their recruitment, with lower base

salaries and increased earning potential through

incentive plans recognising the challenging

environment that still exists. From the predictive

need of the quality Paraplanner, there is a demand

and emphasis placed on female Advisers.

Many of the corporate brands have initiatives in

place to increase numbers and awareness of

female advisers in the market.

As a result of the continuing negative press to

advisers (CBA & Storm) and competition rising

between dealer groups, increased security

measures have been put in place by brands to

ensure quality hires. The hiring of the Adviser

has become a lot more selective and thorough

by each brand. Growing trends have shown

the continued need and competition for top

level financial advisers – with a strong focus

on increasing the operations and compliance

departments of each company. The corporate

brands will continue to grow over the next

12 months, with a steady flow of candidates

and boutique brands searching for the adviser

with recurring revenue. Global Wealth brands

are competing with the local brands trying to

incorporate the traditional advice model. This will

involve complementing the investment adviser

with the traditional adviser, utilising all resources.

Interesting times for the Wealth Industry, in a

candidate focussed market, providing healthy

competition for dealer groups and corporate

brands throughout!

EXECUTIVE SUMMARYWEALTH MANAGEMENT

Neil McDonald

Managing Consultant

[email protected]







MARKET INSIGHTSWEALTH MANAGEMENT

16

How are you feeling about the future of the economy over the next 12 months?

Optimistic Neutral Pessimistic

7%49%44%

How would you rate your current job security?

46%

30%

20%

4%

Very secure

Secure

Insecure

Very insecure

Wealth management candidates very optimistic about economic conditions.


27%

7%

35%

13%

10%

8%

NO

Yes 4-5%

Yes 6-10%

Yes 11-15%

Over 15%

Yes up to 3%








17

Which of the following best describes your current job seeking behaviour?

Which benefits are the most and least important when considering a new role?

Most Important Least Important

Annual bonus scheme

Training

Flexible working

Car allowance

Travel allowance

Gym membership

One third of candidates not interested in changing jobs - the lowest of our survey sectors.

Top 3 reasons for leaving your last position?

New challenge

Redundancy

Career development

23%Actively looking

47%Not actively lookingbut keeping an eye

on the market

30%Not interested in

changing jobs








18

How have you found your current workload and clients needs since the FOFA regulations?

What are the prospects for growth and advancement in your current role?

Which offers more advantages - bank or boutique?

41%

Bank

59%

Boutique

11%

45%

27%

17%

Equity option Long termdevelopment

Managerialopportunities

Other

57%Increased

operational work

25%Demand on support

staff

8%Less time for newclient acquisitions

10%Other


Boutiques are perceived to offer more benefits than banks, but do they offer the same security?






19

SALARY GUIDEWEALTH MANAGEMENT

19

Financial Planning SYDNEY MELBOURNE BRISBANE

Financial Advisor / Planner (<1 years experience) 55-65 50-65 45-55

Financial Planner (1-3 years experience) 60-90 55-90 50-85

Manager 85-120 80-110 80-105

Financial Planner HNW Clients 85-145 85-135 80-130

Paraplanning SYDNEY MELBOURNE BRISBANE

Paraplanner (<1 years experience) 50-65 45-60 40-60

Paraplanner (>1 years experience) 60-80 60-80 60-80

Manager 70-120 70-110 70-110

Financial Planning Administration SYDNEY MELBOURNE BRISBANE

Financial Planning Administrator (<1years experience) 40-50 40-50 40-45

Financial Planning Administrator (>1 years experience) 45-70 45-65 45-65

Private Banking SYDNEY MELBOURNE BRISBANE

Private Banker (<1 years experience) 55-75 + Bonus 70-100 70-100

Senior (1 yr+ experience) 70-100 +Bonus 100-150 100-150

Director/Manager 100+ Bonus 150+ 150+

Credit Analysis 60-70 60-80 60-80


$000’s per annum base salary (excluding super)






20

SALARY GUIDEWEALTH MANAGEMENT

20

Business Development / Relationship Management SYDNEY MELBOURNE BRISBANE

Business Development Manager (<2 years experience) 60-80 60-80 50-75

Business Development Manager (>2 years experience) 80-150 80-140 75-140

Account Manager (<2 years experience) 55-75 55-90 55-80

Senior Account Manager 75-120 90-120 90-120

Business Development Associate/Officer 50-65 50-75 50-75

Advisor/Client Services 50-65 50-75 50-75

Distribution SYDNEY MELBOURNE BRISBANE

Sales Support 55-65 55-65 55-65

Business Development Associate 65-75 65-75 65-75

Business Development Manager 80-140 80-140 80-140

Regional Sales Manager 150-180 150-180 150-180

National Sales Manager 200-250 200-250 200-250

Key Account Manager 180-200 180-200 180-200


$000’s per annum base salary (excluding super)






21

ABOUT MARKS SATTIN

• Commerce & Industry

• Financial Services

• Private Practice

• Public Sector & Government

• Compliance & Risk Management

• Corporate & Retail Banking

• Custody & Funds Management

• Financial Services - Banking

Our Specialisations

ACCOUNTING

BANKING, RISK & COMPLIANCE

• General Insurance

• Life Insurance

• Workers Compensation

INSURANCE & WORKERS COMPENSATION

• Private Wealth Management

• Superannuation

WEALTH MANAGEMENT of our clients would use our services again and would recommend us to others*

of our candidates would use our services again and would recommend us to others*

100

100

%

%

*source: 2014 post placement questionnaire feedback

Our Locations

Marks Sattin are specialists in financial

recruitment - insurance, banking &

financial services and accounting. Our

clients and candidates understand the

benefits of dealing with a true specialist,

as we only work within these niche

disciplines.

We have been providing financial

recruitment solutions in Australia since

2007. Our consultants are dedicated

exclusively to selected markets,

industry sectors and candidate skill

sets, developing an impressive depth of

knowledge in their specialist markets.

They have an authoritative understanding

of industry sectors, further improving the

quality of advice and personal service we

offer our candidates and clients.


UK

Leeds London

Manchester Reading

IRELAND

DublinSingapore

Sao Paulo

Sydney






22

CONTACTS

Dublin

P: +353 (0)1 669 8509

E: [email protected]

Leeds

P: +44 (0)113 242 8177


London

P: +44 (0)20 7321 5000


Manchester

P: +44 (0)161 638 8630


Moscow

P: +7 (495) 935 86 06


Reading

P: +44 (0)118 900 1800


Sao Paulo

P: +55 (11) 4890 0510


Singapore

P: +65 6590 9140


Sydney

P: +61 2 9247 5655


International Offices

National Office

Disclaimer This research was carried out by means of an electronic questionnaire. The remuneration tables are supplemented with data and market information that Marks Sattin has access to. The results are provided as generic market information only. Marks Sattin does not make any warranties regarding the use, validity, accuracy or reliability of the results and information obtained. Marks Sattin will not be liable for any damages of any kind arising out of or relating to use of this information.







australian financial recruitment market insights …...both our quantitative research and...

Documents