Salary increases ‘limited’ in finance sector

Business activity and permanent headcount may be rising in the financial services arena, but they are not translating into pay rises, according to a new report.

The 2016 Hays Banking Salary Guide revealed that 58 per cent of employees in the financial services sector can expect to receive a pay rise of less than 3 per cent, while 25 per cent of employees can expect an increase of between 3 per cent and 6 per cent, and 12 per cent will see no increase in their salary.

Just 4 per cent of financial services employees can expect a salary increase of between 6 per cent and 10 per cent, while 1 per cent of employees can expect an increase of above 10 per cent.

“Overall, it’s clear that employers remain reluctant to offer substantial increases unless absolutely necessary to secure a candidate with skills in short supply,” Jane McNeill, director of recruitment agency Hays Banking, said.

“The banking and financial services employment market continues to flourish with buoyant levels of hiring across the sector. But despite the strength of the recruitment market, overall salary levels remain relatively stable as employers take a conservative approach to increases.”

Ms McNeill said that while employers are attempting to remain conservative in their salary increases, there are some exceptions for candidates in greatest demand, particularly revenue-generating professionals who receive multiple job offers that, in turn, result in higher salaries.

“In other trends, in retail and commercial banking frontline lending and sales roles, and roles in back office processing and operations, [salaries] have risen,” she said.

“Risk and compliance skills also remain in high demand to drive anti-money laundering, fraud mitigation and ongoing regulatory change."

Ms McNeill said the growth in Australia’s peer-to-peer lending industry mirrors trends in the US and Britain, and is generating ongoing demand for sales and credit professionals.

[Related: Record-low rates driving demand for lending roles]

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