Finance professionals to miss out on big pay rise

Released this week, the 2018–19 Hays Salary Guide shows that a further 21 per cent will give staff a salary increase of 3 per cent to 6 per cent; just 7 per cent will increase salaries by 6 per cent or more.

Compared to their last review, when 9 per cent of employers gave no increases and 13 per cent increased by 6 per cent or above, the findings show a slight fall in the number of professionals who will receive an increase. The number of employers increasing pay at the 6 per cent and above level will also decline.

Financial services workers have higher expectations than employers for a salary increase; the report shows that 19 per cent expect an increase of 6 per cent or more.

Employees have also prioritised a pay rise. Two-thirds (67 per cent) say that a salary increase is their number one career priority this year. If their employer doesn’t offer a pay rise, almost half (48 per cent, up from 45 per cent last year) will request one.

“Vacancy activity within Australia’s financial services sector remained high over the past 12 months, both for temporary and permanent positions, and this will continue in the year ahead,” Jane McNeill, managing director at Hays NSW and WA, said.

“Modest salary increases have been evident in most areas, with credit analysts the biggest winners in response to growing demand and a shortage of relevant skills.

“Compliance is another active area for jobs. Given demand, there have been some moderate salary increases.”

Ms McNeill said that financial planning salaries have increased in recent years in response to qualification requirements, remediation projects and the decline of commission-based incentives.

“However, not every firm has followed this trend, with some relying instead on their brand, an open APL and non-monetary benefits to attract talent. Consequently, financial planning salaries now vary greatly and span a wide range,” the MD said.

“In other trends, bonuses and incentive-based pay for customer-facing roles are focused on a broader range of measures, as opposed to solely sales, as banks implement the Sedgwick review’s recommendations and embed a more customer-focused culture.”