Market Report Australia s 2012 Hottest Job Sectors Simon Mortlock APAC Editor
Market Report Australia s 2012 Hottest Job Sectors Global economic uncertainty is bound to affect the employment environment in Australia this year, with cost controls reducing overall levels of financial services recruitment, especially in the banking sector. But the market won t be completely moribund. In fact, some functions, including the ones we feature below, will continue to experience healthy hiring. There are several factors generating jobs this year, in particular a new set of significant domestic and international regulations. This white paper focuses on seven roles which will help to shape the financial industry in 2012. It considers why they are in demand and what the likely impact on talent sourcing will be. Sections: Anti-money laundering and compliance Financial Modelling Financial Planning Business development managers (BDMs) Comprehensive credit reporting Insurance underwriters Business Analysts
Anti money laundering and compliance New regulations are driving demand for professionals in anti-money laundering and compliance, says Andrew Hanson, director of banking and financial services, Robert Walters. These include the US Foreign Account Tax Compliance Act (FATCA), which comes into force on 1 January 2013. While it may appear that this leaves ample time for preparation, timing is actually a concern for Australian banking institutions, adds Hanson. The implementation of Basel III is also important to the job market this year. What this means for money laundering and compliance professionals is that their particular skill sets will be in demand, especially project management people and those with strong risk backgrounds. Salaries have gone up over the past 12 months and are expected to continue to rise steadily as the need increases.
Financial modelling Professionals with expertise in developing detailed financial models are becoming more sought after, particularly within M&A, corporate finance advisory, project finance advisory, professional services, and corporate development, says Nicolas Boston, director and cofounder, Numbers Executive Recruitment. As the flow of money continues to tighten and capital providers require more detailed and thorough analysis, a clear and concise financial model can make all the difference to the success of a transaction. Although financial modelling was traditionally reserved for junior staff, there is now a trend to employ more experienced modellers, who understand accounting and corporate finance principles and can accurately depict future cash flows and financial positions, adds Boston. We re seeing demand increase both on a temporary and permanent basis for candidates who can guarantee the development of a financial model that is concise, robust, flexible and free from errors. Those who have been through similar transactions and know what decision makers (such as credit teams or executive committees) want can be very useful.
Financial planning Wealth management remains a growth sector for the deposits-focused domestic banks, and an increasing number of financial planners have recently joined the big four. This trend will continue in the months ahead, with consistent hiring of experienced paraplanners and financial planners, says Jane McNeill, director, Hays Banking. Accounting firms and fin planning dealerships are also after these professionals, but there is a skill shortage. We have seen planners leave the industry for business development or banking relationship manager roles. This of course impacts the availability of candidates for the rest of the industry, adds McNeill. Both boutiques and large firms are trying to attract talent by outlining career progression opportunities, and offering competitive remuneration and flexible-working packages, she says. In addition, many organisations are offering books of business to lure experienced planners to their team. We have also seen an increase in the use of contract staff to help bridge the skills gap, particularly at the CSO and paraplanning level, so that financial planners can focus on servicing clients.
Business development managers (BDMs) Business banking BDMs who have the ability to grow and diversify a portfolio of existing clients, as well as attract new ones, continue to be in demand this year, according to Allira Salem, director, financial services, Marks Sattin. With corporate debt marginally stabilising, financial services institutions will want to increase revenues through this stream. There will be a focus on bankers with domestic market knowledge and networks, and some institutions are now looking at hiring seasoned sales professionals and training them in banking products, which can sometimes prove easier than training a banker how to sell, says Salem. Many institutions are structuring teams to have a BDM and a technical specialist who attends client meetings in order to maximise the portfolio value, she adds. BDMs no longer need to have in-depth product knowledge, but do require the skills to identify and develop businesses and relationships.
Comprehensive credit reporting The proposed new comprehensive credit reporting (CCR) regime aims to emulate the standard that the US has used for nearly two decades. Once this is fully phased in, over the next two to three years, most Australian lenders will be reporting on close to ten times the amount of data they are currently, says Toby Aikins, client advisor, Marshall McAdam. CCR, which has yet to be finalised, is a voluntary and reciprocal piece of legislation, so lenders must report on more data if they want access to real-time information from other institutions. The main question will be what to do with the extra data and how to use it to make better lending decisions. Significant career opportunities and corresponding upward salary pressure will exist in both quantitative risk management and also strategic model design and development, adds Aikins.
Insurance underwriters Steady growth in demand for insurance services, coupled with a lack of candidates, means the job market for underwriters is staying tight in 2012. The pool of professionals with the necessary medical- and financial-assessment skills is not large in Australia, says Shane Watson, manager, life/risk division, Porterallen. The main reason for this is that unfortunately people don t leave university saying I m going to be a life underwriter. It s one of those traditional areas that people fall into rather than take a planned path. It also takes a long time to get to the top. In underwriting, experience is just as important as technical skills, so there are probably better sectors if you want to get rich quickly, adds Watson. Firms are targeting foreign talent to help fill the gaps. Underwriters from the UK, Ireland, continental Europe, South Africa, the US and Canada all markets with similar risk products, some of which are more advanced in their scale have moved to Australia recently with near seamless transition, says Watson. It is possible for them to pick up salary increases of up to 20 per cent, but for local candidates, 10 per cent is more common, if they are already well paid in global-market terms.
Business analysts Business analysts (BAs) with specific regulatory-risk and compliance domain knowledge in particular about anti-money laundering, privacy, National Consumer Credit Protection, Personal Properties Securities Reform, Future of Financial Advice, and the US Foreign Account Tax Compliance Act are in high demand due to rapidly changing local and global regulatory and compliance regimes. This is particularly driving the need for contractors and fixed-term permanent hires with the understanding of regulatory change, its impacts on an organisation and how to successfully implement the changes into IT systems, business processes and the wider organisation itself, says Duncan Amos, division director, technology and project services, Bluefin Resources. There is a shortage of business analysts with compliance and regulatory expertise, he adds. This is because these requirements are industry wide and must be complied with, many having set deadlines. The projects are labour intensive, with much of the demand driven by the big four banks due to their sheer size. Specific domain experience adds about 15 to 20 per cent to a standard business analyst s contract rate, although an expert in the field employed at the start of a project could typically earn much more, says Amos.
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