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(December-2003) Now hiring at a fund near you
After a slump of almost two years, employment in the superannuation
industry is experiencing an upturn, driven largely by the requirements of the new Financial Services Reform (FSR) regime.
The super industry was affected by the economic slow-down which followed the end of the Sydney Olympics in late 2000, and while there have been a number of false dawns, leading recruitment executives believe the current turnaround is finally the real thing.
Not surprisingly, much of the pick-up in employment prospects in the sector is being driven by the need for super funds to ensure they are compliant with the new FSR regime, but the continuing move towards the outsourcing of corporate superannuation is also driving recruitment, particularly for implemented consulting companies.
However, it is the specialists rather than the generalists who are most in demand, with most employment consultants agreeing that generalists are still finding the going tough when they look at employment opportunities.
The degree to which employment opportunities in the superannuation sector have been sluggish is underlined by data contained within the Department of Employment and Workplace Relations publication, Job Outlook.
The official government publication notes that while employment rose by 34,700 or 11 per cent in the Finance and Insurance category to 353,700, with job gains in ‘Other’ Insurance (health and general) of 26,300 and Services to Finance and Investment (19,000), this was offset by a fall in employment in Life Insurance and Superannuation.
Executive director of the Financial Recruitment Group, Peter Dawson, says the pick-up began around six months ago and has certainly strengthened over the past quarter, driven by a need for personnel in compliance and marketing and communications.
“The pick-up we’ve seen in the last three to six months is better than anything we’ve seen in the past three years,” Dawson says.
At the same time, he says there are the early signs of a pick-up in salary levels within the sector, particularly in specialist areas where there are perceived skills shortages.
“There is certainly more movement out there and more positions being created, particularly in areas to do with compliance, business development and marketing and communications,” Dawson says.
He adds that the continuing shift towards corporate outsourcing is also having an impact, with jobs being created by the implemented consultants.
Dawson notes that while there has undoubtedly been a pick up in the employment market with respect to super, the spoils for employment agencies such as FRG aren’t necessarily being shared across the board.
He says those recruitment companies which are on service provider panels for major corporates are undoubtedly doing better than those which are not.
Principal of Thomas Hancock and Associates, Tom Hancock, agrees that the employment market has been depressed and attributes this to the downturn in international equities and continuing uncertainty about the global economic outlook.
He says one of the primary manifestations of this uncertainty has been a significant reduction in job mobility. “People, particularly those in senior and middle management, might be ready to move if the right job comes along but they simply aren’t moving because of the continuing uncertainty.”
However, like Dawson, Hancock has discerned a pick-up particularly in the area of sales and client servicing for fund managers and among the investment teams of the superannuation funds themselves.
While the outsourcing of corporate superannuation has been a factor in employment trends, he says those funds which have decided to maintain their presence have been beefing up their investment teams.
Looking at salaries, Hancock says the best people can still demand top dollar if they’re being head-hunted, but a lot of people are pursuing opportunity rather than money.
Andy Thompson from Candle subsidiary, Freeman Adams, agrees with Dawson that in circumstances where the super employment market has been depressed for much of the past two years, being on preferred provider lists has been crucial.
He notes, however, that the market has been picking up and the signs have been particularly positive over the past two or three months.
“But the demand has really been there for the specialists rather than the generalists,” he says. “In fact those with particular technical expertise have survived much more comfortably than the generalists over the period of the downturn.”
AUTHOR
Mike Taylor
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