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(June-2002) It pays to be in super
The job market for people working in the superannuation industry has been stable over the past year, with salaries generally stagnating, according to Hays Personnel Services’ annual salary survey.
That isn’t exactly good news, but superannuation workers fared a lot better than their counterparts in other parts of the financial services industry, where jobs were hard to find. Indeed, according to Hays, the industries affected most by world events and sluggish market conditions are IT, telecommunications and media.
And, there’s better news on the way. Hays Executive business director Edmund Gill says: “The market will lift towards the end of this year and this will have a knock-on effect.”
He says there are already signs of a pick up. “The talk in town is already starting to be more upbeat and this takes three to six months to be reflected in increased opportunities.”
Gill notes that between 1996 and 2000, the financial services market experienced huge growth, attracting large numbers on the back of the technology boom and buoyant consumer confidence. But at present, following the burst of the IT bubble and the slump in equity markets, the market is “fairly conservative and flat”.
Indeed, salaries at the higher end of the market have been stagnating, which according to Gill, means that salaries have not been keeping pace with CPI and have been dropping in real terms.
Mergers and takeovers in the financial services industry have slowed down demand for senior management people over the past few months, but the prospects are a lot brighter for those working in the business development and front-end client services areas. They are finding themselves increasingly in demand as super funds strive to become more competitive.
Gill expects demand for senior people to pick up in the second half of this year. In the meantime, he believes that now is a good time for those working at the top end of the superannuation market to upskill and improve their qualifications. He recommends doing a MBA, becoming a Proper Authority Holder or completing some of the Security Institute’s courses.
“It wont improve your salary right now, but it will increase your potential when you want to look outside,” he says.
Hays Executive senior consultant Kelly Zander notes that the only area in superannuation which has enjoyed salary gains over the past year has been administration (see table). She says demand here has come as organisations streamline their systems and add new product offerings.
But, she says, it is those with specific skills and experience that are getting the jobs in administration these days and there are few opportunities for those at entry level.
Hays’ consultants believe that this situation where graduates are not being trained now could cause shortages down the track as the industry continues to grow, but they note that shortages are usually accompanied by increases in salaries.
Zander adds that because there is no training at present, trainers in the superannuation industry are being forced into other areas and once they leave, she says they don’t keep up with legislative and other changes in this area.
Another role that is enjoying buoyant demand is that of compliance, as regulation in the superannuation industry intensifies with developments like the introduction of the Financial Services Reform Act. And, Gill says his experience in the British market indicates that demand in this area should pick up further, accompanied by salary improvements.
He believes that the superannuation market is definitely among the top two or three spots to be in for those working in financial services. This is because the compulsory Superannuation Guarantee, which rises to nine per cent next month, underpins its growth and “the more money there is in the pot over the long-term, the better the job prospects for people in the industry”.
Zander adds that Melbourne is also a good place to be for those working in super. That’s because many industry funds have their head office located in that city and some of Melbourne’s investment banks are moving into super.
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