Fewer financial services professionals will receive pay rises this year than last year, the 2019/20 Hays Salary Guide has revealed, and the increase in the value of pay rises awarded is also expected to drop compared to last year.
The survey found 91 per cent of employers in the financial services industry would increase salaries this year compared to 92 per cent last year, and 63 per cent of those employers intended to raise salaries by 3 per cent or less.
It also revealed just 4 per cent of employers expected to grant pay rises of more than 6 per cent, compared to 10 per cent of employers paying the same percentage increase last year.
Hays Banking regional director Carl Piesse said the results of the survey showed a “tug of war over salaries”.
“On the one hand, we have professionals telling us they’ve prioritised a pay rise and are prepared to enter the job market to improve their earnings. On the other, employers tell us they want to add to their headcount and are being impacted by skill shortages, yet they plan to curtail salary increases,” Piesse said.
He also predicted new qualification requirements in financial planning would lead to many advisers leaving the industry, which in turn would lead to greater demand and salary increases for highly qualified advisers.
“The continued movement of financial planners and paraplanners to remediation projects related to the royal commission will further add to the shortage of suitable candidates and, in turn, will impact salaries across the board.
“Remuneration structures may also change, with base salaries increasing at the expense of commissions.”
In addition, the survey found 70 per cent of employers expected skill shortages to impact on their business operations, with 54 per cent of employers restructuring their organisations in order to keep up with the changes in required skill sets for their businesses.
As high as 57 per cent of employers said they would be open to employing or sponsoring suitably qualified overseas candidates in order to fill the skill gaps in their organisations.