Managing funds means more funds for managers

Financial services has always been a solid bet for making big money in terms of salary and the funds management industry has confirmed that in the 2001 Hays Salary Survey. Jason Spits examines who has received a boost in the hip pocket over the last 12 months.

If you are ever at the pub and a member of the funds management industry cries poor when it comes to shouting a round, don't believe it for a second.

Despite a supposed downturn in the economy and the state of the investment markets it would appear from the salaries on offer that employers are quite happy to pay for good staff.

Hays Personnel Services, who offer personnel services across a range of industries including banking and finance, have concluded their annual salary survey and funds management staff, in a wide range of roles should be pleased.

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Funds management staff across most cities and roles had a boost in the take home salaries with those in entry level and junior positions benefiting the most.

The increases dropped off as positions become more senior except in the case of those employed in client services which displayed no signs of decreasing or dropping salaries.

Hays Banking financial services senior consultant Matt Gowan says the reason for the strength in the client service area within fund management is the growing numbers of investors who have come to the market in recent years.

"Despite the prevalence of the Internet and services delivered through the Web most queries and service related issues are done via the phone," Gowan says.

"This would be logical since as funds under management increase so does the level of clients and so do their enquiries."

The average increase in pay for client services staff was from $2000-3000 with the biggest jumps in Sydney where client services staff received boosts up to $5000.

The same figure was also seen in Melbourne but only for those who had long term experience in the role such as the client services supervisors.

Gowan says the reason for this is to retain staff at the higher levels of client services and prevent them moving into other related roles.

"These people tend to be of a certain type of attitude and motivation and have to be quick thinking and therefore there is a high level of turnover," Gowan says.

"Those with qualifications and experience tend to pass on through to another job and use client services for 18 months to provide a back door into other roles such as sales, operations or product development."

The other areas covered by Hays in the survey in the funds management industry are portfolio administration and unit trusts and settlements.

According to Gowan these groups also benefited off the back of the growth of investor awareness and uptake of managed fund style investments.

"While client services grew to support investors at the front end areas like portfolio administration and unit trust also grew as more administration work came on board and drove the need for back office staff," Gowan says.

"It is a pyramid concept with more people on lower rates at the base, which is being fed by a high supply of people seeking positions at these levels."

While high levels of supply usually drive prices down Gowan says this has not happened with financial services. In much the same way of the salary spikes in financial planning he says employers are prepared to pay well to keep good staff on board.

This has been reflected in that most rises in portfolio adminstration have been at the mid level with those with two to four years experience getting around $2000-$3000 added to their annual salary.

"Salary levels are increasing to prevent job hopping and retention has become an area of more focus for employers since the industry is becoming more competitive," Gowan says

"Two years ago people moved jobs for a $1000 increase but that has dried up as performance bonuses have increased along with the addition of profit sharing and higher employer super contributions."

At the same time there were a number of sharp spikes and drops for managers and general managers in Brisbane and Melbourne. However Gowan says the data last year was an anomaly compared with this year's data.

According to Gowan the rise in this year's figures is the result of more accurate data being passed onto Hays for this year's survey and represents a return to a more realistic set of figures.

Funds management staff in unit trusts and settlements also received a pay boost but not exceeding that of funds management staff in portfolio adminsaitration, with the average increase also between $2000-$3000.

However Gowan says there were more players seeking more staff than in the area of portfolio administration as well as a greater movement of staff which drove salaries up.

"Employers have been more competitive in this area as there are more players but movements of unit trusts teams and team members between locations has driven up prices on an artificial basis," Gowan says.

What he is referring to here is the movement of teams and staff between offices in the capital cities as well as efforts by a number of broking houses and fund managers to bulk up their staff in this area.

"Some decentralising may have accounted for these figures as well, as possible demand builds in other state capitals as demand for those services build."

However Gowan says while the growth in investments has driven salary increases it will become harder to keep good staff and also pay for those annual rises.

"Those with more experience will begin to push up from the bottom and employers may have to become creative to keep them in good roles. This is evident with the creation of flat, wide management structures but can only last for a certain time before it reaches critical mass," Gowan says.

"The industry pays well but people can not expect increases forever. At the lower end numbers are up but more due to the sheer volume of staff and companies cannot keeping expanding at this part of the bottom line."