Disasters add to skills shortage pressure

Australian financial services professionals are reluctant to explore job opportunities following a series of local and overseas natural disasters, leading to skills-tightening in the sector.

This is according to the latest Clarius Skills Index, which found that employees from the wealth management, insurance and retail banking sectors are increasingly hesitant to re-enter the employment market due to renewed uncertainty in this industry since the beginning of the year.

This has led to a supply shortage of around 10 to 15 per cent in the financial services industry, according to the executive general manager of Alliance Recruitment, Paul Barbaro.

“In uncertain global times, candidates within the financial services sector are more inclined to stay with their existing employer and ride it out before commencing job search,” he said.

“There is a high level of job dissatisfaction, but many will wait until global markets show sustained improvements before jumping ship.”

The institutional sector is also experiencing a shortage of skilled workers due to global pressures with demand increasing by up to 15 per cent, he said.

“Wage pressures remain in these positions and are likely to increase in the long term,” he said.

The Queensland floods have led to employer caution on recruiting staff, doubling the average lead-time from six to 12 weeks, he said. Clients have the need for personnel but are cautious about the speed of the economic recovery in the region; however, the long-term outlook is positive, he added.

Employers are now using training as a way of retaining quality staff and adding value, with these efforts expected to increase over the next six months, he said.