Sixty-two per cent of financial services employers will give their staff a pay rise of less than three per cent in their next review, despite business activity increasing for 74 per cent of employers in the last year, according to the 2018-19 Hays Salary Guide.
A further 10 per cent of employers did not plan to increase salaries at all, while 21 per cent will give raises of three to six per cent. Just seven per cent would increase pay by six per cent or more.
This was a slight increase on last year, when nine per cent of employers gave no raises and 13 per cent grew salaries by six plus per cent.
At the same time, 77 per cent of employers predict an increase in business activity over the next year and 40 per cent foresaw a strengthening economy in the coming six to 12 months.
Financial services workers, however, had higher expectations for pay increases. Nineteen per cent expected a raise of six per cent of more, while 67 per cent said a salary increase was their number one career priority this year.
Almost half said that that they would request a raise if their employer didn’t offer one, which was a three per cent jump from last year.
In financial planning, pay raises over the last year were generally in response to qualification requirements, remediation projects and the decline of commission-based incentives.
Hays Banking managing director, Jane McNeill, said that not every firm followed this trend.
“Some rely instead on their brand, an open APL and non-monetary benefits to attract talent. Consequently, financial planning salaries now vary greatly and span a wide range.”
McNeill also warned that high vacancy activity for jobs in the financial services sector over the last year would continue in the coming 12 months, for both permanent and temporary positions.
She said that growing demand for credit analysts and compliance in particular had seen workers in those two jobs receive moderate salary increases over the last year.