Financial talent still in short supply

Financial services companies may be retrenching employees in the face of ongoing market volatility but a talent shortage still exists in the sector, which will manifest itself when markets recover, according to research commissioned by the Financial Services Institute of Australasia (Finsia).

The research, conducted by Roy Morgan Research, found while 93 per cent of respondents agreed the recruitment market had significantly declined since September and graduate intakes had been scaled back, there had been no diminution in the shortage of talent.

It found 76 per cent believed the talent shortage had not disappeared and 67 per cent believed the shortage would be more pronounced in the future.

Finsia chief executive Martin Fahy said, interestingly, 94 per cent of staff who were unsatisfied in their current roles had admitted to riding out the downturn.

Equally important, 93 per cent of respondents agreed baby boomers now intended to delay their retirements.

Commenting on the research, Fahy said the challenge facing financial services companies was avoiding impulsive decisions which could undermine their previous efforts to attract and retain talent.

“The focus now must be on rebuilding public confidence in our industry,” he said. “Australia’s long-term ambition of becoming a regional financial hub should remain top of mind, as we refocus on the regulatory issues surrounding the crisis.”