AU
Fin planning recruitment: the bigger the better
22 January 2010
The financial planning industry is set to become even more top-heavy as industry consolidation boosts the market share of the large players.
This shake-up is directly affecting recruitment: the big boys are expanding their headcounts faster than the boutiques; and candidates are increasingly attracted to larger brands because of their better job security and referral networks.
Using September 2009 data, research house Rainmaker found that the five largest operators controlled 69 per cent of the market. NAB/MLC's purchase of Aviva will increase this concentration to 73 per cent.
If NAB were also to buy Axa Asia Pacific, it would have the largest share and would join current leader Westpac/BT in new top-two, controlling a whopping 45 per cent of the market between them (compared with 35 per cent today), according to Rainmaker.
“Banks are growing their market share in fin planning and increased recruitment by them in 2010 will be a by-product of this,” says Mark Fradkin, associate director, Charterhouse Partnership.
And it shouldn’t be too hard for them to find willing job seekers. “Before the GFC, many candidates liked the freedom and entrepreneurial focus of the boutiques. There’s been a dramatic shift now. Most prefer firms with a large market share, a huge referrals network, good career development and of course stability,” comments Fradkin.
Another headhunter, who asked not to be named, singled out Westpac/BT as having a “strong growth mandate this year”. He added: “As for the boutiques, we should see some replacement hiring and little bits of growth.”
Fradkin expects vacancy volumes in the sector this year to be higher than in 2009, with senior, experienced fin planners most sough after.
“The focus is on revenue generators, but back-office, IT and management roles – which have been inactive for the past 12 months – are slowly coming back on board as a result of the front-office surge.”
