On 26 January 2009, corporations around the globe slashed almost 80,000 jobs in a single day amid the global financial crisis (GFC).
No doubt it would have been a hard concept to gauge that just over a year later the financial services job market would do a 180-degree turnaround and employment in the sector would be on its way back to pre-GFC levels.
With employers more confident and recruitment plans back in force for 2010, the butterfly effect has led to a bigger pool of candidates looking for their next job opportunity.
Candidates that held off searching for new careers because they felt their job security was threatened are also back in the market, looking for prospective employers.
Recruiters say with more job opportunities and talent available, 2010 is going to be a busy year and employers should snap up candidates quickly before the talent pool dwindles.
Industry heads say despite the increase in confidence, there is also an air of caution as to what employer a candidate chooses and what candidate an employer decides to hire.
"We're seeing more employers recruit and across a wider range of roles," financial services recruitment group Profusion director Alison Loader says.
"The job market is heading skywards. In fact, we have had more people register on our database searching for jobs in January than in the whole last quarter of 2009."
Loader says with the acknowledgement of a much more robust job market in 2010, it is natural for people to start changing roles internally and externally.
"A lot of people would have put off looking for new opportunities during the GFC as they were worried about their job security, however, now that the job market is stabilising, more people are keen to see what's out there," she says.
"Nine times out of 10 if we make a headhunt call, the potential candidate will show interest."
She says while recruitment levels in the industry had been slow in the past two-and-a-half years, they would potentially even out in the next 12 months.
There is greater interest in insurance and risk professionals with financial planners continuing to be sought after, particularly senior ones, she says.
Financial Recruitment Group (FRG) managing director Judith Beck says the number of roles available has increased and she does not see the trend softening.
"Generally we have two or three potential opportunities for senior candidates, whereas in November last year there weren't as many opportunities at senior levels," Beck says.
"Employers seem to be more comfortable about hiring again, with a lot of companies putting their growth objectives back on the table."
FRG is even recruiting for its Melbourne and Sydney offices because of the increased volume of work, she says.
"Things are not back to a pre-GFC state just yet, but I think you'll probably see signs of that in another 12 months," she says.
According to Loader, the main message for recruiters is to strike while the iron is hot.
"There is a lot of good talent out there right now," she says.
"During the GFC the talent pool was a lot smaller as a lot of people stayed where they were, whereas now there are a lot of talented people out there who are actively looking. "I think for this reason there could even be a mass talent shortage later this year if things continue to go at the pace they're going, which could also put pressure on salaries."
EJobs principal Trevor Punnett says he has also noticed recruitment levels in the advice industry have risen, with strong demand for financial planners.
"We've come out of last year's doldrums and while the number of roles being advertised in 2010 is at this point less than 2008, 2010 is still showing better figures than 2009 thus far," Punnett says.
According to eJobs data, the number of financial planning jobs in Australia rose 38 per cent in January compared to December.
Punnett says data also reveals 58 per cent of dealer groups and Australian financial services licence principals believe job opportunities will pick up in the first and second quarters of 2010, 33 per cent say they will remain static and 9 per cent think they will pick up strongly.
"I believe opportunities will continue to rise, however, I think the one factor that could influence that is the potential legislative changes, which could impact minimum education requirements as well as fee models," he says.
"To be honest though not many people seem too worried about how potential changes might affect the job market, with many practices already operating a fee-for-service model and more people seeking further education regardless of pending changes."
Another interesting point, according to Punnett, is that the majority of job ads in the advice sector have been advertised by banks.
"AMP in particular has been one of the top recruiters, which is no doubt in part due to its Horizons Financial Planning Academy," he says.
Punnett believes boutique dealer groups also seem to be making a comeback after a few quiet months at the end of 2009.
Loader says it is a good time to recruit, but it is important to keep in mind that candidates are being more particular in what they are looking for, as are recruiters.
"Retention will be the big issue for employers over the next 12 months and it will be interesting to see how organisations that really tried to look after their staff during the GFC fare," she says.
Beck says companies that put out the message to employees that they were lucky to have a job during the GFC should be mindful.
"Companies who sent those messages are likely to experience a fair bit of turnover because those who got that message didn't like it and probably would have been more receptive to another type of approach," she says.
"Companies that said 'we're all lucky and we'll get through it as a team' instilled loyalty, and it is likely that staff in those companies will remember that message.
"How people were treated by their organisation during the GFC will be a good indicator as to how receptive employees are to other offers in the next 12 months."
Managers should ensure their best workers are motivated and that they feel management is doing the right thing by them as they are likely to get scouted by other groups, she says.
She says more people had asked FRG to update them on opportunities in the past few months and she suspected many of them were people whose companies did not do a lot for them during the GFC.
For those looking for opportunities elsewhere, the news is perhaps a little less positive for entry-level candidates, depending on who you speak to.
Loader says there is currently more demand for senior than entry-level staff.
"We don't typically recruit for entry-level positions, but from what we've seen there are still less roles being advertised at this level, with opportunities for paraplanners and experienced support staff now starting to gain pace," she says. Punnett says lots of adviser and quality business development manager roles are being advertised and he agrees support staff including paraplanners and quality risk people are in demand.
He says that while it is not difficult to progress once in the industry, getting a shoe in the door is proving a little more difficult.
"It is important candidates express what they want to do and where they want to get to and in what time frame," he says.
"They should state where they're at and not oversell themselves."
He says there have been a number of applications for lower-level roles, but the quality has often been lacking and despite appropriate qualifications many candidates are knocked back simply on their communication and interpersonal skills.
Candidates who have stayed in positions for a reasonable amount of time are also more desirable, he says.
While he has not seen a lot in the way of formal graduate programs, there are certainly still opportunities for graduates looking to join the advice industry, with Beck saying her clients have not signalled any intentions to abolish the graduate programs they have in place.
She says while there are a range of roles available, she has noticed companies are leaning more towards people who can hit the ground running as opposed to those who may require coaching.
"Prior to the GFC, companies were more willing to train people whereas now they appear more cautious in regards to who they bring on and invest their time and resources in," she says.
According to FRG data, when it comes to senior staffers, 98 per cent of clients said they would not answer job ads directly and send their resume to the competition as they were concerned about confidentiality.
Beck says because a lot of senior people are happy in their role, they need to be enticed into having a conversation with another group about a job opportunity.
"Junior candidates on the other hand are more likely to answer job ads direct," she says.
ING-owned dealer group Millennium3 co-managing director Darryl Foster says Millennium3 is focused on hiring more experienced professionals in 2010, but there will still be some opportunities for junior planners.
Dealer group Centric Wealth executive chairman Phil Kelly says Centric on the other hand has constant demand for people at the entry level.
Kelly says Centric Wealth typically recruits in proportion to the size of its divisions, which is led by financial planning, followed by accounting, life insurance, lending and general insurance.
"That could change in due course though depending on the acquisitions we make," he says.
Independent dealer group Matrix Planning Solutions managing director Rick Di Cristoforo says the firms within Matrix all have their own needs and requirements, but it is likely those recruiting are looking in particular for advisers and practice managers.
"There is probably more demand for experienced advisers, however, in saying that, there would still be opportunities for junior paraplanners and entry-level planners, just not as many," Di Cristoforo says.
He says Matrix helps its people to develop through professionals in the dealer group, including its director of adviser development and national marketing manager, as well as its national practice development manager, who will be announced in due course.
"There is also the research committee including myself and we are 100 per cent dedicated to helping our people grow," he says.
In the meantime, recruiters and employers agree that in some instances there is a little more pressure on the qualifications and experience of prospective job candidates.
Beck says employers have an expectation that candidates will tick all the boxes. "Candidates need to have the right qualifications, skill set and fit the culture of the organisation as employers are being more careful about their selection," she says.
Loader says employers are looking for advisers who have got stable and strong track records and generally those who have done advanced diplomas, with the CFP (certified financial planner) designation more frequently sought after than in the past.
"There is also more demand for advisers who are able to sell the value of advice so there is a greater interest in those who are already working in a fee-for-service environment," she says.
"Employers want people with good skills, a stable work history, someone who is well regarded, who has good references, presents well and someone who has outside interests."
She says for people wanting to change roles within financial services, it is important to do research, find out what potential employers look for in their candidates, use networks and contact desired employers directly. "Don't be afraid to be on the front foot and contact a prospective employer," she says.
Punnett says he is getting a lot of job applications, but only the top candidates are being considered, with it often coming down to experience and qualifications.
"The best candidates are being employed right now, while the satisfactory or entry-level people are finding it hard to move up or even get a shoe in," he says.
"Having your diploma in financial services seems to be a given with a lot of people falling short or not stacking up in terms of written and verbal ability.
"For people with their CFP designation there is a lot more opportunity, with an advanced diploma great as well."
Many more people are doing courses as a way to get in and climb the ladder, he says.
Foster says in terms of what Millennium3 looks for in potential job candidates, factors include the candidate's skills, business objectives, where they want to take their business and the areas in which their business could grow.
"We don't put people on for the sake of it. We look at their business, where it is going and the opportunities that exist, and whether it fits our culture," he says.
"We also offer internal education programs to help advisers advance to the next level."
He says while current reviews into financial services could mean changes to the minimum qualifications advisers need, the dealer group still requires candidates to have the minimum qualifications listed by ASIC, with higher qualifications for specialist roles.
The dealer group is happy to assist people in gaining new or higher qualifications and while it does not offer a graduate program at the dealer group level, some of its firms do.
Kelly says Centric Wealth's recruitment standards have not changed either.
"To be a fully-fledged adviser in any of our divisions, we would require five to 10 years' experience, with financial planners requiring their CFP as well," he says.
"For paraplanners or associated planners, we're interested in strong education standards, with field experience and strong academic results also highly valued."
For those in risk insurance or lending, relationship building and sales skills are important as well.
Kelly says candidates looking for employment in the industry should not take things causally.
"It is an industry where entry standards are now quite high. You're entering a profession and you must prepare yourself well, with qualifications and other skills and experiences," he says.
"We're looking for candidates who've got a good understanding of people." For that reason Centric Wealth believes prospective candidates can also exist in different professions as a lot of the qualities that make an adviser good are people skills and different life experiences, he says.
Despite not having a formal graduate program, many of the staff in technical positions within Centric Wealth are graduates, with Kelly saying the dealer group will consider a formal graduate program in the future.
"Centric does offer the Centric Adviser Development (CAD) program, which does develop people within the group, however, they have usually been working for a period of time and have a strong professional potential," he says
"It's a selective program where candidates receive mentoring from senior staff as well as other tasks and assignments.
"Anyone at Centric Wealth can be a part of the program, whether they are in financial planning, life insurance, lending, accounting and tax or general insurance.
"It is a year-long program and we usually take an intake of around 10."
Di Cristoforo says Matrix has always had a high expectation of candidates when it comes to skills and qualifications.
"Our requirements are probably above the industry norm but at the same time if candidates don't have the qualifications and experience we require, then we are happy to help them bridge that gap if they stand out as quality candidates," he says.
"If you want to be a practice principal for instance we do require that you are advanced diploma qualified, with experience.
"If a principal doesn't have an advanced diploma, we would have to talk about what the candidate would be prepared to do.
"If they were a quality planner with an established business and were good at their job, we certainly wouldn't close the door on them.
"At the end of the day it is about how good a financial planner they are and the quality of advice they're able to give. An academic qualification doesn't make you the better adviser by any means, but the best way to establish that is by getting to know the adviser."
Di Cristoforo says while Matrix has standards it also wants to provide advisers with as much flexibility as possible so they and their clients can reap the benefits.
Punnett says despite a greater appreciation for qualifications and experience, a recent eJobs survey revealed 74 per cent believe salaries will remain static into 2010.
"In November/December we saw several entry-level roles being advertised at $45,000 to $55,000 with employers prepared to train and progress candidates," he says.
"In January, however, all the demand for advisers was in the over $60,000 salary range.
"The most popular salary band was $70,000 to $90,000, which accounted for well over half the roles on offer.
"There were also many banking roles on offer at $90,000 and at this level candidates were required to have three years' experience, RG146 or diploma in financial services qualifications and a proven track record in sales and customer support.
"This was also the criteria for most roles paying $70,000, thus bank demand appeared to be pushing up the salaries."
Above this, he says the $100,000 level is popular for five-year advisers with CFP qualifications.
Foster says while revenue is always a consideration for people when changing roles, candidates in the advice industry have also become increasingly interested in assessing what value their dealer group or employer can offer them. "Candidates want to know if their dealer group or prospective employer can offer value-added services and support, particularly during bear markets," he says.
According to Foster, Millennium3 is aiming to be one of the top three largest dealer groups in Australia this year, with the group rated fourth in the 2009 annual IFA Dealer Group Survey.
Millennium3 also gained the most adviser numbers out of any dealer group in the top 20 last year, adding a total of 179 advisers to its network.
"This year we'd like to grow organically and look at strategic acquisitions," Foster says.
"We are a diversified group so we expect to grow across all areas, including risk, superannuation and financial planning."
Part of the reason Millennium3 grew so strongly last year and expects to do the same this year is its reputation for doing what it says it will do and because it has good employee retention, he says.
"There is really no better referral given to potential candidates than that which comes from your existing advisers," he says.
Kelly says Centric Wealth does not have specific recruitment targets but he would like to see the business become about three times larger within three to five years.
"One of the reasons for our growth target is we want to get the business to a big enough size that we can list it," he says.
"We want it to be sustainable and we want to grow through direct recruitment, tuck-in acquisitions, regular acquisitions and a significant merger with a similar-sized business to Centric Wealth."
Di Cristoforo says Matrix currently has around 100 advisers across 41 practices and wants a minimum of five new practices to come on board in 2010.
From a dealer group perspective, Matrix's main focus is selecting the right principals for its advice business, while candidates recruited by its member firms fit the needs and requirements of principals.
Di Cristoforo says while people lacked confidence last year in moving dealer groups, candidates are keen to start making more business decisions this year, with Matrix receiving an increased number of inquiries from people looking to join the group.
While no-one in the industry seems certain that recruitment levels will continue at this pace, the general consensus is that post the onset of the GFC, employers will be more cautious in their selection of who works for them as candidates are more cautious about who they choose to work for.
