In the second of a two-part article, delegates on the recent eFinancialCareers recruitment roundtable in Sydney discuss the difficulties faced by job seekers in the current employment market. The roundtable was attended by several senior HR professionals from local and foreign banks. Attendees asked not to be named in this report.

Flexibility has its limits

While some candidates are getting less picky about the type of positions they apply for, stepping down the banking ladder is still fairly rare in Australia, according to the roundtable delegates. Front to back-office moves, for example, are uncommon and usually only happen on a contract basis. “And some investment banking candidates are also applying for institutional roles at the Big Four. The local banks are at least now looking at these people, but they are not always appropriate for roles there,” added one attendee.

Interviews get interesting

Banks are keen to ensure that they don’t hire another firm’s dead wood, so during a job interview, unemployed candidates need to clearly articulate why they were made redundant. Roundtable delegates also thought that candidates are asking more probing questions of potential employers than they were a year ago. There is a fear of last-in-first-out and job security is a key concern. “Candidates are asking about how the role came about. Is it a valid job? Is it fully approved?”

Approval: it isn’t easy

Candidates who do get through their first interview should ready themselves for a long, uncertain and potentially disappointing ride. At foreign firms, head offices overseas are now much more involved in local approvals, which makes getting sign-off even tougher. One panelist commented: “HR can get overwhelmed with calls and emails because the approval process has become more complicated…Line mangers must prove how people will generate revenue – build a robust business case for the job.”

It’s not easy to become a contractor either. The approval process is just as strict as for permanent roles. In numbers terms, contact roles are down on last year, but contracting jobs should rise proportionally to permanent ones later in 2009 as project-based roles – to help with banking-sector consolidation and IT projects – become more available.

Compensation challenges

Roundtable attendees were confident that recent reforms to the way bonuses are paid (such as linking them to longer-term performance) will be lasting, rather than temporary. “Firm might be more sparing and concentrate bonuses on high performers. Identifying these people will become a more important task for HR in the future.”

With bonus being revamped, candidates are becoming more concerned about base salaries. “As yet there is no general downward pressure on pay. Permanent salaries will stay about level but contract rates are declining by up to 30% when it comes time for renewal.”

More cuts to come?

Have we seen the back of large-scale layoffs at banks in Australia? The general view of roundtable delegates was that cuts will continue in 2009, but they won’t be as big as they have been over the last six months. One panelist, however, warned that “if the economy takes another turn for the worse, banks might be forced to downsize again.”