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Jobs and Career Management in the Financial Markets, Banking & Finance |
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TOP STORIESWill bad debts hinder Big Four hiring?6 May 2009Australia’s retail banks are facing a growing bad debt burden, but this shouldn’t cause mass redundancies or recruitment freezes. The next six months will probably bring us more of the same: selective high-end hiring for niche jobs, replacement of business-critical positions, and some small-scale layoffs, particularly in the back office. The Big Four’s debt problems won’t make the employment market in Sydney and Melbourne as bad as New York and London. Earlier today Westpac reported a 1.2% fall in net profits for the six months ended March 31 as a three-fold jump in impairment charges for bad loans helped to offset higher revenues generated from its acquisition of St George Bank. ANZ’s profits plummeted by 28% in the same period as its dodgy debts almost doubled. NAB, which kicked off the banks' reporting season last week, has revealed that its bad loans rose to $1.8bn, up from $700m. But notwithstanding these recent results, local firms remain in better financial shape than many credit-crunched foreign banks. “The financial crisis has made the Australian banks comparatively more attractive places to work for many candidates. Despite the bad debts on their books, they should be able to recruit high performers for head office roles,” says Luke Heath, chief executive of Chandler Heath Executive Recruitment. Senior line managers at domestic banks see the current market as an opportunity to add high calibre people to their teams, adds Heath. “Their financial markets divisions are very profitable and they now have a potential hiring advantage over some investment banks.” Warren Price, managing director of Select Personnel, says the Big Four will still take on “specialists and revenue generators”, but he doesn’t expect any growth hiring for generalist jobs. “I don’t think we’ll see massive retrenchments either, and the banks will still have to replace their young staff who choose to go overseas,” says Price. Heath agrees: “Overall, hiring will be circumspect and slow over the next six months, as it has been for the last six months.” How do you see recruitment at the Big Four shaping up for the rest of 2009? Let us know below.
COMMENTSbloom_jasper, Fri 08 May 09Local banks always had the cash even prior the financial crisis. But this does not mean they do not have toxic assets in their balance sheet. Bad debts from their retail business (mortgage, credit cards, and personal loan) is just one of the toxic assets they have in their balance sheet. Exposure to risky derivatives and structured products is another sleeping volcano waiting to erupt. In year 2008 you also saw CBA unwinding their mortgage funds. Westvaco have exposure MBO and LBO. You have to ask yourself if exposure to these types of assets in their balance sheet can lead to write off again.
bloom_jasper, Fri 08 May 09Retrenchment is not too much publicized on big banks because they are trying to protect their brand name. This happens in the subtlest form. So I will say you are wrong from anticipating there is no retrenchment happening. Hopefully they do not retrench to get overseas workers as a replacement because this is bad for local resident workers. Consultants should also refrain helping the banks doing this practice because it is not ethical given the current economic condition. You see the likes of Carmichael Fisher, WH Sattin, Alliance, and Hays encouraging overseas workers. Shame on these agencies! Where is your social ethics to think you are dealing with human resources and not commodities? Be aware that we are monitoring you and we will lobby your practice to the work place department if you continue to do this. Yes capitalism is a free trade but we are in an extreme economic situation right now. Show compassion to your fellow Australians. We will raise our voice to the department of work place if we see this practice continued. If you enjoy free trade then we also have the right to freedom of speech. Add your comment »bloom_jasper, Fri 08 May 09If you are getting workers overseas you are not also helping the society and the government in combatting the recession.
bloom_jasper, Fri 08 May 09If you are getting workers overseas you are not also helping the society and the government in combating the recession.
bloom_jasper, Sat 09 May 09Domestic banks through their agents are encouraging overseas workers form UK/Europe. How can you get better candidates there when most of the banks there have exposure to toxic assets? Meaning you have to ask yourself that people who work close to monitoring these products with the bank surely knows the risk involved on these products and did not do a good job. These pertain to product control, risk management, IT, audit and front office. The calibers of candidates you are bringing to Australia from UK are actually the ones who participated in the systematic risk in the banking industry.
Frank, Private Banking / Wealth Management, Sat 09 May 09Investment banking division should not sell there toxic assets (banks balance sheet exposure) to their retail banking division. This is when conflict of interest is critical in the areas of protecting public investor interest. A good example of this is IB within the bank selling wholesale structured products to private banking division and retail financial planning business.
John, Capital Markets, Sat 09 May 09Recruitment agencies should be very careful placing their candidates particularly in the Audit and risk management side. You have to make sure that these roles sits in a department where independence to exercise judgment and responsibilities is viable. Otherwise your candidates will look like they are not doing their job. In short you are burning the name and career of your candidates. In the end you are not protecting the name of your recruitment agency as well by not being pro active with your client (hiring company) in relation to placing your candidates in a position where they can exercise the responsibilities assigned to them. In the pass particularly auditors sits in the organizational structure where they are put in a position that if they give an honest opinion it may cause losing their job. Hence due diligence is compromised. This has been the case for almost 10 years and the result is systematic risk across the industry.
Marcus, Equities, Sat 09 May 09There should be serious personnel over hauling across domestic and global banks before you can get investors confidence. This is from human resources to CEO. Personnel’s who assumed roles for the past three to five years need to be replaced by more competent leaders with the right attitude to business ethics. In the past bankers and asset managers take risky bets for quick money. Most of them are too lazy to do an honest hard work. Banks, IB, and asset mangers do not want to capitalize on risk management due to cost and obviously this will limit risky bets.
Marcus, Equities, Sat 09 May 09Roles that require judgment, negotiating skills, strategic decision-making should not be given to people without experience and to some junior dude that just came straight out from the university. It does not matter if they have MBA or PHD. Their academic background will not make them do the job rather it is the depth of their experience that can make a difference. Obviously "experience" does not mean long years. It is the depth of the candidate’s achievements that matters because some people are really excellent in the practical execution of their knowledge and they can demonstrate "experience” in shorter time frames. This is easily assessed during interviews. Add your comment »Marcus, Equities, Sat 09 May 09In fact people who are pure academic and have only based their knowledge in theories are more prone to being used in an environment where there is systematic risk. They do not have the personality to assert themselves hence following the crowd that is to fall in the cliff (financial crisis). There is less leadership from junior candidates. Experienced candidates although sometimes can be viewed as aggressive will come out to be a better leader. This is why recruiters should ensure their experienced candidates are put into a working environment where they are able to execute expected independence in their roles. Add your comment » |
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