Recruitment activity grows in South Africa but salaries flat
From a recruitment perspective South Africa has really turned the corner this year, experts say: with the end of the recession and positive sentiment about the imminent World Cup, activity is picking up across sectors and market confidence is returning.
Within the financial services sector the mood is one of "cautious optimism", according to the new Robert Walters Salary Survey for South Africa, which expects "recruitment activity to increase throughout 2010, on a gradual but steady basis." There will be "continued demand for those with strong overseas investment banking skills and those with risk management expertise."
Banks are no longer in cautious mode and now want key people in place to take advantage of favourable market conditions, says Michael Fraser, manager of banking at Robert Walters Professional Recruitment Consultancy in Johannesburg: "Last year the focus was on not losing money rather than making money, but this year all banks are recruiting, the South African ones but also international ones like Hsbc, Merrill and Deutsche."
The new wave of recruitment activity will not bring a significant increase in salaries, though: "Banks do not want to put the cart before the horse, as it were, no one wants to blow their budget," says Fraser. "Salaries are likely to remain steady and the majority of candidates are realistic." The exceptions are likely to be product controllers, research analysts and investment bankers with foreign experience, the areas where the skills shortage is most acute and where premiums can therefore be negotiated.
Next year will see a declining trend in salary increases, says Brendan Oliver, managing director of Vasdex Associates, a Johannesburg-based management consultancy specialised in reward and performance solutions.
"All of the big four banks are planning to give increases in 2011 but given the decreasing inflationary outlook for the second half of 2010 and 2011 they will probably be 1% to 2% lower, - says Oliver. - In the last quarter of 2009 and the first quarter of 2010 Standard Bank, Absa, FirstRand and Nedbank all gave increases in the range of 8.5% to 10% for employees and of 6% to 8.5% for management and executives."
