Should you bother becoming a contractor?
Most local and international banks are increasing their use of contractors, and pay rates are increasing again, but it's not exactly a booming employment market for banking's transient population.
"Contracting rates are up, but only because they were at rock bottom at the start of the year," says Kym Woolf, senior consultant, financial services division, Porter Allen.
Candidates are asking for higher rates, but the employers are not moving to a great extent, says Sara Gibb, associate director, Robert Walters.
"Clients can sometimes be flexible with rates depending on the candidate's experience, but we are not seeing a sharp increase across the board," she adds.
Gibb attributes employer hesitancy to pay parity. "If a permanent employee has not seen an increase in salary for two years, or received a bonus, the last thing they want to see is a contractor being paid at a premium rate," she adds.
Despite this, contractors are still getting good coin. Business analysts typically earn $600 to $850 per day, while business project managers command $750 to $1.1k, according to Robert Walters. A project director can receive up to $1.5k.
Demand for contractors exists across many different job functions, for example in accounting and finance banks need them due to increased risk and compliance reporting requirements.
"We are seeing an increase in demand for strong risk professionals, and we expect this to continue for most financial services providers," comments Sharmini Thomas, director, financial services, Michael Page International.
Project managers are also sought after on the back of continuing integration and system upgrading work.
Interestingly, the contractors most in demand are those with overseas experience, who possess a skill set which is in short supply locally. "If they come from an advanced financial services market such as the UK or Hong Kong and have worked for high calibre organisations, they will command high premiums," adds Thomas.
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