Hiring goes manic as firms start to panic
Financial institutions in Melbourne are having to deal with the problems that come with rising recruitment levels: multiple offers, panic hiring and overly keen candidates. That's a key message from the eFinancialCareers roundtable held in the city recently and attended by 13 senior internal HR professionals from leading Australian and international firms.
"It's the busiest employment market in two years. It's very competitive and aggressive, and will get more so in the future," said one of the delegates, all of whom asked not to be named in this report.
Roundtable attendees agreed that although certain firms will experience restructuring and redundancies over the next year, churn and growth will ensure that hiring stays healthy overall.
Opening up
The movement floodgates have opened in Melbourne because many candidates have not shifted roles in two years. "Now that the GFC is over, some people tell us they are 'ready' for a new position, but they're not giving proper reasons, so HR has to question their motivation for wanting the job," commented one panelist.
And as unemployment in the financial sector falls, candidates aren't so afraid to enter the job market, which means they have high salary expectations.
"Some candidates, especially less mature ones at analyst or associate level, just won't take no for an answer. They are always asking for $10k more, which is unrealistic, even in this market."
Speed and scale
Approval times are, however, getting faster as firms fight to recruit the same job seekers at the same time. "Even at the $45k to $65k level, candidates often have several offers on the table."
The scale of the hiring in Melbourne is putting HR professionals under too much pressure at some financial institutions. One firm has six people handling hundreds of vacancies.
Several roundtable delegates discussed the "disconnect" that can exist between the business, finance and HR regarding headcount targets. Better workforce planning is needed to ensure that hiring numbers are not "over exaggerated" internally and/or in the media.
Numbers game
"Hiring managers need to calm down and focus on getting the right people. Panic recruitment means the wrong candidates are taken on, and then you have to let them go just a few months later," bemoaned one attendee.
Another added: "For every A-grade candidate, there are 10 B-graders. There are too many people just testing the water. We are candidate short at A-grade level, so there's too much bums-on-seats recruitment in Melbourne."
We continue our Melbourne roundtable report next week with a look at flexible working, employee mobility and recruitment agencies.
