In SA (almost) everyone wants to be a banker
South African banks are doing well and capitalising on their experience to establish Johannesburg as the gateway to the rest of Africa. Foreign banks are scrambling to increase their presence in South Africa and to expand into the Continent. No wonder going into banking, and particularly investment banking, is a big aspiration for South Africans and has none of the stigma the financial crisis (temporarily) attached to the sector in London and New York.
"While the image of investment banking may have suffered elsewhere, it remains largely unblemished in South Africa: interest in investment banking as a career has certainly not diminished," says Craig Thompson, SA director of international recruitment agency Michael Page. "Banking is seen a secure and stable career option in South Africa," according to Vicki Marais-Swanepoel, managing director of Professional Assignments Group.
Half the attraction of a job in banking is the availability of jobs, crucial in a country with an unemployment rate of 25%, still waiting for the economic recovery to gain momentum. In this case, reality matches expectactions: according to the latest Manpower employment outlook survey, in the last quarter recruitment activity for positions in financial services was up 22% compared to a year ago, while other sectors with the exception of government had slowed down.
The other half of the attraction of a career in banking is the expectation of high salaries. On this score, hopes may be disappointed. As the Robert Walters Salary Survey 2010 predicted, "salaries in banking and financial services are expected to remain static" and candidates should be "realistic" and "flexible" in their demands. While the sky's the limit for experienced senior candidates, especially those with foreign experience, others may need to settle for a reasonable rather than high salary, packages linked to performance targets and much smaller bonuses.
"Overseas regulation and criticism about big bonuses are slowly filtering through to South Africa," says Laurence Wordon, managing director of Kelly Group in South Africa. "The big banks are certainly looking at salaries versus bonuses". Even candidates switching jobs, who used to expect 20% increase to shift, are now more likely to be offered a 10 or 15% pay rise, says Thompson.
