Is it ever worth working for a second-tier bank?
Bendigo and Adelaide Bank (BEN) recently announced an after tax profit of $173.9m for the six months ending 31 December 2010, an 8.5 per cent increase on the prior corresponding period. But opinion is divided as to whether these results will lead to substantial headcount growth.
The official line is that some new positions are being created, "but there is nothing of note at this stage," says a spokesperson for the bank.
However, a headhunter with knowledge of the firm, who asked not to be named, says BEN is "aggressively recruiting".
The bank is building its wealth management team and has made major signings, adds another recruiter, Kym Woolf, senior banking consultant, Porterallen. For example, last month it announced the appointment of former IOOF head of sales Alexandra Tullio to be its head of wealth markets.
At the time BEN said it planned to grow its wealth business through funds management with Sandhurst Trustees, as well as through superannuation, investment and wealth protection products. "The bank is committed to building a strong wealth capability over the coming months and years," said John Billington, executive wealth, Bendigo and Adelaide Bank.
Should you go to Bendigo?
Nonetheless, Woolf warns there are risks with joining smaller Aussie banks, particularly those which are by-products of mergers such as BEN. "Mergers and acquisitions create employment uncertainty though job duplication."
If the firm is a recent acquisition, there might be limited opportunities for internal promotion to the parent company. "Your experience within a second-tier firm isn't always valued as highly as if it was achieved within a big four bank," says Daniel Farquhar, banking consultant, Robert Walters.
On the flipside, second-tier banks can give staff more internal visibility and an accelerated career path. "Employees at smaller banks may also have greater access to management and the ability to work on more complex deals, and in some cases, enjoy better remuneration," says Farquhar.
