Six ways in which the global economic turmoil is wrecking Australian recruitment

eFinancialCareers recently ran a roundtable in Melbourne that was attended by 20 delegates from leading local and international financial institutions. Here's what they think about the job market.

1) Employees stay put

"There's a general concern about what the next 12 months has in store. You could say the 'fear factor' is back. People are happier to stay where they are," said one of the roundtable panellists, all of whom asked not to be named in this report.

Retention rates have therefore increased compared with a year ago, when candidates were more comfortable about moving. A representative from a big four Australian bank said his attrition rates have fallen by about 30 per cent in the past three months. "We've definitely seen more people wanting to stay on."

2) Interviews get in depth

People who do go for interviews are asking more questions, especially about why the role was created in the first place. "It's not about us interviewing them, it's about them interviewing us. They are turning the tables."

3) Recruitment adds a few layers

"We are still recruiting, but we are being more rigorous around the process. We need more approvals, both to start the search and to approve the candidates when we find them," said one roundtable delegate. An HR professional from a global bank remarked that approvals now go all the way to New York, rather than just to regional HQ in Hong Kong.

Another attendee added that these days even a so-called final approval may not be enough to clinch the job for the candidate. "There are certain roles where we now expect to be told that they will be cancelled."

4) Firms look within

As recruitment budgets are squeezed, employers are increasingly looking to source from their own ranks. One banking-sector delegate commented: "We are offering more internal opportunities. If someone in the firm is capable of doing the role - perhaps with some training and development - then we'll go for that person, even if they're not a 100 per cent match."

5) Relocation reduces

Foreign candidates aren't exactly top of the priority list. "Our sponsorship rates have dropped this year and we only do it in exceptional circumstances," said a representative from a local bank.

And even interstate relocation has suffered as firms cut costs and candidates become more cautious. "People are deciding not to come to Melbourne because they are worried about being 'last in first out' in a new city."

6) Remuneration changes

In the last three months there has been more "push back" from the business in order to peg back salary increments for new staff, said one panellist. Candidate attitudes are changing too. "Most people would now much rather take a higher base than have the potential for a high bonus. They prefer the certainty."

As far as bonuses go, not all industries are the same. A representative from an insurance firm said she has seen "sign on bonuses across the board" in her sector, while her counterpart in wealth management has experienced the opposite. "When recruiting revenue generators, we haven't been offering sign ons for a while, and now we've noticed that our competitors have taken them off the table too."