Are salary surveys valid data in our current economic environment? 

Thursday 14th May 2020 Justin Cleveland

Banking and finance recruitment specialist Profusion Group has released a salary guide for financial services and advice.

You can read that here.

Chris GordonChris Gordon is a director for Profusion who specializes in financial advice. He says that financial services roles have not been as affected as other businesses. "The majority of clients have adjusted really well to current conditions. It's surprising how well they have adjusted."

While the job market is fairly quiet at the moment, Gordon says that companies have indicated that this is just a pause in the market and conditions will improve as soon as the economy opens back up.

In their experience, Gordon estimates that about 90% of the roles they were recruiting for went through with just a few companies deciding to either cancel a contract or put recruitment on hold.

As for those who have started jobs, he says companies are doing well getting people set up through virtual inductions with remote workforces.

Can we expect lower rates of pay in the future?

When the economy opens, it will take some time to get things back up and running. Should we expect to see lower salaries continue as well? Gordon says potentially, though it may not necessarily be a bad thing.

"Potentially, we may see COVID-induced flexibility causing a lower rate of pay, however now that businesses have a strong work-from-home setup, they may be open to allowing people to work either remotely or regionally."

The ability to work from anywhere could invigorate life in regional Australia.

A slight drop in salaries due to supply and demand

The challenge with publishing a survey with data taken before a global financial crisis is that is likely immediately out of date. Fortunately, as Gordon noted, the lack of immediate impact on financial services means that it's still fairly accurate now.

"We have seen a slight drop in salaries in some adviser and remediation roles due in small part to the number of candidates in the market," said Gordon. "I don't see that changing much in the foreseeable future, but again, if companies continue to work from home and remotely, we may see some slight change in remuneration."

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