The Dawson Partnership Hiring Intentions Survey canvasses a broad range of institutional and independently owned wealth management businesses, including investment management companies, superannuation funds, financial planning companies and diversified financial services groups.
‘The Hiring Intentions Survey found that there has been an increase in the number of organisations intending to hire new employees in 2015 compared with the outlook at the start of 2014. In our survey for 2015, 32% of organisations surveyed intended to hire new employees compared with 24% of such businesses in our 2014 Survey. The increase in hiring intentions is primarily attributable to the increased growth and profitability experienced across respondent organisations in 2014 and their belief that this will continue in 2015. While there were a number of domestic and international factors identified by respondents that could negatively impact on their hiring decisions, most were of the view that the impact would be short lived and would not have a material adverse effect on full year profitability.
Our 2014 survey found that:
- 24% of employers were looking to increase existing employee numbers.
- 12% of employers were looking to down size employee numbers.
- 9% of employers were unsure.
- 55% of employers were looking at maintaining existing employee numbers.
Our 2015 survey found that:
- 32% of employers were looking to increase existing employee numbers.
- 8% of employers were unsure.
- 60% of employers were looking at maintaining existing employee numbers.
Increasing existing employee numbers:
Of the 32% of those businesses in our 2015 survey that indicated their intention was to increase employee numbers:
- 42% stated that this was due to positive investor sentiment. Respondents stated that there was continued investor appetite for retirement and non-retirement products particularly across main stream asset classes.
- 34% stated that it was due to factors related specifically to their business operations. These factors included, the success of business initiatives including the launch of new products, entering new business channels and building deeper relationships with existing clients.
- 22% stated that this was due to factors underpinning a positive business environment including more certainty in the legislative agenda in particular the FOFA reforms.
- 49% stated that domestic and or offshore factors could adversely impact their businesses at some point in the year and 72% of this group stated that the impact would most likely be of a temporary nature and have no material impact on their full year business profitability.
Maintaining existing employee numbers:
Of the 60% of respondents who stated that they would maintain employee numbers:
- 67% said they would do so to meet current and projected business requirements and currently didn’t see there would be any change in their position in the 2015 year. However when asked if they would consider hiring more employees if business conditions did improve beyond their current expectations 42% stated that they would consider it but only if they believed the improvement was sustainable.
- 58% stated that they were expecting domestic and or offshore factors to impact on their businesses at some point in the year with 56% of this group stating that the impact would most likely be of a temporary nature and would not have a material impact on their full year business profitability.
Positive factors cited by respondents:
- The improvement in US economic conditions to continue through 2015 – 36%
- Continued downward pressure on the Australian dollar to be a positive factor for those businesses exporting their products and services and for a number of offshore companies operating in Australia – 28%
Negative factors cited by respondents:
- Continued contraction of the Chinese economy – 42%
- Budget reforms not being legislated – 23%
- Further problems in the Euro Zone – 17%.
- An X factor – 7%
While no respondents stated that they were likely to reduce current employee numbers, 22% stated that they would be adopting a cautious approach to employee levels. A further 11% stated that in the immediate term they would not replace employees who left their businesses.
‘The positive sentiment of respondents was not only evidenced in increased hiring intentions but also since respondents indicated that they weren’t considering decreasing employee numbers. Where business conditions call for cost cutting respondents stated that they would look at natural attrition. This sentiment differs from the 2014 survey where 8% of businesses were considering decreasing employee numbers.
Respondents to the Dawson Partnership Survey included:
Sally Humphris, The Dawson Partnership