The Covid stimulates the growth of banking and financial jobs
The productivity of the banking and financial sector is in question, with ABS data showing that salaried jobs in finance in Australia have increased by 10.6% since the deployment of Covid in early 2020.
This growth rate is only exceeded (and understandably) by health and public administration, while salaried jobs are declining in all other sectors.
Tom Gunson, Partner and Leader in Financial Services at PwC Australia, told Banking Day:
âThe increase in the number of jobs in financial services since the onset of COVID-19 is largely due to the strengthening of their key teams in contact with customers (such as contact centers).
âThis was the case in all financial services sectors, but the biggest impact was seen in the banking sector. These direct-to-customer teams received a significant increase in call / query volume not only when these support packages (e.g. loan deferrals) were initially offered – but also when they took late and that banks have checked with customers on their continued ability to repay their loans.
Secondary drivers of increased employment in the financial services sector “include their continued commitment to implement their long-term transformational strategies despite COVID, which has required them to continue to develop their capabilities in areas skills like data, digital and technology, âGunson said.
âIt has also resulted in a potential change in the composition of the workforce (rather than the total size), such as an increase in the number of employees on the payroll (permanent staff) versus fewer roles in the payroll. subcontractors and the use of external consultants.
âThe transaction activity has also created additional demand, on top of the substantive change programs that existed before COVID-19 and remain in flight.
âWhen organizations merge or are bought out, we should see efficiency gains manifest in the medium term and the demands for talent for integration efforts diminish.
âSome organizations outsource certain activities because the business continuity plans for the offshore activities do not prove to be solid and the operational risk is more manageable on land. Whether temporary or permanent depends on the organization and other contextual and strategic factors.
Another driver is the relocation of jobs previously undertaken mainly to India and the Philippines.
Jason Hall, local executive secretary of the Finance Sector Union in Adelaide, said the increase in paid jobs reflected the decision of a number of banks (notably, in his field, Westpac) that “bought some of this [processing] working ashore from offshore suppliers.
âBut that’s also due to an increase in the size of the team, especially around COVID and the struggles,â Hall said.