Talent shortage to continue

THE FINANCIAL SERVICES Institute of Australasia (Finsia) advises financial companies to consider cost-cutting measures carefully before culling the labour force further, given a continuing shortage of talent in the sector. (See related story on labour costcutting p56.)

According to a new Roy Morgan opinion poll of 917 Finsia members, 76 per cent believe the talent shortage is here to stay, and 67 per cent believe it will be greater when the global financial crisis settles.

A majority of respondents (93 per cent) said the recruitment market had declined since September last year and 84 per cent agreed that graduate intakes would be scaled back in 2009. However, the most experienced professionals would not be lost, with 93 per cent noting that "baby boomers" expected to delay retirement.

Finsia's CEO Dr Martin Fahy says that while the pressure to cut labour costs is "immense", organisations should first exhaust other alternatives. "The challenge is to avoid impulsive decisions which could undermine our previous efforts to attract and retain talent, as well as the progress we have made towards breaking down the inherent structural impediments in our industry, in particular, gender inequality and diversity in the workplace."