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Commission model deters new brokers

by James Mitchell4 minute read

A new report by a global recruitment company has identified a “talent mismatch” for mortgage broking roles and a reluctance among candidates to take up a commission-only career.

Released yesterday, the Hays Quarterly Report for October to December 2015 shows that experienced financial planners with their CFP or degree, financial planning remediation specialists, relationship managers, mortgage brokers, business review associates and regulatory compliance managers are some of the skills currently in demand in the financial services industry. 

The report found that there is a continued demand for bank branch lending managers and mobile lending managers as companies continue to take advantage of the property market. Commercial lenders and business bankers are also sought, while the report found that business development managers in asset and equipment finance are in high demand.

“Mortgage brokers are needed too, however many candidates are not interested in commission-only roles, while others need to improve their business development skills or are simply not looking to drive business,” the report said. “This has created a talent mismatch for this role, with a shortage of candidates with the skills employers are looking for.”

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Mortgage assessors and mortgage verifications officers are also sought.

“Given increasing workloads, additional mortgage support is required,” the report said. “Banks continue to recruit relationship managers as they realise the importance of deepening customer relations in a fiercely competitive banking market.”

The report found that new qualification requirements in Australia’s financial planning industry have led to an influx of roles within the advice space, particularly within banks.

“With educational requirements now harder to meet, an already candidate-short market is under even more pressure,” it said. “In the hope of ensuring candidates are qualified prior to conducting interviews, it is now usually mandatory for candidates who are applying for financial planning roles with a bank to provide proof of their qualifications and complete online competency based tests before they are shortlisted.”

Hayes said this has lengthened the recruitment process: “In turn many candidates have become frustrated and are instead applying for vacancies with smaller and more nimble boutique firms.”

[Related: Broker calls for standardised commissions]

 

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James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

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