Competition for skilled professionals is expected to rise with an increasing number of employees willing to jump ship for more attractive pay packets.
According to the latest Clarius Skills Index, there is increased demand for professionals in the financial services sector as a result of growing employment opportunities, increasing financial market activity and positive business conditions as the Australian dollar reached parity for the first time since its float in 1983.
Executive general manager of Alliance Recruitment, Paul Barbaro, said with more candidates entering the market due to encouraging job prospects in the financial services sector, wage demands have softened with more employees willing to move between jobs.
"A rising sense of confidence around the economic situation has meant people feel freer to move between jobs, while employers have also become more active in making opportunities available to candidates," Barbaro said.
"Employers are becoming increasingly flexible for the right people and are meeting wage demands of up to 10 to 15 per cent to secure highly skilled individuals."
According to Barbaro, the retention of staff will be a key focus for employers over the next 12 months with businesses expected to increase reward and recognition for existing staff, and offer more non-financial incentives.