In this issue, we look at how the economic downturn has affected the banking and finance sector and the process of cutting staff costs for firms operating in this sector. For some, such as brokerage firms and companies with operations in securitisation, leverage finance and credit derivatives, redundancies can be a matter of survival.
For others, the outlook is tough, but not grim. This presents some banks with an opportunity to take talent management to a new level. As David Reynolds, executive general manager of Chandler Macleod Consulting, notes in ‘Trimming the ranks in banking and finance’ on page 16, organisations will be able to be more selective in who they employ and retain and will also be able to take market share.
A headcount freeze is common policy for most firms in banking and finance in times of economic trouble. It is also inevitable that some local firms will have to let some of their talent go, while there has been a steady flow of Australians coming back from overseas where the credit crunch has ravaged US and UK firms.
As such, there is some talent to be picked up on the market. Every economic downturn always passes,so a little bit of flexibility on the hiring front now can pay off very well in the long-term.