Attracting and retaining talent is likely to be a key challenge for employers in 2013, a recent survey by professional recruitment consultant, Robert Walters has found.

Attracting and retaining talent is likely to be a key challenge for employers in 2013, a recent survey by professional recruitment consultant, Robert Walters has found.

The 14^th edition of Annual Global Salary Survey, said generally speaking, the Hong Kong economy has stabilised and is on track for a more solid recovery, which will see increased hiring in the coming quarters.

To gain a deeper insight into the recruitment environment of the private banking industry in Hong Kong, WealthBriefingAsia conducted an email interview with John Mullally, associate director, financial services, Robert Walters Hong Kong.

What is the general feel for hiring and salaries in the private banking and wealth management industries in Asia?

The demand from front office revenue generating employees within private banking and wealth management continues unabated. We won’t however see too many of the headline team moves or banks seeking to build out entire private banking businesses. Much of that hiring was completed by 2011. However, if these firms are presented with a relationship manager who can bring revenue with them [clients] then they will be hired. Salaries within this space have stabilised for the most part; however, as is always the case, top performers will be able to command a premium from their current and/or prospective employers.

At what levels are most of the hires being made?

Senior relationship managers, vice president level and above. There is not nearly as much junior hiring as there was two years ago.

Are the available roles newly created positions or inter-company moves?

Generally they are new positions as firms try to increase their footprint in the region.

Who is doing the majority of the hiring - established private banks and wealth managers in Asia or newcomers to the region?

There is hiring across the industry but the newcomers are the ones doing the greatest volume of hiring. They are also having to pay a premium to get people on board as their platforms and products would not be as established or recognised as other private banks.

For people to move jobs, what level of salary increase are they expecting?

This is very much dependent on the move that is being made, but on average it is not uncommon for salary increases of 25 per cent to be sought by private bankers who are moving between competitors.

What were the average salary levels for private bankers in 2012?

1-4 years of experience: HK$500,000 – 750,000 (approximately $64,500–96,700) per annum

4-8 years of experience: HK$750,000 – 1.3 million per annum

8 plus years of experience: HK$1.5milion and above

What about bonuses in the industry?

Bonuses generally remained steady year-on-year for the good to top performers. Average or below average performers (i.e.: those not hitting their sales targets) were disappointed as bonus numbers fell compared to last year, when they would have got something for the revenue they generated.

What skills/qualifications are private banks and wealth management firms looking for?

Understanding of financial markets and where to invest is always an advantage, so the CFA is still seen as something that is nice to have. More important though is a strong client network and fluent Mandarin as most of the banks are targeting mainland Chinese clients.

Many private banks speak about a small talent pool - do you agree?

There is a shortage of front office talent that can bring the requisite assets under management and a client network to the table that is necessary to generate revenue from day one. However, this has always been the case in the private banking market, especially in Asia. There are never going to be enough private bankers with an established book of clients to satisfy the demands of the private banks in Asia.

What are your predictions for the year ahead?

Continued hiring within the front office space. There will also be hiring within risk management and product development as banks seek to differentiate themselves from the competition by bringing new products to the market. Equally, they need to be able to manage the risk associated with such products, which is why credit risk managers within private banking are in demand. The days of private banks hiring people without prior wealth management or private banking experience though are long gone.