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Twelve months after the US subprime market crisis caused havoc on financial markets around the world, the global credit crunch shows no signs of easing.

The effect on employment in Australia is nowhere near as great as it has been in the US and British markets but recruiters and candidates in the banking and finance industries are starting to feel the pinch.

At the same time, there is an increased demand for certain niche and temporary positions.

Melanie Hawgood, a senior business development manager and state leader of the consumer lending division of a large financial institution, was made redundant when the state office was closed.

"It became apparent that the opportunities [of six to 12 months ago] were no longer there," she says, "and finding a similar role within the banking and finance area would be difficult without taking a step backwards in my career."

Many of her former colleagues are in the same position.

Zara Mahoney, director of Zara Mahoney Recruitment, says it's not uncommon these days for big clients to freeze permanent recruitment.

"We first felt the effect six to nine months ago, with a lot of clients putting a freeze on expanding their teams as they have been over the past two to three years," she says.

"There is still a lot of work in the market but we are finding a lot of opportunities are temporary or contract as opposed to permanent."

The firm's figures show about 60 per cent of roles advertised last month were temporary or contract-based, compared with 10-20 per cent at the corresponding time last year.

Caroline McAuliffe, principal of Hamilton Rich Interim Management, agrees. "Typically, what happens in these sorts of market downturns is that executives become less inclined to move to new roles in case they become 'last in but first out'; excess staff required in boom times are trimmed; high-quality staff become more valuable as banks trim three or four average performers and replace with one superior performer; and graduate programs are cut," she says.

This has led to an increased demand for interim managers, experienced executives who are able to fill a short-term gap to meet peak demand without expenses associated with filling a permanent position.

Andrew Gemmell, director of Gemmell Ovenden Walsh recruitment, says there continue to be good middle to back office positions in banking and finance.

"In the permanent market, we're still seeing relatively strong availability in accounting and operations, although nothing like it was 12-18 months ago," he says.

Bob Olivier, director of Olivier Group, agrees the outlook isn't universally bleak. "The worst of the hurt is in retail banking and mortgage broking," he says. "But credit disciplines and financial analysis are going gangbusters."

Roy Stapleton, manager of accounting, banking and finance for recruiter Hamilton James Bruce, says the battle for cash deposits means business and high net worth individual accounts are highly prized.

"That means experienced wealth managers, business relationship managers, brokers and financial planners are in great demand."

Tiffany Smith, human resources manager for Legg Mason Australia, says her firm continues to recruit actively. "The industry is certainly feeling some pain but our parent company in the US is still very committed in pushing along recruitment," she says.
"We have a high retention rate but everybody is looking for quality candidates and it's a candidate-dry market."