Recruitment across the financial services sector will slow in the first quarter of 2011, according to a new survey.

“Uncertainty in 2011 will restrict hiring,” Manpower GM Sales & Marketing Chris Riley told insuranceNEWS.com.au.

“Government reform of the financial services industry is having an impact on recruitment and it is difficult to obtain a clear picture of what companies are doing with staff levels.”

Mr Riley says the effects of rationalisation from the global financial crisis on staff levels are also still in play.

“We know there was a lot of excess fat in staff levels in financial services before the crisis,” he said.

“Companies are asking us how they can improve efficiency and productivity with the current staff rather than build up the workforce again.”

According to Manpower’s latest outlook survey, hiring intentions for the first quarter of next year will be up 4% compared to the first quarter of this year.

But Mr Riley says when the first quarter next year is compared to the current quarter, hiring intentions are down 8%.

It is expected the Federal Government’s reforms of financial services will see commission payments banned – for life insurance at least. This will force a lot of older financial advisers to leave the industry.

The proposed push by regulators and industry associations for higher education standards will also have an impact on adviser levels.

The AMP merger with Axa Asia Pacific Holdings is also expected to have an impact on recruitment levels as a number of positions become redundant, especially in Melbourne.

Further rationalisation of superannuation funds will impact services providers, such as life insurance companies, although AIA’s win last week of the Sunsuper account has led the Melbourne insurer to announce it will increase staff levels by 5%.