Talent pool inadequate to support funds servicing - survey

Over 70% of Kiwi Expat Association (KEA) members working in the finance and investment sectors believe there is an inadequate talent pool in New Zealand to support the country’s fund management sector.

Wednesday, May 4th 2011, 6:56AM

by Benn Bathgate

The finding comes from a survey conducted by the KEA and the International Funds Services Development Group (IFSDG), a taskforce established by Cabinet last year to examine ways to make New Zealand an international financial services hub.

The survey was included in the IFSDG report on tax and regulatory changes that could be made to make New Zealand a viable funds domicile.

Asked whether finance professionals would return to New Zealand in the event of the establishment of a funds servicing industry, 89.9% believed some expats would return, however that figure fell to 77.8% when asked if they would personally consider a return.

The survey also included comments from respondents and tax breaks were suggested as one means of convincing finance sector workers to leave higher paying jobs abroad.

The lifestyle benefits of New Zealand was also emphasised by one respondent as a possible plus for luring back expat Kiwis.

"In my opinion in terms of recruitment of these people for a New Zealand-based function it may be easier than one might think, as people like myself (ie the over 30s bracket with families) may be sold on the uplift in lifestyle New Zealand offers, opposed to the downshift in income."

On the issue of remuneration in the event of a return, just over half of respondents said they would expect the same level of remuneration, 14% would expect more and 34.7% would expect to earn less.

One respondent said while it would be hard for New Zealand to offer comparative packages to other locations, they "must be at least competitive to achieve a sustainable talent pool within a suitably short period of time."

"New Zealand has to get away from the mindset of expecting lower remuneration in return for our ‘clean green' lifestyle. There are cleaner/greener countries with better infrastructure and lifestyles."

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

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