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The Impact of Experience and Tertiary Education

Experience and Tertiary Education - The impact of a higher education on the Australian
finance salary.

In a recent study conducted by Australian job search site Career One, over 80% of recent University graduates have noted that simply holding a degree in a related field is not enough to secure a plum role and that the majority of employers still favour substantial 'on the ground' experience, over a BA, Graduate Certificate or Diploma.

Indeed serial entrepreneur Donald Trump reflected on this very notion during the 2004 season of the television show, The Apprentice. The entire season was based on highly educated candidates pitted against those with less formal schooling and on this occasion the result pointed towards the 'key to success being experience, not education'. Trump commented that 'experience comes from action - or doing - and involves taking risks. Knowledge is essential, but knowledge certainly isn't enough.'

The push for a tertiary education amongst the Gen X's is strong and the notion that education pales in comparison to experience is worrying as according to the 2005 ABS Education and Training Experience Survey, 86% of Australians then completing their first year of tertiary education were there to 'improve job prospects', 74% wished to 'get training for a specific job' and an overwhelming 91% of respondents noted a strong 'vocational aspiration connected to their higher education.'

So, how do those Australians who contributed their salary data to the SMF Recruitment 'Compare Your Salary' portal compare in the experience and education stakes? How much does a tertiary education really account for when experience comes into play and how does it all effect the way we are paid?

Of the 10,000+ Australians surveyed in the last 8 months, approximately 4% of them work within the Australian Banking and Finance industry and these people have been employed for an average of 6 years.

Below is a breakdown of the salaries of some of the key roles listed on the SMF Recruitment 'Compare Your Salary' portal, under the Banking and Finance umbrella, with a specific focus on the impact of the respondent's education and commercial experience when it comes to what they are earning.



 

Analysts
When it comes to the Financial Analysts, the average yearly salary across the board is $77,000 and the average experience level is 3.75 years. Of those, 91% have completed an Undergraduate, Postgraduate, Masters or Doctorate degree through University. 5.1% hold a Diploma or Apprenticeship and 3.4% only completed High School and then immediately entered the finance industry.

Those who only hold their Year 12 certificate are earning an average of $40,000 per year and have been working for 15 years on average.

The undergraduates, which account for 49% of analysts surveyed, are earning an average of $69,000 per year and hold 4.2 years financial sector experience. 20% of undergraduates have been working within the industry for 1 year or less and are earning an average of $62,000.

27% who hold a Masters or Doctorate degree are earning an average of $89,000 with an average of 4 years experience.

18% of those who hold Masters/Doctorate degree have been working for 1 year or less and are earning $66,000 per year.


Bank Officer/Teller
The average yearly salary for Bank Officers and Tellers is $43,000 with 1.5 years experience on average. Of those, 50% entered their role after completing High School, 25% have completed an Undergraduate degree and the remaining 25% hold a Diploma.

Those who completed High School only are on par with the average yearly salary, however have typically been in the role for longer - 4 years.

The Undergraduates surveyed have similar levels of experience but are earning above the average with $50,000 per year.


Banking - Compliance
The average yearly salary of Australians within the compliance sector of Banking is $102,000 with an average of 9 years experience. Of those, 66% have completed an Undergraduate, Masters or Doctorate Degree, 22 % completed High School and 11% hold a Diploma.

44% are undergraduates which and are earning an average of $104,000 and have worked for 8 years on average.

The 22% who hold a Masters or Doctorate degree have been working for an average of 16 years with a yearly salary of $112,000.

Those who hold a Diploma are earning an average of $70,000 per year.


Business and Corporate Banking
Australians within the Business and Corporate Banking sector are earning an average of $85,000 and average 5 years experience. 72% of them hold a University degree, 11% completed High School, 11% hold a Diploma and 5.5% completed Year 11 or less.

38.8% of the University educated hold an Undergraduate degree, are earning an average of $80,000 with 4 years experience. 57% of Undergraduates have been working for 1 year or less and are earning an average of $50,000 per year.

16.6% are Postgraduates, having worked for an average of 10 years and earning $97,000 per year.

16.6% hold a Masters or Doctorate degree and earn an average of $200,000 per year.

11% of respondents hold a Diploma and have worked for an average of 5 years and are earning $75,000 per year.

11% of respondents have completed High School only and are earning an average of $64,000 per year with an average of 10 years work experience.

5.5% completed Year 11 or less, have been working in the field for 13 years and earn $50,000.


Client Services
The average working experience of Australians within the financial 'Client Services' sector is 4 years with $77,000 as the average salary. 67.8% hold a University degree, 21.4% completed High School and 10.7% hold a Diploma.

46.4% hold an Undergraduate degree with an average 6 years experience and an average yearly salary of $112,000. 38% of undergraduates have been working for 1 year or less and are earning $42,000.

14.3 % are Postgraduates, with $136,000 as their annual salary and 7 years experience.

21.4% completed High School, are earning $43,000 and have been working 2 years on average.

10.7% hold a Diploma and have been working 1 year and earn $50,000 a year on average.


Credit and Collections
The average salary of Australians working within the Credit and Collections sector are earning $76,845 per year.


Financial Planning
The average Australian within the Financial Planning sector earns $68,000 and has worked for 3.5 years. Of these, 60% hold University degrees, 37.5% have a Diploma and 2.1% have completed High School only.

47.8% of those who attended University hold an Undergraduate degree and have been in their chosen field for an average of 3 years and are earning an average of $60,000 a year.

Those who have just completed their degree and entered the work force one year ago or less are earning an average of $48,000 per year (28.5%)

8.3% are Postgraduates and have been in the field for 4 years and earning $86,000.

4.2% hold a Masters degree and have been working in the field for 12 years and earning an average of $93,000.

Those who have completed a Diploma have been in the field for an average of 4 years and are earning an average of $76,000 annually.

Those who have completed High School only are earning an average of $50,000 a year with 2 years experience.


Funds Management
Of the Australians working within Funds Management, an impressive 87.5% have completed a University degree, 9.4% have completed a Diploma and 3.1% have completed High School only.

43.75% are Undergraduates, earning $125,000 a year and have worked 4 years on average.

28.5% of those have been working 1 year or less and are earning an average of $59,000 annually.

18.75% hold a Masters or Doctorate Degree are earning $135,000 annually and have worked for 7 years.

25% are Postgraduates, earning $138,000 and have worked for 6 years on average.

Those who hold a diploma are earning $107,000 and have worked for 11 years on average.


Investment Banking
A staggering 97.3% of Australians surveyed in Investment Banking have completed a University degree, with the remaining 2.7% holding a Diploma.

55.3% are Undergraduates, earning an average of $160,000 and have been working 6 years.

33.3% of those have been in the workforce for 1 year or less and are earning an average of $120,000 annually.

21% hold a Masters or Doctorate degree, have been working 5.5 years and earning an average of $210,000 annually.

21% also hold a Postgraduate degree, have been working for 7 years and earning $163,000 annually.


Managers
A little over half (56%) of those surveys who hold Managerial positions have completed a University degree, 19.8% completed High School, 12% hold a Diploma and the remaining 5% have completed an Apprenticeship.

Undergraduates who account for 24% of the University degree holders have been working for 7 years and are earning $95,000.

21.5% hold a Masters or Doctorate degree, are earning $129,000 and have worked for 11 years.

Of those who completed High School only are earning $104,000 and have worked for 11 years.

The 12% who hold a Diploma are earning $114,000 and have worked for 13 years.


Mortgages/Lending
Over half of SMF Recruitment's Compare Your Salary respondents from the Mortgages/Lending sector hold a Diploma (56.5%), 17.4% have completed a University degree or High School and 8.7% hold an Apprenticeship.

Those who hold a Diploma have been working for 8 years and earn an average of $68,000.


Settlements
62% of those in Settlements have completed a University degree, 23.7% completed High School only, 9.5% hold a Diploma and 4.8% completed Year 11 or less.

43% of those who completed University completed an Undergraduate degree, have been working for 7 years and earn $69,000 a year.

55.5% of Undergraduates have been in the workforce for one year or less and are earning $46,000 a year.

9.5% are Postgraduates who have been in the workforce for one year or less and are, earning $54,500.


Stock Broking
79.6% completed a University degree, 13.3% completed High School only and 6.7% hold a Diploma.

53% of those who completed University are Undergraduates earning $56,500 with 2 years experience.

13.3% hold a Masters/Doctorate degree with an average of 7 years experience and are earning $160,000 a year.

13.3% are Postgraduates with a yearly salary of $93,000 and have been working for 3.5 years on average.

13.3% completed High School only, have been working in the field for 9 years on average and are earning $115,000.


Treasury and/or Risk Specialist
All Treasury and/or Risk Specialists survey respondents have completed a University degree - 31.5% are Postgraduates, 30.8% are Undergraduates and the remaining 7.6% hold a Masters or Doctorate degree.

Undergraduates have been working for an average of 10.5 years and earn $148,000.

Postgraduates have been working for an average of 6 years and earn $130,000.

 
 
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