While some financial services firms tighten their belts in times of economic uncertainty, others see it as a good time to add sales jobs.
While some financial services firms tighten their belts in times of economic uncertainty, others see it as a good time to add sales jobs.
Overall, the sector is expected to shed 200,000 jobs by early next year, a figure that would represent a 2% cut from its peak of 8.35 million jobs in 2006, according to Sophia Koropeckyj, an economist at West Chester, Pa.-based Moody's Economy.com.
Job growth at securities firms, which currently employ about 848,000 people, is expected to remain flat this year, she said.
But sales positions within those firms are expected to grow significantly, with the U.S. Bureau of Labor Statistics projecting a 24.8% increase in those positions by 2016.
"I think what we're seeing, particularly with mutual funds sales, is that anything that has to do with services for baby boomers, expect it to grow," said Barry Lawrence, a spokesman for JobFox Inc., an Internet-based job-matching service in McLean, Va. "People who are selling to that population can expect to see growth there to last for several decades."
A recent study of 4,000 job openings during the 120-day period ended March 24 on JobFox found the highest demand for sales positions at financial services companies, Mr. Lawrence said.
Predictably, those with sales experience have a leg up on those without, he said.
HIRING VETERANS
Of the new sales hires at American Century Investments, the average number of years in the financial services industry is 12 and the average number of years in their territory is seven, said David Larrabee, its senior vice president for territory sales.
Also, they are credentialed, with among them a chartered financial analyst, a certified financial planner and four masters of business administration, he said.
Kansas City, Mo.-based American Century began hiring wholesalers in January and plans to increase the number to 54, from 32, by yearend, Mr. Larrabee said.
"We need to put more feet on the street," he said.
Getting more people in front of more advisers is the goal of work force restructuring that is under way at Atlanta-based RidgeWorth Capital Management Inc., formerly known as Trusco Capital Management Inc.
The firm is in the process of redeploying more than 20 people.
"This is the time to do it," said Jim Stueve, managing director of sales. "The economy gives you pause, but this is where you gain market share, where you provide value to clients the most, in a down economy."
The downturn in the economy is also behind an upsurge in advisers' seeking more education, industry ob-servers said.
Consider, for example, the certified investment management analyst designation, offered by the Investment Management Consultants Association of Greenwood Village, Colo.
The number of applications last year totaled 1,030, a 16% jump from 886 in 2006, IMCA said.
Meanwhile, the number of applications between October 2006 and February 2007 — a particularly tough time in the stock market — rose 9.8% above the comparable period a year earlier, according to IMCA.
"People want to be more marketable should they be downsized," said Dede Pahl, executive director at IMCA. "They also want to make sure they stand out from others as well in their company."
Some firms may encourage the education, Ms. Pahl said. "In this kind of downturn, the companies themselves are looking to gain an edge." she said.
More people may be seeking certified financial planner designation as well, said Carol Lee Roberts, managing director of examinations and education at the Certified Financial Planner Board of Standards Inc. in Washington.
As of Dec. 31, there were 56,532 CFPs in the United States, up from 53,031 in 2006.
An increasing number of people come in because they are changing careers, Ms. Roberts said.
E-mail Sue Asci at sasci@investmentnews.com.
