I was recently approached about a position at a major firm which is looking to establish a foothold in a new area of the financial services. The process that unfolded led me to wonder exactly where the job market stands at this time.

The role was a mid-level one, working in a team under some experienced operators with strong reputations. Interestingly, the interview always focused on my current experience, potential fit into the business and ability to help drive the division’s growth.

I didn’t think much about compensation at the time because I assumed that the firm would pay me enough to bring me on board. So I was surprised that after a month-long interview process, the offer was far below my expectations.

How low can you go?

I was willing to take a small pay cut to for an outstanding opportunity but a reduction of about of 35 per cent left me staggered. When we discussed remuneration the response was: “We see this as a great opportunity for someone of your age to move into a globally recognised company, offering significant career opportunities. However, at this time in the market, it’s too risky for us to pay more given that this is a start-up division”.

The job itself should be enough to get me over the line – worry about remuneration later as the money will improve if the business grows. But there is always a time in your life when you simply can’t afford to take a pay cut, no matter how good the position. For me, that time has come.

Compensation disconnection

What struck me as odd was that the level of experience the firm wanted in a candidate was not aligned with the price it was prepared to pay. In 2007 this would have been a non-issue: employers would pay what they have to in order to get the right team. Now the mentality is that people should be thankful they’re being offered an opportunity.

I’m certain this isn’t a one off. There are most certainly people out there who need to secure a position and will therefore work for much less than others who moved into high paying roles pre GFC.

It’s a two-tier market

The bank I currently work for recently hired new people at compensation levels some 40 per cent below those of 2007. It could not poach Australian-based employees at that sort of money, so the roles have mostly been taken by Irish professionals and Aussie returnees. They just need jobs and are willing to work for less, which is why companies have no problem making low-ball offers.

I believe there is now a two-tiered job market: pre-GFC employees and post-GFC employees, with the former on far better money. And if you are wondering when decent career opportunities will arise, I’d suggest we are still a fair way off. Banks won’t start improving wages until they have to. Instead they will try to sell you the role because it is a great opportunity, and if you don’t take it, someone else will.

The views expressed in this article are those of the author and not of eFinancialCareers. The author works for a financial institution in Australia.