With 2010 bonuses expected to be lower than the previous year, the recruitment market in investment banking should be active this quarter. The foreign i-banks will need to fill vacancies created by employees leaving because of poor (and deferred) payments. But how will they source these new staff?

“I expect to see the likes of UBS going harder in the recruitment market, however Australia is a satellite market and local recruitment policy is usually linked to the health of the economy where an international bank is headquartered,” says Kym Woolf, senior consultant, financial services division, Porterallen.

In order to fill local talent shortages, the global i-banks will consider expats returning to Australia, and even people from accounting and law firms, says Victoria Biggs, co-founding partner of Platinum Pacific Partners.

“Some candidates from boutiques might move up the food chain, but the holy grail is to attract talent from other i-banks.”

The big four banks, which aren’t heavily involved in M&A or ECM activity, will supply a “minuscule” number of recruits to the investment banks, she adds.

John Coles, chief executive, Executive Group International, says overseas banks will only look to the big four to supply research analysts.

“Most of the local banks that are successful are well positioned in the resource area and will be under attack. They’ll go after research analysts with resource and energy experience, particularly coal, copper and other diversified metals.”