City workers predict pay rises and bonuses

City workers predict pay rises and bonuses

Most professionals working in financial services are expecting pay rises and bonuses in spite of challenging market conditions, according to a survey of 1,600 City workers in non-revenue generating roles by recruitment specialists Robert Walters.

The survey reveals that almost eight in ten are predicting a pay rise and nine in ten are expecting a bonus. While pay rises are anticipated to be more modest, 68% of those predicting a bonus think it will be more than ten per cent of their salary.

The Robert Walters Financial Services Compensation Survey 2011 also reveals that:

•   78% are expecting a pay rise in 2011 (compared to 74% at the same period in 2010)

•   62% of those predicting a pay rise expect it to be between one and six per cent of their salaries (compared to 60% in 2010)

•   90% are expecting a bonus this year (compared to 88% in 2010)

•   68% of those predicting a bonus expect it to be more than ten per cent of their salaries (compared to 72% in 2010)

•   75% are considering moving once they have received their bonus

•   55% of those thinking about moving specify career development as their primary motivation

Toby Fowlston, Managing Director of London Permanent Recruitment at Robert Walters, says:

“As a gauge of market sentiment, the survey results are surprising. Despite real uncertainty across the City, around eight out of ten of financial services professionals in non-revenue generating roles are expecting a pay rise and nine out of ten are expecting a bonus this year. Interestingly, both these figures are higher compared to when we conducted the survey at the same time in 2010.

“Rebasing of base salaries in recent years and a relatively positive compensation round in 2010 has led professionals to believe that overall compensation levels will be at least as high as last year. Whether this is realistic is questionable given current market volatility.

“The fact that three-quarters of professionals are thinking about moving jobs once they have received their bonus is telling. We usually expect to see more people looking to move at this time but this is a particularly high figure. The results would lead us to believe that we will see increased movement in the market, with more people seeking new opportunities and firms looking to fill positions vacated by others.”

“With career progression – rather than increases in compensation – the main motivating factor, this is an encouraging sign for employers looking to recruit. This general trend reflects what we have been seeing when speaking to job seekers this year. There has definitely been a focus among professionals on their own personal development after a period when budgets have been tight and people may not have been offered the promotions and personal development they would have liked.