Nearly half of Londons financial services professionals expect bonus payouts to be higher than last
MORGAN McKINLEY LONDON EMPLOYMENT MONITOR
Nearly half of Londons financial services professionals expect bonus payouts to be higher than last year
City Bonus Expectations Survey highlights
A survey of 235 financial services professionals in London found:
72% of professionals are more confident about the London financial services jobs market compared to the same time last year
In the 2010/11 bonus round 88% of professionals in the City expect to receive a bonus
73% of professionals expect their bonus to be up to 30% of their base salary
48% expect their bonus in 2010/11 to be higher than the previous year, while 41% expect it to be the same
When asked whether base salary or bonus was more important in the job hunting process, 63% of respondents said base salary, while 7% stated bonus
Of those respondents who said they were currently considering changing jobs, 61% cited their reason was for better career prospects or job satisfaction 12% said better base salary and only 2% said if bonus expectations were not met.
City jobs market highlights
New job opportunities in the financial services sector in London rose by 23% in September 10 versus September 09 levels
Compared to August 10, available jobs dropped by 15% in September 10
The number of professionals entering the City jobs market showed a minimal 0.4% increase compared to August 10, with a rise of 60% compared to September 09
The average City salary in September 10 remains static on August 10 levels, up from 53,336 to 53,400.
Vast majority of City professionals expect to receive a bonus in 2010/11
In September 10, Morgan McKinley surveyed 235 professionals across the financial services sector in London. The survey found that 88% expect to receive a bonus in the 2010/11 bonus round, compared to 82% in September 09. Looking at the size of the bonus expected, 73% of professionals predict their bonus to be up to 30% of their base salary. Compared to last years bonus payouts (2009/10), 48% are anticipating a higher overall bonus, while 41% predict that it will be the same.
When asked whether base salary or bonus was more important in looking for their most recent role, 63% cited base salary, compared to 7% stating bonus while 30% said both were equally important. Similarly, of those currently considering changing jobs, a better salary was cited as the reason by 12%, while only 2% stated they would move due to their bonus not meeting expectations. The main motivation for moving roles was for better career prospects or job satisfaction (61%).
In September 2010, the average salary for financial services professionals in Londonremained steady at 53,400, up from 53,336 in August 2010.
Andrew Evans, Managing Director, Morgan McKinley Financial Services commented:
Its a positive indicator of financial services market recovery that compared to last year, there is a small rise in the number of professionals who expect to receive a bonus in the 2010/11 bonus round and for those who received a bonus last year, the majority are anticipating either a similar or larger payment. These expectations are a reflection of improving business performance across the sector key to continued market recovery.
Throughout the downturn and as we move towards recovery, the spotlight has continued to focus on the size of City compensation packages. Its interesting to see from our survey that nearly three quarters (73%) of City workers in back, middle and front office roles are actually expecting bonuses of up to 30% of their salaries, while a quarter (27%) anticipate their bonus to be over 30% of their basic salary. The proportion of salary that people anticipate they will receive in a bonus payout explains why the average City employee places greater importance on the basic salary on offer in a new role rather than bonus. The vast majority of financial services workers are not receiving many multiples of their basic salary in bonuses.
Our survey suggests that the downturn may well have had an impact on how the average financial services professional views the jobs market. That 61% would move for better career prospects or job satisfaction, compared to only 2% who said they would move if their bonus was disappointing and 12% who would take a job with a higher salary indicates that City workers are prioritising career development and job satisfaction over remuneration as the most important factor when looking for a new role.
Financial services jobs market shows further year-on-year growth in September 10
The number of new job opportunities in Londons financial services sector continued to grow year-on-year with a 23% rise from 3,843 in September 09 to 4,725 in September 10. However, month-on-month there was a 15% drop in jobs new to the market from 5,544 in August 10.
The number of professionals entering the financial services jobs market in September remained stable month-on-month with a minimal increase of 0.4% from 10,810 to 10,850. Compared to the same time last year, the number of professionals looking for new roles in September 10 increased by 60% from 6,800 in September 09.
Andrew Evans continued:
September 10 shows the financial services jobs market continuing to fluctuate with a 15% month-on-month drop as market sentiment remains cautious relative to H1. After a strong start to 2010 City hiring, organisations are now weighing up their remaining 2010 recruitment budgets against key resourcing requirements. With the bulk of this years hiring already complete for many financial institutions their focus into Q4 will be on assessing recruitment plans for implementation in 2011.
Q4 is likely to see this pattern of fluctuation in new jobs continue as we move towards the traditional tail-off of hiring in December. However, despite the fall in job opportunities in September 10, the 23% year-on-year increase indicates there is a still a lot more hiring activity taking place across the sector compared to last year.
The 60% increase in professionals entering the City jobs market in September 10 compared to a year ago shows continued confidence from those who are interested in developing their career in a new role. This is reflected by our Bonus Expectations Survey, which found that 72% of respondents were more confident (59%) or significantly more confident (13%) about the London financial services jobs market compared to the same time last year.