Research shows banks can expect fewer resignations from this years bonus season
Research shows banks can expect fewer resignations from this year’s bonus season
· But 11% of City staff will consider opportunities in other global financial centres if bonuses disappoint
Investment banks and hedge funds can expect a far lower number of staff resignations during this year’s bonus season confirms research from Astbury Marsden, a leading financial services recruitment firm.
According to a recent survey by Astbury Marsden amongst 1,380 City workers*, one third (33%) of respondents said they would try to change employer if they are disappointed with this year’s bonus. A year ago almost half (48%) of City staff surveyed said they would try to do the same.
With redundancy programmes still taking place across the City, bankers are now more likely to pursue other routes to keep their overall pay in line with their expectations. The survey also showed that – when asked what action they would take if disappointed with their bonus:
11% would consider moving to an overseas financial services centre such as Hong Kong, Singapore or elsewhere
17% would look for promotion opportunities with their current employer
6% would complain formally to their line manager
15% would complain informally to their line manager
15% would undertake more active lobbying over the next year to make their employer more aware of their contribution and current dissatisfaction
Mark Cameron, Chief Operating Officer at Astbury Marsden says: “When bonuses are poor, City employers worry that high levels of staff resignations will follow. That is going to be less of a problem after this year’s bonus round.”
“Investment banks have done a very good job explaining why bonuses are low for everyone and managing their staff’s expectations in advance of bonus season.”
“However, one area of risk for the City is the continued outflow of talent from London to centres like Hong Kong and Singapore. Lower bonuses and higher taxes is not the ideal recipe for retaining a cosmopolitan, multinational labour force in London.”
The survey showed that 12% of respondents are expecting a zero bonus for 2011.
Says Mark Cameron: “There will still be resignations after bonus season as City employers contend with the anticipation of high bonuses from the highest performing staff. But overall we expect it to be a less traumatic and disruptive experience for employers than in previous years.”
“Bonus and pay expectations amongst City staff have become more conservative throughout 2011, and we expect this trend to continue in the near-future. The number of City employees who are confident about the size of their bonus is falling by the day.”
*Survey conducted amongst 1380 City professionals in London, from Analyst level to Managing Director.