Workers growing concerned as banking sector pay and bonuses remain under pressure.

53 percent of City workers say they are planning to change jobs within the year, as pressure on pay across the banking sector pushes many employees to re-assess their current position, according to research by Astbury Marsden, a leading recruitment firm. Astbury Marsden explains that over recent years, regulators have put considerable pressure on banks to cut bonuses and increase their regulatory capital, thereby placing some restrictions on pay and promotion plans.

Astbury Marsden says that the changes are prompting more City workers to consider switching jobs, in order to achieve a higher level of income. Adam Jackson, Managing Director at Astbury Marsden comments: “Increases in total remuneration have been weak across the entire economy since the credit crunch and banking has been no exception. Staff who have suffered from falling bonuses and a freeze in basic pay are looking at switching employer as one of the few ways to achieve double digit pay growth.” 

“However, few major banks are immune from the pressure to manage down staff costs and many other areas of financial services which bankers have typically moved into- such as hedge funds – are also subdued.” Astbury Marsden says that it is not just slow growth in remuneration that is concerning City staff with just 25 percent of City workers believing they have a clear career path with their current employer and 42 percent stating that they did not view their current job as a long term career. 

Says Adam Jackson: “Once there is a recovery in the trading conditions for banks we will see many of the current concerns of City staff dissipate- but until then employers do want to consider some low cost methods for improving staff morale and retaining their top talent.” “Flexible hours, birthday days off, creative rearrangements of workspaces, gym memberships and a more extensive or inclusive social calendar are low cost ways of keeping staff engaged. 

“They are also the kind of small perks employers would want to consider to retain those financial services tech specialists being targeted by FinTech companies Making sure your staff feel valued, rewarded and supported a simple way to ensure that your business doesn’t lose its talent to others.” Adam Jackson continues: “Employers must make sure they know their employees’ long-term career goals and are actively helping them to get there. This does not necessarily have to mean promotions or pay rises. Giving your employees extra training opportunities, more responsibilities or having regular reviews can be effective ways to ensure your staff feel they are progressing within their careers.”