Disappointing City bonuses could spark retention battle
Many City firms will face a battle to retain staff if they fail to meet their bonus expectations, according to a survey by recruitment firm Astbury Marsden. As many as 48% of staff working in back, middle and front office in various financial sectors said they would try to change employer “if they were disappointed with their bonus”.
More than half of respondents (55%) do not expect to see an increase in their bonus for 2010. This group anticipates receiving bonuses amounting to approximately 25% of their basic salary. The remaining 45% who are optimistic about increased bonuses expect to receive a bonus equating to 47% of their base.
Surprisingly, across all respondent groups an average of just 10% of the bonus is expected to be deferred. Astbury Marsden explains: “This makes sense given the audience polled is predominantly infrastructure and is reflective of the lower quantum of bonus payments made in these functions.”
On average, the City workers polled received base pay increases of 17% this year.
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Title: Bonus and Salary Survey, Astbury Marsden, December 2010.
Survey details: The survey was conducted during November 2010 and was sent to 22,706 current and former candidates of Astbury Marsden. Responses were received from 1,122. The audience polled are predominately “infrastructure” candidates performing a “range of roles across the back, middle and front office in various financial sectors”.
Astbury Marsden is an “award-winning, international recruitment firm focussed on banking, financial services and management consulting”. To find out more visit www.astburymarsden.com.
Using benefits to boost total reward: Bibby Financial Services and De Montfort University
In this report, written and researched by e-reward, we look at how two very different organisations – Bibby Financial Services and De Montfort University – have overhauled their benefits schemes.
Case study 1: Bibby Financial Services