Low bonuses could create City skills gap
The City may soon experience a drastic skills gap in the financial services sector due to rising dissatisfaction with bonuses among the next generation of professionals, according to recent research.
The study by recruitment firm Morgan McKinley found that 83% of people with one to two years’ experience in the finance industry are dissatisfied with their bonus.
25% of respondents said they are planning to leave their current job as a direct result of their bonuses not meeting their expectations.
The survey questioned individuals working in banking, asset management, insurance and the Big Four. The majority of respondents who perceived their bonuses as too low are those from 'Generation Y', also referred to as the 'millennial' generation, researchers said.
Bonuses are likely to stay the same or be reduced as a result of public dissatisfaction with high bonus payments for City bankers, according to the report.
Citigroup, Deutsche Bank and RBS paid the highest average bonuses to financial workers last year, according to separate research by Emolument.com released last month. However, all of the big banks displayed a drop in bonuses among senior managers, apart from Citigroup, which saw a rise of 4%.
“The public may be happier that the days of controversial bonuses are over but it's clear that the industry needs to do much more to make jobs in the City attractive,” said Hakan Enver, operations director at Morgan McKinley.
“It seems that the days of the big bonus culture is diminishing and they are unlikely to return with banks appearing to be showing more restraint when it comes to paying out large sums of bonuses. Many city workers have reported a fall in their bonus packets compared to last year.”
However, out of the 38% of workers who either did not receive a bonus or whose bonuses had remained the same, a third (31%) were compensated with an increase in fixed pay/basic salary.
It seems that finance workers may be going against the grain when it comes to job satisfaction. Last month recruitment website Indeed released a study that found that the number one influence for happiness in the workplace was a good work-life balance, with compensation and benefits ranked the lowest.
Source: Morgan McKinley