A new survey of over 1,000 banking staff questions the value of offering a deferred bonus. Survey findings from Hays Financial Markets, the leading recruiting expert, show half (51%) of the City’s banking staff do not believe deferred bonuses support their organisation in terms of reducing risk, and most of those who have received deferred bonuses say it does not influence their decision to stay with their employer.
Geoff Fawcett, Director of Hays Financial Markets, says, “Despite the public backlash, bonuses have retained their importance in financial organisations with around half of employees saying they will leave their organisation if they don’t meet their expectations. With over half of front line staff indicating they are not satisfied with their bonus this year and increasing government pressure, the banks are going to need to look for more innovative ways to retain top talent and boost morale.”
Other findings:
- 48% of front office staff received an increase in bonus, compared to 31% working in other functions
- 32% of front office staff received a smaller bonus than last year
- 52% of front office staff deferred part of their bonus
Geoff adds, “Whilst financial organisations are often criticised for offering large bonuses, the level of reward depends on the employee’s role, experience and the value they add to the organisation. The key for financial organisations is making sure that their compensation structure reflects the work undertaken and ultimately delivers return on investment. If the bonus culture is really going to change, financial organisations will need to look at remuneration packages as a whole in order to retain employees and achieve targets.”
For more information please visit www.hays.co.uk/financial-markets
