Highlights
Since February 2005 average salaries have risen by 7.5% to 49,800. Over the year average salaries have increased by 3.5%.
Senior professional salaries have increased over the year by 5.6% and by 16% since February 2005. Average senior salaries are now 77,081.
The number of outstanding vacancies in the City now stands at 12,978. This compares to 11,009 this time last year.
The number of new candidates has increased by 16.6% over the month. Numbers have increased by 34.7% over the year.
Since February average salaries have risen by 7.5%
Since February 2005 the average City salary has risen by 7.5%. Over the twelve months since May 2004 the average basic City salary offering has risen by 3.5%. It is now 49,800 (see Chart 1) compared to 47,042 in May 2004.
Senior professionals have benefited the most over the year witnessing a rise in basic salary offerings of 5.6%. This compares with a yearly increase of 3.5% for middle market professionals and just 1.9% for admin/support staff. Over the last four months salaries for senior professionals have risen by 16% to reach 77,081 this month.
Middle market professionals can now expect an average basic salary of 43,488 whilst administrative and support staff can expect to be offered an average salary of 28,832.
Robert Thesiger, Chief Executive of Morgan McKinley comments:
ìIn 2004 support staff benefited most from an upswing in recruitment, as organisations brought departments to optimum headcount to cope with increased market activity. This year senior professionals and middle market professionals are benefiting financially from an increase in hiring demand.
Banks fully understand the importance of hiring the right people and retaining key talent on the bottom line and within most areas organisations are looking for experienced senior hires who can hit the ground running. A shortage of high calibre candidates means banks are more willing to pay a premium for candidates with the right skill sets, which is resulting in upward pressure on salaries.î
New jobs increase 22.7% since February
Over the four months since February 2005 the number of new City jobs coming onto the market increased by 22.7%. There were approximately 6804 new City jobs on the market in May. Over the year new jobs have increased by 20%.
Morgan McKinley estimates that there are currently 12,978 outstanding vacancies in the City.
Robert Thesiger explains:
ìIn May the market was relatively buoyant with a steady flow of new jobs coming from the major players. Some of the larger investment banks who hadnít been recruiting in the early part of the year began to recruit last month, which also contributed to an increase in new jobs. Growth continues across most areas within the financial services industry, notably in Risk Management, Corporate Finance, and Commodities where there has been more high level hiring in the past three months than we have seen over the last 2-3 years.î
Candidate numbers increase steadily over the year as the time taken to find a position decreases
The number of new candidates registering for employment has increased by 34.7% over the last twelve months. Over the month of May the number of candidates has increased by 16.6%. It is currently taking candidates 27% less time to find a position than in May 2004.
Robert Thesiger continues:
ìThe flow of new candidates has increased steadily over the year in line with the pick-up in market activity. The general outlook amongst candidates is positive and good candidates are aware that there are currently some excellent new career opportunities available. The market is firmly candidate-driven across most sectors within the financial services industry, particularly as hiring is focused at the senior-end where good candidates are in short supply. As the war for talent continues salaries and overall compensation packages are becoming increasingly competitive.î
City hiring remains buoyant as average salaries rise by over 7% since February 2005
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