Global staffing form Astbury Marsden recently published its annual review of compensation trends in the financial industry in London. The good news is salaries are up 8% across the board with increased expectations of bonuses and further salary boosts in 2015. the bad news, at least from the perspective of employers, is that financial industry employees in the “City” also noted they would change jobs if their expectations were not met.
Financial industry compensation up and expectations up in 2014
In terms of salary across the board for all types of financial professionals, the average base salary increased by 8% to £96,458, with median basic pay 6% higher at £85,000. Of note, this is the first increase to median pay recorded since 2011. Moreover, 61.8% received a raise, compared to just 47% in 2013.
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Also of interest, financial industry employee expectations of receiving a bonus are also up, with more than 65% believing they will receive a bonus payment, up 5% from last year. Moreover, a solid 40% are anticipating a bigger bonus (6% more than last year). On the other hand, there has also been a small increase in those who anticipate a smaller bonus. Given the decrease in those who are ‘unsure’, the increase in those who expect a smaller bonus could indicate a more realistic perspective as industry compensation stabilizes.
Unequal pay for women
However, when examining the differences in men and women’s pay, the Astbury Marsden report noted that on average, the basic salary for women was around 84% of their male colleagues. Of perhaps greater concern, although women received a higher pay rise when changing jobs or receiving a promotion in 2013, this year men are seeing their compensation go up more quickly after a promotion or job change.
Looking ahead to 2015
A little over half of financial industry professional in the “City” believe they will get a raise in 2015. That is 5% more than last year. That said, on a job level basis, the Astbury Marsden report highlights that the more senior the respondent, the lower the percentage responding they believe they will receive a pay rise. Of note, at the Associate/Manager level with almost two thirds expect to receive a pay increase. But in contrast, just a third of Managing Directors/Partners believe they will receive a salary increase in 2015.