Watch out London
As Theresa May looks set to trigger Article 50, City firms are bracing for Brexit, unaware that 82 per cent of their staff are tempted to move roles due to salary or benefits packages on offer elsewhere. The latest finding from Hays reveals a worrying outlook for the City as it enters one of the most uncertain periods in the Square Mile for a generation.
Although bonus culture is still prevalent, 2017 looks set to be challenging for City workers as nearly two-thirds (59 per cent) said they received a bonus in 2016, whereas only two-fifths (41 per cent) say their firms have indicated that they will receive one this year.
The Hays Financial Markets Rewards Report 2017 reveals a challenging post-referendum landscape for City workers as over a third (35 per cent) of employees said their base salary had not changed in the last year, with 6% seeing a salary decrease.
City employers are already seeing the effects of salary dissatisfaction. Nearly half (47 per cent) say they have lost out on candidates because their salary or benefits package were not competitive enough. As a result, a third increased salaries (36 per cent) to combat recruitment challenges.
However, the study by Hays also found that interestingly, more women than men received a bonus last year, 62 per cent compared to 57 per cent respectively, whilst female City workers are more optimistic they will receive one again this year at 45 per cent compared to 39 per cent of men.
The research, compiled by recruiter Hays, includes a survey of around 900 employers and employees working within financial markets.
Commenting on the findings, Carolyn Dickason, director, Hays Financial Markets, said: “Whilst City employers are distracted by Brexit, workers are mindful of the uncertain times ahead but are still looking at other career options. Our research has found that the majority are predominantly driven by both salary and benefits, which will become especially important in 2017 as bonuses look set to be less prevalent in the market. We recommend City employers review their talent acquisition strategies to avoid disappointment as many candidates at the moment can expect multiple job offers and City firms need to maintain the competitive edge over rivals.”