Banking & Financial Services Salary Survey - Hudson

2011
salary
guide
It remains unclear until bonuses are paid in
2011 as to how much this has changed the
overall compensation level for employees in
risk management departments. It seems that
in the main, compensation levels are either
better than last year, or very similar. There
have been a few banks that have paid little
or no bonuses, which has had an impact
on the loyalty of their staff. However, it is
fair to say that we have not seen the typical
candidate merry-go-round that we normally
see at this time of year. Many candidates are
still uncertain regarding their market rate and
prefer to remain where they are unless the
perfect role comes along.
Banks have changed their compensation
structures for risk management employees in
the following ways:
| | Some have improved their employee’s
base salaries without comment on
whether the bonus level will change. It
is thought that this is done to stave off
competition and retain staff.
| | Some have increased the guaranteed
part of the employee remuneration
package by including non
pensionable, fixed payments on top
of base salary. These are received by
the employee on a monthly basis as if
it is an increase in base salary by the
employee. It is in effect, an advance
on their annual bonus. At this stage,
it is unclear how big the bonus pool
will actually be in these instances,
and how much the overall employee
compensation level has changed.
| | Some have improved their benefits
packages and have introduced
flexible benefits that can be taken as
cash on top of base salary.
| | Other firms have maintained the
traditional base plus bonus structure,
thereby not aligning themselves with
many others in the market.
The change in compensation structures
in financial services has created a new
problem for employers looking to hire
because there is no market consensus
on how employers are paying their
employees. Those firms that have
increased the guaranteed element of
employee compensation have had an
adverse effect on candidate compensation/
salary expectations. Naturally, candidates are
favouring payment structures with a higher
guaranteed element of compensation. This
has made it very difficult for employers with
traditional structures to attract the best
talent. Guaranteed bonuses are back at
director level and above. This was expected
as the firms who have not yet changed or
will not change their pay structures, are to
remain competitive.
24 Banking & Financial Services | Salary Guide 2011