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Financial sector salaries problematic in age of austerity, says Bruin

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Financial services firms in the City of London are facing a challenge to lower employee salary expectations, which are out of sync with the new era of austerity expected in the sector, says a report by independent city recruitment firm, Bruin Financial.

The report, called City Horizons, reveals that 67% of employees are expecting salary increases in the next 12 months, with only 23% of firms saying they are likely to give them. Respondents for the 100 employers surveyed were mostly HR directors.

The report has also revealed the financial sector is beginning to change and needs to find ways to communicate to the next generation of employees who are more interested in cash than job security. It found that 62% of employers believed that job security would be at the top of employees' list of what was important to them in regards to a role – it was actually just 20%.

Bruin Financial chief executive, Robert Thesiger, said: "The sector has changed but it appears to be changing at a different pace for employers and employees.

"There is always a degree of salary disparity between the two but this is significant. Employees are also now of the opinion that job security is a 'nice to have', but that nothing is certain nowadays."

Thesiger added: "The sector as a whole has begun to recognise that a recession which has chewed up and spat out some of the biggest names in financial services has left an employer's reputation meaning a lot less to someone looking for a job.

"The global financial crisis has altered the playing field and created a new recruitment challenge for employers.

"The ones that tune in and get it right will end up with staff who may begin to recapture some of the loyalty that has been lost and which employers aren't as keen to buy back with bonuses."

The report was based on the online responses of 2,000 employees and 100 employers, typically HR directors, during September 2012, in large financial businesses in London.