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Most financial services staff still receive bonuses, but don't think they receive enough


More than three quarters of London's financial professionals received bonuses in 2010/11 – but more than a third were dissatisfied with their payment, according to a new report.

According to the survey of 192 financial services professionals in London by Morgan McKinley found 79% received a bonus this year. In addition, 39% received a higher payment in the 2010/11 bonus round vs. 2009/10, while 43% received a similar payout.

Only 36% were satisfied with their bonus payments, while 35% were dissatisfied. For those who were dissatisfied, the most common reason cited by 37% was a reduction in bonus payments across the board. Only 38% of respondents saw their salaries rise on the previous year, with nearly 60% remaining on the same pay.

In spite of this only 9.4% of respondents would move roles for a better bonus, while 60% would move for career development reasons. Compared to the same time last year, 48% of respondents have seen an increase in their basic pay, while another 47% are earning a similar amount to last year

Financial services job opportunities in London rose by 11% month-on-month in 11 March but compared to the same time the previous year, this marks only a 1% increase in job opportunities across the City.

The number of new professionals entering the financial services jobs market rose by 18% whilst compared to the same time last year financial services job seeker numbers rose by 46%.

The average salary for those securing new roles in March 11 compared to those finding jobs in February 11 was £54,445 - a 3% decrease on the previous month. In addition, the London Employment Monitor shows the average salary for those securing new roles in March 11 compared to those who found new jobs in February 11 dipped by 3% to £54,445, with the overall pattern of salaries for those taking up new jobs remaining stable over the past year. The April 11 Bonus Satisfaction Survey also shows that a fifth of respondents would move roles to find a better salary, however remuneration was not the most popular reason; most respondents would move to another job for career development rather than the possibility of a higher bonus or salary. Andrew Evans, chief operating officer, Morgan McKinley financial services, said: "For the third consecutive year, our Bonus Satisfaction Survey provides real insight into bonus payments across the financial services sector in London. This year, the survey gives a clear indication that bonuses are still being paid to the majority of City workers. However, in reality only 79% actually received a bonus compared to 88% who 'expected' to receive one in our September 10 Bonus Expectations Survey. Additionally, this year fewer employees are happy with their bonus payments, with over a third saying they are 'dissatisfied' compared to 27% who were 'dissatisfied' in our 2010 Bonus Satisfaction Survey "Despite being some way along the road to recovery there were a number of reasons to expect that bonuses might not be as sizeable as pre-recession years across the financial services sector. These include industry regulations influencing the structure of bonus payments; downward pressure on remuneration during the financial crisis meaning that last year's bonuses, following an improvement in the market, were very welcome. In addition, business activity in some pockets of the market decreased in H2 10 relative to H1 10 which would have had a negative impact on bonuses paid out in those areas. "Evidence from professionals surveyed suggests that basic salaries have risen slightly. The likely reason for this is to counteract the effect of a slight 'softening' of bonus payments as well as what is clearly increased competition in the jobs market to attract and retain the best talent."