Bankers switching firms trouser more than 20 per cent pay bump
City bankers, brokers and insurers switching to a rival firm trousered a more than 20 per cent pay bump last year, new research out today shows.
The Square Mile’s best and brightest are switching companies in a bid to capitalise on rapid wage inflation in the financial services sector.
According to recruiter Morgan McKinley, the number of people looking for a new adventure in the City surged 36 per cent over the last year.
Firms have been offering juicier pay packets to outbid their rivals and lure talent amid a smaller workforce.
Higher living costs have also incentivised workers to demand existing and future employers hike pay to protect their spending power.
Prices are up 10.5 per cent over the last year, the quickest acceleration in 40 years, but economists think inflation is on a downward path this year, which should cool wage demands.
“The competition for talent clearly remains and combined with higher costs of living, candidates continue to demand premiums for their commitment,” Hakan Enver, managing director at Morgan McKinley UK, said.
Banks and other City firms ramped up hiring substantially last year, defying the gloomiest predictions about London’s ability to retain its pull as a global financial centre after Brexit.
The number of available jobs in the sector climbed 16 per cent over the last year. However, vacancies are still below the peak reached in 2016, the year of the Brexit vote, according to Morgan McKinley.
Strong hiring in the Square Mile indicates it could withstand the coming UK recession better than other sectors.
However, a string of sweeping job cuts at some of the globe’s biggest banks indicates decision makers are moving to protect their bottom lines.
Wall Street lender Goldman Sachs earlier this month moved to cut 3,000 jobs – its biggest since the financial crisis – while Morgan Stanley and Nomura are also shedding staff.
Central banks raising interest rates in unison has chilled the global deal making environment, an activity that generates a big chunk of the financial sector’s income.