Nearly two-thirds of financial services managers expect salary offers to rise in 2011, while only a quarter predict higher bonus payouts.
According to Morgan McKinley’s survey of 200 HR and line managers working across financial services in London, 62% expect basic salary offers to increase in 2011, with 55% expecting the rise to be no more than 10%
In addition, 31% of respondents expect temporary/contract rates to increase by the end of the year, with only 27% expecting the rise to be no more than 10%
The key driver for salary increases is anticipated to be the need to attract and retain key staff, according to 56% of respondents. Meanwhile, more than a quarter (27%) anticipate bonuses paid out for 2010/11 will be higher than 2009/10.
Andrew Evans, chief operations officer at Morgan McKinley said: “The survey highlights that nearly two-thirds (62%) of respondents expect basic salary offers to rise. This is further evidence that salaries for high-demand roles are rising as institutions gear up to compete against each other to secure top talent for 2011 and beyond. The anticipated rise in salary offers echoes the recovery we have seen in the market over the last 12 months, however, it is expected by most respondents to be between 1-10%, suggesting managers still feel an element of caution with respect to the market.”
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