City management consultants are receiving retention bonuses averaging £30,000, according financial services recruitment firm Astbury Marsden.
The bonuses (which are paid on top of annual bonuses) are being introduced to try and halt the increasing turnover of staff between management consultancies, caused by a boom in the sector.
Mike O’Kane, manager at Astbury Marsden, said: “The widespread use of these lucrative retention bonuses is an attempt to tie in staff. There has been a bidding war for management consultants with financial services sector experience caused by a glut of work.”
He added: “Bearing in mind these bonuses can be 30% to 40% of a healthy six-figure basic salary, the potential earnings for qualified staff have never been so good.”
According to Astbury Marsden in addition to retention bonuses, consultancy staff also earn – on average – performance bonuses of 15%.
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