The latest research reveals a worrying outlook for the City as it enters one of the most uncertain periods in the Square Mile for a generation.
Although bonus culture is still prevalent, 2017 looks set to be challenging for City workers as nearly two-thirds said they received a bonus in 2016, whereas only two-fifths say their firms have indicated that they will receive one this year.
The Hays Financial Markets Rewards Report 2017 reveals a challenging post-referendum landscape for City workers as over a third of employees said their base salary had not changed in the last year, with 6 per cent seeing a salary decrease.
City employers are already seeing the effects of salary dissatisfaction. Nearly half say they have lost out on candidates because their salary or benefits package were not competitive enough. As a result, a third increased salaries to combat recruitment challenges.
Bonus culture beats the gender pay gap
However, the study by Hays also found that interestingly, more women than men received a bonus last year, 62 per cent compared to 57 per cent respectively, whilst female City workers are more optimistic they will receive one again this year at 45 per cent compared to 39 per cent of men.
Despite this development, bonuses look set to be less prominent in 2017 as only two-fifths of workers say bosses have indicated they will receive a bonus, compared to a significantly higher 59 per cent who received a bonus last year.
Tough times ahead for the City
Commenting on the findings, Carolyn Dickason, Director, Hays Financial Markets, said: “Whilst City employers are distracted by Brexit, workers are mindful of the uncertain times ahead but are still looking at other career options. Our research has found that the majority are predominantly driven by both salary and benefits, which will become especially important in 2017 as bonuses look set to be less prevalent in the market. We recommend City employers review their talent acquisition strategies to avoid disappointment as many candidates at the moment can expect multiple job offers and City firms need to maintain the competitive edge over rivals.”