PAY DATA
Bonuses make all the difference in the financial services
Salaries in the UK financial services sector rose by a median 4.2% in 2007 though this masks wide variations, especially when total cash payments are considered, says consultants Watson Wyatt.
Average total cash (which includes salaries and bonuses) rose by between 1.2% and 11.3% last year, depending on job function.
Those working in investment management saw the highest total cash rises with a median 11.3%.
Other jobs which benefited from strong total cash growth included sales (7.9%), commercial/corporate banking (7.7%), actuarial (7.4%) and life underwriting (6.4%).
Jobs which typically saw lower than average median total cash increases included purchasing (1.2%), technical (3.8%) and credit/lending (3.9%).
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The Watson Wyatt report found salaries rising at a similar level of just over 4% regardless of seniority. However, total cash increases were higher for directors and senior managers (7.2%), compared with junior professionals (5.0%).
Pay policies
Watson Wyatt found that 18% of companies look to position base pay above the median, with the vast majority (72%) aiming at the median (50th percentile) level and 5% below. As many as 5% have no policy.
However, on a total cash basis the proportion looking to pay above market rates rises to 43%.
A final word
"The trend continues whereby base pay increases are fairly consistent across organisations. The differentiation is made through bonus payments and comes as a result of the desire to differentiate individual performance as well as the financial performance of the organisation, with salaries rising above average where there is demand for specific skills and abilities." - Iain Nichols, senior consultant, Watson Wyatt.
Want to know more?
Title: UK Financial Services Compensation Report 2007, Watson Wyatt.
Availability: Contact Watson Wyatt Data Services, tel: 0207 222 8033 or email: wwdsuk@watsonwyatt.com.
Watson Wyatt Worldwide is the “trusted business partner to the world's leading organisations on people and financial issues”. The firm’s global services include: managing the cost and effectiveness of employee benefit programmes; developing attraction, retention and reward strategies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,000 associates in 32 countries and is located on the web at www.watsonwyatt.com.