Banks could lose young talent because millennials are unhappy with their bonuses
More than four-fifths of young workers in finance and accountancy are "dissatisfied" with their bonus, according to a survey by recruitment firm Morgan McKinley.
According to the research, almost half of City workers either saw their bonuses decrease (26%) or stay the same (23%). Over 10% didn't get a bonus at all.
The survey, which covered people with between one and two years experience at banks, insurance companies, asset managers, and accounting firms, found that around 25% were looking to leave their jobs because the disappointment was so great.
Being unhappy with you bonus is almost an unwritten rule of being a banker (as The Times' Gary Parkinson humorously pointed out in his column a few months ago.)
But Hakan Enver, operations director at Morgan McKinley, points out in a statement accompanying the survey: "Financial houses are in danger of losing their biggest draw and losing talent to other sectors."
"However, whilst millennials may have been the most vocal in their dissatisfaction, it's worth noting that at 30%, it was those who have more than 15 years of experience who saw the biggest squeeze in their bonus pots," Enver said.
Respondents left some interesting comments on the survey, here are a few:
- "Discretionary bonuses seem to be totally arbitrary these days, with the pool being used to either fund shortfalls due to poor senior management decisions or used to pay the 'big boys' to more to keep them happy."
- "In my kind of work we are not considered front line enough to receive substantial bonuses. In good years, the pool is directed to sales and PMs to retain them, in bad years it is directed to sales and PMs to retain them."
- "Bonuses don't reflect working arrangements and mentality in 2016. It is very 1980s. But it is difficult to scrap them because people have got used to it."
Banks have faced a crackdown on risk-taking and cash bonuses since the 2008 financial crisis while insurance companies have been squeezed by low-interest rates and negative yields on assets.
Here's the chart showing employee opinion of what they think affected their bonus:
