City Salary Watch
Recruitment's a bit lethargic in the City this month – but movers are still getting big raises
Back to HRville’s favourite economic indicator – the Bowlometer, which this month shows that City movers are trousering an average 18% salary increase.
Pretty much the same as last month, as it happens, but against a backdrop of stilted growth. As reported by Morgan McKinley, the number of job opportunities remained flat compared with October figures (actually, down 0.8% to 7,350).
‘An element of lethargy tends to enter the market at the tail-end of the year,’ says Hakan Enver, Operations Director of Morgan McKinley Financial Services. ‘Additionally, a positive year means bonuses for those in eligible fields, and postponing a move until the New Year is a seasonal pattern.’
The average salary uplift of 18% could rise even higher next month. ‘While volumes are lower in December, those who do start new roles before the New Year tend to be offered high incentives to do so,’ says Enver. ‘Rising salaries are here to stay.’
A return of M&A activity is proving positive for City firms. Deloitte’s quarterly insight forecasts that the value of M&A deals will break through $150bn by year end, as cash-rich US corporates, particularly those with large overseas reserves, are taking advantage of European target companies dogged by ‘tepid growth’.
For all the economic activity levels and optimistic mood, there is some evidence that non-urgent recruitment is being put on hold.
‘We can see a potential wave of increasing demand in 2015, as some employers postpone major hiring drives until there is greater certainty following the UK election and EU membership debate,’ says Enver.
Main reporting by Morgan McKinley
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