Monday, January 14, 2008
[IWS] Watson Wyatt (UK): BONUSES in FINANCIAL SERVICES SECTOR Make the Difference [11 January 2008]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Watson Wyatt (UK)
Bonuses make all the difference in the financial services sector [11 January 2008]
http://www.watsonwyatt.com/news/press.asp?ID=18486
UK, January 11, 2008 - Salaries in the UK financial services sector rose by a median 4.2 per cent in 2007 though this masks wide variations, especially when total cash payments are considered.
Average total cash (which includes salaries and bonuses) in the UK financial services sector rose by between 1.2 per cent and 11.3 per cent last year, depending on job function, according to consultants Watson Wyatt.
Watson Wyatt's 2007 UK Financial Services Compensation Report shows that median basic salaries across the financial services sector rose by 4.2 per cent, while total cash rose by 5.4 per cent.
Those working in investment management saw the highest total cash rises with a median 11.3 per cent. Other jobs which benefited from strong total cash growth included sales (7.9 per cent), commercial/corporate banking (7.7 per cent), actuarial (7.4 per cent) and life underwriting (6.4 per cent). Jobs which typically saw lower than average median total cash increases included purchasing (1.2 per cent), technical (3.8 per cent) and credit/lending (3.9 per cent).
The Watson Wyatt report found salaries rising at a similar level of just over 4 per cent regardless of seniority. However, total cash increases were higher for directors and senior managers (7.2 per cent) compared with junior professionals (5.0 per cent).
"The trend continues whereby base pay increases are fairly consistent across organisations," said Iain Nichols, a senior consultant at Watson Wyatt. "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."
Watson Wyatt found that 18 per cent of companies look to position base pay above the median, with the vast majority (72 per cent) aiming at the median (50th percentile) level and 5 per cent below (while 5 per cent have no policy). However, on a total cash basis the proportion looking to pay above market rates rises to 43 per cent.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Watson Wyatt (UK)
Bonuses make all the difference in the financial services sector [11 January 2008]
http://www.watsonwyatt.com/news/press.asp?ID=18486
UK, January 11, 2008 - Salaries in the UK financial services sector rose by a median 4.2 per cent in 2007 though this masks wide variations, especially when total cash payments are considered.
Average total cash (which includes salaries and bonuses) in the UK financial services sector rose by between 1.2 per cent and 11.3 per cent last year, depending on job function, according to consultants Watson Wyatt.
Watson Wyatt's 2007 UK Financial Services Compensation Report shows that median basic salaries across the financial services sector rose by 4.2 per cent, while total cash rose by 5.4 per cent.
Those working in investment management saw the highest total cash rises with a median 11.3 per cent. Other jobs which benefited from strong total cash growth included sales (7.9 per cent), commercial/corporate banking (7.7 per cent), actuarial (7.4 per cent) and life underwriting (6.4 per cent). Jobs which typically saw lower than average median total cash increases included purchasing (1.2 per cent), technical (3.8 per cent) and credit/lending (3.9 per cent).
The Watson Wyatt report found salaries rising at a similar level of just over 4 per cent regardless of seniority. However, total cash increases were higher for directors and senior managers (7.2 per cent) compared with junior professionals (5.0 per cent).
"The trend continues whereby base pay increases are fairly consistent across organisations," said Iain Nichols, a senior consultant at Watson Wyatt. "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."
Watson Wyatt found that 18 per cent of companies look to position base pay above the median, with the vast majority (72 per cent) aiming at the median (50th percentile) level and 5 per cent below (while 5 per cent have no policy). However, on a total cash basis the proportion looking to pay above market rates rises to 43 per cent.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
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# posted by SBasefsky : 6:21 AM
