This year has seen a sharp increase in the proportion of respondents receiving a pay rise with 62% receiving a rise compared to less than half last year; less than 3% received a decrease in pay, a small fall on last year according to a survey by Astbury Marsden.

This year saw salaries increase across all job levels, with the highest increases at Assistant Vice President (AVP) and Managing Director/Partner level. The average basic pay of AVP level staff increased +10% from £68,139 in 2013 to £75,210 in 2014. Associate/Manager level staff had the lowest increases of just under +5%. All other levels saw increases of between +6% and +9%.

Strategy & Change staff prospered in comparison to their colleagues with average basic pay rising by over half; however, the median salary increased by just +9%, in line with other functions. In contrast, Technology staff saw basic pay levels fall by approximately 16%. Risk & Governance received the highest average salary at £113,278.

The research found that almost a quarter of employees changed jobs in 2014, less than last year. This resulted in a +17% pay increase this year compared to just +14% last year.

Just over one fifth of respondents to this year’s survey received a promotion during 2014. This is in line with last year. The increase received in recognition of the promotion was +19%, a small rise on last year.

Approximately 40% of City workers expect to see their bonus increase in 2014 – the highest proportion we have seen in three years. The sharpest increases in bonus expectations have been at the senior end – Director/Executive Director and Managing Director/Partner level. Director/Executive level staff are expecting 7% more of their bonus as a proportion of their salary, at 43.2%. Managing Director level staff are expecting 6% more compared to last year at 60% of their base salary.

There is still a marked difference between men and women’s compensation. Men changing jobs or receiving promotions saw their pay rise more quickly than their female counterparts. Those remaining with their current employer also saw their basic pay rise more quickly than their female colleagues.

In addition, there is a big difference between the amount of bonus men and women expect to receive. Men anticipate payments averaging £32,080 (40% of basic pay) compared to women anticipating £17,429 (26% of basic pay). The level of bonus as a proportion of salary has increased for both men and women this year.

This year’s report has seen continued uncertainty towards pay with 21% of employees unsure about their pay prospects for the coming year. However, respondents have become slightly more positive as the proportion of those who predicted that they will not receive an increase in the coming year has consistently fallen since from 39% for 2013 to 30% for 2015.

Half of employees expect to see an increase in pay next year, an increase from the 45% who expected a rise in 2014. This year there was the highest recorded proportion of respondents who would try to change employers if they were dissatisfied with their bonus.

A total of 1,468 responses were received and analysed to compile the final report.

To download the full report, click below: