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New research from recruitment specialists Robert Half Financial Services revealed that 93% of UK financial services executives have expressed concern about losing talented staff to international opportunities, as a result of the EU bonus cap.
According to the survey of UK c-suite executives at financial services firms, 38% are ‘very concerned’ and 55% are ‘somewhat concerned’ about the impact of the pending regulation.
With EU bonus cap due to take effect from January 2014, which will see bonuses capped at 100% of fixed salary, or 200% with shareholder approval. UK financial services organisations are implementing the measures in a bid to prevent an exodus of talent. According to the research, 65% of organisations have increased salaries by an average +20%, with 60% increasing benefits to staff.
Neil Owen, director of Global Practice, at Robert Half Financial Services, said: “Financial services leaders are evidently concerned about the impending EU bonus cap and its potential impact on the industry’s talent pool, particularly as firms look to their top staff to pursue growth strategies. A number of large UK financial services firms have already been examining ways to offset the cap, potentially raising salaries and benefits to retain key employees.”
“With the UK competing with other international centres for the world’s top financial services talent, firms will need to strike a balance between risk and reward, with additional employee remuneration potentially creating an unstable cost structure,” he added.