Generation ‘Y Bother’: Millennials Threaten to Quit London Finance – Wall Street Journal (blog)
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Millennials are not happy with their bonuses in London’s finance sector.
According to a survey by headhunting firm Morgan McKinley, 83% of young people in London with one to two years’ experience were dissatisfied with their bonus this year and about a quarter are threatening to quit the financial industry because of it.
According to the research, almost half of City workers either saw their bonuses decrease or stay the same compared to a year ago. More than 10% got no bonus at all.
As a result of these disappointing payouts, 25% of workers say they are now looking to leave their current employer. Morgan McKinley said the “vast majority” of these are millennials.
“Despite the fact that London is the world’s leading financial centre and companies [are] adapting to accommodate this social group by offering greater work/life balance through mobility initiatives and capped working hours, there is a growing dissatisfaction with the rewards a career in the City can bring,” said Hakan Enver, operations director at Morgan McKinley .
Mr. Enver said the London’s finance hub, known as The City, is not doing enough to encourage the next generation of professionals to stay in financial services “leading to a skills gap within the sector.” Financial houses, he said, “are in danger of losing their biggest draw and losing talent to other sectors.”
Whilst millennials were the most vocal in their dissatisfaction, Morgan McKinley noted that bonus levels are in decline generally and it was actually those with more than 15 years of experience who saw the biggest squeeze in their bonus pots. Still, businesses are looking at other ways of rewarding employees. A third of the survey’s respondents said they had received an increase in fixed pay or basic salary to compensate for a lower bonus.
“The challenge for banks continues to be striking the balance between retaining their talent, particularly now that only 100% of basic salary can be paid out to an employee (or 200% with shareholder approval) and acting responsibly in the eyes of the public so that their businesses remain competitive in the long term,” Mr. Enver said.
The survey assesses the impact of bonuses paid out to London’s financial services sector workers in banking, asset management, insurance and the Big 4 accountancy firms.
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Generation ‘Y Bother’: Millennials Threaten to Quit London Finance – Wall Street Journal (blog)}