A survey of a representative sample of the highest volume recruiters in the City reveals 40% of financial services institutions are expecting their bonus pot to be up to 25% larger than last year.
A further 40% feel that the majority of their employees will not be disappointed with their bonus payout. With City workers’ bonus expectations running high, these figures indicate that the 2006/2007 bonus season is likely to be one of the strongest London’s financial institutions have seen for some time according to a survey conducted by specialist recruiter, Morgan McKinley.
As a result, finance workers are less willing to seek new job opportunities in the run-up to bonus season, preferring to wait for their payout before moving roles. This is reflected in new candidate numbers for October 2006 remaining relatively flat, up only 0.25% compared to September levels.
Likewise, new job opportunities saw a slight drop of 5.5% on the September figure, which the survey said is a typical seasonal adjustment in activity levels moving into the last quarter of the year.
Robert Thesiger, Morgan McKinley chief executive said: “In what has been an extremely strong year for financial services globally, we do not expect to see great hikes in hiring activity over the last quarter of the year. Institutions are getting ready for the upcoming bonus season as well as preparing for further headcount expansion in 2007.
“Early signs suggest that confidence in the City of London is running high for next year, with a number of the highest volume recruiters in the City indicating that they are looking to increase their headcount, some by as much as 25%.”