IT workers in London’s investment banking community are breaking with a City tradition and looking for new jobs before their bonuses are paid.
Research from recruitment firm JM Group found an increasing number of candidates looking to switch employers. This is happening earlier than usual because the workers are not expecting good bonuses and don’t mind moving before they receive it.
JM said it has seen a 48% increase in the number of IT workers in investment banking jobs now applying for roles, compared to this time last year.
“With bonuses expected to be insignificant for many, we’re seeing a higher supply of candidates in existing jobs looking for work than you’d normally expect for this time of year,” said Dave Pye, CEO at JM.
“We’re expecting bonuses to be even less than when the market was at its worst, straight after the collapse of Lehmans. We believe some IT professionals won’t even receive a bonus and those lucky enough to get one will receive considerably less than before. The best bonuses will be around a third less than last year.”
The report said incentives for moving roles are no longer mainly monetary.
Martin Rennison, head of investment banking for IT at JM, said candidates have fewer places to go to get bigger pay packages. “We’re finding that more and more candidates are now moving for career reasons. For example, candidates have moved to work on more exciting green-field projects or to gain experience in a new skill or business area. We’ve even seen some candidates take a small reduction in salary just to gain new skills in an area of interest.”
“With salaries and bonuses not expected to rise within the City for some time, job satisfaction and work/life balance are now being seen as the key reasons for job moves.”