Low growth is leading to “modest” salary increases at investment managers and other financial services firms this year.
Slow economic growth, low inflation and low interest rates are the underlying causes, according to Mercer.
On average, 2017 base salary increases for all roles are expected to be between 1.9% and 2.4% globally, with Europe among the lowest.
Europe firms face the lowest base salary increases of 1.4% to 2%. Asia and Latin America are higher, with India the highest at 6% average salary increases.
Investment managers made up 10% of the 42 firms surveyed for Mercer’s ‘Global Financial Services Executive Compensation Snapshot Survey’. Banks made up over half the respondents.
“With compensation remaining relatively flat, firms are challenged to go beyond pay and emphasise their broader employee value proposition to continue to motivate and retain people,” said Vicki Elliott, financial services leader, at Mercer Career.
A growing number of organisations are implementing the use of non-financial performance measures as a way of aligning performance with sound risk-taking, Mercer says. Non-financial performance measures of conduct, compliance and risk management are increasingly being allowed to override financial outcomes.
©2017 funds europe