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 TOP STORIESBonus expectations make candidates cautious about job hopping18 September 2009COMMENTSThere are always reasons why you can be paid less! Read all comments »The ongoing international debate about long-term bonus reform has distracted us from the more immediate fact that bonus expectations are once again affecting the Australian employment market. As the calendar year draws to a close, candidates are getting cautious about moving not just because of last-in-first-out, but also because they don’t want to miss out on bonus payments in early 2010. While the sums involved might not be massive compared to the banking-boom days, most employees at least expect to get the same as, or slightly more than, last time round. And the trend towards deferring bonuses and paying them partly in equities could also help convince some that staying is better than going. "As opposed to this time last year, expectations are now growing about a reasonable 2010 bonus season. People are now starting to think that they won’t leave unless they get a sign-on or guaranteed bonus,” says Michael Notley, director, Taurus Financial Recruitment. But, adds Notley, “the carrot has to be big enough, especially if the bank has a recent history of problems with the global financial crisis.” The truth about guarantees Trouble is, most banks won’t buy out your bonus unless you are a senior revenue generator. Recruitment levels are recovering, but we’re still not in 2006 territory – employers continue to control the market. Recent high-profile moves between Merrill Lynch, JP Morgan and UBS – which, according to recruiters familiar with the deals, did involve bonus guarantees – have made some candidates incorrectly assume that they too will get a guarantee when jumping ship. In reality, for most bankers, staying put is the best way to lock in a bonus. “To have suddenly gone from a hiring drought four months ago to the pick-up we are experiencing today, means some people have unrealistic expectations about what’s on offer for them,” says Notley. Keeping it real Rochelle Eades, manager of banking and finance at Robert Walters, also cautions candidates to be realistic about bonuses from both current and future employers. "Most bankers are hoping to see an increase in the size of bonus payments as would be expected given the rise in volume and activity across the market, but also the majority are wary of where we have all come from and are just happy to have a job and something in the form of recognition for hard work put in,” adds Eades.
COMMENTSFX Salesperson, FX & Money Markets, Fri 18 Sep 09There are always reasons why you can be paid less! Those who have survived in financial markets this year have probably had good revenue years, but unfortunately that has been commonplace, which means the median has risen, so relatively speaking not much will change. Add your comment »Randy, Public Sector, Sun 20 Sep 09Most of the middle office, business analyst, traders, account managers, and portfolio managers in the front office and also IT and operations only survived the financial crisis and have kept their work because management is just waiting for them to move instead of retrenching them because it will be more costly for companies. In most cases it does not mean that if they survived the financial crisis they performed well. It just happened that they are permanent employees with rights to retrenchment packages. Most of the people who held the roles on these areas prior 2008 technically have contributed to the financial crisis to some various levels of degree. So how come they are asking for a bonus. This is not only true in Australia but this is also true in Europe, America, Hong Kong, Singapore etc....(financial hubs) where the toxic assets came from. Add your comment »maita, Research, Wed 07 Oct 09Even the global leaders does not support fat executive bonuses...so where will this over paid executive go? They really have to get some reality check.
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