Banks Up

Aggressive hiring may not be quite on the agenda yet in the financial-services sector in London, but one of the world’s major financial hubs is today back at the forefront of taking people on. Banks are up on recruitment and the financial sector is back into 2014 with a champagne-popping-caviar-scoffing bang, at least in London.

Looking for a new job? The golden boys are back in business it might seem.

Bankers: Caps and Bonuses

Bankers: Caps and Bonuses

According to research in the banking sector undertaken by Astbury Marsden, there were 1, 340 financial jobs created in December 2013, which is a 67%-increase in comparison with December 2012 in London. But, things are not quite in the land of laid-back money spinning just yet.

  • The number of overall jobs in 2013 fell by 21% in comparison with 2012 despite the December rise year on year.
  • That means that there was a fall of 27, 915 jobs in the financial sector in London in 2013.
  • This was already a vast improvement on 2012’s figure of 35, 115.

It seems that the additional positions that have been opened are to be found in equity departments as well as derivatives trading and execution teams. It’s the first time that there has been an increase for the past two years in the number of people being taken on. Clearly, banks believe that it’s time to recruit after the losses of the financial market and given their buoyancy at the present time; they have decided to put their money on recruiting in equity sectors.

Reports have shown that banks are finding it more and more difficult to recruit the right people and once they have to keep them on board rather than being poached by someone else, headhunted into another bank. Just can’t get the staff these days, can you?

Plus, the European Union’s bonus cap will do little to help the recruitment process. If the fat cats are going to lose out on their cream, then they might as well go elsewhere and work. Research carried out by Robert Half on salaries and bonuses suggests that two thirds of companies had already raised salaries of top-earning employees by 19% to compensate the EU cap. 60% of companies in the financial sector in London have also increased benefits for staff.

Ultimately, laws are there to be either broken or for people just to get around them. They are certainly not there to be obeyed and adhered to, are they? Sorry, only come into effect for the people outside of the banking sector perhaps. Otherwise, all other laws need not apply. Still, there are a few laws that are impossible to break even for bankers today (like the illegality of hunting and killing whales…in Oklahoma).

It has been reported that HSBC bank has been toying with the idea of share awards to compensate the staff (about a thousand would benefit from the new scheme). Barclays bank has been rumored to be considering increasing salaries of senior bankers. Bonuses in 2012 were sometimes 5.4 times the salaries of those that they were given to.

The UK government and George Osborne, the Chancellor of the Exchequer have already filed a law suit at the EU over the controversial bankers’ bonuses cap. The legal challenge to the EU came amidst the revelations that the UK is the home of the highest paid bankers in the world.

  • $2.65 million were paid out in 2012.
  • Sometimes bankers in London earn up to 370% more than their salaries.
  • The UK has 2, 188 investment bankers on more than 1 million euros ($363, 210), which is the highest amount in the European Union.

Perhaps the European Union should be more worried not about the bonuses and the desire to cap that, but the fact that banks are just pushing up the fixed salaries now to compensate anything that may become illegal to hand out in the future.

However, since when did the banks worry about the legality of the situation?

Not only are the banks getting the money that the state had at one time intended to go to the people (although that is debatable also), but now it looks as if the only people they are willing to dish the dosh out to are the fellow bankers.

There’s little wonder that once a banker, always a banker. Bankers only make bankers, don’t they?


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