Financial sector pay to see 5.5% hike

SALARIES in the financial services sector are expected to rise by 5.5% next year — almost 1% higher than the general industry sector.

According to a report by consultancy firm Mercer, the fund management industry is experiencing some of the highest salary increases in the financial services sector.

The report also found that high staff turnover is proving to be a challenge for the financial services industry.

Staff turnover across the industry is high at 15%, rising to 20% in some niche areas, it said.

Senior consultant with Mercer, Mary McDermott said: “As a result of a buoyant labour market in the financial services sector, frequently newer recruits are being paid in excess of those with two to three years experience, particularly at administration and professional levels.

“This can raise significant concerns for companies in their attempts to maintain equitable compensation packages between existing staff and new joiners.”

The report also found that company employee benefits are increasing in the financial services sector.

It found that employer-paid maternity leave, less social welfare payments, has increased to 26 weeks.

The data also indicated that employee-assistance programmes — providing information and confidential counselling services to employees — are also increasing.

The average number of holiday days offered to employees has increased to an average of 24 days.