Salaries for UK financial services workers jump amid competition for talent
The average salary for UK financial services workers jumped to £53,000 in the second quarter amid competition for talent.
Data released today by recruitment software provider Broadbean showed the average salary for financial workers in the first quarter rose to £48,500 before climbing to £53,000 in the second quarter.
The increase in salaries comes despite a fall in the number of roles advertised, with the number of roles available dropping from the second quarter of 2018 to the same period in 2019.
Read more: Relocations rise ahead of Brexit but London will stay ‘dominant’, report finds
The number of applications per vacancy for banking and finance jobs has gradually declined since the UK voted to leave the EU in 2016.
Broadbean said Brexit is having an effect on industry confidence, with overseas talent less likely to move to the UK market and banks moving some operations to EU jurisdictions.
A report last month from think tank New Financial found that more than 330 financial firms have relocated parts of their business ahead of the UK’s departure from the EU.
“Potential applicants might be put off from applying for a job that might soon be moved abroad, or made redundant altogether,” Broadbean said.
“But London will still remain a financial hub, and The City still needs to attract talent. One method to attract talent, is to increase the salaries for new vacancies,” it added.
Read more: Big banks shift just 1,000 jobs since Brexit vote, EY reports
The rise in financial services salaries was mirrored by an increase in salaries across other sectors of the economy.
Average salaries of roles advertised through Broadbean rose 12 per cent from the second quarter average of £38,000 to £42,500 for the same period in 2019.
The company said this could be attributed to two factors: increases to minimum wage pushing up salaries of lower earners and worsening skills shortages at senior levels means businesses having to pay a premium to attract talent.
“Now, perhaps more than ever before, the UK’s employment sector is a candidate’s market…Despite the uncertainty of our times and a nationwide fall in job applications, the UK’s job market has strength and pace,” the report said.