Performance related pay increases in the finance sector have risen to a four-year high of 3.75%, according to figures released today.
Research from Personnel Today’s sister publication IRS Employment Review revealed that 60% of finance sector employers choose performance alone to award pay rises.
The median budget increase of 3.75% between September 2004 and May this year is also well ahead of the 3.5% median pay budget found for the whole economy during the same period.
IRS Employment Review researcher officer, Sarah Dennis said: “Despite significant growth in paybill budgets, most pay increases remain determined by measures of individual performance, leaving little room for a guaranteed basic increase among financial institution employees.”
“However, the non-consolidated bonus continues to be a popular tool for rewarding employees in the finance sector, with three-quarters of organisations offering employees the opportunity to receive bonuses worth 5% or more.”