Financial Services
focus on engagement

The latest research released from the reward
experts at Thomsons Online Benefits, Employee
Rewards Watch: Financial Services 2010, shows the financial services
sector seems more positive about the coming year in comparison to respondents
across all other sectors.

Nearly seven out of ten financial services
respondents report they are more optimistic about their business than last year
(65.96 percent).  And almost half anticipate a pay rise of either 2
percent (22.50 percent) or 3 percent (22.50 percent) in the coming year.  These are just some of the newest industry insights revealed
in the first Thomsons “Employee Rewards Watch: Financial Services”, in which 47
financial services organisations took part. This is the first of three reports for key market segments.

Key
findings for 2010 include:

More financial services respondents are able to report how
much they are spending on employee benefits (51.06 percent) than all
respondents (30.05), two in ten (21.28 percent) are still unable to measure the
effectiveness of their strategy – twice that of the total population (9.63
percent);

Looking
into 2010 financial services organisations will be focusing on employee
engagement (48.94 percent) and reviewing their benefits/reward strategy (42.55
percent). Opinion seems drawn as to whether these new restrictions on
reward
strategies will impact the UK’s ability to attract and retain top talent in
this sector, with 38.00 percent claiming it won’t make any difference and 34.00
percent claiming it will.

Michael Whitfield, Chief Executive Officer of Thomsons
Online Benefits comments “Without doubt the recent economic turmoil has seen
reward strategies put under the microscope like never before. The media has
fuelled a vitriolic debate suggesting that the entire reason for the crash can
be laid firmly at the door of the fat cats and their reward packages in the
financial services sector.

With the
public and the politicians seemingly united in their focus here, the baying for
blood could not be louder. We have already seen bankers hit with a windfall
bonus tax, and the Financial Services Authority introducing a new code of
practice on remuneration, the latter will undoubtedly have some impact on
reward strategies.

Despite
these levies, and the recent profit tax announced in June’s Emergency Budget,
it is good to see that in adversity HR teams are swimming against the tide and
looking to try and re-engage a largely disenchanted financial services
population. With 48.94 percent focusing on employee engagement and 42.55
percent reviewing their benefits/reward strategy in 2010, there is little doubt
that HR teams up and down the UK are looking at new ways to lock in and
motivate their people, whilst at the same time looking to

banish the spectre of the 2008 banking crisis
and all the carnage that ensued.”

12 July 2010

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