Pay packages in the financial services industry are likely to drop by as much as 20 percent this year as companies adapt to the credit crisis, according to a survey of recruiters conducted by The Smart Cube.
The survey of 10 recruiters in the U.S. and 10 in the U.K. found that one-third expect compensation to drop between 16 percent and 20 percent, while almost one-third predict pay will fall by between 5 percent and 10 percent.
The survey was conducted in April by The Smart Cube, a five year-old company that supplies research and analysis to the financial services industry.
Other findings:
- Wall Street job candidates, particularly those more senior, have significantly scaled back compensation demands.
- Employees with secure jobs are less receptive to accepting new positions elsewhere.
- Recruiters are almost evenly divided as to how the collapse of Bear Stearns will affect Wall Street. While many believe there will be a “trickle-down effect,” there also is widespread belief that the circumstances leading to Bear’s collapse were the result of “their (individual) financial health and situation.”
- Most recruiters say the Wall Street job market was more adversely impacted by the collapse of the dot.com bubble than the current sub-prime mortgage crisis.