Back office staff likely to quit after bonus payout

A surprise statistic suggests middle and back office banking staff could scramble to change jobs in the New Year.

A survey of 230 people by Morgan McKinley, the recruitment firm focused on middle and back office banking appointments, found 61% plan to find new jobs after bonuses have been paid.

Ken Brotherston, chairman of Morgan McKinley, admitted surprise at the figure. 'It does look at bit high', he confessed, 'When it comes down to it, people will probably change their minds.'

However, he says many banking staff are aggrieved at bonus levels: 'People are saying bonuses were pretty dire in 2002, and better but not great in 2003. Now, 2004 was a strong year for banks and employees are of a mindset that if they don't get a good bonus this time they will move on.'

Mike Hartwell of Hartwell Buck, a search firm specialising in operations appointments, says turnover in the back office has been high: 'One bank had 33% staff turnover in operations the first six months of 2004 because it hadn't raised pay and bonuses for three years.'

Next year, Hartwell says, candidates for roles such as trade confirmation, settlements and reconciliation for over-the-counter (OTC) derivatives will be in particular demand. 'It's a candidate-driven market. Employees are in a position to move on if they're not paid well.'

Fewer people are likely to look for new roles in the front office. But Jeff Bennett, managing partner at Longbridge International, said people are changing positions as banks expand. 'Rather than guarding their positions and keeping their heads down as in previous years, people are taking the opportunity to move on.'

However, Andrew Chancellor, managing director of the financial and professional services division at Robert Walters, a middle and back office recruiter, cast aspersions on Morgan McKinley's statistics: 'It's nonsense. We haven't seen any variation in people's willingness to change jobs and nor do I imagine we will.'