Will Dublin catch up to London-style bonuses?

At this time of the year, the City of London is overflowing with cheery souls preparing to spend money. Why? End-of-year bonuses are about to be paid.

Dublin may be equally full of cheerful faces, but spending power in the city is considerably less. While London's bankers can clock up bonuses equal to many multiples of their basic salary, Dublin's financiers are lucky to get a fraction of that. Most receive bonuses of just 10% to 20%.

It's partly a question of function. London is home to trading floors, sales desks and corporate finance departments, which can generate huge profits for banks, and employees in those areas are paid accordingly.

But Dublin's recruiters say its employees receive lower bonuses even for so-called 'front office' revenue generating roles. "It's only in the past few years that London-style bonuses of 100% of pay have arrived here for fund management jobs," says Ronan Colleran, a director at financial search and selection firm Accreate. "And that kind of bonus remains quite rare."

People working in administrative roles fare worst in Dublin's bonus round. Paul Cotter, managing director of recruitment firm Joslin Rowe in Dublin, says operational roles in Dublin rarely pay bonuses of more than 20% of salaries.

In London, by comparison, mid-ranking back office roles can pay bonuses of 60% or more. "There just isn't a bonus culture here," says Cotter. "People don't have the same expectations as in London and companies are reluctant to pay out."

How to get yours

This could be changing. Cotter says Dublin job seekers are increasingly aware of the big payouts on offer in London: "Three of four years ago, people would have been quite happy with the salary, never mind the bonus, but people are hearing more and more about bonuses in London."

So, what should you do if you want a London-style bonus on top of your salary? The most important thing, say recruiters, is to ask for it during the interview.

"People need to try and get a guaranteed bonus, or at least an indicative bonus level at the interview stage," says Colleran. "Candidates need to ask for a likely bonus range, or at least what people were paid last year. That way you will have a verbal agreement."

In the current tight labour market, Colleran says people can afford to raise their game and aim for higher bonuses: funds under administration in Ireland are rising at around 25% a year and staff shortages are rife.

In future Dubliners might be able to splash out like their London cousins. Just not quite yet.