Bonuses bottoming out

Don't say it too loudly - IT bonuses are on the way down.

"It's looking increasingly likely that we will see a decline in the level of bonuses being awarded, simply because the pool of money available for bonuses is shrinking," says Craig Album, an associate partner with city recruiter Astbury Marsden.

Those feeling the pinch most severely are likely to be staff working in securitisation, where the credit crunch has had a serious impact, according to Album: "We've been told by a number of clients that bonuses in that area are taking more of a hit."

The bad news is that, if bonuses do decline, IT workers are likely to feel the brunt more than some other financial professionals. "In general, IT workers are last in line to get bonuses, and may only receive a share of a general bonus pool," says Dave Pye, chief executive of Highams recruitment. "Bonuses are rarely significant enough for clients to move jobs, or be attracted to a specific position," he adds.

Any decline in bonuses caused by the current market conditions may not be apparent until as late as June 2008, Pye says. If your bonus is calculated at the end of the financial year (April) it might not actually hit your pocket until next June. "At the earliest, people won't find out the level of their bonus until perhaps December or January," he says.