Mercer’s Global Financial Services Executive Compensation Snapshot Survey has found most financial services companies globally have made or are making changes to their employee value proposition (EVP) beyond pay, in order to attract talent who might otherwise choose not to work for them.
The most prevalent initiatives planned, or already in place, are:
- Learning and development programmes (47%)
- Remote working programmes (43%)
- Implementing career frameworks (37%)
- Introducing flexible working (37%)
- Non-monetary recognition programmes (34%).
The survey was completed by 68 financial services organisations, of which 21% were based iin growth markets i.e. Asia and South America.
Mark Quinn, partner and head of Mercer’s UK talent business, said: "Following the financial crisis, the reputation of traditional financial services firms suffered badly.
"Banks, in particular, who have since been struggling to attract and retain the best new talent, are realising that these so-called millennials are not just in it for the money."
Shai Ganu, Asia business leader for Mercer’s talent consulting business, added: "Over the past few years, we have seen an institutionalised de-leveraging of pay in the West; with fixed pay levels going up and short-term incentive levels dropping.
"As expected, this permeated in Asia with more and more companies reviewing their pay mix. 35-40% of survey respondents in growth markets felt their increases to fixed pay had a positive impact to ability to attract retain and motivate talent."
On the flipside, around 45% of financial services organisations globally do not have key design changes or revisions planned for their performance management processes.
In growth markets such as Asia, a majority (41%) do not have nay changes planned, while 31% may make changes in 6-12 months. Half of all banks globally are planning to change their performance management processes in the next 12 months.
Many organisations (41%) have had their current performance management processes in place without making any key decision changes or revisions for 1-3 years, followed by 4-6 years in 24% of the organisations.
The most popular component of performance management in financial services firms? 99% have individual goals, while 96% have formal year-end review discussions.
Some of the other popular components are:
- Linking individual performance ratings and compensation decisions - 85%
- Calibration of performance ratings - 78%
- Employee self-assessment - 76%
Lead image: 123RF