Latest news: Banking pay rises 'above national average'

New graduates looking to get into the banking and finance sector have received a boost after a survey revealed that pay rises in the area will be above the national average in 2012. 09/11/2011

Mercer’s TRS Quarterly Pulse Survey reviewed the pay plans of 329 multinational companies across Europe, Asia and the Middle East. It found that employees in the UK can expect an average pay rise of 3% next year, although those working in executive management positions in banking and finance, energy and utilities and fast-moving consumer goods can expect the highest increase.

However, workers and graduates in the UK will continue to feel the financial pinch, as the 3% average increase is still well below the rate of inflation, which currently stands at 5%.

‘Salary increases in the UK are not keeping pace with the rising cost of living, and employees are finding it difficult. The economic situation is still volatile so organisations are being cautious with their fixed costs, such as salaries,’ said Mark Quinn, principal at Mercer.

‘Committing to higher salary increases reduces a company’s flexibility and manoeuvrability if the economy does drop again. While the restraint is painful for everyone in the short term, it is also prudent, and if it ensures the survival of the company it is in the longer term interests of the employer and employee,’ he added.

The above average increase for banking and finance graduates is further welcome news, after Santander announced its largest ever graduate scheme last month.