Bankers expect bigger bonuses in 2022 as financial sector goes on Asia hiring spree
- About 45 per cent of financial workers in Asia expect a pay rise next year, according to Selby Jennings survey
- Counter-offers have risen to 80 per cent of prior pay as banks, other financial firms compete for talent in the region
Financial services professionals in Asia are confident they will receive bigger bonuses in 2022 as banks and other institutions scramble to attract and retain talent in Asia, according to headhunting firm Selby Jennings.
As regional economies recover, banks are making big bets on Asia and seeking to hire at a pace Jeyakumar said he has not seen in the past decade. As a result, financial sector workers – many who took a haircut for their 2020 work – are expecting to be paid.
“There hasn’t been new expatriate talent. There hasn’t been huge graduate hiring programmes. There hasn’t been that middle layer of associates, analysts and VPs coming through,” Jeyakumar said. “What we’ve seen are performers that are unhappy need to be compensated exceptionally well in 2022 in order for the banks to expect to keep them.”
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About 45 per cent of financial services employees surveyed said they expect to receive a pay increase next year, compared with only 7 per cent saying they were very likely to receive a pay increase in last year’s survey.
That followed more than half of respondents in Asia not receiving a bonus last year, Selby Jennings found. The survey, conducted in April and May, interviewed 190 financial services professionals in the Asia-Pacific region, with the bulk of respondents in Singapore and Hong Kong.
The result has boosted compensation packages for new hires and led to an increase in counter-offers from a typical 20 per cent of prior pay to about 80 per cent for candidates the headhunter has placed, Jeyakumar said.
“The banks cannot afford to lose revenue-producing members of their teams,” Jeyakumar said. “The market competition for talent is so high, that potentially every process that we’re working on is a bidding war for talent.”