A survey suggests competition for “star performers” in the City saw average pay rise six per cent between June and July as confidence continues to return to the finance sector.
Banking staff and financial services workers in London are paid an average basic salary of £53,223 thanks to the month-on-month rise, according to recruitment firm Morgan McKinley.
The group said pay was still one per cent lower than a year ago but confirmed jobs activity across the sector showed early signs of a recovery after the financial crisis.
New City vacancies coming on to the market in July stood at 3,528 – the second best month so far this year, despite a seasonal summer drop of seven per cent since June.
Morgan McKinley largely recruits for middle and back office financial services workers and its figures do not include jobs and salaries for highly-paid roles such as investment banking traders.
However, it has emerged recently that banks are also beginning to splash out again on star traders as world stock markets recover.
Barclays and Royal Bank of Scotland have been poaching staff to beef up their investment banking capabilities in recent weeks, reportedly forking out multi-million pound pay and bonus deals.
Morgan McKinley said it appeared banks and finance firms were prepared to pay more to secure top talent as market conditions improve.
Andrew Evans, the company’s financial services boss, said: “With slightly more competition between employers to secure the very best talent, the average City salary crept up last month. Hiring managers are looking for candidates who have multiple skill sets, are star performers in their field, and are offering these individuals competitive salaries.”
New candidates looking for work also rose on a month earlier, by nine per cent. But, compared with a year earlier, recruitment is some way from recovering to pre-crisis levels. New vacancies in July were down by 59 per cent on a year earlier and those looking for jobs continue to far outstrip roles – 8,250 versus only 3,528 jobs,
Mr Evans said: “While recruitment continues to be at very suppressed levels compared to 2008, hiring is occurring across most areas within the City’s financial services industry, particularly at the manager level and above.”