Irish Financial Services Salary Survey 2006: In senior management and professional levels, men are paid more than women by 18% and 17% respectively

Irish
Irish Financial Services Salary Survey 2006: In senior management and professional levels, men are paid more than women by 18% and 17% respectively
By Finfacts Team
Nov 24, 2006, 13:05

Key survey findings:

On average, 5-6 % increase in pay levels forecast for Irish financial services companies across all levels, with up to 8% forecast for key skill sets.
Majority of survey participants provide defined contribution pension plans, with increasingly attractive maternity and annual leave benefits.
Remuneration increases being driven by bonus and commissions.
Financial services sector companies adopting a total remuneration approach to employee packages.

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Pay levels in Irish financial services companies are forecast to continue to increase, according to a recent survey conducted by Mercer Human Resource Consulting. Mercer’s Financial Services Remuneration Guide 2006 indicates that employers across the Irish financial services sector are projecting salary increases of 5-6% for 2007. This projected increase is marginally lower than 2006 financial services increases and other industry sector increases.

Mary McDermott, Consultant with Mercer noted: “Larger incentives and commissions are driving the increased compensation compared to 2005. This suggests that companies are willing to pay for top performing talent who can help drive revenue and company growth. Average maximum bonus for Head of Organisation roles has increased to 49%, in line with the general market trend to pay for performance".

Mercer’s survey values the total remuneration package -

base salary,
annual bonus,
stock options and
benefits (company car, pension, private health, life assurance, disability benefits and share purchase plans).

Mercer has observed that companies are increasingly adopting a total remuneration approach to employee compensation. Defined contribution (DC) pension schemes are becoming more and more popular across all sectors. Employer contribution rates have remained steady around 10% and employee contribution rates of 5%.

Private medical insurance has become a standard benefit within the financial services sector, with 89% of companies providing private medical insurance to employees. The provision of paid maternity leave is increasing, with the majority of the larger companies paying 100% of salary. Also, the median number of vacation days has increased to 24.

“Compensation plays an important role in attracting and retaining talent. Companies are now recognizing that they need to vary the compensation structure and benefits package for employees with specialised skills to show that they value and want to retain key talent in a competitive environment” said Ms. McDermott.

Highlights:

Gender: Men are paid more than women: In senior management and professional levels by 18% and 17% respectively, 28% of senior management roles are filled by women. By contrast, this figure is 21% across general industry.
Tenure: Admin roles with 1 years experience are commanding higher starting salaries than those in the roles with 2-3 years experience, highlighting the tight labour market in certain key areas.
Industry sector: Fund management companies are paying senior management 10% ahead of other financial services companies. Reinsurance are paying admin staff 6% ahead of other financial services companies.
Salary increases from 2005: 5% on average across the board, but 30% for sales roles and 21% for roles in finance departments. Senior management saw increases of approx 6% in base salary, but up to an average of 34% increase in actual bonus payouts.
Bonus increases from 2005: Finance team bonuses increased by approx 8%, IT by 5%