Survey Finds Those Expecting Lower Bonuses Increased from 12% in January to
23% in March
34% are Less Confident in Job Security since Bear Stearns Bailout
NEW YORK, April 16 /PRNewswire/ -- A recent survey by
eFinancialCareers, the leading network of career sites for financial
services professionals and the firms seeking to employ them, found U.S.
financial services professionals' outlook on their 2008 bonuses has
deteriorated over the last two months, along with confidence in their job
security as Wall Street's financial troubles have intensified.
eFinancialCareers conducted a survey in late March of more than 1,200
U.S. financial services professionals, after conducting a similar survey in
late January. The number of respondents that expected their 2008 bonus to
be lower than their 2007 bonus swelled from 12 percent in January to 23
percent in March. This change was driven mainly by a decrease in the number
of professionals who were previously unsure about their 2008 bonus which
fell from 27 percent in January to 16 percent in March. Also, respondents
not expecting a bonus in 2008 rose from 4 percent in January to 10 percent
in March.
"While troubles in the capital markets have been making headlines since
the summer of 2007, the reality of the potential effects on 2008
compensation are now really starting to resonate with financial services
professionals," said John Benson, founder and Chief Executive Officer of
eFinancialCareers.
The survey found there is still a degree of optimism on the 2008 bonus
outlook, which could reflect the diversity of financial services jobs.
Twenty-five percent of respondents expect their bonuses to climb this year
(vs. 27 percent in January), while 27 percent believe bonuses will be about
the same (vs. 30 percent in January).
Although 48 percent of respondents did not believe the bailout of Bear
Stearns will have an adverse impact on their ability to maintain their
jobs, 34 percent are less confident in their job security, while 14 percent
have already lost their jobs.
"Over the first three months of the year, the number of resumes posted
on eFinancialCareers in the U.S. has nearly doubled versus the same period
in 2007. However, those worried about job security and compensation can
take some comfort as hedge funds, asset management institutions and even
investment banks, are still recruiting talented professionals," Mr. Benson
noted.
Job Seeking
It appears recent events did not compel U.S. finance professionals to
either jump into the job hunt, or take themselves out of it. The percentage
of professionals intending to look for jobs in 2008 remained essentially
unchanged from the January survey with approximately 58 percent of March
respondents seeking new jobs in 2008. Seventy-two percent of those seeking
a job were already looking for a new position before the latest Wall Street
troubles.
However, bonus dissatisfaction could be motivation for finding a new
job. In January, 54 percent said they planned to look for new jobs in 2008.
Asked whether their 2007 bonus was driving them to look for a new job, more
than half answered yes or partly.
2007 Bonuses
eFinancialCareers' January survey of U.S. financial services
professionals found that contrary to media reports of widespread bonus
cutbacks, more than two-thirds of respondents reported an increase in 2007
bonuses compared to 2006. Notably, 19 percent reported their bonuses jumped
more than 50 percent compared with 2006. Another 9 percent reported
receiving 31-50 percent more than the previous year, while 17 percent
received 11-30 percent more. Twenty- one percent said their bonus declined
from 2006, while 11 percent said they received no bonus in 2007.
Respondents' total compensation for 2007 showed a median of $140,000
and a mean of $205,158.
Survey Methodology
The January eFinancialCareers Bonus Survey was administered online
throughout the month with more than 1,600 registered U.S. eFinancialCareers
users responding. Registered users were invited to participate in the
survey through e-mail. The follow-up survey was administered online during
the two- week period subsequent to the bailout of Bear Stearns in March
using the same methodology with more than 1,200 registered
eFinancialCareers users responding.
For March and January comparisons, only respondents who indicated they
received a 2007 bonus were included. Inconsistent responses were removed
from the analysis and data presented.
eFinancialCareers currently lists more than 2,500 permanent, contract
and consulting jobs nationwide for financial professionals and more than
12,000 positions worldwide.
Table 1: Do you expect your 2008 bonus to be higher or lower than your
2007 bonus?
January 2008 March 2008
Higher 27% 25%
Same 30% 27%
Lower 12% 23%
Not sure 27% 16%
What bonus? 4% 10%
Table 2: Has the recent bailout of Bear Stearns and the news of Wall
Street's financial troubles changed your confidence in keeping your job?
March 2008
I am more confident 4%
It has had no effect on my confidence 48%
I am less confident 34%
I've already lost my job 14%
Table 3: Do you expect to be job hunting in 2008?
January 2008 March 2008
Yes 54% 58%
Maybe 24% 20%
No 18% 15%
Not Sure 4% 6%
Table 4: How did your 2007 bonus compare to last year?
January 2008
51+% higher 19%
31 - 50% more 9%
11 - 30% more 17%
0 - 10% more 23%
1 - 10% less 6%
11 - 30% less 6%
31 - 50% less 4%
51% less 5%
Received no bonus in 2007 11%
About eFinancialCareers
eFinancialCareers, a Dice Holdings, Inc. company, is the leading global
career site network for professionals working in the investment banking,
asset management and securities industries. The website provides financial
services professionals with job opportunities, job market news and
analysis, salary surveys and career advice. Recruiters and employers can
post jobs targeting specific sectors within the financial services
industry, both buy-side and sell-side, and can search the resume database
for highly qualified and specialized professionals. eFinancialCareers has a
network of co-branded career sites with industry-leading trade publications
and offers local websites in 14 markets and five languages across North
America, Europe, the Middle East and Asia-Pacific.
http://www.eFinancialCareers.com
Media
ICR Inc.
Stephanie Sampiere, 646-277-1222, stephanie.sampiere@icrinc.com
Matt Lindberg, 203-682-8214, matt.lindberg@icrinc.com
SOURCE eFinancialCareers.com
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Related links:
http://www.eFinancialCareers.com
http://www.diceholdingsinc.com
CONTACT:
Stephanie Sampiere, +1-646-277-1222,
stephanie.sampiere@icrinc.com, or Matt Lindberg, +1-203-682-8214,
matt.lindberg@icrinc.com, both of ICR Inc. for
eFinancialCareers.com
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