While the survey results would seem to run contrary to the current economy, chaotic markets, bank failures, and unprecedented government intervention, the reality is that for many on Wall Street, they will receive bonuses this year, as even institutions that are suffering will reward professionals.
To be sure, among those expecting bonuses this year, most anticipate the increase will be 10% or less over last year. But a minority - 10% - expect this year's bonus to be at least 33% above last year. Another 31% of U.S. financial services professionals expect this year's payout to be less than 2007, while 34% expect no bonus at all.
"While the bonus pool will certainly be down substantially this year, bonuses will still be paid to those individuals who generated revenue for their institutions," said John Benson, founder and CEO of eFinancialCareers.com. "For those who performed, the failure to receive a bonus may make them receptive to offers from other employers and banks cannot afford to lose their top performers right now."
Not surprisingly given their role, those holding front office jobs were the most optimistic, with 71% expecting a 2008 bonus, while in the back office just over half (56%) expect a payout.
Current State of Mind
The turmoil on Wall Street is reflected in the attitudes of professionals currently employed. More than two-thirds (68%) of employed financial services professionals are either open to changing jobs or actively looking. Another 19% would love to switch jobs, but for now consider themselves playing it safe by staying put. Only 14% of respondents indicated that they are very happy and not looking to move.
In fact, not only are they ready to change jobs, the survey results point to only a lukewarm desire to stay on Wall Street. 71% of respondents said they would consider a job opportunity outside of financial services. The positions most often mentioned as desirable: corporate development or strategy and management consulting.
"While the desire to jump ship may be high, financial services professionals should give serious consideration to how they will potentially transfer their skills to other industries," noted Mr. Benson. "Those who can survive this downturn on Wall Street will be well positioned as leaders when the cycle turns again."
