Finance set for pay boost

The finance sector is gearing up for a significant pay increase, with a recent survey indicating that salaries are poised to rise by an average of 8.6% in 2024. The study, conducted by global advisory firm Willis Towers Watson, surveyed 343 financial institutions in 67 countries and found that the projected increase is higher than the 8.4% rise seen in 2023. The findings suggest that the finance sector is rebounding strongly from the challenges posed by the COVID-19 pandemic.

According to the survey, the expected pay hike varies significantly across different regions. For instance, employees in the Asia-Pacific region are set to see the highest increase at 9.5%, followed by those in Latin America (9.3%), North America (8.7%), Europe (7.2%), and the Middle East (6.1%). The study also highlights that pay hikes in the finance sector are expected to outpace inflation rates in most regions, indicating real wage growth for employees.

The survey further reveals that the primary driver behind the pay hikes is the need to attract and retain top talent. With the finance sector facing a shortage of skilled professionals, firms are increasingly focusing on offering competitive salaries to attract the best candidates. Additionally, the survey indicates that variable pay, such as bonuses and incentives, is expected to play a significant role in compensation packages, with many firms linking bonuses to performance metrics.

In terms of job roles, the survey highlights that professionals in risk management are expected to see the highest pay increase at 10.4%, followed by those in compliance (9.8%), and technology and operations (9.5%). This trend reflects the growing importance of these functions within financial institutions, as they play a crucial role in ensuring compliance and managing risks in an increasingly complex regulatory environment.

Commenting on the findings, Sambhav Rakyan, Willis Towers Watson’s Head of Rewards Data & Software, Asia-Pacific, noted that the finance sector is facing intense competition for talent, particularly in key growth areas such as technology and digital transformation. He emphasized the need for financial institutions to adopt a holistic approach to talent management, focusing not just on compensation but also on career development and work-life balance to attract and retain top talent.

Overall, the survey indicates a positive outlook for professionals in the finance sector, with robust salary increases expected in 2024. As financial institutions continue to navigate the challenges and opportunities presented by the post-pandemic world, attracting and retaining top talent will remain a key priority, driving continued investment in competitive compensation packages.

This summary is based on the LinkedIn article “Finance Set for Pay Boost” published on March 26, 2024, by Willis Towers Watson. The article discusses the findings of a survey conducted by the firm, highlighting the projected salary increases in the finance sector for 2024. The survey indicates that salaries are expected to rise by an average of 8.6%, driven by the need to attract and retain top talent. The article also highlights the regional variations in salary increases and the key drivers behind the pay hikes.