Although not usually a subject likely to generate appreciable amounts of sympathy, the lot of the banker over the last few years has had its frustrations. And little, it appears, has changed in 2012. The protest at St Pauls, Sir Fred losing his knighthood as well as a tough trading climate have all conspired to keep the banking profession on a reputational and brand level usually frequented by estate agents and door-to-door sales professionals.
And just when you thought things couldn’t get much worse, that’s exactly what they did. Last week, Deutsche Bank announced that it was capping bonuses at €200k, with half of that being paid in cash and the rest as deferred stock that cannot be sold for six months. And DB are anything but the exceptions – following a similar strategy are Morgan Stanley, Credit Suisse, Bank of America and Citigroup.
Few ambitious bankers are likely to go hungry, however it does signify an interesting trend. This is a fascinating employment market, particularly as far as the UK is concerned. Unemployment is still increasing, albeit more slowly, yet skill shortages remain. Such talent squeezes are not helped either by a cautious and risk-averse candidate base. (A subject, incidentally, which TMP will analyse in more detail very soon via a major piece of research).
Therefore, if organisations are no longer willing, capable or indeed permitted simply to throw the promise of a bonus at individuals they wish to recruit as well as those employees they wish to retain, what are their options? This is a point emphasised in last month’s Deloitte Talent Edge research which talks about the need ‘for companies to differentiate themselves in the talent marketplace by going beyond financial incentives and creating customised retention strategies’.
It is not impossible that an employer in such markets with a successful business and deep pockets has had little need to consider the value proposition it delivers to its people or to analyse what makes its employee experience unique. However, with a bottom line no longer providing such a recourse and society frowning its disapproval, perhaps it is time for such organisations to begin managing and articulating the employer brand they communicate with a little more subtlety and finesse. If bonuses become an undifferentiated and unexceptional commodity, organisations must work much harder to create the platform and nub of their employer attraction. Less show me the money, more show me the (employer) brand.
Employees need to be attracted, retained and engaged in the future by something just as tangible, just as memorable and just as differentiated as the size of the cheque in bonus season.
Getting to the heart of your employee mindset 