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Lovewell’s logic: Will the removal of the bankers bonus cap drive change in remuneration structures?

Employee Benefits

This is the question that has arisen this week following the Financial Conduct Authority’s (FCA) announcement that the cap on bankers’ bonuses will be scrapped from 31 October. The cap, which was introduced in 2014, was intended to curb excessive risk taking in the financial services industry following the financial crash of 2008.

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Adrian Crawford: Bankers’ bonuses uncapped

Employee Benefits

First introduced by the European Union in 2014 in response to the 2008 financial crisis, the cap limited bonuses to twice employees’ basic salary. Yet it was unpopular with both the UK financial regulator on the one hand, and employer banks and ambitious bankers on the other.

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Average pay growth high but failing to keep pace with inflation

Employee Benefits

Growth in total pay , including bonuses, was 5.9% in the final quarter of 2022, while pay growth excluding bonuses was 6.7%, according to the latest labour market data from the Office of National Statistics (ONS). For pay excluding bonuses, this was the highest growth rate seen outside of the Covid-19 pandemic. on average.

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Employers to Offer Record Pay Rises in 2023

HR Digest

While most companies give a 3% raise on employee salaries , they are putting aside budgets to give a raise of 4.1%, a record high since the Great Recession of 2008. Employers are offering the biggest hike since The Great Recession. These factors are often not captured in salary budgets but they show an increase in employer spending.

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Chesterfield Council staff strike over pay

Employee Benefits

The workers estimated that piece work rates are 70% below market value and have not been increased since 2008. More than 100 housing maintenance workers employed by Chesterfield Council have begun strike action today (Tuesday 29 August) in a dispute over pay.

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Gig Economy: A Cost-Cutting Measure or Adding Value to the Workforce?

HR Digest

In a recent survey EY conducted of employers in the US, one in two organizations said they had increased their use of gig workers in the last five years. One in three employers of 100,000 employees or more said they expected to use 30% or more contingent workers by 2020. Hiring has slowed down considerably post 2008.

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Today’s Top Compensation Trends

CorpStrat

More than ever, compensation is top of mind for employers and employees alike. Today, workers can demand higher pay and better benefits as many employers face a worker shortage and struggle with employee attraction and retention. On top of that, both employers and employees are feeling the financial strain of record-high inflation.

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