Staff at HSBC were delivered a sobering message about the frailties of working in high finance in March after the bank fired investment bankers on the day they were due to learn about their bonus figures.
The bankers were made redundant as part of new chief executive Georges Elhedery’s plans to streamline the company but the move also served as a stark reminder to employees across the financial services industry of the thin ice they sometimes tread when it comes to job security.
And the ice has been particularly thin of late. Alongside the redundancies at HSBC, Deutsche Bank said it would axe 2,000 more jobs this year, while Lloyds Banking Group announced plans to cut 500 jobs and close two offices.
Cuts have come elsewhere too in finance, with wealth manager St James’s Place announcing it will remove 500 positions and hedge fund company Brevan Howard chopping 100 jobs amid a period of poor performance.
Despite the industry-wide job losses, however, a list of Europe’s best employers, compiled by the Financial Times and data provider Statista, shows that banking and financial services firms make up a large share of company names to appear in the ranking.
Employment experts say that this is because of the high salaries on offer, the prime location of offices, and the potential for career development. Staff, the experts add, are willing to live with the ever-present threat of job cuts as a result.
“Financial firms are huge employers, with operations that are vast both in scale and geographic distribution,” says Chris Eldridge, chief executive, UK, Ireland and North America at Robert Walters, a headhunter and recruiter that specialises in investment banking.
“As such, leading financial firms possess key attributes that set them apart from companies in other sectors. For example, their office space is usually high-specification and in desirable, city centre locations.
“Financial firms are also usually market leaders, with high profiles that have been developed over decades, making them an aspirational career move for professionals. Even a brief tenure can significantly enhance a professional’s future opportunities, given the often-global recognition that these companies command.”
Eldridge recognises, however, that big reputations often result in similarly big expectations on staff, such as a zero-tolerance approach to homeworking. Investment bank JPMorgan Chase, for example, ordered all of its employees to return to the office full time in March.
“Many firms will have stringent requirements, such as demanding five days in the office, longer hours, and limited flexibility. But these demands are often counterbalanced by attractive salaries and career advancement prospects,” says Eldridge.
Dani Grieveson, an executive coach, who has worked with a number of chief…
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