Senior directors and managers in the financial services sector can expect 20-30 per cent increase in their salary if they are poached this year, according to a specialist financial headhunter.
Paul Harper Search & Selection says senior industry executives are becoming increasingly aware of their value and will be looking for massive salary increases to switch jobs.
It believes financial services firms will have to begin to differentiate between market salaries for existing and new staff as the traditional benchmarking of salaries continues to hamper recruitment.
Paul Harper says due to this increase in salary expectations, his firm also forecasts a greater number of counter-offers as companies attempt to retain existing staff in the face of stiff competition for their services.
He says the cost of vacant positions will become clearer as expansion plans and business targets continue to be hampered by the lack of unfilled positions.
In its assessment of the 2007 market, Harper says the IFA sector will continue to mature, with an increasing emphasis on ongoing income streams, giving the sector a stability it has been missing in the past.
The firm sees the offshore market becoming an increasing focus for UK financial service firms, with this sudden interest and planned expansion meaning firms will have to focus on recruiting specialist staff in this area.
A Paul Harper spokesman says: “Demand remains tight and a premium is needed to move top directors and managers. Senior directors and managers are increasingly aware of their market value and we expect a 20-30 per cent rise above current salary to move people this year.”