Do salary increases mean we're more likely to get fired
I see a lot of people cheering and celebrating the salary increases and I just got a new offer letter confirming $100k base up from $85k originally. This is in New York and I see similar increases in salary in London as well.
While I am ecstatic about this myself, I do know that this is a business and profitability growth matters do those at the top of the food chain.
I can't help but have this nagging feeling that these increases in salary means banks are going to have an even shorter fuse when it comes to letting staff go and from what I can see a lot of people were hired this year and there was a huge number of interns across banks that converted to FT roles, not particularly large but not a small number either.
What do you guys think, are we all being slowly led to the slaughter or is there going to be no repercussions
Edit: just saw this on efinancialcareers so feeling a bit uneasy even though the cuts might not reach A1 https://www.efinancialcareers.co.uk/news/2022/03/…
Capital market events e.g. M&A have always been cyclical. Hiring reflects this. At least now the upswing came with a salary hike.
Bare in mind, this is a long overdue hike. These salaries hadn't changed for like 10 years. That's a lot of inflation unadjusted for.
Chill guy… it's at the Director level where your bonus becomes a multiple of your salary where you need to start considering your overhead costs to the bank as a factor of your job security… think about it, with all the recent salary increases at basically all the banks which, in the current environment are desperate for talent, laying off analysts/associates basically means paying them severance to have them go directly to a competitor.
I am not sure as ive only been in the industry a year now
i think there’s a false level of security a few of us have coming off the bull market. I work in chicago, and the behavior of firms was very telling.
baird, for instance, at the jr level is known for really high bases and variable bonuses — good strategy for hiring quickly. But when covid hit, so many people were let go. Jr talent was an easy expense to cull. Then they went right back on a hiring spree and went crazy with it
so yes. I do legitimately think higher salaries COULD mean you’re cut more quickly depending on the firm
This is a fair question but understand hardly ever does junior staff salary depend on keeping them around or not. Its more that the “workload” is not there. So understand when jr staff is getting 15k more the senior people also saw pay increases (record years).
Bottomline taking less salary today does not change if you get canned later as its out of your control. You just need to find a firm/team that understands finance is more a marathon.
Above poster mentions “covid shock”. Banks are kings of hiring at wrong time and they ALL read covid shock wrong and thats why the major hiring squeeze came later.
I was thinking about the same thing. Just had a call where HR communicated the base salary step-up for incoming analysts and she said we’d be held to a higher standard as a result.
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