Many individuals are attracted to a career in banking and finance by the salaries and bonuses offered, but relatively few enter the profession really understanding what they could expect to earn five, 10 or 15 years into their career, according to Emolument.com.
The UK salary benchmarking service has issued statistics that compares how the average salaries and bonuses of different roles in finance increase with experience, and highlights several trends.
The good news for professionals in the early stages of their career is that most roles can expect their highest percentage increases in earnings upon reaching five to 10 years’ experience. This largely coincides with moves up from junior roles, with investment management, asset management, origination/advisory and traders all enjoying increases well in excess of 100% once they acquire five to 10 years’ experience.
In contrast, increases for professionals in middle and back office roles are much more consistent and steady throughout the career. This is largely as average earnings are less influenced by bonuses as these functions are a cost rather than revenue centre.
“There is a significant overlap in the skills and experience required in many of these roles, and it is common for individuals to make the move from banking to private equity or switch from trading for a bank to a hedge fund, for example” said Thomas Drewry, chief executive (CEO) of Emolument.com.
“Having a greater degree of transparency in pay enables professionals to understand the earning curves of the different verticals in finance before they make the move, in order to manage their own careers more effectively.”
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