As pay falls, banking engineers fear cuts: "Nobody is indispensable"
Our newly released 2023 eFinancialCareers salary and bonus report suggests that technology pay in financial services is not what it was. Mean average total compensation for people working in technology functions in finance fell 16.5% in the past year. It's a tumultuous time to be a banking engineer and it's the technologists with the most experience that seem to worry the most.
Our compensation report is based on our salary and bonus survey, which had nearly 3,500 responses in February and March this year. This revealed that as pay falls, it's older engineers working in finance who are the most worried about their job security, especially if they're in middle management. A New York technology professional with 20 years of experience complained of "poor company management," adding that his "experience and skill set is not valued."
Although technologists work shorter hours than others, respondents griped about their working hours.
One female VP in London with over 20 years experience said her work is "relentless," claiming that "the CEO is a bully and someone gets fired every month."
We found that a similar sentiment existed at the most senior level. One London-based JPMorgan technology MD told us he doesn't feel secure in his job, because "nobody is indispensable." It doesn't help that he also has the "pressure of having to make people redundant" as JPMorgan cuts technology costs and staff. A Nomura director, also based in London, claims "there is an active drive to cut Directors/MD's in EMEA."
The cost squeeze is impacting morale. One London based Morgan Stanley director working in infrastructure said his team are "understaffed" and didn't see "other technologists pulling their weight,"
Younger technologists tend to feel more secure. A London based banking technologist with less than three years' experience told us he sees "no indications of downsizing." One Singapore associate saw himself as invaluable due to an "increase in job scope and responsibilities," although he also said he's underpaid for what he does.
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