More money, more work, more stress

An increased workload is taking its toll on finance professionals, with one in three now reporting much higher stress levels, writes Gabrielle Monaghan.

The new year looks set to be lucrative for financial services workers, with pay rises of as much as 6 per cent forecast to continue into 2007.

However, an increased workload is taking its toll on finance professionals, with one in three now reporting much higher stress levels.

The tight Irish labour market will drive up salaries in the sector at the same pace as 2006, with pay increases of 8 per cent predicted for key skill sets, according to Mercer Human Resource Consulting, which examined compensation for 92 roles in the financial services industry.

However, increases in overall remuneration will be driven more by bonuses and commissions, suggesting that companies are willing to pay well for top performing talent who can help boost revenue and company growth.

"More and more, bonuses are growing in importance as companies are focusing on paying for performance," says Mary McDermott, a consultant with Mercer in Dublin. "There is a shift away from the traditional fixed package of base pay plus benefits towards a more variable package of base pay plus incentives and long-term incentives."

In 2006, bonuses for finance teams rose about 8 per cent, while those for IT staff in the sector climbed 5 per cent, Mercer says. Senior management, meanwhile, earned an average 34 per cent increase in bonus payments, on top of a 6 per cent gain in base salary.

While 2007 will see performance-related pay grow in importance, the extra work required to earn these bonuses is hampering the wellbeing of some professionals in the sector.

The growing amount of work on their plate is the main contributing factor to higher stress levels among employees in the finance industry, according to the results of a recent survey carried out by recruitment consultancy Robert Half Finance and Accounting.

Other factors include a lack of work-life balance and the high level of work they are being asked to do.

Instead of asking their superiors for less work, finance professionals are calling on their employers to provide training to help them better manage their workload, the survey showed.

Seventeen per cent of respondents had requested that their employers review their current benefits, while just 16 per cent asked for a reduction in their workload.

Pearn Kandola, an occupational psychology practice in Dublin, is working with financial services organisations in Ireland to help them pinpoint sources of pressure among staff.

"Companies need to look at awareness and resilience training, which gives staff a positive approach in how they organise their workloads," says Catherine Curran, an occupational psychologist at the firm.

"At the organisational level, companies need to be realistic in terms of the work that needs to be done and make sure they have enough resources to do the work."

Stress at work can affect an employee's psychological wellbeing, physical health, and the level of commitment to an employer, Curran points out. "Finance professionals need to be careful as working on overdrive can be just as dangerous to their careers as simply 'getting by', " says Ken Harbourne, branch manager of Robert Half in Dublin.

"Taking on new projects and responsibilities is a great way to expand their skills set, however too much of a good thing can lead to burn-out."

While the average basic pay in the sector climbed 5 per cent in 2006, some finance professionals are more in demand than others and, as a result, are commanding higher earnings.

Employees in some sales roles saw their salary climb 30 per cent last year and those in finance departments enjoyed a 21 per cent pay increase, Mercer found.

A separate survey by finance recruitment agency Joslin Rowe showed that other professions in the sector seeing increased earnings power include accountants, compliance professionals, fund administrators, stockbrokers and settlements experts.

Demand for accountants is at a record high in Dublin, with newly qualified job candidates earning up to €52,000 a year. With so few Irish accountants changing jobs in the marketplace, companies are sponsoring overseas candidates to move to Dublin, according to Joslin Rowe.

However, accounting and audit candidates with financial services experience remain in short supply, the agency discovered.

Salaries for senior fund administrators have risen 15 per cent amid rapid growth in the number of back-office operations being set up in Ireland.

Multiple offers for job candidates across all roles in this area are now commonplace, though investment management firms are desperate to secure experienced candidates and are less likely to hire graduates, Joslin Rowe found.

The hedge-fund industry, which has attracted a number of new foreign players to Ireland over the last year, is especially suffering from a lack of candidates to fill fund administration vacancies, despite pay rises of 10 per cent. Still, there has been a swing away from hiring graduates on trainee schemes toward recruiting experienced professionals, Joslin Rowe found.

Compliance professionals, meanwhile, are enjoying salary increases of 15-20 per cent across the board, reflecting an extreme shortage of candidates.

Demand for these professionals is being fuelled by the continued emergence of new regulations, leading staff in this sector to earn the most dramatic pay increases across the financial services world. Experienced settlements staff and stockbrokers are also in short supply, especially at intermediate level.

Even entry-level settlements candidates with limited experience saw their salaries jump to an average €28,000 this year from €22,000 in 2005, the survey revealed.

In corporate banking, credit analysts and corporate loans specialists are particularly in demand and salaries have risen in some areas as firms try to lure professionals from competitors.

While the corporate banking market as a whole has seen a general lack of movement in salary, administrators in this area have enjoyed the biggest pay rises, at an average of 18 per cent.

The buoyant marketplace in the finance sector and a resulting sharper focus on recruitment also led HR, recruitment, training and talent management professionals to become highly prized over the past year.

However, the stellar performance of the finance sector in 2006 was not reflected in all areas of the industry.

Some companies have closed down their treasury departments, offloading a large number of treasury candidates onto the jobs market. As a result, salaries in treasury departments remained little changed compared to 2005.