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The 2024 Barclay Simpson Salary Survey & Recruitment Trends Guide: Risk, Quant & Treasury
Compensation challenges
Insufficient technical / regulatory knowledge
Remote working policies
Remuneration: 57%
Career development: 23%
Work/life balance: 10%
Remote working: 5%
Job security: 4%
Better benefits: 1%
Contract recruitment trends in Risk, Quant & Treasury
The contract recruitment market for risk, quant and treasury professionals continues to be relatively subdued, although we predict an increase in hiring activity for interim staff over the coming year if demand within the permanent market remains suppressed.
A combination of low attrition, tighter budgets and the merging of teams at organisations is likely to result in skills gaps, with employers turning to contractors, temporary resource and co-source support to assist with crucial workloads.
“The contract market can be quiet when the permanent market performs well, as was the case in the immediate post-pandemic period,” says Tamryn George, Principal Consultant at Barclay Simpson.
“However, engaging with highly skilled and experienced contractors on short-term contracts becomes increasingly attractive for cost-conscious firms that don’t have the budgets to add permanent headcount.”
There is already solid demand within the credit risk space, and we expect contract jobs within operational risk to flourish in 2024 as more organisations strengthen their frameworks to comply with incoming regulations.
Currently, interim staff comprise approximately 15% of risk teams on average, with 73% of employers using contractors and temporary resource primarily for specific projects.
After project work, the most-cited reason for enlisting the services of contractors in 2023 was to keep permanent headcounts low (13%). This not only reflects the more sedate recruitment environment last year, but is also in stark contrast to 2022, when an inability to source permanent candidates ranked joint second (16%).
Primary reasons for using interim, contract and
co-source staff
2023
2022
2021
The long-term effects of IR35
Over the last few years, our Risk, Quant and Treasury Salary Guides have tracked how employers and candidates are navigating the IR35 reforms that were introduced in April 2021.
Our data suggests that while the immediate impact of the changes appeared limited, some longer-term trends are beginning to emerge. Specifically, the percentage of employers who say the changes to off-payroll rules have ‘significantly impacted’ their ability to engage contractors has increased nearly three-fold from 5% in 2022 to 13% last year.
Overall, 60% of organisations report they have been affected to some degree by IR35. This figure could also be set to rise in the coming years. Indeed, more than half (53%) of interim staff told us that their preferred response to the reforms has been to seek or accept a permanent role, which may have long-term ramifications for the availability of talent within the contracting space.
Key factors affecting risk, quant and treasury in 2024
Over the next 12 months, we expect various political, economic and social factors to have an impact on permanent and contract hiring levels.
Regulatory environment
New regulations often drive strong hiring demand across risk, quant and treasury jobs, and 2024 is shaping up to be a busy year on the regulatory front.
On 12 December, the PRA published the first of two near-final policy statements regarding the implementation of the Basel 3.1 framework. The new standards will cover a range of areas, including credit risk, operational risk and Fundamental Review of the Trading Book reforms.
According to the PRA, organisations now have an extra six months to prepare for the initial implementation deadline, which has been pushed back to 1 July 2025.
The good news is that UK firms already appear to be well-prepared for Basel 3.1. EY research shows that all the UK banks it surveyed had mobilised a reform programme by May 2023, compared with just 61% of European banks.
Half of UK banks are also using the Basel 3.1 standards to accelerate change across their organisations, and we expect demand for skilled risk professionals across a range of disciplines to rise as the deadline looms.
Hiring within the model risk space is also likely to increase in 2024, after the PRA announced a new set of principles last year in an effort to encourage banks to approach model risk more strategically. The principles will come into effect from May, and organisations that fall within the scope of the guidance will have 12 months to comply.
Meanwhile, new regulatory regimes such as ICARA and DORA are driving demand for prudential risk and operational risk professionals, respectively, as firms continue to navigate their new obligations in these areas.
Brexit
In our 2022 and 2023 salary surveys, many employers cited Brexit as a key challenge that prevented them from hiring. Little has changed over the last 12 months; in fact, the UK’s separation from the EU is becoming an increasingly prominent problem.
Currently, 55% of organisations say Brexit has reduced the number of suitably qualified and experienced candidates available, of which 29% claim the impact has been ‘significant’. These figures have risen from 43% and 20%, respectively, since 2022.
Moreover, 17% of employers specifically highlighted Brexit as a factor that was making it hard for them to find skilled talent in today’s market – up from just 3% in 2022.
We are also seeing fewer organisations willing to sponsor overseas candidates (39% in 2023 versus 46% the previous year). This reluctance is partly due to the costs involved, which are more difficult to justify when budgets are tighter and hiring demand has weakened.
However, the complexity of the post-Brexit visa process and surrounding rules around immigration are also causing issues for both employers and candidates.
Diversity and inclusion
In September 2023, the FCA and PRA published new proposals to improve diversity and inclusion in the financial services sector. Under these requirements, firms must:
- Develop a strategy detailing how companies will meet their diversity and inclusion objectives and goals
- Collect, report and disclose data regarding certain protected characteristics
- Set targets to address under-representation
With clear guidance now in place, we expect 2024 to be a year in which many financial services organisations revisit and refine their equality, diversity and inclusion (EDI) policies and hiring practices.
Encouragingly, we saw many organisations place greater focus on EDI last year, after diversity efforts appeared to slip down the agenda during the frenetic hiring that occurred in the post-pandemic period.
Our consultants are reporting an increase in employers requesting balanced shortlists, and 71% of organisations agree that their HR processes are now effective at ensuring equality of progression for all employees.
Of course, there is always room for improvement, and certain industries or areas of risk are more diverse than others. Quant jobs, for example, still have a gender imbalance, with men significantly outnumbering women, especially in sectors such as investment banking.
Post-pandemic attitudes to flexible working
Our market reports have closely followed flexible working trends over the last 10 years. During that time, both employers and staff have continued to place greater emphasis on the importance of a healthy work-life balance.
The Covid-19 pandemic accelerated many of the changes that were already happening in workplaces across the country. Organisations swiftly implemented new remote and hybrid working policies to protect the health and wellbeing of staff, while maintaining operational capacity during uniquely challenging circumstances.
Four years on from the first UK lockdown, what is the current state of flexible working? Was the pandemic a catalyst for a ‘new normal’ in workplace practices?
The data from our 2024 Risk, Quants and Treasury salary surveys reveal a mixed-bag of results. While more than three-quarters (76%) of employers believe their hybrid and remote working policies will remain in place over the long term, we have witnessed a rise in the number of organisations that expect staff into the office more frequently.
19% of employers believe their flexible working policies are causing recruitment and retention problems
These changes are occurring gradually in most cases. For example, it is common for firms to now want employees in the office at least three days a week, whereas they may only have been required to come in one or two days previously.
Typically, a candidate’s job role and industry play an important part in how regularly they are expected in the office. And it is worth noting that the vast majority (93%) of employers still offer some form of hybrid or remote working arrangements, with 58% of candidates saying they can work from home at least three days a week.
What we are likely experiencing is a ‘bedding-in’ period, as organisations look to adopt a hybrid model that strikes a good balance between business performance and employee expectations.
However, these changes are already causing issues among candidates. Some professionals accepted their current role when pandemic-era remote working policies were in place. As these policies become less flexible, they now are expected to come in more regularly, even if they are located far from their office.
“Flexible working is a major consideration for candidates since the pandemic,” says Antony Berou, Associate Director at Barclay Simpson.
“Professionals are understandably resistant to giving up the added flexibility they’ve enjoyed in recent years. As such, employers who become too rigid with their policies may begin to experience difficulties attracting and retaining the best people.”
Our data supports this analysis. Nearly three quarters (72%) of risk, quant and treasury professionals admit they would consider changing jobs if they were not allowed the hybrid working model they prefer – up slightly from 69% in 2022.
Furthermore, 15% of candidates cited remote working or a better work-life balance as their primary motivator for seeking a new job last year. Organisations may feel more confident tightening their flexible working policies in a more subdued market, but they are likely to find themselves at a significant disadvantage when hiring conditions become more competitive.
This is especially true given that 40% of employers already cite either their remote working policies or candidates’ location as factors making it challenging for them to find skilled talent.
How many days would you like to work remotely?
Salary and bonus trends
Risk, quant and treasury starting salaries enjoyed significant growth across 2021 and early 2022, with employers often willing to stretch their budgets to secure skilled candidates as the war for talent intensified.
Predictably, this frenzied level of growth was unsustainable and we have since seen salary increases plateau as the market cools and organisations become more cost-conscious. Nevertheless, salary growth remains well above historic averages.
Employers intend to increase base salaries for existing employees by 5% on average in 2024
“Firms stayed within their salary bandings more rigidly in 2023 than they did over the previous two years,” says Scott Nye, Executive Consultant at Barclay Simpson.
“Employers are still willing to offer top-end salaries for the right people, but there’s less pressure to exceed their budgets to prevent talented candidates from accepting a role elsewhere.”
As a result, fewer organisations believe that candidates’ salary expectations are beyond what they can offer. In fact, the percentage of employers who say that current demands are ‘not at all’ aligned with their salary bandings has almost halved from 41% to 21% over the past year.
On the whole, salary growth has been heavily weighted towards more junior roles, with professionals who have 0-3 years’ experience enjoying the biggest uplifts due to an ongoing scarcity of talent at this level. As seniority rises, salary growth typically declines and has been relatively flat for those with 10+ years of experience.
With regards to wider remuneration, 81% of candidates said they received a bonus in 2023, a modest increase from 78% the previous year.
Our data shows the average bonus is currently 25% of a professional’s base salary, and all of the organisations we surveyed said they intend to offer bonuses over the next 12 months.
Meanwhile, the UK’s financial regulators formally scrapped a cap on bankers’ bonuses on 31 October. Prior to this, the cap was 100% of a professional’s base salary, or 200% with shareholder approval.
Even very senior risk, quant and treasury professionals are likely to receive bonuses in excess of 100%, however. As a result, most candidates weren’t affected by the cap when it was in place and are thus unlikely to benefit from its removal.
Private healthcare: 90%
Flexible working: 88%
Annual bonus: 80%
Cycle-to-work scheme: 54%
Time off for charity work: 49%
Enhanced pension scheme: 37%
Company stock options: 34%
Subsidised gym membership: 34%
Enhance maternity / paternity leave: 28%
Enhanced dental coverage: 25%
Training allowance: 22%
Car scheme or allowance: 20%
Childcare vouchers: 16%
Travel allowance: 7%
Unlimited annual leave: 2%
Other: 2%
Risk and Quant salaries
Retail Banking – Credit Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Junior Analyst | £35k – £40k | £35k – £40k | £28k – £33k | £200 – £250 |
| Analyst | £40k – £55k | £40k – £55k | £35k – £40k | £250 – £300 |
| Senior Analyst | £55k – £70k | £55k – £70k | £40k – £60k | £350 – £500 |
| Manager | £70k – £85k | £70k – £85k | £60k – £75k | £500 – £650 |
| Senior Manager | £85k – £100k | £85k – £100k | £75k – £90k | £650 – £750 |
| Director | £100k – £120k | £100k – £120k | £90k – £110k | £750 – £900 |
| Head of Credit Risk | £120k+ | £120k+ | £110k+ | £900 – £1,300 |
Retail Banking – Operational Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Analyst | £40k – £60k | £40k – £60k | £35k – £45k | £200 – £250 |
| Manager | £60k – £90k | £60k – £90k | £50k – £75k | £250 – £350 |
| Senior Manager | £70k – £110k | £70k – £110k | £65k – £90k | £350 – £500 |
| Director | £100k – £140k | £100k – £140k | £85k – £110k | £500 – £650 |
| Head of Operational Risk | £125k+ | £125k+ | £100k+ | £650 – £750 |
Corporate Banking – Credit Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Graduate/Junior Analyst | £40k – £45k | £40k – £45k | £40k – £45k | £200 – £300 |
| Analyst | £45k – £55k | £45k – £55k | £35k – £45k | £300 – £400 |
| Associate Vice President | £50k – £85k | £50k – £85k | £40k – £60k | £400 – £500 |
| Vice President | £90k – £125k | £90k – £125k | £80k – £110k | £500 – £650 |
| Director | £130k – £180k | £130k – £180k | £110k – £150k | £650 – £750 |
| Managing Director | £180k – £250k | £180k – £250k | £150k – £250k | £750 – £1,000 |
| Chief Credit Officer | £250k+ | £250k+ | £200k+ | £1,000+ |
Corporate Investment Banking – Operational Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Graduate/Junior Analyst | £35k – £45k | £35k – £45k | £25k – £35k | £200 – £250 |
| Analyst | £45k – £60k | £45k – £60k | £35k – £45k | £250 – £300 |
| Associate Vice President | £60k – £80k | £60k – £80k | £45k – £70k | £300 – £400 |
| Vice President | £80k – £115k | £80k – £115k | £70k – £90k | £400 – £600 |
| Executive Director/Senior Vice President | £110k – £145k | £110k – £145k | £80k – £100k | £600 – £800 |
| Head of Operational Risk/Managing Director | £160k+ | £160k+ | £100k+ | £800+ |
Private Banking – Operational Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Graduate/Junior Analyst | £35k – £45k | £25k – £35k | £25k – £35k | £200 – £250 |
| Analyst | £45k – £60k | £35k – £60k | £35k – £45k | £250 – £300 |
| Associate Vice President | £60k – £80k | £45k – £70k | £45k – £70k | £300 – £400 |
| Vice President | £75k – £110k | £70k – £90k | £70k – £90k | £400 – £600 |
| Executive Director/Senior Vice President | £100k – £145k | £80k – £100k | £80k – £100k | £600 – £800 |
| Head of Operational Risk | £140k+ | £100k+ | £100k+ | £800+ |
Asset Management – Operational Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Junior Associate | £35k – £45k | £35k – £45k | £30k – £40k | £200 – £250 |
| Associate Vice President | £55k – £805k | £55k – £80k | £40k – £650k | £250 – £300 |
| Vice President | £70k – £95k | £70k – £95k | £60k – £80k | £300 – £500 |
| Director | £75k – £120k | £75k – £120k | £70k – £100k | £500 – £700 |
| Head of Operational Risk | £110k+ | £110k+ | £100k+ | £700 – £900 |
Asset Management – Market/Investment Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Associate | £40k – £80k | £40k – £80k | £40k – £80k | £250 – £400 |
| Vice President | £75k – £130k | £75k – £130k | £75k – £130k | £400 – £650 |
| Director | £70k – £95k | £70k – £95k | £60k – £80k | £800 – £1,250 |
| Head of Investment Risk | £110k – £250k | £110k – £250k | £110k – £250k | £800 – £1,250 |
| Chief Risk Officer | £130k – £500k | £130k – £500k | £130k – £500k | £1,500+ |
Retail Banking – Quant Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Graduate/Junior Analyst | £40k – £45k | £40k – £45k | £25k – £35k | £200 – £300 |
| Analyst | £45k – £60k | £45k – £55k | £35k – £45k | £300 – £350 |
| Associate Vice President | £65k – £85k | £60k – £80k | £45k – £65k | £350 – £550 |
| Vice President | £90k – £125k | £90k – £110k | £65k – £90k | £550 – £800 |
| Director | £125k – £180k | £120k – £180k | £90k – £150k | £800 – £1,000 |
| Managing Director | £180k+ | £180k+ | £180k+ | £1,000+ |
Corporate Banking – Quant Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Graduate/Junior Analyst | £40k – £45k | £40k – £45k | £25k – £35k | £200 – £300 |
| Analyst | £45k – £60k | £45k – £55k | £35k – £45k | £300 – £350 |
| Associate Vice President | £65k – £85k | £60k – £80k | £45k – £65k | £350 – £600 |
| Vice President | £90k – £130k | £90k – £110k | £65k – £90k | £600 – £850 |
| Director | £130k – £190k | £120k – £180k | £90k – £150k | £850 – £1,200 |
| Managing Director | £190k+ | £180k+ | £150k+ | £1,200+ |
Investment Banking – Quant Risk Salaries
| Area | London | South East | Regional | Contract day rate |
|---|---|---|---|---|
| Graduate/Junior Analyst | £50k – £55k | £40k – £45k | £25k – £35k | £200 – £300 |
| Analyst | £55k – £65k | £45k – £55k | £35k – £45k | £300 – £400 |
| Associate Vice President | £65k – £90k | £60k – £80k | £45k – £65k | £200 – £650 |
| Vice President | £90k – £140k | £90k – £110k | £65k – £90k | £650 – £900 |
| Director | £140k – £200k | £120k – £180k | £90k – £150k | £900 – £1,250 |
| Managing Director | £200k+ | £180k+ | £150k+ | £1,250+ |
Attract and retain the risk, quant and treasury professionals you need with Barclay Simpson
Risk is deeply embedded in financial services CEOs’ agendas and demand for risk professionals has risen steeply over the past decade. The high growth and development of businesses combined with increased scrutiny from regulators has meant that recruiting for risk is an increasing priority for many, even while the risk talent market remains challenging to navigate. We can help you create a talent attraction strategy with competitive salary offerings or help you find a role that aligns with your skills and long-term career goals, and support you from interview through to salary negotiations!
Arrange a consultation today to see how Barclay Simpson can support you as you build a risk management team that’s future proof.
