Banks say they are paying up for talent as hiring is competitive. Thoughts?

Banks are facing cutthroat competition to hire and are being forced to pay more to recruit and keep talent, with both Citigroup Inc (C.N) and JPMorgan Chase & Co (JPM.N) saying they are having to pay competitively for top people.

Global banks have had to come up with perks like higher pay and bonuses to attract and retain talent as the economy recovers and people look to shift around.

"Hiring has been very competitive across the business," Citigroup Inc (C.N) Chief Financial Officer Mark Mason said on a call with reporters. That's being seen at the entry levels as well, he said.

"We have seen some pressure in what one has to pay to attract talent," said Mason. "So yes, you've even seen it at some of the lower levels, I should say entry levels in the organization."

That included analysts or associate bankers, Mason said, adding there was a "lot of competitive pressure on wages."

JPMorgan CFO Jeremy Barnum told reporters on a call that they are facing pressures.

"It is true that labor markets are tight, that there's a little bit of labor inflation and it's important for us to attract and retain the best talent and pay competitively for performance," Barnum said.

CEO Jamie Dimon added to that, saying the bank wants to be "very, very competitive on pay" and "if that squeezes margins, so be it."

Wells Fargo CEO Charlie Scharf also said that hiring and retaining bankers was competitive.

"We never want to lose good people, but it happens," said Scharf. "But it’s not something we worry about hurting the franchise at this point.”

“It’s a very, very competitive workplace," Scharf said, adding that the bank's top leadership is not currently worried about the bankers who have left over recent months. "We are very knowledgeable about attrition happening at the company. We feel good about the people that are here and we are going to work hard to keep the people here.”

Wells is expecting a $300-million increase in 2022 in expenses related to paying commissions and bonuses for workers in its wealth and investment management and investment banking businesses.

However, overall, personnel expenses decreased at the bank 2%, in part because the headcount declined 7% year over year.

https://www.reuters.com/world/us/banks-say-they-are-paying-up-talent-hiring-is-competitive-2022-01-14/

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Wait. He said this part out loud?

"We never want to lose good people, but it happens," said Scharf. "But it’s not something we worry about hurting the franchise at this point.”

LOL!

Post ID: @sjb+1ePiSkgN

Did you say the same when the rich and corporations got a tax cut?

Thought so.

@1tzd you have gone off your meds.

Interns make $50 and hour with housing assistance. University hires make $65 and hour. Other big banks pay about the same, so yea, its a war for talant.

This is mainly for revenue producers, traders, FAs, etc.

@hej+1ePiSkgN, you need to look up the definition of inflation and then check your math.

I think a 5% raise is reasonable if your doing good work. If you add in 7% inflation, its a 12% salary increase. If i was a good employee and i didn't see that i would be looking for a new job asap before my quality of life started taking a hit.

Wow, only 2% decrease. Rubber Ch_cky has a lot more laying off to do.

Corporate politics 101- never publicly acknowledge a point of weakness

With the prices going thru the roof for just about everything, they're going to have to start giving salary increases at least twice a year, maybe 4 times a year. You should see the super market, they're empty where i live. Its like our money is worthless now.

People, especially those in exceeds and consistently exceeds, will be happily surprised with the funding levels this year. 👌👌

@kpb+1ePiSkgN Please next time limit to a few sentences

Did anyone catch that I didn’t notice the WF had much “concern” so expect disappointment and inconsistent with prior years. Now there may be some pockets especially in the revenue generators but in the Overhead Orgs i don’t they have much concern. I don’t like the prospect of possibly no increases for Technology as long as the TI Exec’s don’t get big fat bonuses by under cutting staff increased. I know D-MB thought. However the people that generate wealth are what pays our salary also in Technology. I expect favorites (not due to outstanding performance) but favorites and BFFs will see the increases and the ones that remain silent and do their work will hopefully just keep their jobs and make it through the riffs. Don’t know the needs improvement unless you are getting a promotion they have to rate people on the bell curve so they can always find a way to mean improvement and meet their goal. It sucks but i did not get the impression from that article that Charlie cares that they lost branch people or anyone else. JP and Citi maybe but Charlie seemed to take the “oh well” stance. We will survive stance. Go and don’t let the door hit you on the way out. We have an option. Go to one of the banks that will see your talent.

I'll believe it when I see it depending on my raise and my bonus this year.

guess we will find out in about 10 days if they will “pay to retain”

It's called inflation, and it's impacting every business and every person in the country. If you think it sucks as a worker, imagine being a retired person on a fixed income. All this wreckless money printing is absolutely devestating to that demographic. Fiscal irresponsibility, "stimulus", and printing money have consequences. There is no free lunch and never has been.

It's a fantastic time to look for a job if you're unhappy with your current one.

WFC waste all that money on WIM employees and that whole segment contributes peanuts to overall P&L

Thread regarding Wells Fargo & Co. layoffs

Banks say they are paying up for talent as hiring is competitive. Thoughts?

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