City bonuses could rise for some

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Have you calculated your end-of-year bonus yet? The average City worker should be punching the + 20% keys into their iPhone calculator to work out how much they'll get this year, according to a new City report. By average City worker, that includes bankers plus lower-profile other core back-office workers used along the City food chain. But not, predictably, canteen staff or cleaners.


Hand-out time

Loo cleaners don't create 'value' for a bank one City source said (though you'd probably miss them after a day or so). However not all bank staff will be automatically pocketing a bonus says the Astbury Marsden survey.

"Just over half of City employees that we recently polled said they were unsure whether they were getting a bonus or not. That is a real shift in sentiment on bonuses from previous years. In the pre-credit crunch days bonuses were talked about in many multiples of base pay – this year the expectations are for fractions of salary."

Fired employees help

Feel their pain? According to the Centre of Business and Economic Research (CEBR), City bonus pay outs for 2010 dropped 8% from the previous year to £6.7bn. The CEBR is now expecting bonuses for 2011 to slump by 38% to £4.2bn.

However recent redundancies may have helped the bonus situation as "they have the side-effect of reducing the number of team members amongst whom the bonus pool needs to be shared," claims the study. So, though the numbers of people being paid bonuses may be down, the value of bonuses for other employees could be up.

Anyway, tell us if you think you deserve a bonus. Bear in mind that a bonus should be for doing something "extra" or for outstanding performance. A concept the City of London has very little grasp of.