2. 2
1. Introduction
Understanding the length of time employees remain
with a company and the drivers of retention.
The latest report in our Life Working
series looks at retention in the City
focussing on the average length of service,
why people stay with an employer and
their reasons for leaving.
The research for this report was
undertaken by online survey between
15th August and 23rd September 2014.
Requests to participate in the survey were
sent to more than 27,238 current and
former candidates and clients of Astbury
Marsden. A total of 1,046 responses were
received and analysed.
The information and data contained in
this report are for information purposes
only and are not intended, nor implied to
be a substitute for professional advice. In
no event will Astbury Marsden be liable
to you or any third party for any decision
made or action taken in reliance of the
results obtained through the use of the
information and/or data contained or
provided herein.
Please consider that the answers given are
based on the respondents interpretation of
the question and the response options.
If you have questions regarding the
survey, or the report please contact:
Adam Jackson
+44 (0)20 7065 1185
adam.jackson@astburymarsden.com
3. 3
2. Executive
Summary
Time to say goodbye? The key to keeping good
staff.
Often, you hear the phrase “people don’t
leave companies they leave managers.”
Although there is some truth in this - our
survey shows that retention is a far more
complex issue.
Compensation of course plays a role,
but not as much as some may think. In
fact, some think of compensation as a
“hygiene” factor - over compensating
your employees won’t remedy a bad work
environment.
So, what did our research uncover? Key
findings on employee’s tenure, include:
• Over two thirds of respondents have
been with their employer for 1 to 3
years.
• The highest proportion of employees
with more than ten years service
can be found in exchanges & trading
platforms. However, 39% have less
than 1 year’s tenure. This could
suggest growth within the sector as
they seek to add resource to growing
demands.
• On a functional basis, over half of
revenue generating staff have over
5 years tenure with their employer
compared to just 5% of HR staff. This
is a stark contrast to last year’s results
where we saw the highest proportion
of staff with tenure over 5 years
within HR.
• On average, men have longer tenures
than women with 22% having over 5
years with their employer, compared
to 19% of women.
With regards to retention, we found that:
• Interesting work (25%) is still the
key factor which retains City staff. A
feeling of security (2%) has the least
effect on whether employees stay.
• Employees stay with their employer
as long as they feel challenged and
mentally stretched. Last year, 21%
felt the lack of roles elsewhere was
a reason to stay, however, this year,
just 13% feel the same way. This could
indicate an increase in confidence in
the jobs market.
• A lack of opportunities for
development remains the primary
reason people leave their employer.
However, last year we saw unfair pay
levels as the second biggest reason for
leaving (37%). This year this reason
has dropped to third place behind a
lack of recognition (33%).
In summary, in order to retain staff,
companies need to ensure that they
provide challenging work and make clear
there are opportunities for progression
within the business.
For further insights, please do read the
report. I hope you find it to be of interest.
4. 4
3. Employee
Tenure
Looking at the length of service of employees in the City.
Overview
Fig 3.1 There has been little change in the tenure of employees this year. The
majority (35%) of employees have been with their employer for 1 - 3 years
and a further one quarter have a tenure of less than a year.
The greatest proportion of long serving employees are found within
Exchanges & Trading Platforms, Corporate Broking & Stockbroking and
Investment Management. The shortest service is within The Regulators,
Commodity Trading and Fund Services.
Nearly one quarter of Exchanges & Trading Platform staff have been with their employer for 10 years or
more, suggesting that they are being continually challenged in their role. However, a further 39% have
less than one year’s tenure. This could be due to a flurry of hiring within the area last year.
In line with last year, no Compliance staff have been with their current employer for more than 10
years whilst 38% have been in their role for less than a year. This could be as a result of the continued
increase in opportunities within risk and compliance within the City.
Last year’s results showed over a quarter of HR employees with more than five years tenure. In
contrast, this year, less than 5% have the same tenure and over half have been in their role for less
than one year. The last 12 months has seen a flurry of HR talent making the most of the increased job
opportunities in the market.
5. 5
Gender
Fig 3.2
This year, on average, men have a slightly longer length of service than women. 22% of male employees
remain with their employer for more than five years compared to 19% of women. Last year, the opposite
was true.
We still see a large proportion of women postponing their careers due to family commitments; this
could be one reason for their shorter tenure.
Tenure Female Male
<1 year 26.0% 24.3%
1 - 3 years 36.6% 34.9%
3 - 5 years 18.7% 18.7%
5 - 8 years 12.2% 11.5%
8 - 10 years 2.4% 2.8%
10+ years 4.1% 7.8%
6. 6
4. Staff
Retention
We look at what factors make people decide to stay
with their employer.
Mostimportantfactors
Fig 4.1
When looking at what employees want from their employer, we can see that pay alone is not enough.
One quarter think interesting work is the most important factor whilst just over one fifth, believe that
fair pay is the crucial element.
At the other end of the scale, just 2% want security and 9% look for good working conditions. This
suggests that City workers have confidence in the job market to find a new position and are less
concerned by maintaining a secure role with their employer.
This year we saw the biggest increase in the importance to employees of their employer recognising
their success. Staff want to feel appreciated and recognised for doing a good job, this not only builds
trust, but it can strengthen loyalty and retention and improve performance.
7. 7
Reasonsforstayingwithcurrentemployer
Fig 4.2
When asked why they stay with their current employer, 28% stated the challenging work, however, one fifth stated that opportunities
for career advancement was what retained them. Employees want to feel like they have the opportunity to fulfil their potential in their
role whilst being stretched to achieve more. They want to see that their hard work can be rewarded with further career moves and
advancements within their business.
Last year, we saw the lack of opportunities elsewhere as the second most popular reason why people stayed. This year, this has
dropped to fourth place, with just 13% who believe there are fewer opportunities. This shows an increased confidence in the job
market and the move towards a candidate led market.
Reasons 2015 2014 Difference
Challenged by the work 27.5% 28.7% -1.3%
Opportunities for career advancement 21.9% 19.8% 2.0%
Competitive salary 13.2% 12.2% 1.0%
Lack of opportunities elsewhere 12.9% 21.2% -8.2%
Other 10.3% 8.0% 2.2%
Good management style 8.7% 5.6% 3.1%
Attractive employee benefits 2.9% 3.2% -0.3%
Little travel 2.7% 1.3% 1.4%
Whypeoplestayaslongastheydo
Fig 4.3
Opportunities for career advancement are the most important for those with the lowest tenure, but this decreases over time. Those
with a tenure over 10 years, see it as one of the least important factors. This suggests that many join a business with future career
progression in mind, but other factors make them stay.
A desire to be challenged at work is important at all levels of tenure, but is the most important for those who have remained with their
employer for 8 - 10 years.
Last year, the results showed that benefits are more important to longer serving employees. This year, it appears to be more important
to those who have remained with their employer for 5 - 8 years and 3 - 5 years. This may be due to benefits which have accrued over
time which employees do not want to forfeit as part of a career move.
Tenure
Attractive
employee
benefits
Challenged by
the work
Competitive
salary
Good
management
style
Lack of
opportunities
elsewhere
Little travel
Opportunities for
career
advancement
Other
<1 Year 1.8% 24.8% 16.5% 8.3% 6.4% 1.8% 25.7% 14.7%
1 - 3 Years 0.6% 28.0% 14.0% 8.9% 14.6% 2.5% 24.2% 7.0%
3 - 5 Years 6.0% 27.7% 7.2% 7.2% 16.9% 3.6% 21.7% 9.6%
5 - 8 Years 7.5% 22.6% 11.3% 9.4% 15.1% 5.7% 18.9% 9.4%
8 - 10 Years 0.0% 58.3% 16.7% 8.3% 0.0% 0.0% 16.7% 0.0%
10 + Years 3.2% 32.3% 12.9% 9.7% 19.4% 0.0% 3.2% 19.4%
TOTAL 2.9% 27.6% 13.0% 8.5% 13.0% 2.7% 21.8% 10.3%
8. 8
Effectivenessofretentiontools
Fig 4.4
According to respondents, the most effective tool for retaining staff is to provide future opportunities
within the organisation (54%). This is in line with section 4.3 where ‘opportunities for career
advancement’ is seen as a key reason to stay with an employer.
When it comes to financial benefits, ‘paying above the labour market’, ‘providing incentives and
bonuses’ and ‘providing cash bonuses’ are all seen to be effective.
With an increasingly mobile, flexible workforce, employees are citing ‘allowing flexible working’ as
an attractive aid for retention. As companies take their own individual stance on flexible working,
competition for talent increases for those who are looking for a bit more flexibility from their employer.
We will investigate this further in our next report in the Life Working Series; ‘Mobility & Flexible
Working’.
Providing total compensation statements and mentors has the least effect on retention.
Retention tools
1 2 3 4
AVERAGE
Ineffective
Slightly
effective
Effective
Very
effective
Providing future opportunities within
the organisation
1.6% 7.6% 37.0% 53.8% 3.4
Paying above the labour market 2.2% 13.7% 40.2% 43.8% 3.3
Providing incentives and bonus
opportunities
2.7% 13.5% 47.9% 35.9% 3.2
Providing cash bonuses 3.2% 14.9% 39.6% 42.3% 3.2
Allowing flexible working 2.7% 13.7% 40.8% 42.8% 3.2
Providing an extensive benefits
package
3.2% 17.2% 49.7% 30.0% 3.1
Training and development 3.1% 23.6% 47.2% 26.1% 3.0
Providing stock option and/or equity
awards
7.9% 35.7% 39.6% 16.9% 2.7
Providing total compensation
statements
14.9% 34.6% 38.0% 12.4% 2.5
Providing mentors 11.7% 41.1% 36.6% 10.6% 2.5
9. 9
Reasonsforleaving
Fig 4.5
In line with last year, over half of respondents (56%) believe that a lack of career development is the
main reason people quit. A further 33% believe that a lack of recognition is to blame and 31% see unfair
pay levels as the cause. Not only do employees want to see that there is somewhere for their career to
go, but they want to feel valued and recognised for their achievements, this includes praise from their
manager, and also a fair level of pay.
Too much travel and a difficult or long commute were not seen as likely to affect an employee’s decision
to leave, this could be because these are important considerations when joining a firm, generally
employees know what they are getting into when it comes to commuting and travel requirements.
The biggest change when looking at last year, was a 6% decrease in the proportion of people who believe
unfair pay levels is the main reason people leave. This year, 6% more respondents believe work-life
balance issues are the key reason for moving jobs compared to last year. As businesses either embrace
or reject the notion of flexible working, we will see an increase in the competition for candidates who
are looking for a better work-life balance.
10. 10
AboutAstbury
Marsden
Astbury Marsden is an international recruitment firm
focussed on financial services, energy and professional
services.
We specialise in recruiting uniquely talented people in business technology, business
transformation, governance and specialist skills. We intimately understand the
dynamics of the financial services, energy and professional services markets; making
sure we know the people our clients need to occupy critical roles throughout their
business. We help clients determine the people they need and then we find the best
of them.
We have a global perspective and we are territory-neutral. We look for market
identifiers that we recognise, and apply our experience and intelligence to solve the
challenges they face. Our regional hubs established in London and Singapore allow
us to serve our clients across EMEA and throughout Asia.
You can find more out at www.astburymarsden.com
Singapore
Mark O’Reilly
65 Chulia Street,
OCBC Centre, #43-01,
Singapore 049513
+65 6709 5151
London
Adam Jackson
33 Cannon Street,
London
EC4M 5SB
+44 (0)20 7065 1222
