Hay Group: Banks must off bonuses to keep staff

Banks need to offer bonuses to retain talented staff members, it has been claimed.

According to Simon Garret, Director of UK Executive Reward at Hay Group, many of the country's financial institutions are finding themselves in a difficult position.

'Having talented people within [banks] who are swiftly motivated to generate profits, usually means you have to pay them a bonus, so you're caught between a rock and a hard place really,' he remarked.

Recently, it was reported that both the Royal Bank of Scotland and Lloyds Banking Group are planning to reward middle managers with bonuses.

Meanwhile, research by Hay Group found that the average pay rise in the UK this year will be 1.5 per cent and more than one-third of organisation are reducing their workforce and freezing wages.

Hay Group is a global management consulting business that works with leaders to turn their strategy into reality.