We are observing an ongoing trend of significant compensation inflation for non-exempt staff in support roles, operations, technology, and client service. In our view, much of this compensation increase will be anticipatory to counter rising turnover in leadership ranks, as well as what is necessary to close the rising number of open positions that firms are looking to fill.
For reference and anecdotal examples, see the following:
▪ Austin American-Statesman, “Financial Services Giant Charles Schwab to Add 450 Jobs in Austin,” September 1, 2021, by Lori Hawkins.
▪ Bloomberg: “Surprise Jump in U.S. Wages Gives Inflation Debate a New Twist,” June 9, 2021, by Olivia Rockeman & Reade Pickert.
▪ Bloomberg: “U.S. Employment Costs Rise at Record Pace as Wages Surge” October 29, 2021, by Reade Pickert.
▪ Ignites.com: “BNY Mellon Hikes Minimum Wage to $18,” October 29, 2021, by Joe Morris.
▪ Ignites.com: “Fidelity’s Tall Order: Hiring 9,000 Amid a Labor Crunch,” September 7, 2021, by Beagan Wilcox Volz.
▪ Ignites.com: “High Turnover Fueled by Search for More Pay, Flexibility: PwC” September 8, 2021, by Beagan Wilcox Volz.
▪ Ignites.com: “Schwab Rewarding Staff With 5% Pay Raise,” August 20, 2021, by Joe Morris.
▪ Ignites.com: “Schwab to Grow Digital Advice Biz” October 22, 2021, by Rheea Rao.
▪ Ignites.com: “Schwab To Hire About 450 in Austin,” September 2, 2021, by Joe Morris.
▪ Ignites.com: “SEI Gives Ops Team Another Pay Bump,” October 28, 2021, by Jackie Noblett.
▪ Ignites.com: “T. Rowe Hires Investment, Tech, Sales Staff,” July 30, 2021, by Jill Gregorie.
▪ Ignites.com: “Vanguard to Open Dallas Office for Robo Staffers,” May 17, 2021, by Rheea Rao.
▪ Ignites.com: “Where Are All the Workers? The Labor Crunch Hits Fund Shops,” August 16, 2021, by Jackie Noblett.
▪ Wall Street Journal: “Fidelity Wants to Add 9,000 Jobs by Year-End,” August 31, 2021, by Justin Baer.
▪ Wall Street Journal: “Goldman Sachs Is Giving Entry-Level Bankers a Nearly 30% Raise,” August 2, 2021, by Orla McCaffrey.