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Only 20% of Financial Institutions Plan to Increase Hiring During Next 6 Months
Banking executives are more pessimistic than leaders in other industries and are most concerned about the rising costs of employee benefits.
By
Greg MacSweeney
November 04, 2009
Only 20 percent of financial institution CFOs and senior comptrollers say their company will increase hiring in the next six months and more than half (55 percent) plan to reduce bonuses, according to a survey released by Grant Thornton LLP, a global audit, tax and advisory organization. At the same time, 40 percent believe the U.S. economy will improve during the same time period, making banking/financial institutions more pessimistic than other industries.
Nearly one-third (31 percent) are reducing health care benefits and nearly one-quarter (22 percent) are reducing 401(k) matches. However, only one-third (33 percent) of financial institution CFOs report that their company is reducing salary raises -- 9 points lower than the national number.
Another 43 percent plan to reduce stock options and other forms of equity-based compensation "- 9 points higher than the national number. In terms of pricing pressure, they are most concerned about the cost of employee benefits (85 percent), such as health care and pension costs, and insurance (41 percent).
Grant Thornton conducted the biannual national survey from Sept. 21 through Oct. 2, 2009, with 846 CFOs and senior comptrollers from public and private companies, of which 42 were from banks or other financial institutions.
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