Financial services careers encompass insurance, retail banking, actuarial work, risk and regulation.
Businesses in the financial services sector are determined to attract the best and brightest graduates for their schemes, and often don’t publicly give out salary information in case another organisation offers something better. The majority of retail banks and insurance companies in particular do not release salary information until a job offer has been made. In these cases, from the job advert until you’re hired, the rate of pay is given as ‘competitive’.
How much does a graduate in the financial services get paid?
According to the results from the latest Institute of Student Employers (ISE) Graduate Recruitment Survey of its members, the predicted median starting salary for graduates in the banking or financial services business sectors in 2018 is £31,244. However, remember that the ISE survey only takes into account results from its members, which are the largest organisations that take on graduates. Not all businesses have been included so figures may vary. Bear in mind, too, that those in London often earn around £2,500–£5,000 more than those in the rest of the country. If you’re not based in London, the figure may be lower but so will your cost of living.
The Hays UK Salary & Recruiting Trends 2018 survey compiled salary data from candidates placed in jobs by the recruitment agency Hays in 2017. This survey found that the median typical salaries for graduates working in general insurance were as follows:
- £32,000 in London
- £30,000 in south-east England
- £29,000 in the East Midlands and West Midlands
- £27,000 in north-west England and Yorkshire and the Humber
- £26,000 in north-east England
How much you’re paid also depends on your area of work. For instance, a graduate in an actuarial career is predicted to receive a starting salary of £30,000 on average, whereas those in financial management could earn £27,750 and those in sales, customer management or business development could earn closer to £26,500. Trainee salaries stated on recruitment websites by graduates moving into commercial banking in 2017 range between £31,000 and £36,000 for companies including RBS, HSBC and Lloyds Banking Group.
Some companies offer regular pay rises, although this is more likely to happen once you have completed your graduate scheme. Additionally, graduates taking a series of exams, for example during an actuarial scheme, can sometimes be offered a pay rise after every exam they pass.
Once you’ve finished the graduate scheme, salaries can range from £24,000 to £40,000 depending on your employer and job role.
Which employers release salary information?
Employers that publish salary details on their graduate websites include:
- deVere Group – between £25,000 and £40,000 in the first year of the graduate programme
- FactSet – a starting salary of £32,500
- Lloyd's – a starting salary of £27,000, which increases by £1,000 every six months of the scheme
- Lloyds Banking Group – from £28,000 depending on the role
- Nationwide – a starting salary of £28,000
- Santander – typically a £30,000 starting salary
- Zurich Insurance Group – a starting salary of £27,000 for change and technology, finance and business management, and £30,000 for the actuarial programme
What sort of perks can I expect?
There are a wide range of benefits offered by employers within the financial services, with perks such as up to 25 days' holiday, subsidised gym membership, private health insurance, a season ticket loan, life assurance and contributions into a pension scheme being the most common.
Other incentives that may be offered are:
- starting bonuses – these are not always stated on organisations' websites
- financial support for professional qualifications – Lane Clark & Peacock is one business that offers this, alongside 40 days' study leave and an allowance for study materials; plus you’ll be assigned a study mentor
- flexible working – Santander would consider letting you take a career break or job share, for example
- an annual bonus or performance-related bonuses
- a proportion of rental accommodation paid
- access to a company car
- dental insurance
- retail or childcare vouchers
- preferential rates for some of the organisation’s products
- the option to buy more or sell some of your holiday entitlement
- travel insurance
- the opportunity to work abroad
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