The new pay code for city bankers is featured regularly at the moment; even I have mentioned it before in my blogs. The argument against the code is generally that it will drive away talent, but will it really? Other business sectors have high flying executives that get bonuses, they attract the elite or are very talented.
Retention is not just about money, it takes a lot more to develop a truly complete package than just a monitory reward. Big rewards do work over a year but developed over a long term i.e. 5 years there are plenty of other things that can be included. Job satisfaction is another away of retaining staff, the banking industry is well known for being stressful taking some stress out of the bankers role might appeal to some.
It’s all about building the complete retention package that works for both the employee and employer.