Bonus dissatisfaction is most apparent among the City's younger generation, according to new research by recruiter Morgan McKinley.

Since last year, almost half of London's financial services sector workers either saw their bonuses fall (for 26 per cent) or stay the same (23 per cent), and millenials appear to be the most dissatisfied, according to a new Morgan McKinley survey.

The survey, which took responses from 350 London professionals in banking, asset management, insurance and the Big Four accountancy firms, found that 83 per cent of those with one-to-two year's experience were dissatisfied with their bonus. Of the 25 per cent who said they would leave because their bonuses were below expectations, the vast majority were from the millennial workforce – those born in the 1980s or 1990s.

“Attracting millennial workers is critical to the future of business. Despite the fact that London is the world’s leading financial centre and companies adapting to accommodate this social group by offering greater work/life balance through mobility initiatives and capped working hours, there is a growing dissatisfaction with the rewards a career in the City can bring,” said Hakan Enver, operations director at Morgan McKinley. 

According to the research, over 10 per cent received no bonus at all. Of this group together with those whose bonuses remained the same, just under a third were compensated with an increase in basic salary.

“It seems that the days of the big bonus culture is diminishing and they are unlikely to return with banks appearing to be showing more restraint when it comes to paying out large sums of bonuses,” continued Enver. “Whilst millennials may have been the most vocal in their dissatisfaction, it's worth noting that at 30 per cent, it was those who have more than 15 years of experience who saw the biggest squeeze in their bonus pots.”

The figures may suggest that the City is not doing enough to entice the next generation of professionals to the financial services sector or that it needs to find an alternative to the big bonus mentality. According to Enver, the challenge for banks remains striking the balance between retaining their talent and acting responsibly in the eyes of the public to ensure long-term competitiveness.