The Financial Conduct Authority (FCA) is to increase salaries and performance-related pay for its employees.
Under the terms of its new employment offer, which is designed to reward consistent performance, aid career development and close pay gaps, around 800 of its lowest paid employees will receive a salary rise of £4,310 to a new minimum pay benchmark. Other salary increases and performance-related pay will result in an overall increase of around £5,500.
In addition, staff who achieve their performance targets will receive salary increases of at least 5% this year and 4% in 2023, while those who have not met their objectives will be given assistance to do so in the future.
From next year, discretionary cash bonuses will no longer be paid. Final bonuses of this kind will be paid to the highest-performing workers in April 2022.
The new offer also includes higher pension contributions and flexible benefits.
Prior to introducing its new employment offer, the FCA carried out an extensive and comprehensive consultation from September 2021 with its around 4,000 members of staff and the FCA’s Staff Consultative Committee in order in order to find out what was most valued.
In order to recognise economic environment changes since the launch of the consultation, the organisation will also pay workers who are meeting their performance targets a one-off, back dated cash payment equivalent to 4% of their salary in April.
Nikhil Rathi, chief executive of the FCA, said: “We believe we have developed a fair, competitive, and sustainable offer that will help us achieve our regulatory objectives, as well as diversity goals, that supports the lowest-paid and the strongest performers, with most colleagues receiving a minimum salary increase of more than 9% over the next two years and an average of more than 12% over that period.”
