All eyes this month are on the up-and-coming budget and it’s also bonus month.

2022 was a difficult year for many financial services firms, as markets lurched downwards, inflation spiralled, and talent was hard to find. I think the mood is much better now. Inflation seems to be falling fast, markets are better, and the Bank of England seems to feel that the recession won’t be as bad as first feared. Therefore, I think firms will continue to focus not on the short-term vagaries of news headlines, but on their five-year plans – and that means growth. If you want to understand the importance of going for growth, I’d advise anyone to read this article by McKinsey. I hope that the Chancellor cuts taxes at the soonest opportunity. I can’t see the attraction of a high tax UK outside of the European Union and we’re already starting to see the prospect of higher taxes impacting investment decisions. However, not for one minute do I think the Chancellor has an easy job.

This is also “bonus month”. HR teams always do huge amounts of work around comp and bens, but this year I think they’ve done more than before. The data and landscape are changing fast, and the fear is getting locked in high multi-year uplifts if inflation falls at pace. Clearly, financial services is a diverse industry, but in general terms I’m expecting bonuses to be down 25%-30% on last year. Employers always need to be braced for a number of resignations in April and this year will be no different. Whilst hiring has come off since the heady days of last summer, the market is still strong and high vacancy numbers, coupled with increased resignations, will create opportunities for job seekers for some time.

There is also much talk about over 50’s leaving the workplace. There are many factors affecting this change, but I think we need to understand the many changes we all go through in our private lives at this point in our careers. Inheritance for some makes work less essential, but many are also dealing with bereavement, medical issues, and menopause. It’s a complete tragedy to lose people in this age category, as they are our most experienced workers, but until we understand these issues better and provide more support, the trend will continue.

In Fram news, I am delighted to announce James Fleming as an industry adviser. We also have a number of new articles launching soon on a range of subjects from Succession through to the role of CFOs in ESG reporting. Our non-financial services brand, Fram Professionals, is also doing well. Whilst we work with firms on all sizes, due to our position within the VC market we’re really focusing on growth companies, of which there are many. We only focus on three functions: finance, marketing, and legal, but they’re the markets we feel we add most value in. Please spread the word about Fram Professionals.