Banking giant, Barclays PLC may witness a few employee exits if its bonus plans do not compensate the demands of the workforce. Recruiters at the firm say that the employees will be compelled to leave the organization if the bonuses are capped this year again, reports Yahoo Finance.
Employees at Barclays are expecting larger bonuses this year as the mergers and acquisition division has done comparatively well than the other units. Last year, the bonuses were limited to a maximum of $ 100,000, reports eFinancial Careers.
"At my level, we were told last year to wait and see whether cash bonuses would continue to be restricted," an employee at Barclays told eFinancial Careers.
"If we don't see them this year, it will be ugly," the employee added.
Recruiters at Barclays assert that the cap on bonuses were particularly low last year, reports eFinancial Careers.
"It was pretty extreme how low the [cash cap] number was. They are aware they have a problem; whether they can do anything about it is not clear," a recruiter at Barclays told e Financial Careers.
"With global layoffs looming, it will be difficult politically to increase cash bonuses in the U.S. My hunch is they can't do anything about it. My hunch is people start leaving."
Barclays Merger and Acquisition business recorded a 17 percent growth compared to the same period last year. However, the fees of employees fell by 21 percent among the leading ten investment banks, reports Yahoo Finance.
Employees at Barclays are already receiving calls from other firms, which can make chances of retaining employees even thinner for the firm, the recruiter told Yahoo Finance.
While some recruiters think that the ball is in the employees' court, other recruiters think that the employees are just frustrated and would not be doing anything about it, reports eFinancial Careers.
"They're probably frustrated that they're not getting paid but what are they going to do about it? Goldman, Citi, Morgan - they're not hiring," another recruiter at Barclays told eFinancial Times.
"Two years ago, investment bankers at Barclays could get six job offers overnight, but not in this environment," the recruiter added.
In the wake of the looming recession the investment banking sector has not been doing too well. Barclays is also expected to cut down 2000 jobs in early 2013.
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