Here's how much less you'll get paid in operations in a bank
You?re being offered an operations job in an investment bank. In banking vernacular, you?re being given the chance to work in the ?back office? on the infrastructure that helps the ?front office? (where all the revenues are earned) to function. Back office jobs are important ? banks couldn?t operate without them. They?re also an increasing source of competitive advantage ? banks that have efficient back offices are more efficient overall. And they?re easier to get ? fewer people want to work in the back office and there are plenty more jobs there. Most banks have at least two back office people to every member of front office staff.
So, if the back office of an investment bank dangles an offer, should you accept? Not if you want to maximize your earning potential.
Contemporary figures from Emolument.com, the real time pay benchmarking provider, suggest that over a 16 year career in a front office banking job (eg. sales and trading or M&A), you?re likely to earn 88% more than in the front office. Median front office compensation over a 16-year period is likely to total £3.1m ($4m) according to our analysis of Emolument?s figures. Median operations compensation is likely to total £1.6m ($2m) over the same period.
This article was published in eFinancialCareers, 26th June 2017