HR chiefs told to prepare for banking bonus tax

People in senior HR jobs with banking firms have been warned they must prepare properly for the implementation of the forthcoming Finance Act, which is set to be introduced in April.

Included in its legislation is the banking bonus tax and despite the furore surrounding the levy among people in the City a recent survey has suggested many in HR jobs are not up-to-speed with the planned changes.

Research carried out by business consultancy Mercer interviewed 200 HR directors about the Finance Act and found that 39 per cent had failed to investigate how the new legislation will affect their staff, reports Personnel Today.

Hannah Perera, principal in Mercer's human capital division, said: "The impact that the Finance Act will have on executive pay, benefits and motivation hasn't been fully appreciated."

"Organisations should already be anticipating and responding to the changes."

Last month, Credit Suisse announced it was cutting its bonuses to UK-based managing directors by around 30 per cent in response to the one-off levy.

Updated: 08 February 2010.
Categories: human-resources, market-and-industry-news.