Employees are increasingly expressing a preference for performance-related pay, according to the Chartered Institute of Personnel and Development (CIPD).
A banking salary survey for June may well show a fall in the size of rewards given to staff, after figures from the Office for National Statistics confirmed this is what is happening in the wider economy.
The figures indicated that average earnings growth including bonuses across all industries and sectors fell from 2.7 per cent in May to 1.3 per cent in June, suggesting employers are reining in the size of financial rewards given to employees.
Charles Cotton, reward advisor at the CIPD, said that this trend goes against what the majority of employees want.
"Quite a lot of individuals [have] said they'd like [pay to be] linked to either their performance, the performance of their team or the performance of their organisation," he said.
Mr Cotton suggested that tying remuneration to job performance can not only improve employee morale, but will also help to boost staff performance.
Official figures show that annual pay growth including bonuses stood at 0.8 per cent in the private sector during June, compared to 2.9 per cent in the public sector.
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