It's unlikely to make much of a difference, but banks thinking of making job cuts in the coming months could try and dissuade themselves with the CIPD's overly complicated new calculation showing that the average redundancy costs more than 16k. The CIPD's formula is shown here on the BBC website.
We've had a go at running the calculation for Morgan Stanley, which according to our previous estimates made 5,000 people redundant last year, but appeared to hire 3,218 further people nevertheless (given headcount was down by a mere 1,782 at the end of the year).
Based on the assumption that it costs $15k to hire a Morgan Stanley banker, $5k to train them and the fact that MS had 48,746 people at the end of 2007, the CIPD's formula suggests Morgan Stanley's redundancies have cost $159m, or $31k per head. Will this dissuade MS from cutting other people in businesses where revenues no longer exist? We think not.
Career forecast for the year ahead. (Financial News)
Chinese firms want Western bankers (click the 'Reverse Brain Drain' video). (New York Times)
The end of the financial world as we know it... (New York Times)
...and how to repair it. (New York Times)
Time to work for Rothschild? (Financial News)
Nasty cuts coming at Credit Suisse Asset Management. (Financial Times)
Citigroup will clawback bonuses too. (Financial Times)
Anshu Jain: Falling sterling won't put bankers off working in London. (BBC)
British housewives spend more than half their time online. (Telegraph)