Base salaries are expected to increase at more than half of City HR departments, according to new research from HR recruiter Digby Morgan.

Its survey of compensation & benefits professionals also shows that early indicators point to base salary rising predominantly within the larger investment banks rather than more widely across the broader based banks and the wider financial services sector and professional services firms.

For other firms, pay rises have been aimed at HR staff below a certain level of compensation, while others will not receive pay increase and a large proportion of their bonus will be deferred.

The research shows that the anticipated bonus pool for HR professionals for 2010 was expected to be the same (22%) or less (51%) by 73% of City firms that responded, despite a marked upturn in business for many City clients following stock market growth during 2009.

Firms also revealed that exceptions have continued to be made for critical hires. In the second half of last year, HR hires included either ‘sign on’ bonuses and/or guarantees from just over 18% of companies that engaged HR professionals during this period.