Market Insight 2013 Commerce & Industry
Accountancy, Finance & Advisory
METHODOLOGY
Marks Sattin is a leading multi-divisional specialist accountancy, finance and advisory recruitment consultancy. Since our formation in 1988, Marks Sattin has established an excellent reputation for providing the full range of permanent, temporary, contract and interim professionals within the public and not-for-profit sector, commerce and industry, banking and finance and public practice. Marks Sattin is a well-established specialist recruitment firm with over 100 recruitment consultants based in the UK and Ireland, and a further 60 consultants across our global offices. To give an outline on the scope and size of our operations: • In 2012 we helped our clients fill more than 650 temporary placements and 850 permanent positions • We currently work with 75 of the FTSE 100 companies • At any one time we represent over 65,000 finance, accounting and advisory professionals throughout the UK and Ireland • We currently average over 24,000 visits to the Marks Sattin website every month • Marks Sattin are proud to work with a number of The Sunday Times Fast Track 100 and Best Companies to Work For.
CONTACT US LONDON 322 High Holborn, London, WC1V 7PB +44 20 7321 5000 london.uk@markssattin.com
NORTH WEST 3rd Floor, Centurion House, 129 Deansgate, Manchester, M2 3WR +44 161 638 8630 manchester.uk@markssattin.com
THAMES VALLEY Davidson House, Forbury Square, Reading, Berkshire RG1 3EU +44 118 900 1800 thamesvalley.uk@markssattin.com
YORKSHIRE Park Row House, 19-20 Park Row, Leeds, LS1 5JF +44 113 242 8177 yorkshire.uk@markssattin.com
In Q4 of 2012 Marks Sattin conducted a survey with clients and candidates, focused on the demographics, length of tenure, working week, job security, career motivations, department changes, reward and bonus trends of finance professionals. Over 2,000 accountancy, finance and advisory professionals from 20 industry sectors across the UK were surveyed. The report is based on findings received from respondents completing the survey as well as sector specific market insight and salary ranges (annual and day rates) from our experienced consultants based at Marks Sattin’s UK offices. Market insight and salary range data tables are provided across the following sectors and regions: Banking and Capital Markets, Change Management, Front Office, Insurance, Investment Management, Senior Finance, Commerce and Industry, Executive, Part Qualified and Transactional, Qualified, Advisory, Audit, Management Consultancy, Taxation, North West, Thames Valley and Yorkshire. It is important to note that this report is a useful guide, but if you need any tailored or specific advice please do contact us directly.
markssattin.co.uk
Marks Sattin
@MarksSattin
INTRODUCTION Dave Way In Marks Sattin’s 25th year of trading, we’re delighted to have received a record number of responses to our Market Insight 2013 survey. Over 2,000 accountancy and advisory professionals provided their feedback on key areas such as salaries, bonuses and overall business confidence – as both they and their employers see it – coming into 2013. 2012 proved to be a year of continued upheaval for the business community, with the eurozone crisis dragging on and the double dip recession increasing uncertainty across the markets. Despite this, the accounting and advisory community didn’t suffer in the way we’d seen in the previous downturns, with job cuts and redundancies far less frequent. However, cost management was still the order of the day, with capital expenditure, new investment and increased headcount being something of a rarity. Some businesses, industries and geographies will always buck the trend, and there was a resurgence seen throughout the qualified commerce and industry sector in later 2012. Areas such as natural resources, digital media, advertising, online retail and property were all more bullish thanks to improved trading. Conversely, high street retailers and areas such as manufacturing suffered significantly.
DAVE WAY Managing Director
Dave Way, Managing Director of Marks Sattin, believes in leading by example and is committed to making Marks Sattin the best financial recruitment company in the market. Having joined Marks Sattin as a graduate in 1999, Dave has worked at every level and division within the business, which gives him a deep understanding of the workings of financial recruitment. As such, he has considerable expertise in providing a bespoke service for clients and candidates alike.
dave.way@markssattin.com +44 20 7747 9670
Recruitment within consultancy and public practice quietened after a busy 2011, as our clients took a cautious approach to recessionary markets. Financial services and in particular, the banking community, once more came under fire. But despite this, recruitment conditions for accountants in financial services improved as the year went on, with departments increasingly finding themselves under-resourced amid heavy regulation and change. We hope you find the results of our survey as interesting as we have. Please feel free to contact me or any of the Marks Sattin team directly to find out further details. From all the team we wish you a successful year!
INTRODUCTION
KEY TRENDS SALARIES & BENEFITS Employers began to be slightly more forthcoming with pay rises for accountancy and advisory staff last year, with 68% of employees receiving a positive review and only 1% asked to take a pay cut. Only 30% of permanent staff and 20% of contract staff were unhappy with their current salaries, once again showing that remuneration isn’t a key driver for leaving. This is further highlighted by the fact that a 5 to 10% uplift in basic salary would be acceptable should a move come about. 56% of respondents were happy with their benefits packages, with the most important benefits being 25 days holiday, pensions and private healthcare – all of which were deemed more important than annual bonuses. The sensitive subject of bonuses was covered in depth in our survey. 47% of respondents received a bonus, 38% were not entitled to one and 15% not awarded one. These figures aren’t necessarily surprising, as bonuses are becoming increasingly tied to company performance and a high proportion of companies have failed to deliver on targets over the course of the year.
68%
spondents ceived a
68%
ncrease
of respondents received a
st year
pay increase
Of those receiving bonuses, only 44% were satisfied with what they received. 1 to 9% of salary was the most consistent amount paid out across the board (received by 41%) while 32% received 10 to 19% and a lucky 27% received over 20% of their basic salaries. The fact that 1 to 9% of basic salary was the most common bonus payout is perhaps a sign of the increasing scrutiny of bonuses by the wider business community, although the biggest bonuses were still paid within the financial services sector.
last year
68%
Our survey showed that across the board, accountants were far better looked after than other professionals. The average salary for accountancy and advisory professionals rose in 2013, a strong indicator of the value of finance professionals during uncertain and changing times.
of respondents received a
pay increase
56%
Only 30% of permanent staff and 20% of contract staff were unhappy with their current salaries
last year
of respondents were happy with their
56%
benefits
of respondents were happy with their
56%
benefits
of respondents were happy with their
benefits
44%
of respondents were satisfied with their
44%
bonus
of respondents were satisfied with their
44%
of respondents were satisfied with their
bonus
bonus
Our survey showed that across the board, accountants were far better looked after than other professionals
INTRODUCTION Dave Way JOB SECURITY Similarly to our other surveys over the past five years, the crystal ball for 2013 does not show a picture of renewed optimism, with only 20% of respondents feeling more confident about the economic prospects facing their companies compared to the last 12 months. 36% of our respondents anticipated changing roles over the next year, compared to 52% the previous year. Despite this, only 44% stated that they are currently happy within their role, perhaps showing a greater tolerance due to the current climate. Aligned with this is the clear fact that accountants find themselves far more secure in their positions than in previous years, with an overwhelming 78% feeling secure compared to 70% last year. This is clearly an encouraging statistic compared to previous surveys, where respondents expected headcount cuts as a result of the economic downturn and uncertainty. Business process/policy changes (41%) salary freezes (36%) and budget cuts (35%) are predicted for this year, showing that belt tightening and cost control are still the order of the day. Businesses are striving to ensure they maximise profits, but not to the extent of losing finance staff. 2013
78%
2013
of respondents feel secure in their current role % of respondents feel secure in their current role
78
2012 2012
70%
of respondents felt secure in their current role % of respondents felt secure in their current role
70
33% of respondents
actually saw an increase in the size of their teams over the past 12 months
Few businesses are perceived to be taking a long term view on headcount, which is hardly surprising considering the yo-yo economy and false dawns seen over the past few years. Only 18% of respondents believed their management were planning one to two years ahead, whilst the majority (31%) thought that hiring was short term and only looking six months ahead. This lack of succession planning, which ties in with the reactive hiring we’ve experienced throughout 2012, will surely be to the detriment of some departments if not rectified in 2013. 33% of respondents actually saw an increase in the size of their teams over the past 12 months. Many businesses have clearly been as lean as possible in terms of headcount over the past few years, and whether this will come back to bite them is yet to be seen. 34% of our participants said their working hours increased over the past 12 months, with over half putting this down to an increase in responsibilities. This might suggest that a greater degree of variety and progression is coming into working life, as bosses are reluctant to add new heads or contractors to cover gaps in their departments.
KEY TRENDS MOVEMENT Overall, we saw a consistent movement of accounting professionals throughout 2012, with many now feeling it’s an opportune time to re-enter the job market after staying put during the worst of the global financial crisis. This is shown by the fact that 41% of our respondents were only in their first year of employment in early 2013. In line with this, the majority of hires in 2012 were replacement hires. As a result, the volume of counter-offers increased significantly across the board, as employers reacted to valued team members being offered higher salaries and rates elsewhere in the market. In 2013, this reactive element has subsided somewhat. Salaries are increasing organically, acknowledging the opportunity cost of losing the best staff to competition. The motivations for moving on to greener pastures continue to be an interesting topic for our business. Throughout the downturn, we’ve seen that accountants seldom move for cash, although money does remain part of the decision to move (and very rarely do candidates ever move for less!) The greatest drivers for moving continue to be career development, which top scored with 33%, with new challenge/ interesting work in second. Higher salary was cited by just 26%, showing that our respondents on the whole put their careers before cold cash. Recruiters continued to be the top source of finding roles (46%) with 13% coming from personal contacts. This shows the ever increasing importance of expanding your business network and keeping in good favour with previous employers. Where networking is concerned, 66% of respondents are now on LinkedIn and 59% on Facebook. Whilst neither will cover all of the bases in any given job search, this shows how much social media plays a prominent part in our respondents’ lives. 88% of respondents state that working with a recruitment agency is still a vital part of any new job search. Also of note is that 38% of candidates took only three months to find their last role, primarily as a result of the volume of roles available and being able to dedicate enough time to the job search.
88% of respondents state
that working with a recruitment agency is still a vital part of any new job search.
41%
of respondents were only in their first year of employment
42%
of respondents would relocate to the USA
RELOCATION Never more so has relocation been a hot topic within the finance community. As a result, our non-London businesses have continued to offer great opportunities to their local markets, benefiting from a sizable relocation of resources and highly talented candidates from the South East to the West, North East, North West and Ireland. International opportunities are also becoming more appealing, with candidates’ top motivation being a better quality of life and the second being a desire to experience a new culture. Interestingly, and despite the lucrative options being advertised overseas, only 48% said that money would be the main reason for moving, which was the fourth most important reason. The USA was the most popular destination for a new working life (chosen by 42%) maybe as a result of its resurgent markets coming into 2013. The golden beaches of Australia appealed to 33% of our respondents, followed by the well-documented and high profile allure of Asia, with Singapore at 33% and Hong Kong at 32%. But with talk of bonuses being capped, corporate and personal taxes being too high and our climate being as unpredictable as our economy, is now the time to spread our wings? Not according to the 29% of our respondents who wouldn’t relocate, primarily because of having settled where they are.
KEY FINDINGS Demographics RESPONDENT PROFILE Gender
2,016
Social networks actively used by respondents 67%
respondents took part in this year’s survey 67%
33%
LinkedIn 66%
of respondents were male and 33% female
Facebook 59% Age
Twitter 17% Less than 25 years 7%
Other 7%
26 to 30 years 23% 31 to 35 years 21%
None 15% Respondents could choose more than one answer
36 to 40 years 15% 41 to 50 years 22% More than 50 years 12%
<25 26-30 31-35 36-40 41-49 >50 years
Work location
11%
59%
Greater London
12%
64% Midlands 3% Yorkshire & Humberside 5%
South East 7%
3%
11% 12%
9%
4%
Other
North West
KEY Permanent Contract
2-5
years
UK years
CURRENT EMPLOYMENT
Which of the following best describes your qualification status?
How are you currently employed?
10+
years
2-5
6-10
years
years
10+
years
10+ years’ PQE 36%
10+
2-5
6-10
years
years
5 to 10 years’ PQE 18%
10+
years
10+ 2-5
6-10
2 to 5 years’ PQE 21%
years
years
2-5 10+
years
Newly qualified 9%
years
2-5
6-10
10+
years
6-10
years
years
10+
Permanent or fixed term contract 78%
Unemployed 2%
years
Part qualified 11% 10+
10+
years
Qualified by experience or not qualified 5% 10+
2-5
6-10
Interim or contractor 20%
years
years
Satisfaction with current role 10+
years
10+
Pe r
73%
ent an m
73% of respondents would recommend their employer
of respondents are unemployed
ent an m
Pe r
Only 2%
ent an m
Pe r
Satisfied 44% Neither satisfied nor dissatisfied 26% Dissatisfied 30%
44% of respondents
are satisfied in their current role
Banking & Financial Services
28%
43%
Commerce & Industry
Telecoms and Technology
Retail and Clothing
Property and Construction
FMCG and Pharmaceuticals
Other
Engineering and Manufacturing
Energy and Natural Resources
Business Services
Advertising, PR, Media and Publishing
Other
Retail Banking
Investment Management
Investment Banking
Insurance
Change Management
Capital Markets
KEY FINDINGS Demographics SECTOR REPRESENTATION Which of the following best describes the area/sector you currently work in?
Management Consultancy
Public Practice
11%
10%
Other
Taxation
Corporate Finance
Audit and Assurance
UK
Other
Unemployed
6%
2%
KEY FINDINGS Market Perspective ECONOMIC PROSPECTS Compared with the last 12 months, how confident do you feel about the economic prospects facing your company?
Top 5 expectations for your business in the next 12 months
Business process/policy change 41% Salary freeze 36% Budget cuts 35% Recruitment freeze 34%
More confident 20%
Profitability of business 33%
As confident 52% Respondents could choose more than one answer from a choice of 14
Less confident 28%
JOB SECURITY
Only 20%
of respondents feel more confident about the economic prospects facing their company compared with the last 12 months
Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
64% 64%
Secure 78% Insecure 22%
64%
Salary freeze 20%
64%
Salary reduction 3%
64%
Shorter working week 2% Redundancy 1% 64%
Other 14% Respondents could choose more than one answer
UK
HEADCOUNT What is the size of your department?
How has the number of staff in your team changed in the past 12 months?
61%
of respondents selected business growth or expansion as the main reason for an increase in staff
34%
Remained the 34% same Remained 34%
the same 33% Increased
Remained
1 to 5 employees 23%
the same Decreased 28%
6 to 10 employees 21%
Not sure 5%
11 to 15 employees 12% 16 to 20 employees 8% More than 20 employees 36%
What is your employerâ&#x20AC;&#x2122;s recruitment strategy?
of respondents selected headcount reductions as the main reason for a decrease in staff
36% of respondents have more than
20 employees in their department Short term (0-6 months ahead) 31% Medium term (6-12 months ahead) 18% Long term (1-2 years) 18% Non-existent 10% Not sure 23%
33%
of respondents have seen an increase in the size of their team in the last 12 months
KEY FINDINGS Career Insight EXPERIENCE Length of time in the accountancy, finance or advisory profession
More than 20 years
7-10 years
0 to 3 years 9%
Length in current role
4 to 6 years 19%
Less than 1 year 41%
7 to 10 years 21%
1 to 2 years 24%
11 to 15 years 18%
2 to 3 years 15%
16 to 20 years 9%
3 to 5 years 12%
More than 20 years 21%
5 to 10 years 6%
Not applicable 3%
<1
1-2
2-3 3-5 5-10 >10 years
More than 10 years 2%
41% of respondents have been in their current role for less than a year
55%of
respondents chose taking on more responsibility as the main reason for an increase in working hours
HOURS WORKED Average hours worked per week
How has the number of hours changed in the last 12 months?
Increased 34% Remained the same 53% Decreased 13%
UK RELOCATION Places respondents would consider relocating to in the next 2 years
% 2 4 USA42% 42% USA
Singapore23% 23% Singapore
SouthAfrica Africa10% 10% South
Australia33% 33% Australia
HongKong Kong22% 22% Hong
Malaysia9% 9% Malaysia
MainlandEurope Europe28% 28% Mainland
UAE19% 19% UAE
China8% 8% China
Withinthe theUK UK28% 28% Within
NewZealand Zealand18% 18% New
India7% 7% India
Canada24% 24% Canada
Ireland12% 12% Ireland
Other3% 3% Other
Respondents could choose more than one country from choice Respondents could choose more than one country from aa choice ofof 1414
29% of respondents would not relocate
Top 5 reasons for respondents wanting to relocate
Improved quality of life 61% Different culture 54% New career opportunity 52% Better employment opportunities 49% Improved salary 48% Respondents could choose more than one reason from a choice of nine
Improved quality of life is the main reason for respondents wanting to relocate
MOVING ON How do you rate the importance of the following sources when seeking a new role?
57
%
50
39
%
38 34
29
%
33 33 %
19
%
15
36% of respondents
%
%
20
11
%
%
%
7%
3%
anticipate changing roles in the next 12 months
Top 5 reasons for leaving last role
Career development 33% New challenge/more interesting work 29% Higher salary 26% End of contract 18% Redundancy 16% Respondents could choose up to three reasons
%
38% of respondents took up to 3 months to find their current role
33
KEY Importance
Vital
50
%
Very important
43 38
Quite important
%
39
% % 36
%
%
Not important 57
%
% 30
50
%
43 39
%
38 34
57
29
%
33 33 %
%
39
%
%
36
%
%
30
%
Source
%
%
19
18
%
22
%
20
19
%
50% 15
%
11
57
3%
%
29
34
%
33 33 %
%
50
%
20
39
29
9%
3
%
%
11
33 33 %
20
3
43
%
36
%
2%
19
50
3% 30
10
39
%
%
18
%
22
39 3
%
%
%
%
%
9%
% 30
Online job boards/ advertising 18
%
%
7%
%
%
%
11
9%
%
National press 38
7
15
%
43
36 2%
% %
%
57
% 10
%
%
%
%
%
38
%
19
15
34
%
%
%
%
%
10
7%
22
18
%
%
% 39
10
%
%
% 22
%
9%
%
43
2%
3
%
%
39
%
38 34
%
29
2%
3%
33 33 %
36
%
20
%
30
%
19
%
18
%
% 15 %
50
7%
10
%
33 33 %
36
%
20
30
19
%
%
11
%
7%
10
4 2%3%
3 % 39
3
39
%
%
36
% % 33 33
19
%
18
%
%
7%
Trade press
%
22
%
%
%
15
%
30
%
20
%
% %
38 34
Recruitment consultancies/ headhunters 9%
%
%
%
22
18
%
15 % 50 %
11
%
%
%
29
39
%
34 29
57
3% %
38 %
%
9%
24%3%
%
22 %
%
3% 39
%
Social networking
%
%
57
11
39
%
10
3%
9%
%
2%
3%
Word of mouth/ personal referrals/ internal contact
How did you find your current position? Recruitment consultancy or headhunter 47%
Internal promotion 5%
Online advertising 13%
Print advertising 2%
Professional network or personal contact 13%
Other 2%
Direct approach 9%
Not currently employed 9%
KEY FINDINGS Salaries & Benefits REMUNERATION When was your last pay review?
Less than 6 months ago 33% 6 to 12 months ago 35% More than 12 months ago 12%
68% of respondents
have had a pay review in the last 12 months
Not applicable 20%
What was the outcome of your last pay review?
33%
of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
Pay increase 68% Pay remained the same 31% Asked to take a pay cut 1%
Satisfaction with current remuneration
t rac nt
ent an m ent an m Pe r
ent an m
Pe r
ent an m
respondents
Pe r
Pe r
ent an m
44% of permanent
Pe r
Pe r
ent an m
respondents are satisfied with their current remuneration compared with
ent an m
53% of contract
Co
Pe r
Satisfied 44%
Satisfied 53%
Neither satisfied nor dissatisfied 26%
Neither satisfied nor dissatisfied 27%
Dissatisfied 30%
Dissatisfied 20%
UK BENEFITS
25 days holiday or more is the most desired benefit
56% 56% of respondents were satisfied with their benefits Top 5 benefits currently received
25 days holiday or more 78% Company pension scheme 64%
1-9% of salary
Benefits considered most and least important when considering a new role 25 days holiday or more Annual bonus scheme Good company pension Private healthcare Insurance*
Private healthcare 54%
Sabbatical
Annual bonus scheme 48%
Mortgage relief
Insurance (PMI/death in service/life insurance) 48% Respondents could select all benefits that applied
Season ticket loan Daily subsidised meals Childcare vouchers *PMI/death in service/life insurance
Respondents rated a selection of 20 benefits in order of importance
BONUS Did you receive a bonus in 2012?
44% 44% of respondents were satisfied with their bonus As a percentage of your basic salary, what was your bonus in 2012?
Yes 47%
1-9% of salary
34%
of respondents received the same bonus in 2012 as 2011 1 to 9% of salary 41% 10 to 19% of salary 32% 20 to 29% of salary 15%
No, not entitled to receive one 38%
30 to 49% of salary 5%
No, not awarded one 15%
40 to 90% of salary 4% More than 90% of salary 3%
KEY FINDINGS Salaries & Benefits BONUS A comparison of bonuses received across sectors* 100
80
60
40
20
0 Banking and Financial Services
Commerce and Industry
Management Consultancy
Public Practice
KEY 1 to 9% of salary
30 to 39% of salary
50 to 79% of salary
10 to 19% of salary
40 to 49% of salary
More than 80% of salary
20 to 29% of salary
*Bonuses received as a percentage of salary
LONDON
COMMERCE & INDUSTRY
Executive
+44 20 7747 9652 commerceindustry.uk@markssattin.com
Alex Hagger Director
LONDON COMMERCE & INDUSTRY
EXECUTIVE Market Perspective The big trends of 2012
Outlook for 2013
A shortage of quality candidates was one of the most significant challenges for recruiters in 2012. An uncertain economy, combined with low salary inflation, prompted many finance professionals to put their career search on hold. As a result of this candidate shortage, the ‘war for talent’ resumed with multiple offers per candidate and counter-offers becoming more common.
Cost control will continue to be a key focus for 2013. Businesses will continue to put on hold sizable internal investments. With challenging trading conditions set to continue, improving profit will be high on the agenda for chief financial officers. Businesses will be looking at how to continue to cut costs, improve sales and drive efficiencies – all of which lends itself to hiring commercial business partners to get under the skin of their business, and be a genuine link between finance and commercial operations.
A shortage of quality candidates was one of the most significant challenges for recruiters in 2012
ECONOMIC PROSPECTS Compared with the last 12 months, how confident do you feel about the economic prospects facing your company?
Top 5 expectations for your business in the next 12 months
Business process/policy change 61% Profitability of business 45%
Budget cuts 37% Job cuts 35% More confident 29% As confident 42% Less confident 29%
Salary freeze 33% Respondents could choose more than one answer from a choice of 14
JOB SECURITY Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
We have seen a number of businesses trying to retain key staff by increasing bonuses, addressing issues such as work-life balance and looking to promote from within rather than externally.
55% 55%
55%
Salary freeze 34%
Secure 71% Insecure 29%
55%
Redundancy 3% 55%
Salary reduction 3%
71% of respondents feel secure
in their current role
Shorter working week 2% 55%
Other 8% Respondents could choose more than one answer
HEADCOUNT How has the number of staff in your team changed in the past 12 months?
63%
of respondents selected business growth or expansion as the main reason for an increase in staff
37%
Remained the37% same
What is your employerâ&#x20AC;&#x2122;s recruitment strategy?
Short term (0-6 months ahead) 46% Medium term (6-12 months ahead) 18%
Remained 37%
the same 36% Increased
Long term (1-2 years) 5%
Remained
Decreased 22% the same Not sure 5%
27%
of respondents have between 1 and 5 employees in their team
of respondents selected headcount reductions as the main reason for a decrease in staff
Non-existent 24% Not sure 7%
COMMERCE & INDUSTRY
Reactions to uncertain market conditions
LONDON
LONDON
LONDON
EXECUTIVE Career Insight EXPERIENCE
COMMERCE & INDUSTRY
Skills in demand Senior finance executives will be expected to maximize efficiencies, reduce internal costs and streamline processes. Finance leaders must promote themselves as more than just â&#x20AC;&#x2DC;accountantsâ&#x20AC;&#x2122;: MDs, VPs and CEOs increasingly require all-round strong commercial individuals with excellent people management skills. Those candidates investing time in developing these areas and improving their skills will stand out from the crowd and are more likely to secure top finance positions at leading companies. Industry sector experience remains key for executive job seekers and recruiters alike. Finance professionals recognise that their specific sector knowledge can be as valuable to a potential employer as their commercial acumen and technical skills. Private equity and M&A markets have improved in early 2013 and are expected to ramp up consistently over the next few years. Experience within these areas will be a pre requisite should candidates wish to pursue a career in these fields. Senior executives with track records of fund/ capital raising and strong contacts across the City will find themselves in high demand. There is a greater tendency for senior executives to bring resources in-house, with less outsourcing to professional providers in advisory/consultancy, legal and taxation services. Executives with experience across other disciplines will find themselves highly sought after.
Length of time in the accountancy, finance or advisory profession % 14
Length in current role
86%
More than 25 years
0 to 10 years 0%
<1
1-2
2-3 3-5 5-10 >10 years
11 to 15 years 26%
Less than 1 year 32%
16 to 20 years 23%
1 to 2 years 23%
21 to 25 years 24%
2 to 3 years 19%
More than 25 years 27%
3 to 5 years 16% 5 to 10 years 7% More than 10 years 3%
HOURS WORKED Average hours worked per week
How has the number of hours changed in the last 12 months?
Supply and demand
58% of respondents chose taking on more responsibility as the main reason for the increase in working hours
Increased 30% Remained the same 61% Decreased 9%
2012 saw high demand within the digital media, advertising, infrastructure and property sectors as markets improved compared to previous years. There was a notable uplift in the number of financial controller vacancies from the second half of 2012 through to the beginning of 2013 and we are increasingly optimistic that the more senior end of the market, at FD and CFO level, will soon follow suit.
RELOCATION
Taking the next step in your career
Top 5 places respondents would consider relocating to in the next two years
Australia 34%
Improved quality of life 68%
Within the UK 28%
Better employment opportunities 53%
45%
Mainland Europe 24% 45%
45%
Singapore 24% Respondents could choose more than one country from a choice of 14 45%
Different culture 53% New career opportunities 53% Improved salary 53% Respondents could choose more than one reason from a choice of nine
39% of respondents would not relocate
MOVING ON Top 5 reasons for leaving last role
New challenge/more interesting work 34% Career development 28% Redundancy 20% End of contract 20% Higher salary 17% Respondents could choose up to three reasons
36% of respondents anticipate changing roles in the next 12 months
Why candidates are making a move Every year a higher salary becomes a lower motivational factor for candidates wanting to move roles. Career progression, engagement with the business and work-life balance are consistently the most important reasons for changing roles, and if businesses want to attract the best talent in the market, they need to adjust their ‘pitch’ to prospective employees and work on their employer branding to sell their organisation.
COMMERCE & INDUSTRY
THINK AHEAD Where do you want to be in five years’ time? You may have to move out of your comfort zone to move forward in your career. Smaller businesses tend to offer broader roles and enhanced responsibility which can be more attractive than having a big brand on a CV. ANALYSE THE COMPANY ACCOUNTS AND BUSINESS PLANS Stand out from the crowd by doing thorough research into the business plans, company accounts and profiles of relevant directors within the organisation.
Top 5 reasons for respondents wanting to relocate
45%
THINK ABOUT WHAT YOU’VE ACHIEVED IN YOUR CAREER TO DATE Employers aren’t just looking to know what you did in terms of standard responsibilities but more specifically what you achieved. It may be helpful to consider the return your last employer got from the salary they paid you.
LONDON
LONDON
LONDON
EXECUTIVE Salaries & Benefits
COMMERCE & INDUSTRY
Spotlight on salaries Salaries and bonuses will remain tight across much of senior finance, with many individuals finding that their easiest route to a pay rise is to make a move externally. Salary increases in senior finance have been moderate, between 2 and 5%. Commercial FD and senior finance business partnering roles have seen the highest increase in salary, along with top performing CFOs continuing to be rewarded with inflationbusting pay rises. Many FTSE finance directors have managed
to secure salary increases in the face of unpredictable and challenging economic conditions, along with those who have produced results in tough economic times through growing the bottom line or implementing turnarounds.
REMUNERATION When was your last pay review?
Satisfaction with current remuneration
Co
73%
of respondents received a salary increase in their last pay review
6 to 12 months ago 39% More than 12 months ago 13% Not applicable 18%
28%
of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
Pe r
Pe r
ent an m
Less than 6 months ago 30%
ent an m
Pe r
Pe r
ent an m
ent an m
Pe r
t rac nt
ent an m
Pe r
ent an m
ent an m
Pe r
Satisfied 53%
Satisfied 70%
Neither satisfied nor dissatisfied 28%
Neither satisfied nor dissatisfied 15%
Dissatisfied 19%
Dissatisfied 15%
Executive Job title
LONDON
LONDON Salary range 2013
Head of FP&A
£80,000-£120,000
£80,000-£120,000
Group Financial Controller | SME
£80,000-£140,000
£80,000-£120,000
Divisional Director
£85,000-£150,000
£85,000-£150,000
Head of Group Reporting | PLC
£90,000-£120,000
£85,000-£120,000
Finance Director | Private Equity Portfolio backed businesses
£100,000-£160,000
£100,000-£160,000
Chief Financial Officer/Finance Director | SME
£100,000-£180,000
£100,000-£180,000
Group Financial Controller | PLC
£110,000-£180,000
£110,000-£180,000
Finance Director | PLC
£160,000-£250,000
£160,000-£250,000
Chief Financial Officer | PLC
£250,000-£400,000
£250,000-£400,000
Salary increases in senior finance have been moderate, between 2 and 5%. Commercial FD and senior finance business partnering roles have seen the highest increase in salary along with top performing CFOs continuing to be rewarded with inflationbusting pay rises
COMMERCE & INDUSTRY
2012
LONDON
EXECUTIVE Salaries & Benefits BENEFITS
COMMERCE & INDUSTRY
Attracting top talent RECOGNISE THE IMPORTANCE OF BENEFITS There is more to securing top talent than offering an attractive salary. You need to appreciate the value of career development, challenges within a role and work-life balance as well as a fun and engaging culture in which to work. REMEMBER INTERVIEWING IS A TWO-WAY PROCESS During the interview, it is vital organisations present themselves in a favourable light to candidates. One way to help this is to have a swift and efficient hiring process.
Top 5 benefits currently received
25 days holiday or more 82% Mobile phone/ Blackberry/PDA 73% Private healthcare 72%
Benefits considered most and least important when considering a new role
25 days holiday or more Annual bonus scheme Good company pension scheme Private healthcare Insurance*
You need to appreciate the value of career development, challenges within a role and work-life balance as well as a fun and engaging culture in which to work
Company pension scheme 70% Insurance (PMI/ death in service/life insurance) 61% Respondents could select all benefits that applied
Leisure facilities Season ticket loan Sabbatical Mortgage relief
60% 60% of respondents were satisfied with their benefits
Daily subsidised meals *PMI/death in service/life insurance
Respondents rated a selection of 20 benefits in order of importance
BONUS Did you receive a bonus in 2012?
As a percentage of your basic salary, what was your bonus in 2012?
51%
1 to 9% of salary 20% 10 to 19% of salary 27%
51% of respondents were satisfied with their bonus
37%
Yes 59% No, not awarded one 18% No, not entitled to receive one 23%
of respondents received a higher bonus in 2012 than in 2011
20 to 29% of salary 37% 30 to 39% of salary 8% 20 - 29% of salary
40 to 59% of salary 6% 60 to 100% of salary 0% More than 100% of salary 2%
LONDON
COMMERCE & INDUSTRY
Part Qualified & Transactional Accounting Warren Hilton Senior Manager
+44 20 7321 5004 commerceindustry.uk@markssattin.com
Carmine Scalzo Manager
LONDON
PART QUALIFIED & TRANSACTIONAL Market Perspective
COMMERCE & INDUSTRY
The big trends of 2012 Potential for career development remains the single biggest reason why a part qualified accountant will move jobs
There has been an increased demand for part qualified accountants for roles between £30,000 and £35,000, with 35% of jobs filled in 2012 being within this range compared to 21% in 2011. The majority of these roles were management accountant and finance analyst positions. As retention of part qualified accountants continued to improve through better training and development programmes, those who entered the job market in 2012 were typically presented with a number of attractive opportunities and in turn, some found themselves choosing between multiple job offers. Competition for high calibre candidates remained high throughout 2012 and demand increased as the year progressed, with 59% of vacancies requiring accountants registered in the second half of the year. As the market became more competitive, employers who were focused on attracting the best talent became more flexible and open to considering different candidate profiles. Instead of choosing someone based solely on the basis of their sector, software or company background, they focused on candidates’ technical skills and experience and in the absence of that, their aptitude and ability to pick up responsibilities quickly.
Outlook for 2013 Savvy businesses have realised that to attract and retain the best talent they need to offer more than just a salary, and as such there will be a continued focus on employers offering attractive packages that allow room for development and opportunity, leaving salaries to remain largely flat. Potential for career development remains the single biggest reason why a part qualified accountant will move jobs, but support through their studies, as well as time off for revision and exams, is also important. The opportunity for a candidate to develop their skills and take study leave represents a comparatively low cost for employers, and will benefit them greatly as the employee continues to add value to the business.
ECONOMIC PROSPECTS Compared with the last 12 months, how confident do you feel about the economic prospects facing your company?
Top 5 expectations for your business in the next 12 months Business process/policy change 56% Profitability of business 38%
Budget cuts 32% Salary freeze 32%
Job cuts 28% More confident 18% Respondents could choose more than one answer from a choice of 14
As confident 57% Less confident 25%
Reactions to uncertain market conditions
JOB SECURITY Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
69% 69%
69%
Salary freeze 19%
Secure 72% Insecure 28%
69%
Redundancy 10% 69%
Salary reduction 3% Shorter working week 2%
One of the positive effects of recent market conditions for part qualified accountants has been the opportunity to take on more responsibility. Redundancies coupled with lower staffing budgets have allowed part qualified accountants to get involved in more complex finance tasks, particularly around month end, budgeting and forecasting as well as year-end and statutory work.
69%
Other 9% Respondents could choose more than one answer
HEADCOUNT How has the number of staff in your team changed in the past 12 months?
77%
of respondents selected business growth or expansion as the main reason for an increase in staff
38%
Remained the38%same
What is your employerâ&#x20AC;&#x2122;s recruitment strategy?
Short term (0-6 months ahead) 25% Medium term (6-12 months ahead) 15%
Remained 38%
the same 30% Increased
Long term (1-2 years) 23%
Remained
Decreased 25% the same Not sure 7%
28%
of respondents have between 1 and 5 employees in their team
of respondents selected headcount reductions as the main reason for a decrease in staff
Non-existent 6% Not sure 31%
COMMERCE & INDUSTRY
Confidence in the market has continued to ebb and flow, which has invariably led some businesses to delay their recruitment plans, whether they are replacing staff or adding heads. That said, more employers have decided the necessity to recruit outweighs the need for caution and so have moved forward with their hiring plans. Hires seem to be less speculative, and are instead more specific in terms of the roles and candidates needed to fill them. This is especially true in the temporary market where recruitment of part qualified and transactional accountants has typically occurred when covering specific needs, such as maternity leave, sickness cover, project work etc.
LONDON
LONDON
LONDON
PART QUALIFIED & TRANSACTIONAL Career Insight EXPERIENCE Good part qualified accountants with relevant experience remain in demand and will continue to be throughout 2013. For these candidates a good balance between stage of study and experience is still crucial, and means they will always have opportunities available to them. Demand for temporary professionals has remained constant, particularly for highly skilled management accountants and analysts with a proven track record of delivering results. These contractors are rarely out of work for more than two weeks.
Length of time in the accountancy, finance or advisory profession
4-6 years
0 to 3 years 16%
A good balance between stage of study and experience is still crucial
Length in current role
61%
39 %
COMMERCE & INDUSTRY
Skills in demand
<1
1-2
2-3 3-5 5-10 >10 years
4 to 6 years 26%
Less than 1 year 37%
7 to 10 years 16%
1 to 2 years 28%
11 to 15 years 8%
2 to 3 years 17%
16 to 20 years 3%
3 to 5 years 10%
21 to 25 years 3%
5 to 10 years 3%
More than 25 years 1%
More than 10 years 5%
HOURS WORKED Average hours worked per week
How has the number of hours changed in the last 12 months?
Supply and demand
67%
of respondents chose taking on more responsibility as the main reason for the increase in working hours
Increased 41% Remained the same 51% Decreased 8%
Credit control has experienced a short supply of candidates, mainly due to lower staff turnover and peopleâ&#x20AC;&#x2122;s hesitancy to leave their current roles. As a consequence companies needing to recruit in this area will find fewer suitable candidates available, and will be forced to offer higher rates or salaries as a result.
RELOCATION
Taking the next step in your career
Top 6 places respondents would consider relocating to in the next two years
Australia 30%
Improved quality of life 64%
UAE 22%
Different culture 54%
37%37%
Within the UK 21%
Improved salary 48%
Hong Kong 21%
New career opportunities 44%
Singapore 21%
Better employment opportunities 37%
37%
UNDERSTAND YOUR MOTIVATIONS BEFORE TAKING YOUR NEXT STEP Before making a career move it is important to consider your reasons for moving and your expectations for your next role. It is essential that your next job should fulfil your aspirations.
37%
Respondents could choose more than one country from a choice of 14 37%
27% of respondents would not relocate
MOVING ON Top 5 reasons for leaving last role
Career development 35% Higher salary 25% New challenge/more interesting work 22% Redundancy 14% Better location 12% Respondents could choose up to three reasons
Respondents could choose more than one reason from a choice of nine
37% of respondents
anticipate changing roles in the next 12 months
COMMERCE & INDUSTRY
LEARN THE JOB YOU ARE PAID FOR, THEN GAIN MORE EXPERIENCE Doing your job is your main priority, but there is no harm in stretching your capabilities to make you a more attractive employee, especially at the part qualified and transactional level. Prospective employers like candidates that have gained additional skills and experience by taking on more work. BE REALISTIC AND PLAN YOUR MOVES There is always an element of luck when taking new opportunities, but good judgement and foresight are vital when shaping your career path. As a part qualified or junior accountant you should never move simply for money. Instead move for the right role and opportunity. Short term pain could lead to greater long term financial gain and a more rewarding career.
Top 5 reasons for respondents wanting to relocate
37%
GAIN EXPERIENCE RELEVANT TO YOUR STUDY LEVEL Try not to race too far ahead in terms of experience or studies as this can be off-putting to potential employers.
LONDON
LONDON
LONDON
PART QUALIFIED & TRANSACTIONAL Salaries & Benefits
COMMERCE & INDUSTRY
Spotlight on salaries Year on year salaries have largely remained flat, but wider salary brackets have not been uncommon in order to attract a greater pool of candidates. Although demand for part qualified accountants remains strong, companies are inclined to keep control of salaries within their teams. Credit controllers with proven track records and strong experience are still in high demand, which has led to increases of 4% to 8% in salaries, as well as improved bonuses.
REMUNERATION When was your last pay review?
Satisfaction with current remuneration
Co
69%
of respondents received a salary increase in their last pay review
6 to12 months ago 30% More than 12 months ago 18% Not applicable 16%
29%
of respondents perceive an 11 to 15% salary increase as acceptable if they were to move roles
Pe r
Pe r
ent an m
Less than 6 months ago 36%
ent an m
Pe r
Pe r
ent an m
ent an m
Pe r
t rac nt
ent an m
Pe r
ent an m
ent an m
Pe r
Satisfied 30%
Satisfied 72%
Neither satisfied nor dissatisfied 32%
Neither satisfied nor dissatisfied 21%
Dissatisfied 38%
Dissatisfied 7%
Part Qualified | By position Job title
Salary range
Hourly rate 2013
2012
2013
Assistant Accountant
£22,000-£28,000
£22,000-£30,000
£13-£17
£13-£17
Financial Accountant
£28,000-£36,000
£30,000-£38,000
£14-£18
£14-£20
Management Accountant
£30,000-£40,000
£30,000-£41,000
£15-£24
£15-£22
Financial Analyst
£32,000-£42,000
£32,000-£42,000
£16-£24
£16-£22
Finance Manager
£32,000-£45,000
£32,000-£45,000
£16-£28
£16-£28
Job title
Salary range
Hourly rate
2012
2013
2012
2013
ACCA/CIMA Fundamental/ Operational
£22,000-£28,000
£22,000-£30,000
£13-£16
£13-£17
ACCA/CIMA Managerial/ Professional
£30,000-£37,000
£30,000-£37,000
£15-£22
£15-£22
ACCA/CIMA Finalist/Strategic
£32,000-£40,000
£32,000-£42,000
£17-£24
£17-£22
Transactional Accounting Job title
Salary range
Hourly rate
2012
2013
2012
2013
Payroll Assistant
£18,000-£25,000
£18,000-£25,000
£10-£14
£10-£14
Graduate/Trainee Accountant
£21,000-£25,000
£21,000-£25,000
£11-£14
£11-£14
Accounts Payable/Receivable Assistant
£21,000-£26,000
£21,000-£25,000
£10-£15
£10-£14
Accounts Assistant
£21,000-£28,000
£21,000-£28,000
£11-£15
£11-£15
Payroll Manager
£25,000-£40,000
£25,000-£40,000
£15-£25
£15-£25
Revenue/Billings Manager
£28,000-£50,000
£28,000-£50,000
£15-£28
£15-£28
Accounts Payable/Receivable Manager
£30,000-£45,000
£30,000-£45,000
£14-£25
£14-£25
Credit Control Job iitle
Salary range
Hourly rate
2012
2013
2012
2013
Credit Controller
£22,000-£30,000
£22,000-£32,000
£12-£20
£12-£20
Credit Control Senior/Supervisor
£26,000-£35,000
£26,000-£40,000
£13-£20
£13-£20
Credit Control Manager
£30,000-£50,000
£35,000-£60,000
£16-£30
£16-£30
COMMERCE & INDUSTRY
2012
Part Qualified | By stage
LONDON
LONDON
LONDON
PART QUALIFIED & TRANSACTIONAL Salaries & Benefits BENEFITS
COMMERCE & INDUSTRY
Attracting top talent OFFER AN ATTRACTIVE PACKAGE, NOT JUST A COMPETITIVE SALARY Most part qualified accountants or those towards the beginning of their accountancy careers are attracted by the opportunity to develop their skills and receive study support. Put yourself in the prospective candidateâ&#x20AC;&#x2122;s shoes and consider what would attract you to this role. ENSURE YOUR SEARCH IS INCLUSIVE Direct recruitment methods such as job boards, LinkedIn and referral schemes can be a good way to source candidates, but as fewer candidates move, fewer will be actively looking by these means. So tapping into the passive candidate market is important and ensures your selection process includes as many good quality candidates as possible. DO NOT ASSUME ANYTHING You should not presume the market is slow or that there are fewer opportunities available. Companies always want to attract and hire the best talent available, therefore competition remains high. So try to ensure a quick but thorough recruitment process to avoid missing out on your first choice candidate.
Top 5 benefits currently received
Benefits considered most and least important when considering a new role
25 days holiday or more 71% Company pension scheme 54% Annual bonus scheme 40% Private healthcare 38% Insurance (PMI/ death in service/life insurance) 32% Respondents could select all benefits that applied
25 days holiday or more Good company pension scheme Flexible working Annual bonus scheme Insurance* Car or car allowance Mortgage relief Sabbatical Daily subsidised meals Mobile phone/ Blackberry/PDA
46%
*PMI/death in service/life insurance
46% of respondents were satisfied with their benefits
Respondents rated a selection of 20 benefits in order of importance
BONUS Did you receive a bonus in 2012?
As a percentage of your basic salary, what was your bonus in 2012?
33%
1 to 9% of salary 55%
33% of respondents were satisfied with their bonus
10 to 19% of salary 33% 1 - 9% of salary
52%
Yes 40% No, not awarded one 26% No, not entitled to receive one 34%
of respondents received the same bonus in 2012 as in 2011
20 to 29% of salary 9% 30 to 39% of salary 3% More than 40% of salary 0%
LONDON
COMMERCE & INDUSTRY
Qualified
Simon Smith Associate Director
+44 20 7321 5008 commerceindustry.uk@markssattin.com
Russell Williams
Pres Pillai
Senior Manager
Manager
LONDON
QUALIFIED Market Perspective
COMMERCE & INDUSTRY
Newly Qualified ACA 2012 saw increasing demand for newly qualified ACA accountants across a number of sectors, mainly within commerce and industry, professional services and management consultancy. Employers are targeting candidates with strong academics e.g first time passes and experience of working with clients in their sector. Those who have proven to be most successful tend to have strong interpersonal and commercial skills. Most newly qualified accountants are interested in making a move from practice into industry, corporate finance or management consultancy. Whilst moves into commercial finance positions are possible, the most readily available roles in 80% of cases are financial accountant, group accountant and internal audit.
When looking to make a move, do your research into the organisation and prospects for career progression, as well as the calibre of individuals and management within the business. After 18 months of learning the ropes in financial reporting, candidates are increasingly being promoted to more commercial roles within the organisation. In 2013, there will be an increase in the number of companies looking at candidates from mid-tier and Big 4 firms, due to their varied experience and hands-on attributes.
Whilst moves into commercial finance positions are possible, the most readily available roles in 80% of cases are financial accountant, group accountant and internal audit
ECONOMIC PROSPECTS Compared with the last 12 months, how confident do you feel about the economic prospects facing your company?
Top 5 expectations for your business in the next 12 months
Business process/policy change 51%
Budget cuts 40% Profitability of business 35%
Recruitment freeze 35% Salary freeze 35% More confident 20% As confident 49% Less confident 31%
Respondents could choose more than one answer from a choice of 14
LONDON
LONDON JOB SECURITY 57%
How would you rate your current job security?
Salary freeze 29% 57%
Redundancy 4% 57%
Salary reduction 1% Shorter working week 1%
57% Secure 72%
57%
Other 8% Respondents could choose more than one answer
Insecure 28%
The big trends of 2012 PERMANENT There was a significant increase in the number of qualified candidates citing lack of career progression and hitting the â&#x20AC;&#x2DC;glass ceilingâ&#x20AC;&#x2122; as reasons for wanting to leave their current role.
TEMPORARY With the state of the economy still uncertain, successful businesses learnt to become more agile and adaptable in facing business challenges, whether these challenges were related to structural changes, improving performance or assessing risks.
With increasing numbers of organisational restructures, finance teams rightsizing, and modest growth in the majority of sectors during 2012, there were fewer opportunities for people to gain promotion and further their careers internally. As such we saw an increase in the volume and quality of qualified professionals looking to further their careers externally as they looked to climb the career ladder.
From a resourcing perspective we saw companies take an ever more prudent approach to hiring contractors, and adapting a more service delivery focus to complement strategic objectives of finance departments.
During 2012, there were fewer opportunities for people to gain promotion and further their careers internally
The number of overseas contracting professionals arriving in the UK (typically from Australia, New Zealand and South Africa) has continued to decline, meaning demand for UK contract staff has increased as many are choosing more lucrative temporary assignments over permanent positions.
COMMERCE & INDUSTRY
Expectations for personal salary and job security in the next 12 months
57%
LONDON
QUALIFIED Market Perspective
COMMERCE & INDUSTRY
Outlook for 2013 PERMANENT Over the next 12 months the battle for commercially minded, qualified candidates with at least one year’s industry experience is likely to continue heating up, as employers have one eye on growth and snapping up the best talent in the market for an assault on 2014. This is across commerce and industry as a whole and salaries for this type of position are likely to creep northwards towards the £50,000 to £55,000 mark.
TEMPORARY With the market likely to be volatile for some time to come, business leaders are still taking a cautious approach. Most chief financial officers expect a gradual pick-up in the economy towards the end of 2013, but will be reluctant to increase headcount.
Most chief financial officers expect a gradual pick up in the economy towards the end of 2013, but will be reluctant to increase headcount
Many chief financial officers are concerned by the increasing regulatory burden which will no doubt create demand for accountancy professionals with strong technical skills, particularly from the Big 4.
This could be good news for the contract market as businesses seek to improve profits by taking on change management programmes such as system improvement and cost reduction, as well as launching new products.
In the next 12 months we expect to see businesses continuing to rein in their costs whilst improving efficiency. There will also be an additional focus on seizing new opportunities. The past four years of economic uncertainty hava left many finance departments lean, with limited capacity to cope with unexpected workloads, projects with tight deadlines and sudden market changes. As a result we’ll see business turn to the interim market to quickly satisfy these crucial business challenges.
PERMANENT Employers have largely taken a cautious approach to recruitment and are likely to continue to do so in 2013 as they pursue the perfect fit. Talent attraction and retention has moved to the top of the recruitment agenda to ensure that businesses keep the best people, particularly where internal opportunities are fewer.
TEMPORARY There has been a notable positive change to the way businesses are reacting to the market compared to previous years. For some time there has been a shortage of good talent available and finance leaders have had to move faster to secure the best people. Employers have had to sell the job opportunity to candidates, instead of cherry picking the best professionals due to the competition.
Towards the end of 2012 the market was showing signs of polarisation. On one hand, businesses were looking to bring in commercially-minded finance professionals for various business partnering opportunities. At the same time, focus remained on the production of accurate financial reports, resulting in high demand for group accountants and financial accountants, especially with ACA qualifications, IFRS, US GAAP and consolidation experience.
HEADCOUNT How has the number of staff in your team changed in the past 12 months?
52%
of respondents selected business growth or expansion as the main reason for an increase in staff
36%
Remained the36% same
30%
of respondents have more than 20 employees in their team
Remained 36%
the same 32% Increased
Remained
Decreased 27% the same Not sure 5%
of respondents selected headcount reductions as the main reason for a decrease in staff
What is your employerâ&#x20AC;&#x2122;s recruitment strategy?
Short term (0-6 months ahead) 42% Medium term (6-12 months ahead) 14% Long term (1-2 years) 13% Non-existent 12% Not sure 19%
COMMERCE & INDUSTRY
Reactions to uncertain market conditions
LONDON
LONDON
LONDON
QUALIFIED Career Insight
COMMERCE & INDUSTRY
Market growth PERMANENT There has been growth in pockets of commerce and industry, with the most notable sectors being energy, natural resources and property. The professionals most in demand are Big 4 trained ACA qualified accountants with up to five years’ part qualified experience and CIMA qualified accountants with up to five years’ part qualified experience. We expect current levels of demand for these roles to continue.
TEMPORARY Despite seeing a gentle increase in growth across the majority of the commercial sectors over the past 12 months, businesses are still being cautious in their outlook. Both the eurozone and the emerging markets remain a concern for a number of business leaders and they are not expecting significant changes in 2013.
EXPERIENCE Length in current role
68% 32 %
The professionals most in demand are Big 4 trained ACA qualified accountants with up to five years’ part qualified experience and CIMA qualified accountants with up to five years’ part qualified experience
Length of time in the accountancy, finance or advisory profession
0 to 3 years 2%
<1
1-2
2-3 3-5 5-10 >10 years
4 to 6 years 13% Less than 1 year 44% 7 to 10 years 24% 1 to 2 years 24% 11 to 15 years 24% 2 to 3 years 14% 16 to 20 years 12% 3 to 5 years 12% 21 to 25 years 12% More than 25 years 12% Not applicable 1%
5 to 10 years 5% More than 10 years 1%
PERMANENT There is a lack of high calibre candidates available in internal audit, and individuals with one to three yearsâ&#x20AC;&#x2122; commercial industry experience, so demand in these areas is strong.
Demand remains high for accountants with strong technical skills in terms of IFRS, Excel and ERP systems
TEMPORARY Demand remains high for accountants with strong technical skills in terms of IFRS, Excel and ERP systems. Typically businesses are looking to hire one to two year post qualified candidates. The supply of these candidates has been somewhat limited by the ever increasing desire for candidates to move into commercial and analytical roles. This is likely to be the most competitive area in 2013.
HOURS WORKED Average hours worked per week
55% of respondents chose taking on more responsibility as the main reason for the increase in working hours
How has the number of hours changed in the last 12 months?
Increased 32% Remained the same 51% Decreased 17%
COMMERCE & INDUSTRY
Supply and demand
LONDON
LONDON
LONDON
QUALIFIED Career Insight
COMMERCE & INDUSTRY
Taking the next step in your career BE FLEXIBLE Candidates regularly dismiss a number of opportunities before widening their search, as they are set on specific sectors or particular job titles for their next role. A good recruiter will be aware of this and will be able to explain the opportunities to you for every role, even if it doesnâ&#x20AC;&#x2122;t exactly meet your criteria. STAY IN TOUCH We speak to hundreds of people in any one month, so keeping in touch either by email or calling once or twice a week will keep you at the forefront of our minds for any opportunities we have on.
KEEP YOUR CV UP TO DATE Regularly update your CV and add any new achievements throughout your career as this can save valuable time when your assignment ends and you are ready to start your next job. BE REALISTIC ABOUT MONEY When seeking salary increases in a new role, be realistic about what you can get. A 5% to 10% increase is market rate, so focus your attention to other search motivators as well, such as holiday allowance and pension schemes for example.
RELOCATION Top 5 places respondents would consider relocating to in the next two years
Australia 35%
Top 5 reasons for respondents wanting to relocate
Within the UK 27% 42%
Canada 27% 42%
42%
Mainland Europe 25% 42%
%
2 Respondents 4could choose more than one country from a choice of 14
32% of respondents would not relocate
Improved quality of life 64% Different culture 58% Improved salary 50% New career opportunities 50% Better employment opportunities 43% Respondents could choose more than one reason from a choice of nine
LONDON
LONDON Why candidates are making a move
If employers want to retain staff they should look to improve their benefits package, offering more flexible working hours, as well as clearly promoting the opportunities to develop at the company using examples of individualâ&#x20AC;&#x2122;s career paths within the team.
TEMPORARY Talented professionals in the temporary and contract market want to keep moving their careers forward so seek senior roles that offer a number of development opportunities. If their current role has fulfilled this purpose, candidates will look elsewhere. Although contractorsâ&#x20AC;&#x2122; remuneration correlates with the amount of days/hours they work, work-life balance is still a very important factor for most when deciding between roles. Candidates are also increasingly seeking opportunities that facilitate exposure to commercial work and decision making processes. Being involved directly with the business is often cited as an attractive attribute in a role.
Employers should establish a clear succession plan before embarking on a search, so they have a clear plan of where roles have the potential to go within the company
If employers want to improve in these areas they should establish a clear succession plan before embarking on a search, so they have a clear plan of where roles have the potential to go within the company. On the temporary and contract side, hiring managers should try to identify skills or business exposure a candidate can add to their CV for their next role. The recruitment consultant you are dealing with will be best placed to advise and pre-empt what is important to each individual before you interview them.
MOVING ON Top 5 reasons for leaving last role
Career development 36% New challenge/more interesting work 36% Higher salary 27% End of contract 17% Redundancy 16% Respondents could choose up to three reasons
38% of respondents
anticipate changing roles in the next 12 months
COMMERCE & INDUSTRY
PERMANENT Work-life balance and a lack of career opportunities are the most common reasons for candidates looking for other roles, as well as the threat of redundancy.
LONDON
QUALIFIED Salaries & Benefits
COMMERCE & INDUSTRY
Spotlight on salaries PERMANENT Salaries and bonuses have remained largely static year on year and are likely to continue to do so for 2013. A 5% to 10% uplift in basic salaries has become the norm for individuals making an external move.
TEMPORARY Over the last five years, and especially in the past 12 months, there have not been any significant changes to salaries and bonuses in the temporary qualified market. However, certain skill sets in terms of systems, change management and regulatory exposure remain in demand and those with a track record of adding significant value in their previous roles are seeing as much as a 20% increase in their rates.
REMUNERATION When was your last pay review?
Satisfaction with current remuneration
76%
of respondents received a salary increase in their last pay review
6 to 12 months ago 40% More than 12 months ago 11% Not applicable 21%
40%
of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
Pe r
Pe r
ent an m
Less than 6 months ago 28%
ent an m
Pe r
Pe r
ent an m
ent an m
Pe r
t rac nt
ent an m
Pe r
Co ent an m
ent an m
Pe r
Satisfied 55%
Satisfied 54%
Neither satisfied nor dissatisfied 24%
Neither satisfied nor dissatisfied 26%
Dissatisfied 21%
Dissatisfied 20%
Qualified | Permanent Job title
Salary range 2013
Newly Qualified CA/ACMA/ACCA
£41,000-£50,000
£43,000-£50,000
Qualified | 1 year
£45,000-£55,000
£50,000-£55,000
Internal Auditor
£45,000-£60,000
£45,000-£60,000
Finance Manager
£45,000-£60,000
£55,000-£70,000
Qualified | 2 years
£50,000-£57,000
£55,000-£67,000
Group Accountant
£50,000-£65,000
£55,000-£65,000
Qualified | 3 years
£55,000-£65,000
£62,000-£68,000
Audit Manager
£55,000-£70,000
£60,000-£70,000
FP&A Manager
£55,000-£80,000
£60,000-£85,000
Commercial Finance Manager
£60,000-£80,000
£65,000-£90,000
Financial Controller
£60,000-£85,000
£65,000-£90,000
Finance Director
£85,000+
£90,000+
Chief Financial Officer
£150,000+
£150,000+
Qualified | Temporary
Daily/hourly rate 2012
2013
Newly Qualified CA/ACMA/ACCA
£25-£35 per hour
£25-£30 per hour
Qualified | 1 year
£30-£35 per hour
£30-£35 per hour
Internal Auditor
£30-£40 per hour
£30-£40 per hour
Finance Manager
£30-£40 per hour
£35-£40 per hour
Qualified | 2 years
£32-£38 per hour
£32-£38 per hour
FP&A Manager
£35-£45 per hour
£35-£45 per hour
Audit Manager
£35-£45 per hour
£35-£45 per hour
Group Accountant
£35-£45 per hour
£35-£45 per hour
Qualified | 3 years
£32-£38 per hour
£35-£45 per hour
Commercial Finance Manager
£350+ per day
£350+ per day
Financial Controller
£350+ per day
£350+ per day
Finance Director
£450+ per day
£500+ per day
Chief Financial Officer
£700+ per day
£800+ per day
COMMERCE & INDUSTRY
2012
Job title
LONDON
LONDON
LONDON
QUALIFIED Salaries & Benefits BENEFITS
COMMERCE & INDUSTRY
Attracting top talent THE INTERVIEWER IS ALSO THE INTERVIEWEE Interviews are a two-way process where the candidate also forms an opinion of your business and considers the opportunities put in front of them. Ensure you make the right impression! BE FLEXIBLE It is important to understand the factors that contribute to a candidateâ&#x20AC;&#x2122;s decision to join a business, and identify what they are for each candidate at the offer stage, whether it is development, work-life balance, benefits or remuneration. HAVE A SENSE OF URGENCY Move quickly if you like someone and run a flexible and streamlined recruitment process. EMPLOYER BRANDING You need to be able to sell the business as well as the role, so make sure your brand is worth talking about. In the interview process promote the working culture and use employee success stories. Externally, use social channels to provide candidates with positive and up-to-date exposure to your companyâ&#x20AC;&#x2122;s personality and vision.
Top 5 benefits currently received
Benefits considered most and least important when considering a new role
25 days holiday or more 85% Company pension scheme 76% Private healthcare 66% Annual bonus scheme 57% Insurance (PMI/ death in service/life insurance) 56% Respondents could select all benefits that applied
25 days holiday or more Annual bonus scheme Good company pension scheme Private healthcare Flexible working Leisure facilities Childcare vouchers Daily subsidised meals Season ticket loan Mortgage relief
66% 66% of respondents were satisfied with their benefits
Respondents rated a selection of 20 benefits in order of importance
BONUS Did you receive a bonus in 2012?
As a percentage of your basic salary, what was your bonus in 2012?
51%
1 to 9% of salary 38% 10 to 19% of salary 37%
51% of respondents were satisfied with their bonus 1 - 9% of salary
40%
Yes 52% No, not awarded one 14% No, not entitled to receive one 34%
of respondents received the same bonus in 2012 as they did in 2011
20 to 29% of salary 18% 30 to 39% of salary 3% 40 to 59% of salary 3% 60 to 100% of salary 0% More than 100% of salary 1%
ACKNOWLEDGEMENTS We would like to extend our appreciation to all those who completed this survey and made this market report possible. If you didnâ&#x20AC;&#x2122;t participate, please do so next year so we can continue to develop the depth and quality of this report and provide you with a fair and balanced picture. This report is only ever intended to give a very general overview on the changing nature and complexity of the employment market for accountancy, finance and advisory professionals and can serve as a useful guide. However, if you require a more tailored and confidential discussion on how this will affect your business, finance department or indeed your own career, please do not hesitate to get in touch.
Editor and Marketing: Kirsty Assistant Editor:
Promotion:
Kelly
Alex Voskou Alicja Skrakowski
Your future in finance and accountancy
gaapweb.com
DISCLAIMER This research was carried out by means of an electronic questionnaire and supplemented with data and market information that Marks Sattin has access to. The results are provided as generic market information only. Marks Sattin does not make any warranties regarding the use, validity, accuracy or reliability of the results and information obtained. Marks Sattin will not be liable for any damages of any kind arising out of or relating to use of this information. Commercial use and distribution of the contents of this document is not allowed without express and prior written consent of the author.
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