Market Insight 2013 North West
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
NORTH WEST
Key Findings
+44 161 638 8630 manchester.uk@markssattin.com
Paul Collier Regional Director
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
Salary freeze 35% Profitability of business 35% Recruitment freeze 33% Budget cuts 30%
More confident 25% As confident 48%
Greater focus on regulatory issues 30% Respondents could choose more than one answer from a choice of 14
NORTH WEST
Less confident 27%
JOB SECURITY
Only 25%
Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
of respondents feel more confident about the economic prospects facing their company compared with the last 12 months
58% 58%
58%
Salary freeze 30%
Secure 70%
58%
Redundancy 5%
Insecure 30%
Shorter working week 4%
58%
Salary reduction 1% 58%
Other 16% Respondents could choose more than one answer
NORTH WEST
HEADCOUNT How has the number of staff in your team changed in the past 12 months?
33%
of respondents selected business growth or expansion as the main reason for an increase in staff
33%
33%
33%
Remained the same 28% 33%
Decreased 26% Not sure 13%
Short term (0-6 months ahead) 32% Medium term (6-12 months ahead) 24% Long term (1-2 years) 14% Non-existent 3% Not sure 27%
33%
of respondents have seen an increase in the size of their team in the last 12 months
NORTH WEST
What is your employerâ&#x20AC;&#x2122;s recruitment strategy?
of respondents selected headcount reductions as the main reason for a decrease in staff
of respondents have more than 20 employees in their team
KEY FINDINGS Career Insight EXPERIENCE Length of time in the accountancy, finance or advisory profession
30%
70%
11-15 years
0 to 3 years 4% 4 to 6 years 15%
Less than 1 year 54%
7 to 10 years 19%
1 to 2 years 18%
11 to 15 years 26%
2 to 3 years 10%
16 to 20 years 5%
3 to 5 years 10%
21 to 25 years 10%
5 to 10 years 4%
More than 25 years 21%
NORTH WEST
Length in current role
<1
1-2
2-3 3-5 5-10 >10 years
More than 10 years 4%
54% of respondents have been in their
current role for less than a year
HOURS WORKED Average hours worked per week
How has the number of hours changed in the last 12 months?
67%
of respondents chose taking on more responsibility as the main reason for an increase in working hours
Increased 33% Remained the same 48% Decreased 19%
NORTH WEST RELOCATION
Improved quality of life
Top 5 reasons for respondents wanting to relocate
Improved quality of life 82% Different culture 54% New career opportunity 51%
is the main reason for respondents wanting to relocate
Improved salary 51% Better employment opportunities 36% Respondents could choose more than one reason from a choice of nine
Top 5 places respondents would consider relocating to in the next two years
USA 40% Canada 30%
u
ralia st A 51%
New Zealand 28%
u
u
ralia st A 51%
u
ralia st A 51%
ralia st A 51%
Mainland Europe 24%
40% of respondents would not relocate
u
ralia Respondents could choose more st A 51%one country from a choice of 14 than
NORTH WEST
MOVING ON Top 5 reasons for leaving last role
Career development 51% New challenge/more interesting work 39% Higher salary 21% Better work-life balance 16% Redundancy 14% Respondents could choose up to three reasons
38% of
respondents anticipate changing roles in the next 12 months
KEY FINDINGS Salaries & Benefits REMUNERATION When was your last pay review?
Less than 6 months ago 35% 6 to 12 months ago 34% More than 12 months ago 12%
69% of respondents
have had a pay review in the last 12 months
Not applicable 19%
NORTH WEST
37%
of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
70%
of respondents received a pay increase in their last pay review
Satisfaction with current remuneration
53% of
respondents are satisfied with their current remuneration Satisfied 53% Neither satisfied nor dissatisfied 26% Dissatisfied 21%
NORTH WEST BENEFITS Top 5 benefits currently received
25 days holiday or more 79% Company pension scheme 70% Insurance (PMI/ death in service/life insurance) 58% Private healthcare 51% Mobile phone/ Blackberry/PDA 51% Respondents could select all benefits that applied
25 days holiday or more is the most desired benefit
Benefits considered most and least important when considering a new role 25 days holiday or more Company pension scheme Annual bonus scheme Flexible working Mobile phone/ Blackberry/PDA Season ticket loan
56%
Sabbatical Daily subsidised meals Mortgage relief
Respondents rated a selection of 20 benefits in order of importance
BONUS Did you receive a bonus in 2012?
41%
56% 56% of respondents were satisfied with their bonus
of respondents received the same bonus in 2012 and 2011
As a percentage of your basic salary, what was your bonus in 2012? 1 to 9% of salary 40%
Yes 40% No, not entitled to receive one 46% No, not awarded one 14%
1-9% of salary
10 to 19% of salary 30% 20 to 29% of salary 23% 30 to 39% of salary 7% More than 40% of salary 0%
NORTH WEST
56% of respondents were satisfied with their benefits
Less than 25 days holiday
NORTH WEST
Commerce & Industry
+44 161 638 8634 manchester.uk@markssattin.com
Paul Hey Consultant 11
NORTH WEST
COMMERCE & INDUSTRY Market Insight The big trends of 2012
Outlook for 2013
For the first time in several years, we saw more commercial finance roles emerging within commerce and industry. Although the economy has by no means completely recovered, businesses have been showing positive signs that better days are ahead by recruiting for these roles, highlighting that they wont be left behind their competition.
Whilst many businesses have taken on part qualified personnel to train and move into more senior commercial finance positions over time, those who have not may be forced to recruit at a qualified level. Increased demand in this specialism is likely to drive the salaries of specialist business partners higher than we have seen in previous years.
Within commerce and industry, there has so far been limited movement of business from London to the North West. We expect this movement to increase as businesses notice the financial benefits their competitors are gaining from the move
Within commerce and industry, there has so far been limited movement of business from London to the North West. We expect this movement to increase as businesses notice the financial benefits their competitors are gaining from the move. This will lead to a migration of talent to the North West as well as a larger selection of opportunities. This will by no means be a rapid process but we would expect this to increase year on year for the foreseeable future.
Reactions to uncertain market conditions Employers have been reacting similarly to previous years, with caution. They want to be made aware of exceptional individuals who can add value to their existing finance functions, but human resources and other constraints are unfortunately hindering these preliminary signs of expansion. Encouragingly though, one of our larger clients has now finally reopened their doors after an 18 month recruitment freeze, and qualified recruitment is once more at the desired level due to decrease in graduate intake.
One of our larger clients has now finally reopened their doors after an 18 month recruitment freeze, and qualified recruitment is once more at the desired level
NORTH WEST Market growth With high street retailers contracting, online retailers have significantly increased in market size. Do not be surprised to see businesses that have recently ceased operation on the high street emerging in the e-commerce market in the coming years, as online domains are snapped up by competitors. Logistics operators continued to struggle in gaining a profitable output over a full year, as opposed to peaking during the Christmas rush. As consumers we have almost come to expect either low delivery charges or free delivery on online orders, which has forced down margins year on year and caused most online retailers to look at acquiring or setting up their own logistics functions.
Supply and demand
There has been an increase in the number of candidates looking to move from professional services into industry due to the lack of progression. As there aren’t enough opportunities available in industry to meet the number of candidates, professional services firms have been left with a surplus and have therefore been forced to make redundancies.
Taking the next step in your career QUESTION THE VALUE OF EACH OPPORTUNITY When considering a prospective role, always ask yourself where this opportunity will take you next. There may be certain boxes that you don’t want to tick as you try to reach your desired goals – but getting these out of the way is vital in gaining senior finance positions in a very competitive market. BE PATIENT AND WAIT IF NECESSARY Don’t jump at the first opportunity presented to you just because you want to leave your current role. Make an informed decision because moving for the wrong reasons can be detrimental to your own personal development.
There has been an increase in the number of candidates looking to move from professional services into industry due to the lack of progression
NORTH WEST
Business analyst roles are in demand within both commerce and industry and financial services, and as the market in the North West grows, there will be more demand for these value-add roles from businesses attempting to gain competitive advantage.
Do not be surprised to see businesses that have recently ceased operation on the high street emerging in the online market in the coming years, as online domains are snapped up by competitors
COMMERCE & INDUSTRY Market Insight Why candidates are making a move There will always be candidates looking for opportunities, but more candidates have been looking in recent years due to their roles ceasing to exist. Diverse skill sets are vital in a rapidly developing market, and if employees are averse to change, there may be limited opportunities for them within a growing organisation. Candidates need to keep their skills up-to-date, and potentially look into taking on an extra-curricular course in their own time.
NORTH WEST
Attracting top talent Candidates need to keep their skills up-to-date, and potentially look into taking on an extra-curricular course in their own time
HAVE A PLAN AND SHARE IT Provide a clear structure for candidates to progress internally when their development reaches certain criteria. BE TRANSPARENT Have a clear strategy and forecast in place that allows individuals to see how the business will progress and continue to grow over the course of their employment. Security is key for candidates. PROVIDE OPPORTUNITIES FOR DEVELOPMENT Offer employees exposure to ad hoc assignments where they can acquire new skills and develop on a professional and personal level.
Spotlight on salaries and bonuses Despite salary levels remaining static, the percentage of bonuses being paid in full has decreased. Retailers in particular have shifted towards bonuses based more on individual performance rather than company performance. This reward for personal success seems to be working well, with many retailers now making positive moves for 2013. The past three years have seen the demise of many wellknown high street brands, but individuals from here have not struggled to find employment as new retailers, particularly online businesses, have shown strong signs of growth.
Retailers in particular have shifted towards bonuses based more on individual performance rather than company performance
NORTH WEST Qualified Job title
Salary range
Hourly rate
2012
2013
2012
2013
Newly Qualified ACMA
£31,000-£35,000
£32,000-£36,000
£15-£18
£15-£18
Management Accountant
£32,000-£35,000
£33,000-£36,000
£16-£18
£16-£18
Newly Qualified CA
£33,000-£36,000
£34,000-£36,000
£16-£18
£16-£18
Business Analyst
£33,000-£37,000
£33,000-£37,000
£17-£19
£17-£19
Financial Analyst
£33,000-£37,000
£33,000-£37,000
£17-£19
£17-£19
Finance Manager
£38,000-£42,000
£38,000-£42,000
£19-£21
£19-£21
FP&A Manager
£48,000-£55,000
£48,000-£55,000
£24-£26
£24-£26
Financial Controller
£55,000-£65,000
£55,000-£65,000
£28-£32
£28-£32
Head of Finance
£65,000-£75,000
£65,000-£75,000
£33-£36
£33-£36
Finance Director
£80,000-£90,000
£80,000-£90,000
£44-£46
£44-£46
Chief Financial Officer
£95,000-£105,000
£95,000-£105,000
£48-£52
£48-£52
Job title
Salary range
Hourly rate
2012
2013
2012
2013
Purchase Ledger
£15,000-£17,000
£15,000-£17,000
£8-£10
£8-£10
Accounts Assistant
£19,000-£21,000
£19,000-£21,000
£9-£11
£9-£11
Credit Controller
£19,000-£21,000
£19,000-£21,000
£9-£11
£9-£11
Finance Analyst
£24,000-£26,000
£24,000-£26,000
£11-£13
£11-£13
Bookkeeper
£24,000-£26,000
£24,000-£26,000
£12-£14
£12-£14
Management Accountant
£25,000-£27,000
£25,000-£27,000
£12-£14
£12-£14
Financial Planning Analyst
£25,000-£27,000
£25,000-£27,000
£13-£15
£13-£15
Project Accountant
£25,000-£27,000
£25,000-£27,000
£14-£16
£14-£16
Business Analyst
£29,000-£31,000
£29,000-£31,000
£14-£16
£14-£16
NORTH WEST
Part Qualified
NORTH WEST
Executive
+44 161 638 8633 manchester.uk@markssattin.com
Phil Bainbridge Manager
EXECUTIVE Market Insight The big trends of 2012 In 2012 there was an increase in the amount of project based roles, not just senior interim appointments but also permanent opportunities, due to a shift in challenges for finance leadership roles. In a year full of continued uncertainty for many businesses, companies needed specific skills to match the challenges they were facing. Whether this was in the form of a finance director or a head of a technical reporting team, the need for project based working skills to meet constantly developing challenges was the same.
NORTH WEST
The North Westâ&#x20AC;&#x2122;s technology sector has faired well over the past 12 months
Reactions to uncertain market conditions Uncertain market conditions have been affecting different sectors in a variety of ways. Traditional North West sectors such as manufacturing have reacted with cost cutting measures. For many the crisis of the past four years has led to a permanent shift in their business models. Businesses have had to create growth by looking beyond their usual markets, whether that has been through new products, services or markets. The North Westâ&#x20AC;&#x2122;s technology sector has faired well over the past 12 months through exactly this type of expansion. Overall uncertainty has meant that investment in finance teams has remained cautious as it is governed by results rather than vice versa.
Outlook for 2013 It is expected there will be a continued need for finance directors having broader skills that include strong capitalraising activity. In addition to this, senior financial services candidates will continue to develop more specialised skills around investment and banking regulation. The key expression in this market is adaptability, and as such we expect an ongoing rise in contracting as both businesses and candidates look for more flexibility. Candidates will want to exploit and develop new skills and employers will need flexibility during uncertain times. The challenging outlook will continue to favour those who have proven experience in restructuring and cost reduction.
In 2012 there was an increase in the amount of project based roles, not just senior interim appointments but also permanent opportunities
NORTH WEST
Market growth The growth in the North West has been across a number of sectors, including online retail, online gambling, technology, middle and back office financial services, as well as media businesses. It is anticipated that these areas will grow further throughout the year.
The growth in the North West has been across a number of sectors, including online retail, online gambling, technology, middle and back office financial services, as well as media businesses
Supply and demand
The demand for more commercially oriented candidates has been increasing over the past three years but this has begun to ease slightly as supply has picked up.
There has been an increased demand for financial leadership roles within shared services – this is a long term trend that is accelerating as more businesses base themselves in the North for a lower cost model
Taking the next step in your career LOOK AT THE BUSINESS STRATEGY Find out what your prospective employer’s business strategy is for the next three to five years, and consider whether it is viable in all economic conditions. EVALUATE YOUR JOB PROSPECTS Consider whether prospective roles will help you meet your overall career objectives. For example, consider which roles will provide you with the leadership experience you require to become a CFO.
NORTH WEST
There has been an increased demand for financial leadership roles within shared services – this is a long term trend that is accelerating as more businesses base themselves in the North for a lower cost model.
EXECUTIVE Market Insight Why candidates are making a move Candidates are looking for a role that allows them to develop as an individual and helps them to reach their career goals. Moreover, they want a benefits package and salary that reflects their work performance. Therefore if their current role is not providing them with these things, they will look elsewhere.
NORTH WEST
Redundancies are also still commonplace in the North West and are forcing professionals to find a new role.
Candidates are looking for a role that allows them to develop as an individual and helps them to reach their career goals Attracting top talent DEVELOPMENT IS ESSENTIAL Make sure you have a clear career development plan for all your employees and outline them to candidates during the interview. IMPRESS In the interview process make sure you engage with the top talent, promoting all the benefits of working for the business – it’s not just interviewees that need to make a lasting impression.
In the interview process make sure you engage with the top talent, promoting all the benefits of working for the business – it’s not just interviewees that need to make a lasting impression
NORTH WEST Executive Job title
Salary range
Hourly rate
2012
2013
2012
2013
Financial Controller
£55,000-£65,000
£55,000-£65,000
£28-£32
£28-£32
Head of Finance
£65,000-£75,000
£65,000-£75,000
£33-£36
£33-£36
Finance Director
£80,000-£90,000
£80,000-£90,000
£44-£46
£44-£46
Chief Financial Officer
£95,000-£105,000
£95,000-£105,000
£48-£52
£48-£52
Spotlight on salaries and bonuses NORTH WEST
Salaries have not increased significantly, although there have been more bonus and long term incentive heavy packages, reflecting the increased need to reward value creation within a business. This shift is becoming increasingly present within a rising number of distressed businesses that have bonus structures based almost entirely on success. Professionals with international experience have attracted premium compensation packages due to businesses expanding and exploring overseas markets. The growing financial and shared services sectors in Manchester have seen some increase in salary levels. So far this has been modest but it is expected to accelerate in 2013.
Professionals with international experience have attracted premium compensation packages due to businesses expanding and exploring overseas markets
NORTH WEST
Financial Services
+44 161 638 8635 manchester.uk@markssattin.com
Shola Kolawole Consultant
FINANCIAL SERVICES Market Insight The big trends of 2012 The biggest trend was the continued decentralisation of back and middle office functions from London to the North West. In times of austerity, line managers became acutely aware that it was possible to attract the best talent in the North West without having to offer an inflated rate.
Outlook for 2013
NORTH WEST
As banks become increasingly regulated, we are likely to see an increase in the need for candidates with core technical expertise such as Solvency II. We would expect banks to address these challenges to ensure the financial states of their organisations remain stable.
As banks become increasingly regulated, we are likely to see an increase in the need for candidates with core technical expertise such as Solvency II
The biggest trend of 2012 was the continued decentralisation of back and middle office functions from London to the North West
Reactions to uncertain market conditions Employers have been recruiting technically experienced candidates who can adequately manage the reporting and preparation of accounts. This approach has enabled them to secure the stability of their finance teams. A number of key players in the market have been subject to legislation changes and as a result, many North West banks have recruited PMO managers to supplement this change. As banks continue to be acquired by competitors, we expect there to be a significant increase in demand for change managers who can guide business through a state of flux.
Employers have been recruiting technically experienced candidates who can adequately manage the reporting and preparation of accounts
NORTH WEST Skills in demand There was an increase in demand for back and middle office roles in the North West financial services industry. A number of the regionâ&#x20AC;&#x2122;s major banks have recruited systems analysts to strengthen their IT functions. Technical back office staff are key to offering vital support to colleagues in front office roles. Whilst these back office positions do not directly generate revenue for the business, they are fundamental to the success of the organisation â&#x20AC;&#x201C; which is why hiring managers have been keen to secure the best talent in the market. Businesses have also used the skills of contractors from the South.
There has been an increased demand for systems and market intelligence analysts in back offices as a number of financial services businesses have been subject to change projects. In addition to this, there has been an increase in finance business partners with specific knowledge to handle proposed acquisitions. Throughout the year we expect more financial services firms to be acquired by other organisations, benefitting the employment market for back/middle office staff who will be needed to handle increased client bases as a result of acquisitions.
There has been an increased demand for systems and market intelligence analysts in back offices as a number of financial services businesses have been subject to change projects
Taking the next step in your career RESEARCH THE DUTIES ASSOCIATED WITH A ROLE For each role you apply for, find out what the day to day responsibilities are to ensure they match your skill set and ambitions. Responsibilities of a finance job can differ depending on the structure of an organisation. CLEARLY DEMONSTRATE YOUR WORTH TO A BUSINESS Most employers are happy to offer you the progression you are looking for but in this current economic climate they need to be sure you will add value in return. BE REALISTIC WITH YOUR SALARY DEMANDS Over the past three years salary brackets have changed, so if you want to secure that dream role be careful not to price yourself out of an offer. Establish the right balance of what you are worth, and focus on the job opportunity itself, as well as the long term incentive plans.
NORTH WEST
Supply and demand
Most organisations attempted to steady the ship by recruiting technical specialists who could streamline the accounts process
FINANCIAL SERVICES Market Insight Why candidates are making a move
NORTH WEST
Personal and professional progression are key motivators for candidates wanting to move. In any role, professionals want to be adequately remunerated for what they do and progress through the ranks. Therefore it is essential employers provide a clear structure of how individuals can progress within their company, and set out clear contractual provisions to assure candidates are making the right move. This will ultimately benefit both parties as the employee will be more content about their career and feel integrated into the business, and it will also give the employer assurance that the new hire will add value.
Attracting top talent DEFINE A CLEAR PATH FOR PROGRESSION Most candidates cite personal and professional progression as a key motivator for moving elsewhere, so ensure you have career paths for each role clearly planned out. PROVIDE AN INSIGHT INTO THE CULTURE OF YOUR BUSINESS To attract the best talent you need to make sure your business model is appealing to potential employees. Candidates need to be made aware of future plans for the business at the interview stage, as many professionals are looking for long term moves as opposed to stop gaps. CLEARLY DEFINE THE STRUCTURE OF YOUR TEAM This will give a potential employee a firm awareness of where they could potentially fit in within your business.
Bonuses within financial services are of course a sensitive social topic and as such, businesses have taken a pragmatic approach as far as remuneration increases are concerned
Spotlight on salaries and bonuses Salaries have remained relatively constant, but we have recently seen a slight increase in bonuses as businesses seek to incentivise their staff. Bonuses within financial services are of course a sensitive social topic and as such, companies have taken a pragmatic approach as far as remuneration increases are concerned. Businesses often insert an attractive long term incentive plan into a contract as a way of offering financial gains to a candidate in the current marketplace.
NORTH WEST Qualified Job title
Salary range
Hourly rate
2012
2013
2012
2013
Newly Qualified | Not Big 4 trained
£32,000-£34,000
£32,000-£34,000
£15-£17
£15-£17
Newly Qualified | Big 4 trained
£33,000-£36,000
£33,000-£36,000
£16-£18
£16-£18
1-3 years’ PQE
£44,000-£46,000
£44,000-£46,000
£22-£24
£22-£24
3-5 years’ PQE
£54,000-£56,000
£54,000-£56,000
£25-£27
£25-£27
Newly Qualified
£32,000-£34,000
£32,000-£34,000
£16-£18
£16-£18
1-3 years’ PQE
£39,000-£41,000
£39,000-£41,000
£19-£21
£19-£21
3-5 years’ PQE
£44,000-£46,000
£44,000-£46,000
£21-£23
£21-£23
Financial Controller | 5-6 years’ PQE
£58,000-£62,000
£58,000-£62,000
£29-£31
£29-£31
Finance Director | 8-10 years’ PQE
£88,000-£92,000
£88,000-£92,000
£48-£52
£48-£52
ACA
ACCA/CIMA
Job title
Salary range
NORTH WEST
Part Qualified
Hourly rate
2012
2013
2012
2013
£17,000-£19,000
£17,000-£19,000
£8-£10
£8-£10
Foundation Stage | 0-2 years’
£20,000-£22,000
£20,000-£22,000
£9-£11
£9-£11
Intermediate Stage | 2-3 years’
£25,000-£27,000
£25,000-£27,000
£10-£14
£10-£14
Finalist Stage ACCA | 3-4 years’
£29,000-£31,000
£29,000-£31,000
£14-£16
£14-£16
Certificate Stage | 0-2 years’
£22,000-£24,000
£22,000-£24,000
£10-£12
£10-£12
Managerial Stage | 2-3 years’
£24,000-£26,000
£24,000-£26,000
£10-£12
£10-£12
Strategic/TOP CIMA | 3-4 years’
£26,000-£31,000
£26,000-£31,000
£12-£14
£12-£14
Graduate Up to 12 months
ACCA
ACMA
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.
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