Market Insights 2013 for the Finance Industry by Marks Sattin

Market Insight 2013 Financial Services

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.

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 isnâ&#x20AC;&#x2122;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 â&#x20AC;&#x201C; 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 arenâ&#x20AC;&#x2122;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

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

2012 2012

70%

of respondents felt secure in their current role % of respondents felt secure in their current role

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 weâ&#x20AC;&#x2122;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 yearâ&#x20AC;&#x2122;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%

11% 12%

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

10+

years

10+ years’ PQE 36%

10+

2-5

6-10

years

5 to 10 years’ PQE 18%

10+

years

10+ 2-5

6-10

2 to 5 years’ PQE 21%

years

2-5 10+

years

Newly qualified 9%

years

2-5

6-10

10+

years

6-10

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

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

Other

Unemployed

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

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%

1-2

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?

38 34

33 33 %

36% of respondents

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

KEY Importance

Vital

Very important

43 38

Quite important

% % 36

Not important 57

% 30

43 39

38 34

33 33 %

Source

50% 15

33 33 %

3% 30

39 3

% 30

Online job boards/ advertising 18

National press 38

36 2%

% %

% 10

% 39

% 22

38 34

33 33 %

% 15 %

33 33 %

4 2%3%

3 % 39

% % 33 33

Trade press

% %

38 34

Recruitment consultancies/ headhunters 9%

15 % 50 %

34 29

3% %

38 %

24%3%

22 %

3% 39

Social networking

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

ent an m

44% of permanent

Pe r

ent an m

respondents are satisfied with their current remuneration compared with

ent an m

53% of contract

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

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

Banking & Capital Markets

Alastair Paterson Manager

+44 20 7321 6107 financialservices.uk@markssattin.com

John Quach Manager

FINANCIAL SERVICES

LONDON

LONDON FINANCIAL SERVICES

BANKING & CAPITAL MARKETS Market Market Perspective Perspective The big trends of 2012 There was stronger demand across financial reporting and control. Most banks and capital market businesses responded to the market by investing heavily in compliance, controls and governance. Larger retail and investment banks moved towards temporary headcount, reflecting general market uncertainty and the need to provide critical mass around programmes related to structural or regulatory changes. Many candidates were also drawn from the permanent to the temporary market given the financial upside and opportunity to broaden their technical and commercial knowledge.

Last year we noticed that employers were committed to retaining the best talent within their respective organisations and this will no doubt continue in 2013

Outlook for 2013 Banks will continue to scrutinise recruitment needs and costs throughout 2013. Vacancies will be offered initially to current employees through internal redeployment and when they are offered to external candidates, competition will be as fierce as 2012. Last year we noticed that employers were committed to retaining the best talent within their respective organisations and this will no doubt continue in 2013. Itâ&#x20AC;&#x2122;s likely that 2013 will remain static in terms of overall growth, albeit with a likely increase in permanent headcount sign off. Several larger organisations are held together in some sections of finance and middle office by a large temporary employee pool, due to sign off challenges in 2012. Although the banking and capital markets sector is still somewhat fragile, many employers have entered the new year with a more positive and upbeat attitude and commitment to pushing through with recruitment plans. We predict a strong demand across the SME banking market and particularly within corporate banking and retail financial services companies.

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

Recruitment freeze 45% Salary freeze 43% Budget cuts 42% Greater focus on regulatory issues 39% Business process/policy change 38%

More confident 19% Respondents could choose more than one answer from a choice of 14

As confident 57% Less confident 24%

How would you rate your current job security?

Expectations for personal salary and job security in the next 12 months

Uncertain market conditions are to a certain extent becoming the norm in financial services. As we slowly see sections of the banking sector emerge post-financial crisis, we are certain that many will avoid large scale recruitment drives and instead look to upskill existing teams. Individuals who have demonstrated continual career advancement over the past three to five years will be looked at favourably as many career trajectories have slowed due to fewer opportunities. Candidates who are able to demonstrate a clear track record of success will be in demand in 2013.

Secure 65% Insecure 35%

Salary freeze 30% Redundancy 5% Salary reduction 1%

Over the past 12 months we have seen a major push towards utilising internal recruitment teams, for example RPOs, to fill any outstanding vacancies. Although this is likely to continue for more BAU roles, there will be a strong need to utilise external resources to fill more specialist and senior vacancies.

Shorter working week 1% 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?

67%

of respondents selected business growth or expansion as the main reason for an increase in staff

What is your employerâ&#x20AC;&#x2122;s recruitment strategy?

Medium term (6-12 months ahead) 16%

Remained the same 30%

Long term (1-2 years) 17%

Increased 29% Not sure 4%

Short term (0-6 months ahead) 34%

of respondents selected headcount reductions as the main reason for a decrease in staff

Non-existent 11% Not sure 22%

FINANCIAL SERVICES

Reactions to uncertain market conditions

JOB SECURITY

LONDON

Supply and demand Accountants will always be in demand; however the volume of roles and specific requirements makes it a challenging environment for candidates in the current market. Financial control is where we have seen the biggest demand, especially those who have demonstrable experience of balance sheet substantiation. Likewise, candidates who are currently involved in BAU projects have seen their stock rise as the banks undertake less radical change programmes, favouring process re-engineering or continuous improvement over group wide transformation. As the investment banks have scaled down or offshored a lot of their product control functions over the past three years, we have received mixed messages as to when or even if this will return to the levels seen previously. When speaking to a number of candidates and clients within product control, the areas likely to see an increase in demand will be treasury or commodities. Commercial financial business partners who have both cost and revenue experience will be in demand. Tying in with this, we have seen an increase in roles focused on business performance. The ability to create a story based on results is a hard skill to master, however banks are keen to have a more granular view of their divisional performance on a more frequent basis.

EXPERIENCE Length of time in the accountancy, finance or advisory profession

Length in current role

70% 30%

LONDON FINANCIAL SERVICES

BANKING & CAPITAL MARKETS Career Insight

7 - 10 years

0 to 3 years 13%

1-2

2-3 3-5 5-10 >10 years

4 to 6 years 23%

Less than 1 year 45%

7 to 10 years 24%

1 to 2 years 21%

11 to 15 years 23%

2 to 3 years 21%

16 to 20 years 6%

3 to 5 years 7%

21 to 25 years 5%

5 to 10 years 5%

More than 25 years 6%

More than 10 years 1%

HOURS WORKED

Market growth

Average hours worked per week

FINREP covers consolidated and sub-consolidated financial reporting for supervisory purposes based on IAS/IFRS as endorsed by the European Union. Whilst many of our clients have acknowledged they will try and cover the workload internally, with the new set of data requirements, greater transparency within the data, new reporting templates and language combined with the increased time and frequency of reporting, we anticipate a demand for contractors to help adopt this new regulation.

52% 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 39% Remained the same 52% Decreased 9%

With the Banking Reform Bill being introduced into the House of Commons in February, it will be interesting to see how the banks cope with separating their every day banking activities from more volatile investment banking trades. The government is proposing strict measures to electrify the ring fences and this will undoubtedly place a greater emphasis on governance, audit and regulatory hiring. These areas have been in high demand particularly over the past three years and there appears to be no slow down in candidates who have these specialist skills.

Why candidates are making a move

Top 5 places respondents would consider relocating to in the next two years

Top 5 reasons for respondents wanting to relocate

Candidates are looking for more than just a higher salary, and are seeking an employer that will offer an opportunity for career progression, as well as an attractive benefits package. We are finding that candidates are actually moving to lower paid roles if the positions present more opportunities â&#x20AC;&#x201C; something employers are taking notice of and restructuring their benefits packages accordingly to attract top tier talent.

Australia 36%

Improved quality of life 61%

Hong Kong 34%

Better employment opportunities 55%

The flexibility to work one day a week from home seems to be a more common option in the workplace, and a very attractive one to candidates.

Mainland Europe 31% Within the UK 27% Respondents could choose more than one country from a choice of 14

Improved salary 53% New career opportunities 52% Different culture 46% Respondents could choose more than one reason from a choice of nine

21% of respondents would not relocate MOVING ON Top 5 reasons for leaving last role

Career development 38% Higher salary 33% New challenge/more interesting work 28% End of contract 18% Better work-life balance 13% Respondents could choose up to three reasons

37% of respondents anticipate changing roles in the next 12 months

Taking the next step in your career STAND OUT FROM THE CROWD A CV is your first opportunity to sell yourself, so it is essential your experience, skills and achievements are highlighted clearly and concisely. BE PREPARED AND INTERESTED For any interview, preparation is paramount. Make sure you know what is on your CV and that you have researched the company in detail. Showing a real interest in your prospective employerâ&#x20AC;&#x2122;s business will make a positive impression on your interviewer.

FINANCIAL SERVICES

RELOCATION

LONDON

LONDON FINANCIAL SERVICES

BANKING & CAPITAL MARKETS Salaries & Benefits Spotlight on salaries and bonuses Salaries have remained relatively flat and bonuses are expected to be roughly on a par with 2012 levels. A notable observation has been people’s perception of bonuses and the way these are viewed as part of total compensation. Expectations are certainly lower than they were and the general consensus is that most banks are paying out some form of bonus and the grass is not necessarily greener.

REMUNERATION

When was your last pay review?

Satisfaction with current remuneration

Pe r

6 to 12 months ago 41%

t rac nt

ent an m

Less than 6 months ago 24%

ent an m

Pe r

ent an m

Pe r

More than 12 months ago 14%

ent an m

Pe r

ent an m

Pe r

Not applicable 21%

64%

of respondents received a salary increase in their last pay review

27%

Satisfied 35%

Satisfied 46%

Neither satisfied nor dissatisfied 29%

Neither satisfied nor dissatisfied 31%

Dissatisfied 36%

Dissatisfied 23%

of respondents perceive a 16 to 20% salary increase as acceptable if they were to move roles

Core Finance | ACA Job title

ent an m

Pe r

ent an m

Pe r

Salary range

Hourly rate

2012

2013

2012

2013

Accounts Assistant

£22,000-£28,000

£12-£17

ACCA/CIMA Fundamental/ Operations

£24,000-£30,000

£13-£17

ACCA/CIMA Managerial/ Professional

£30,000-£35,000

£15-£22

ACCA/CIMA Finalist/Strategic

£35,000-£42,000

£17-£24

Job title

Salary range

Daily rate

2012

2013

2012

2013

Newly Qualified (non Big 4)

£40,000-£45,000

£40,000-£48,000

£225-£275

Newly Qualified (Big 4)

£45,000-£50,000

£45,000-£55,000

£250-£275

1-3 years’ PQE

£50,000-£60,000

£275-£350

3-5 years’ PQE

£60,000-£70,000

£350-£400

5-8 years’ PQE

£75,000-£85,000

£400-£550

£85,000-£100,000+

£550-£750

8-10 years’+ PQE

Core Finance | ACCA/ACMA Job title

Salary range

Daily rate

2012

2013

2012

2013

Newly Qualified

£40,000-£45,000

£225-£275

£250-£300

1-3 years’ PQE

£45,000-£52,000

£275-£350

3-5 years’ PQE

£55,000-£65,000

£350-£400

5-8 years’ PQE

£70,000-£80,000

£400-£550

£80,000-£100,000+

£550-£750

8-10 years’+ PQE

Product Control Job title

Salary range

Daily rate

2012

2013

2012

2013

Newly Qualified

£45,000-£55,000

£50,000-£60,000

£250-£275

Manager (Assistant Vice President or equivalent)

£65,000-£75,000

£60,000-£75,000

£400-£450

Senior Manager (Vice President or equivalent)

£75,000-£100,000

£450-£600

£90,000-£120,000+

£600-£800

Head of Product Control

Regulatory Reporting Job title

Salary range

Daily rate

2012

2013

2012

2013

Newly Qualified

£45,000-£50,000

£250-£275

Senior Accountant

£50,000-£60,000

£275-£400

Manager (Assistant Vice President or equivalent)

£60,000-£70,000

£400-£450

Senior Manager (Vice President or equivalent)

£70,000-£80,000

£450-£550

£80,000-£100,000+

£550-£750

Head of Regulatory Reporting

FINANCIAL SERVICES

Core Finance | ACA

LONDON

LONDON FINANCIAL SERVICES

BANKING & CAPITAL MARKETS Salaries & Benefits BENEFITS

Attracting top talent INTERVIEW REPUTATION IS KEY As competition to secure the best talent continues to increase, employers need to place more emphasis on the interview experience. Making sure a candidate receives detailed feedback is imperative to an employer’s reputation. It is also essential that in an interview, the interviewer shows a genuine enthusiasm so the candidate doesn’t feel like they are just part of a process. BE TRANSPARENT In the interview process you need to be clear with prospective employees about the company’s vision as well as their potential role in the business, to effectively sell the job opportunity.

Top 5 benefits currently received

25 days holiday or more 37% Annual bonus scheme 33% Private healthcare 27%

Benefits considered most and least important when considering a new role

25 days holiday or more Annual bonus scheme Private healthcare Discretionary bonus scheme Good company pension scheme

Discretionary bonus scheme 27%

Daily subsidised meals

Company pension scheme 20%

Season ticket loan

Respondents could select all benefits that applied

Sabbatical Car or car allowance Childcare vouchers

55% of respondents were satisfied with their benefits

Respondents rated a selection of 20 benefits in order of importance

BONUS As a percentage of your basic salary, what was your bonus in 2012?

Did you receive a bonus in 2012?

45% of respondents were dissatisfied with their bonus

38%

Yes 52% No, not awarded one 13% No, not entitled to receive one 35%

of respondents received the same amount of bonus in 2012 and 2011

1 to 9% of salary 33% 10 to 19% of salary 26% 20 to 29% of salary 13%

1 - 9% of salary

30 to 39% of salary 5% 40 to 49% of salary 6% 50 to 99% of salary 11% More than 100% of salary 6%

Change Management

Matthew Wilcox Director

+44 20 7747 9730 financialservices.uk@markssattin.com

Callum Small Senior Consultant

FINANCIAL SERVICES

LONDON

LONDON FINANCIAL SERVICES

CHANGE MANAGEMENT Market Perspective The big trends of 2012

Outlook for 2013

Over the last couple of years, there has been a reorganisation of numerous large scale projects within banking, spanning finance, risk and regulatory. Throughout 2012, many companies reassessed their priorities resulting in structural changes, cost management initiatives and increased hiring into specific projects. There was a steady demand for regulatory and risk projects, though not quite reaching the recruitment levels of a few years ago when many of these projects were initiated.

2013 has seen a rise in recruitment following a quiet end to 2012. New budgets and resource plans have resulted in managers being able to achieve quicker sign off on roles.

Managers continued to strengthen teams with high calibre contractors if the desired skills and experience criteria were met, internally or externally. Specific areas in demand were similar to 2011 â&#x20AC;&#x201C; liquidity, Basel III, Dodd-Frank, COREP, IFRS, anti-money laundering and FATCA (Foreign Accounts Tax Compliance Act). In addition to those areas, there was a marked increase in Lean teams across the wider financial services sector, as organisations were looking to improve the efficiency of processes. People with prior experience on Lean projects, and those with Six-Sigma certifications will have seen an increase in relevant opportunities.

The demand on risk and regulatory projects continues, with new government legislation either already released or pending. One specific regulatory area which will expand is financial reporting (FINREP), part of the CRD4 requirement for a standardised EU-wide framework for reporting. Aiming to implement this by January 2014, banks and investment firms are already beginning to build dedicated project teams for new financial reporting processes. Customer-focused projects within commercial banking have been another growth area for some clients, as banks aim to improve their service and address previous mis-selling. Companies will continue to fill roles internally and make the most of their contractors, reallocating resources to new projects where possible. Certain banks have large scale programmes drawing to a close and candidates have successfully moved onto new projects. This will continue for certain roles, as managers are placing as much importance on understanding internal processes, structures and systems as they are specialist knowledge. Some niche areas across finance, risk and regulatory require specialist knowledge from external candidates, as these roles are less likely to be sourced internally.

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 58%

Budget cuts 53% Business process/ policy change 42%

More confident 21% As confident 49% Less confident 30%

Job cuts 39% Greater focus on regulatory issues 33%

Respondents could choose more than one answer from a choice of 14

How would you rate your current job security?

Expectations for personal salary and job security in the next 12 months

Market conditions have made the recruitment process more complicated as organisations have been encouraging hiring managers to recruit internally before going out to market. When recruiting externally, getting sign off for roles has become more difficult and the interview process more prolonged. Overall there have been fewer roles in the market and a slightly more drawn-out process. Process aside, employers have in some cases utilised the uncertain conditions to acquire new staff. A key factor for contractors that might not have been the case a few years ago is longevity of the role. If an employer can offer stability, particularly the case with projects that have deadlines set by government or external bodies, then this can prove highly attractive to candidates in the current market. We are however seeing three month contracts becoming the norm across many large banks as achieving sign off for longer contracts is proving difficult.

Secure 53% Insecure 47%

Salary increase 37% Redundancy 9% Salary reduction 3% Shorter working week 3% Other 10% Respondents could choose more than one answer

HEADCOUNT How has the number of staff in your team changed in the past 12 months?

54%

of respondents selected business growth or expansion as the main reason for an increase in staff

What is your employerâ&#x20AC;&#x2122;s recruitment strategy?

Short term (0-6 months ahead) 43% Medium term (6-12 months ahead) 13%

Remained the same 24%

Long term (1-2 years) 9%

Increased 24% Not sure 8%

66%

of respondents have more than 20 employees in their team

of respondents selected headcount reductions as the main reason for a decrease in staff

Non-existent 9% Not sure 26%

FINANCIAL SERVICES

Reactions to uncertain market conditions

JOB SECURITY

LONDON

LONDON FINANCIAL SERVICES

CHANGE MANAGEMENT Career Insight EXPERIENCE

Supply and demand Cost reduction is still a top priority for organisations across the industry, resulting in high demand for project management offices to track /budget and support project managers.

Length in current role

57% >20 years

There has been an increased demand for market intelligence business analysts and project managers, as senior management rely on their data to make informed decisions.

Length of time in the accountancy, finance or advisory profession

Regulatory reform and new regulatory rules continue to reshape the banking landscape, prompting organisations to change systems and processes across their organisation. 0 to 3 years 4%

Demand for business analysts with systems skills continues to rise, while strong process business analysts will also have several options as businesses look to secure their services. New legislation around the clearing process for OTC derivatives has resulted in the initiation of a number of large scale programmes; hence the demand for SMEs and project resource with Dodd-Frank experience has grown significantly.

1-2

2-3 3-5 5-10 >10 years

4 to 6 years 14%

Less than 1 year 46%

7 to 10 years 16%

1 to 2 years 19%

11 to 15 years 22%

2 to 3 years 12%

16 to 20 years 10%

3 to 5 years 8%

More than 20 years 31%

5 to 10 years 10%

Not applicable 3%

More than 10 years 5%

HOURS WORKED Average hours worked per week

How has the number of hours changed in the last 12 months?

Market growth Naturally the areas of growth predominately lie within areas where mandatory work has to be addressed, anti-money laundering, product mis-selling, risk systems, Basel III, liquidity and tax projects have all seen rates rise along with demand.

63%

of respondents chose taking on more responsibility as the main reason for the increase in working hours

Increased 28% Remained the same 58% Decreased 14%

Other areas where bank activity has been slowing, for example equities, have not seen the same results. With hiring managers initially tasked to search internally, the increase in vacancies hasnâ&#x20AC;&#x2122;t always translated to an increase in available roles for external candidates.

Taking the next step in your career

Top 5 places respondents would consider relocating to in the next two years

Top 5 reasons for respondents wanting to relocate

GET UP TO SPEED WITH TECHNOLOGY More organisations are combining their change teams so they are more blended in terms of skill sets. As most change projects are reliant on technology, make sure you are up to speed and technically able with as many major systems as you can be. GET AS MUCH EXPOSURE TO REGULATORY AS POSSIBLE If you havenâ&#x20AC;&#x2122;t worked within regulatory before, it is an obvious place where you can enjoy a more buoyant market place if job security is important to you. Gain exposure to regulatory projects or look to try and move internally once you are in an organisation.

Australia 26% Singapore 26%

Improved quality of life 60%

Mainland Europe 24%

New career opportunity 60%

Hong Kong 23%

TRY OUT CONTRACTING If you are permanent within the change market you are probably experiencing a more static job market, but going contracting can open up a variety of other options not previously available to you. It comes with obvious risks surrounding job security, but handing in your notice and going contracting could broaden your skill set and career opportunities.

Respondents could choose more than one country from a choice of 14

Higher salary 30% Career development 28% End of contract 25% New challenge/more interesting work 22% Redundancy 17% Respondents could choose up to three reasons

Improved salary 57% Better employment opportunities 43% Respondents could choose more than one reason from a choice of nine

42% of respondents would not relocate

MOVING ON Top 5 reasons for leaving last role

Different culture 60%

46%

of respondents anticipate changing roles in the next 12 months

FINANCIAL SERVICES

RELOCATION

LONDON

LONDON FINANCIAL SERVICES

CHANGE MANAGEMENT Salaries & Benefits Spotlight on salaries For the most part salaries have remained similar to the previous year. Some organisations implemented cost cutting initiatives at the end of 2011 that resulted in a 10% to 15% rate reduction for some people. Rates in some areas such as product control change, where demand hasnâ&#x20AC;&#x2122;t been as high, are still operating closer to these reduced rates. For areas where demand is higher such as credit risk and regulatory change, rates have maintained at their previous levels. Salaries during 2012 varied depending on the organisations; some employers have strict rate cards in place whilst others can be flexible depending on the experience of the individual.

For the most part salaries have remained similar to the previous year

REMUNERATION When was your last pay review?

Satisfaction with current remuneration

2012

More than 12 months ago 21% Not applicable 18%

26%

of respondents perceive a 6 to 10% salary increase as acceptable if they were to move roles and a further perceive a 16 to 20% increase to be acceptable

Pe r

ent an m

6 to12 months ago 32%

Pe r

ent an m

Less than 6 months ago 29%

Pe r

ent an m

of respondentsâ&#x20AC;&#x2122; pay remained the same in their last pay review

Pe r

ent an m

48%

ent an m

Pe r

ent an m

Pe r

t rac nt

2011

ent an m

Pe r

Satisfied 42%

Satisfied 50%

Neither satisfied nor dissatisfied 24%

Neither satisfied nor dissatisfied 23%

Dissatisfied 34%

Dissatisfied 27%

Job title

Salary range 2012

2013

Assistant Vice President

£55,000-£65,000

Senior Assistant Vice President

£65,000-£75,000

Vice President

£75,000-£90,000

Senior Vice President

£90,000-£110,000

Director

£110,000-£160,000

Project & Change Management | Contract Job title

Daily rate 2012

2013

Business Analyst

£400-£500

Senior Business Analyst

£500-£700

£500-£600

Project Manager

£550-£800

£500-£750

Programme Manager

£700-£1000

£700-£900

Programme Director

£1000+

£800-£1100

For areas where demand is higher such as credit risk and regulatory change, rates have maintained at their previous levels

FINANCIAL SERVICES

Project & Change Management | Permanent

LONDON

LONDON FINANCIAL SERVICES

CHANGE MANAGEMENT Salaries & Benefits BENEFITS Top 5 benefits currently received?

Attracting top talent VALUE ALL EMPLOYEES EQUALLY Change contractors need to be treated as a valuable resource. Organisations should make sure they make their contract population feel just as valued as permanent employees, especially within change management as predominantly these professionals are contractors. KEEP YOUR REPUTATION INTACT Many contractors are well networked and word of mouth can spread quickly about an organisation and a particular project. Some projects get a bad reputation and lose out on top candidates. HAVE A CLEAR AND QUICK INTERVIEW PROCESS Donâ&#x20AC;&#x2122;t give high calibre professionals the time to take up other opportunities.

Benefits considered most and least important when considering a new role

25 days holiday or more 76% Company pension scheme 63% Flexible working 49% Private healthcare 46% Insurance (PMI/death in service/life insurance) 41% Respondents could select all benefits that applied

25 days holiday or more Annual bonus scheme Flexible working Good company pension scheme Private healthcare Car or car allowance Mortgage relief Season ticket loan Daily subsidised meals Childcare vouchers

44% of respondents were satisfied with their benefits

Respondents rated a selection of 20 benefits in order of importance

BONUS As a percentage of your basic salary, what was your bonus in 2012?

Did you receive a bonus in 2012?

53% of respondents were satisfied with their bonus

53%

Yes 31% No, not awarded one 11% No, not entitled to receive one 58%

of respondents received the same bonus in 2012 as 2011

1 - 9% of salary

1 to 9% of salary 37% 10 to 19% of salary 32% 20 to 29% of salary 5% 30 to 39% of salary 21% 40 to 49% of salary 5% More than 50% of salary 0%

Front Office

+44 20 7850 7452 financialservices.uk@markssattin.com

Harry Fox Consultant

FINANCIAL SERVICES

LONDON

LONDON FINANCIAL SERVICES

FRONT OFFICE Market Perspective The big trends of 2012 During the first quarter of 2012, there was reasonable demand across mergers and acquisitions (M&A), especially within technology, media, telecommunications and consumer markets. Since mid-2012, the market has been static and flat, partly due to uncertainty and the continuing eurozone crisis. Firms have made hires but only if they can attract those sought after professionals who are able to add immediate value to the bottom line.

The investment banking world is still very much in a hiring freeze and job trimming state of mind and is likely to continue cutting jobs for at least the next 12 to 18 months

Outlook for 2013 The first half of 2013 is likely to see a demand for analysts and associates across boutiques, small to medium-sized banks and capital markets firms. The investment banking world is still very much in a hiring freeze and job trimming state of mind and is likely to continue cutting jobs for at least the next 12 to 18 months. We have already seen mergers and acquisitions pick up in 2013, especially in the USA. With strong activity data and confidence within large consumers, M&A is driving in a direction not seen since 2005. The increase from last year is 122%, with a total value of $159.5 billion. Europe will see a moderate upsurge, which we expect to have an impact on the London market in quarter two of 2013.

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 43% Recruitment freeze 40% Business process/policy change 40% Greater focus on regulatory issues 30% Salary increases 28%

More confident 28%

Profitability of business 28% Respondents could choose more than one answer from a choice of 14

As confident 48% Less confident 24%

Demand for exceptional professionals remains at the top of the agenda and the bar is as high as ever. With a large supply of jobseekers in the market, employers have been able to hold out to hire the best of the bunch. Across most boutiques and small to medium-sized firms, there has been increasing pressure to source people directly and tap into personal networks when a clear and definitive need arises. In common with other sectors and industries, processes have been slow and elongated but with a noticeable decrease in speculative meetings compared with the previous few years.

How would you rate your current job security?

Secure 71% Insecure 29%

Expectations for personal salary and job security in the next 12 months

Salary freeze 36% Redundancy 5% Shorter working week 2% Salary reduction 0% Other 3% Respondents could choose more than one answer

HEADCOUNT How has the number of staff in your team changed in the past 12 months?

64%

of respondents selected business growth or expansion as the main reason for an increase in staff

What is your employerâ&#x20AC;&#x2122;s recruitment strategy?

Not sure 5%

Short term (0-6 months ahead) 27% Medium term (6-12 months ahead) 19%

Decreased 35% Remained the same 17%

35%

of respondents have more than 20 employees in their team

Long term (1-2 years) 21% of respondents selected headcount reductions as the main reason for a decrease in staff

Non-existent 6% Not sure 27%

FINANCIAL SERVICES

Reactions to uncertain market conditions

JOB SECURITY

LONDON

EXPERIENCE Skills in demand Most of the front office hiring activity is still within small boutique and independent investment banks as opposed to the larger bulge brackets. Professionals with full endto-end deal experience are currently most in demand. Employers are more likely to meet and hire people who have completed a full deal and have the experience of seeing a transaction through from start to finish. The market is in need of a huge injection of confidence and positivity but fundamentally growth will be led by the larger bulge brackets which are still a year away from being in a hiring position again.

Length of time in the accountancy, finance or advisory profession

Length in current role

75% 25%

LONDON FINANCIAL SERVICES

FRONT OFFICE Career Insight

7-10 years

0 to 3 years 14%

1-2

2-3 3-5 5-10 >10 years

4 to 6 years 28%

Less than 1 year 31%

7 to 10 years 29%

1 to 2 years 27%

11 to 15 years 17%

2 to 3 years 24%

16 to 20 years 3%

3 to 5 years 9%

More than 20 years 6%

5 to 10 years 9%

Not applicable 3%

More than 10 years 0%

HOURS WORKED Average hours worked per week

How has the number of hours changed in the last 12 months

Supply and demand

50%

of respondents chose taking on more responsibility as the main reason for the increase in working hours

Increased 36% Remained the same 55% Decreased 9%

As you would expect, there is a huge demand for analysts and associates in the oil, gas, mining and resources market. Strong financial institutions groups (FIG) professionals will still continue to be sought after. The bulk of demand is for those people able to hit the ground running and immediately bring in networks and deals.

Taking the next step in your career BE COMMERCIALLY PREPARED Conduct plenty of research before an interview and be able to talk about recent deals and how the market might be affecting that particular company. Showing you are completely immersed in your markets helps display your commercial acumen and will increase the likelihood of progressing to the next stage. KNOW YOUR RECRUITER When dealing with recruitment firms, keep the number of agencies you are working with down to a minimum. Ensure you understand their processes and practices so that your details are kept confidential and are not sent anywhere without your permission. STICK TO WHAT YOU WANT Be clear about what you want from your next move and stick to your guns. There are roles out there but donâ&#x20AC;&#x2122;t take something for the sake of it.

Top 5 places respondents would consider relocating to in the next two years

Within the UK 36%

Top 5 reasons for respondents wanting to relocate

Improved quality of life 71% Improved salary 61%

Hong Kong 34% Singapore 29%

New career opportunity 53%

Mainland Europe 27%

Better employment opportunities 53% Different culture 49%

Australia 27% Respondents could choose more than one country from a choice of 14

Respondents could choose more than one reason from a choice of nine

24% of respondents would not relocate MOVING ON Top 5 reasons for leaving last role

New challenge/more interesting work 40% Career development 37% Higher salary 31% Better work-life balance 15% Better bonus potential 14% Respondents could choose up to three reasons

31% of respondents anticipate changing roles in the next 12 months

Why candidates are making a move Most candidates want to move to gain better end-to-end deal experience. Many front office professionals would prefer to work in teams where they can develop their client facing skills alongside better originators and deal winners. Smaller organisations can take advantage of the lack of deal exposure in larger institutions by offering roles that give greater exposure to a transaction.

FINANCIAL SERVICES

RELOCATION

LONDON

LONDON FINANCIAL SERVICES

FRONT OFFICE Salaries & Benefits

Spotlight on salaries and bonuses Over the past 12 months salaries have remained static, but bonus payouts and expectations have been at an all-time low, creating a market of two contrasting halves: one half who feel under-compensated and another half who want to sit tight and wait out the storm. As with other industries and sectors, top tier professionals will continue to command a premium and will only move for exceptional opportunities.

REMUNERATION When was your last pay review?

Satisfaction with current remuneration

ent an m

t rac nt

Pe r

ent an m

Pe r

ent an m

Pe r

of respondents received a pay increase in their last pay review

6 to 12 months ago 42% More than 12 months ago 10% Not applicable 17%

25%

of respondents perceive a 16 to 20% salary increase as acceptable if they were to move roles

Pe r

ent an m

67%

ent an m

Less than 6 months ago 31%

Pe r

ent an m

Pe r

Satisfied 34%

Satisfied 100%

Neither satisfied nor dissatisfied 32%

Neither satisfied nor dissatisfied 0%

Dissatisfied 34%

Dissatisfied 0%

LONDON

FINANCIAL SERVICES

Front Office Job title

2012

2013

Salary range

Average bonus

Salary range

Average bonus

Intern/Junior Analyst

£30,000-£40,000

Nominal

£30,000-£40,000

Nominal

Executive/Analyst

£45,000-£60,000

10-30%

£45,000-£60,000

10-30%

Manager/Associate

£60,000-£80,000

20-40%

£60,000-£80,000

20-40%

Associate Director/Vice President

£80,000-£120,000

30-60%

£80,000-£120,000

30-60%

£120,000-£170,000+

60-100%+

£120,000-£170,000+

60-100%+

Director

Over the past 12 months salaries have remained static, but bonus payouts and expectations have been at an all-time low, creating a market of two contrasting halves

LONDON FINANCIAL SERVICES

FRONT OFFICE Salaries & Benefits BENEFITS Top 5 benefits currently received

Attracting top talent RUN A CONCISE AND EFFICIENT RECRUITMENT PROCESS Invest time into planning the interview schedule and make sure all stakeholders are bought into the hire, agreeing the roleâ&#x20AC;&#x2122;s key selling points. Jobseekers are continually put off by organisations that send inconsistent and incoherent messages. Several offers were turned down by candidates last year due to long and drawn-out hiring processes where the message became distorted and unclear. CONSOLIDATE INTERVIEWS INTO AS FEW MEETINGS AS POSSIBLE The best candidates will always be in demand and the sooner you complete your hiring process the better chance you stand of beating off the competition. BE CLEAR ABOUT WHAT YOUR PROPOSITION IS TO CANDIDATES Many people still believe having a role and intention to hire is enough, but it isnâ&#x20AC;&#x2122;t. Know what a career at your company looks like including the benefits and opportunities, and clearly communicate this at the interview.

25 days holiday or more 75% Company pension scheme 53% Mobile phone/ Blackberry/PDA 51% Annual bonus scheme 51% Insurance (PMI/ death in service/life insurance) 44% Respondents could select all benefits that applied

Benefits considered most and least important when considering a new role

25 days holiday or more Discretionary bonus scheme Annual bonus scheme Mobile phone/ Blackberry/PDA Private healthcare Mortgage relief Car or car allowance Season ticket loan Less than 25 days holiday Daily subsidised meals

42% of respondents were satisfied with their benefits

Respondents rated a selection of 20 benefits in order of importance

BONUS As a percentage of your basic salary, what was your bonus in 2012?

Did you receive a bonus in 2012?

36% of respondents were satisfied with their bonus

44%

Yes 61% No, not awarded one 23% No, not entitled to receive one 16%

of respondents received a higher bonus in 2012 than in 2011

1 - 9% of salary

1 to 9% of salary 22% 10 to 19% of salary 20% 20 to 29% of salary 14% 30 to 49% of salary 11% 50 to 89% of salary 14% 90 to 100% of salary 11% More than 100% of salary 8%

Insurance

David Harvey Manager

+44 20 7747 9765 financialservices.uk@markssattin.com

Victoria Martin Senior Consultant

FINANCIAL SERVICES

LONDON

LONDON FINANCIAL SERVICES

INSURANCE Market Perspective The big trends of 2012 There were fewer natural disasters than in 2011 and so insurers returned to profitability which helped to restore market confidence. Attracting the best talent was fiercely competitive across the entire sector with employers vying for top candidates and some firms struggling to retain key talent. Due to hiring managers looking to up skill their business areas, we saw a greater demand for newly qualified accountants from practice as the year progressed.

Benefits and staff wellbeing will need to be of the utmost importance and a high priority for current employers

Outlook for 2013 2013 should see organisations continue to dominate the headlines as a result of mergers and acquisitions, as well as consolidation. This will ensure the need for financial integration specialists and replacement hires for those that inevitably seek pastures new as a result. Itâ&#x20AC;&#x2122;s likely weâ&#x20AC;&#x2122;ll also see an increase for senior level hires, financial analysts and those with commercial and strategic skills to support businesses seeking to restructure, divest or grow. Demand across Lloydâ&#x20AC;&#x2122;s syndicates will continue and we expect there to be less of a focus on Solvency II. There is also likely to be continued mergers and acquisitions activity across broker firms as large players in the market continue to grow through calculated acquisitions. This will then create new work around integration of the business. A large number of organisations have already highlighted their plans for expansion this year in all areas of their business, including support functions. This mirrors the candidate market where a sense of confidence and optimism is returning. As market confidence steadily returns, we predict even greater difficulty in employers retaining staff that have been hard pressed by poor market conditions. Restored confidence will lead to an uptake in vacancies and candidates looking for pastures new, therefore benefits and staff well-being will need to be a high priority for employers.

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

Greater focus on regulatory issues 37% Recruitment freeze 34% Budget cuts 34% Profitability of business 32% Business process/policy change 27% Job cuts 27% Salary freeze 27%

More confident 26% Respondents could choose more than one answer from a choice of 14

As confident 45% Less confident 29%

Despite growing confidence many employers have largely been cautious. We are finding businesses are taking longer to make hiring decisions and so are often missing out on candidates. Salaries offered have often been lower than necessary, so companies offering attractive overall compensation have been more successful in securing the top talent. Employers who have been covering natural attrition by reassigning leaversâ&#x20AC;&#x2122; duties within the existing team rather than replacing people when they leave, are now cautiously looking at expanding again.

How would you rate your current job security?

Secure 72% Insecure 28%

Throughout 2013 we expect to see an increase in senior level hiring, business partnering and financial analyst roles

Expectations for personal salary and job security in the next 12 months

Salary freeze 28% Redundancy 3% Salary reduction 2% Shorter working week 0% Other 6% Respondents could choose more than one answer

HEADCOUNT How has the number of staff in your team changed in the past 12 months?

60%

of respondents selected business growth or expansion as the main reason for an increase in staff

What is your employerâ&#x20AC;&#x2122;s recruitment strategy?

Short term (0-6 months ahead) 43% Medium term (6-12 months ahead) 24%

Remained the same 29%

Long term (1-2 years) 1%

Decreased 20% Not sure 6%

39%

of respondents have more than 20 employees in their team

of respondents selected headcount reductions as the main reason for a decrease in staff

Non-existent 1% Not sure 31%

FINANCIAL SERVICES

Reactions to uncertain market conditions

JOB SECURITY

LONDON

EXPERIENCE

Skills in demand Larger general and London market insurers have started hiring quite extensively, from technical accounting roles through to more analytical business partnering positions. We are expecting growth to continue into 2013 with the insurance sector as a whole faring better than other industries across financial services. Technical insurance knowledge is currently in high demand. Hiring managers are increasingly requiring candidates to have a firm understanding of the underwriting function of the business in a bid to provide strength of industry knowledge within their finance teams. In addition to this, qualifications and academic achievements are increasingly being scrutinised to ensure that new hires are high calibre. Candidates who have qualified in practice and have up to two yearsâ&#x20AC;&#x2122; industry experience are in high demand as their profiles show a strong academic background as well as a good foundation of insurance industry knowledge.

Length of time in the accountancy, finance or advisory profession

Length in current role

68% 32%

LONDON FINANCIAL SERVICES

INSURANCE Career Insight

7 - 10 years

0 to 3 years 6%

1-2

2-3 3-5 5-10 >10 years

4 to 6 years 14%

Less than 1 year 52%

7 to 10 years 28%

1 to 2 years 22%

11 to 15 years 11%

2 to 3 years 11%

16 to 20 years 14%

3 to 5 years 9%

21 to 25 years 9%

5 to 10 years 1%

More than 25 years 18%

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

48%

of respondents chose taking on more responsibility as the main reason for the increase in working hours

Increased 37% Remained the same 55% Decreased 8%

There are fewer syndicate accountants in the active market but we have seen more senior hires. There is also a lack of Big 4 qualified ACAs and CAs with insurance experience wanting to take on core accounting/reporting roles. Our advice to hiring managers is to push out into the top 20 to 30 firms when seeking to replace or bring in new skills in the 0 to 2 years post qualified bracket.

Taking the next step in your career

Top 5 places respondents would consider relocating to in the next two years

Top 5 reasons for respondents wanting to relocate

BE FLEXIBLE IN YOUR APPROACH Don’t rule something out just based on a job specification. Be prepared to research the role and meet with the employer before dismissal. DON’T OVERPRICE YOURSELF Seek a salary that is in line with your experience and skills. HAVE A CLEAR IDEA ABOUT WHAT YOU WANT And don’t be afraid to let recruiters know it. COMMIT TO MAKING THE MOVE Invest time to thoroughly prepare for interviews, researching your prospective employer’s business and preparing for potential questions you may be asked.

Singapore 30% Australia 29% Within the UK 27% Canada 25% Respondents could choose more than one country from a choice of 14

Different culture 63% Improved quality of life 60% Improved salary 57% New career opportunities 54% Better employment opportunities 54% Respondents could choose more than one reason from a choice of nine

33% of respondents would not relocate MOVING ON Top 5 reasons for leaving last role

Career development 32% New challenge/more interesting work 30% Higher salary 29% End of contract 23% Better work-life balance 15% Respondents could choose up to three reasons

46% of respondents

anticipate changing roles in the next 12 months

FINANCIAL SERVICES

RELOCATION

LONDON

LONDON FINANCIAL SERVICES

INSURANCE Salaries & Benefits Spotlight on salaries There is specific demand for professionals with direct insurance industry experience and with a real shortage of quality and active talent on the market, this ensures a premium on expected salaries. There has also been an increase in salary expectations for newly qualified accountants moving into reporting roles in the insurance sector, reflecting the shortage of candidates looking at this level.

Candidates with strong technical backgrounds, who are keen on exploring the sector but perhaps do not have direct insurance experience (e.g. auditors from commerce and industry or banking professionals) can also expect a solid remuneration. Syndicate accountants continue to command a high premium due to the decline in numbers of those professionals who remain in the industry.

REMUNERATION When was your last pay review?

Satisfaction with current remuneration

of respondents received a salary increase in their last pay review

6 to12 months ago 43% More than 12 months ago 4%

Pe r

ent an m

80%

ent an m

Pe r

ent an m

Pe r

Less than 6 months ago 30%

Pe r

ent an m

Pe r

Co t rac nt

ent an m

Pe r

Satisfied 58%

Satisfied 80%

Neither satisfied nor dissatisfied 20%

Neither satisfied nor dissatisfied 13%

Dissatisfied 22%

Dissatisfied 7%

Not applicable 23%

36%

of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles

Some candidates are dissatisfied with remuneration packages and are using this as an excuse to move organisations

Salary range

Job title

Daily rate

2012

2013

2012

2013

Newly Qualified

£40,000-£45,000

£45,000-£50,000

£250-£300

Senior Accountant | 1-3 years’ PQE

£45,000-£52,000

£50,000-£60,000

£300-£350

Finance Manager | 3-5 years’ PQE

£55,000-£65,000

£60,000-£70,000

£350-£400

Senior Finance Manager, 5-8 years’ PQE

£65,000-£75,000

£70,000-£85,000

£400-£450

Syndicate Accounting Job title

Salary range

Daily rate

2012

2013

2012

2013

Syndicate Accountant

£45,000-£55,000

£250-£300

Senior Syndicate Accountant

£55,000-£65,000

£300-£350

Syndicate Accounting Manager

£65,000-£75,000

£350-£400

Head of Syndicate Accounting

£75,000-£100,000+

£400-£450

Part Qualified

Salary range

Job title

Hourly rate

2012

2013

2012

2013

Accounts Assistant

£22,000-£28,000

£12-£17

ACCA/CIMA Fundamental/ Operations

£24,000-£30,000

£13-£17

ACCA/CIMA Managerial/ Professional

£30,000-£35,000

£15-£22

ACCA/CIMA Finalist/Strategic

£35,000-£42,000

£17-£24

Newly qualified accountants moving into reporting roles in the insurance sector are typically looking for £50,000 to £55,000, which is far higher than the market average

FINANCIAL SERVICES

Core Finance

LONDON

LONDON FINANCIAL SERVICES

INSURANCE Salaries & Benefits BENEFITS

Attracting top talent IF YOU LIKE SOMEONE MOVE QUICKLY That perfect candidate you wanted might not be available by the time you decide. Don’t risk another firm beating you to your ideal candidate! PAY THE RIGHT SALARY BASED ON GUIDANCE The market isn’t as flat as it was and people won’t necessarily move for the same basic salary or a token increase. KNOW WHAT YOU’RE LOOKING FOR We can advise and guide you through the process but it is important to have a clearly defined brief so that you make the right decision. SELL YOUR OPPORTUNITY Sell your brand and its position within the insurance market. Make sure candidates understand the technical insurance exposure that the role can offer, which is essential to become a finance specialist within this field in the current market.

Top 5 benefits currently received?

25 days holiday or more 80% Company pension scheme 75% Insurance (PMI/death in service/life insurance) 75% Private healthcare 65% Annual bonus scheme 59% Respondents could select all benefits that applied

Benefits considered most and least important when considering a new role 25 days holiday or more Company pension scheme Annual bonus scheme Insurance* Private healthcare Leisure facilities Sabbatical Mortgage relief Childcare vouchers Daily subsidised meals

MAKE TIME FOR HIRING Momentum is key to being successful in your hiring strategy as the market improves.

* PMI/death in service/life insurance 45% of respondents were satisfied with their benefits

Respondents rated a selection of 20 benefits in order of importance

BONUS As a percentage of your basic salary, what was your bonus in 2012?

Did you receive a bonus in 2012?

30 to 39% of salary 18% 10 - 19% of salary

Yes 54% No, not awarded one 10% No, not entitled to receive one 36%

of respondents received a higher bonus in 2012 than in 2011

10 to 19% of salary 38% 20 to 29% of salary 18%

47% of respondents were satisfied with their bonus

38%

1 to 9% of salary 14%

40 to 49% of salary 3% 50 to 69% of salary 6% More than 70% of salary 3%

Investment Management

Glen Roberts Associate Director

+44 20 7321 5788 financialservices.uk@markssattin.com

David Harvey Manager

FINANCIAL SERVICES

LONDON

LONDON FINANCIAL SERVICES

INVESTMENT MANAGEMENT Market Perspective The big trends of 2012 Despite some positive movements within the alternative investment sector in early 2012, a challenging fund raising environment had a negative impact on recruitment. Firms struggling to raise new funds generally had to put any recruitment plans aside and on the whole, the market remained relatively flat. Larger investment management organisations did make a number of key structural changes which were largely linked to the shifting regulatory landscape. This resulted in an increase in the number of jobs offered, particularly in governance, financial control and compliance.

Growth is likely to be sporadic across the sector as a whole, with private equity and boutique managers being likely places where additional headcount is brought on board

Outlook for 2013 Over this year we expect the market to mirror the second half of 2012. Asset managers are likely to remain reasonably consistent in terms of their appetite for new hires. Initial indicators from private equity and real estate firms have been positive, and whilst the environment remains challenging the majority have been upbeat around fundraising prospects with the expectation that commitments will be shored up in early 2013. We expect to see a small increase in roles across the board as new funds come to market and existing funds either start growing or winding down. Candidate flow is likely to remain high albeit with a shortage of top tier people looking. Growth is likely to be sporadic across the sector as a whole, with private equity and boutique managers being likely places where additional headcount is brought on board.

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 Greater focus on regulatory issues 36% Salary increase 33% Profitability of business 33% Business process/policy change 28% Salary freeze 25% Recruitment increase 25%

More confident 26% Respondents could choose more than one answer from a choice of 14

As confident 55% Less confident 19%

There has been an increase in the number of candidates taken on as short term contractors with a view to becoming permanent. This gives businesses the flexibility they require and allows them to get around potential headcount or sign off issues. New fund launches and smaller firms or startups are reluctant to bring finance in-house in favour of outsourcing to a third party provider. In general this has led to a slow and frustrating recruitment process for all as employers have held out for the very best talent available.

How would you rate your current job security?

Secure 76% Insecure 24%

Expectations for personal salary and job security in the next 12 months

Salary freeze 31% Redundancy 7% Shorter working week 1% Salary reduction 1% 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

What is your employerâ&#x20AC;&#x2122;s recruitment strategy?

Short term (0-6 months ahead) 26% Medium term (6-12 months ahead) 21% Long term (1-2 years) 23%

Remained the same 31%

Non-existent 2%

Decreased 24% Not sure 8%

of respondents selected headcount reductions as the main reason for a decrease in staff

Not sure 28%

FINANCIAL SERVICES

Reactions to uncertain market conditions

JOB SECURITY

LONDON

EXPERIENCE Skills in demand Permanent and contract fund accountants with one to three yearsâ&#x20AC;&#x2122; post qualified experience are always more challenging to source. There has been a clear increase in roles at this level, as well as new roles generated by a mixture of attrition, growth and the continual flow of roles being in-housed or outsourced. However, bright candidates with a combination of corporate and fund accounting experience in the four to five years post qualified bracket have been in short supply. Business partners and financial analysts with a detailed understanding of investment management products have also been in demand as many asset managers have looked to up skill and/or increase their Financial Planning and Analysis (FP&A) function.

Length of time in the accountancy, finance or advisory profession

Length in current role

73% 27%

LONDON FINANCIAL SERVICES

INVESTMENT MANAGEMENT Career Insight

4-6 years

0 to 3 years 14%

1-2

2-3 3-5 5-10 >10 years

4 to 6 years 29%

Less than 1 year 43%

7 to 10 years 21%

1 to 2 years 24%

11 to 15 years 17%

2 to 3 years 16%

16 to 20 years 5%

3 to 5 years 11%

More than 20 years 8%

5 to 10 years 6%

Not applicable 6%

More than 10 years 0%

HOURS WORKED Average hours worked per week

65%

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 39% Remained the same 51% Decreased 10%

Supply and demand There has been a noticeable increase in the volume of newly qualified chartered accountants looking to make the move into core accounting and finance roles. Many also come with relevant audit or accounts preparation experience across fund management clients and are happy to take on a hands-on role. Experienced contract fund accountants with exposure to traditional funds, private equity, property or hedge funds are still the most in demand. Strong professionals are still in demand and are likely to be given incentives to remain in roles.

Taking the next step in your career

Top 5 places respondents would consider relocating to in the next two years

Top 5 reasons for respondents wanting to relocate

BE REALISTIC AND OPEN TO IDEAS Applying for anything and everything is not the right approach and could lead to you going backwards in your career. Make sure you have a clear idea of what you want and stick to it. DON’T TAKE A JOB SPECIFICATION AT FACE VALUE The only real insight into the full extent of the role is a meeting. This also applies for the culture and size of a company. BE PATIENT If you are serious about moving, be patient! The market is still reasonably fragile and so processes can be slow and frustrating for all.

Australia 36% Singapore 34%

Improved quality of life 67% Different culture 61%

Hong Kong 33%

New career opportunity 60%

Mainland Europe 30%

Better employment opportunities 54%

Respondents could choose more than one country from a choice of 14

Improved salary 47% Respondents could choose more than one reason from a choice of nine

20% of respondents would not relocate MOVING ON Top 5 reasons for leaving last role

Career development 38% New challenge/more interesting work 36% Higher salary 29% End of contract 15% Redundancy 13% Respondents could choose up to three reasons

31% of respondents anticipate changing roles in the next 12 months

Why candidates are making a move Understandably, careers are likely to have been stalled in the current market; if another business can offer progression and/or development it will spark interest amongst candidates. Many firms have opted to freeze salaries and reduce bonuses over the past three to four years, and at the same time people have seen their purchasing power fall. A better package will tempt many candidates to look at other firms. Job security is also a huge factor. If a candidate feels their job is at risk in the next 12 months then it is highly likely they will already be considering options. If a prospective employer is seen as a ‘safe’ place it will be an attractive option.

FINANCIAL SERVICES

RELOCATION

LONDON

LONDON FINANCIAL SERVICES

INVESTMENT MANAGEMENT Salaries & Benefits

Spotlight on salaries and bonuses

Businesses have still had to pay a premium to attract the best talent in the market

Over the past 12 months the average salary for candidates has remained fairly static. However, businesses have still had to pay a premium to attract the best talent in the market and offer incentives for them to move. As the market has picked up, employers have become increasingly aware that their salary and bonus levels have to be in line with the market rate, to avoid losing current and prospective employees to the competition.

REMUNERATION When was your last pay review?

Satisfaction with current remuneration

ent an m

t rac nt

Pe r

ent an m

Pe r

ent an m

Pe r

of respondents received a pay increase in their last pay review

6 to 12 months ago 32% More than 12 months ago 10% Not applicable 29%

29%

of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles.

Pe r

ent an m

70%

ent an m

Less than 6 months ago 29%

Pe r

ent an m

Pe r

Satisfied 42%

Satisfied 66%

Neither satisfied nor dissatisfied 28%

Neither satisfied nor dissatisfied 17%

Dissatisfied 30%

Dissatisfied 17%

Job title

Salary range

Daily rate

2012

2013

2012

2013

Newly Qualified

£40,000-£45,000

£40,000-£47,000

£250-£275

£250-£300

Newly Qualified | Big 4

£40,000-£50,000

£45,000-£50,000

£250-£275

Senior Accountant | 1-3 years’ PQE

£45,000-£52,000

£45,000-£55,000

£300-£350

Finance Manager | 3-5 years’ PQE

£55,000-£65,000

£350-£400

Senior Finance Manager | 5-8 years’ PQE

£65,000-£75,000

£400-£450

Fund Accounting Job title

Salary range

Daily rate

2012

2013

2012

2013

Part Qualified Fund Accountant

£30,000-£42,000

£225-£250

Fund Accountant | Newly Qualified

£40,000-£45,000

£250-£275

Fund Accountant | 1-3 years

£45,000-£65,000

£250-£300

£250-£325

Senior Fund Accountant | 2-5 years

£55,000-£80,000

£300-£350

£350-£375

Fund Controller

£65,000-£75,000

£350-400

£350-£400

Manager (Assistant Vice President or equivalent)

£55,000-£65,000

£300-375

£300-£375

Senior Manager (Vice President or equivalent)

£65,000-£75,000

£350-400

£350-£400

Head of Fund Accounting

£75,000-£100,000

£400-500

£400-£500

Part Qualified Job title

Salary range

Hourly rate

2012

2013

2012

2013

Accounts Assistant

£22,000-£28,000

£12-£17

ACCA/CIMA Fundamental/ Operations

£24,000-£30,000

£13-£17

ACCA/CIMA Managerial/ Professional

£30,000-£35,000

£15-£22

ACCA/CIMA Finalist/Strategic

£35,000-£42,000

£17-£24

FINANCIAL SERVICES

Core Finance

LONDON

LONDON FINANCIAL SERVICES

INVESTMENT MANAGEMENT Salaries & Benefits BENEFITS Top 5 benefits currently received

Attracting top talent BE EFFICIENT Move quickly on good candidates and have an efficient recruitment process in place to ensure you are one step ahead of the competition. On face value, we are still operating in a â&#x20AC;&#x2DC;candidate richâ&#x20AC;&#x2122; market but firms are still missing out on their preferred candidate due to a lack of urgency. BE FAIR AND FLEXIBLE Paying market rate and having a degree of flexibility around the type of person you hire are essential things to bear in mind. OFFER CLEAR PROGRESSION Career development is a major pull for candidates in the current market as they look to broaden their experience when moving roles. Having a transparent career path focused on developing the skills of a prospective employee will give you the edge in securing their services.

25 days holiday or more 79% Private healthcare 65% Company pension scheme 56% Insurance (PMI/ death in service/life insurance) 56% Annual bonus scheme 46% Respondents could select all benefits that applied

SELL YOUR BUSINESS The best candidates are often well looked after by their current employer and need to be educated on the advantages of moving. This process starts with your recruitment consultant and must be continued by you.

Benefits considered most and least important when considering a new role

25 days holiday or more Good company pension scheme Annual bonus scheme Private healthcare Discretionary bonus scheme Season ticket loan Sabbatical Car or car allowance Mortgage relief Childcare vouchers

62% of respondents were satisfied with their benefits

Respondents rated a selection of 20 benefits in order of importance

BONUS As a percentage of your basic salary, what was your bonus in 2012?

Did you receive a bonus in 2012?

Yes 59% No, not awarded one 10% No, not entitled to receive one 31%

of respondents received a higher bonus in 2012 than in 2011

10 to 19% of salary 31% 20 to 29% of salary 20%

49% of respondents were satisfied with their bonus

54%

1 to 9% of salary 23%

30 to 49% of salary 13% 10 - 19% of salary

50 to 89% of salary 3% 90 to 100% of salary 5% More than 100% of salary 5%

Senior Finance

+44 20 7747 9765 financialservices.uk@markssattin.com

Glen Roberts Associate Director

FINANCIAL SERVICES

LONDON

LONDON FINANCIAL SERVICES

SENIOR FINANCE Market Perspective The big trends of 2012 The volume of roles available remained consistent with 2011 and the market continued to be stagnant. The majority of new roles came about due to restructures or attrition rather than growth. Overall there was an increase in candidates but a clear decrease in the top percentile of the market looking for work. We also noted a significant increase in senior finance executives being open to new roles and keen to passively see what was out there. Employers continued to drag out the recruitment process, as they were unwilling to compromise on requirements and instead wanted to hold out for the ideal person. There was an increase in redundant candidates coming into the interim market and a general increase in the amount of interim work, but not enough to satisfy the number of displaced and immediately available permanent candidates, as well as the normal population of interim contractors.

Overall there was an increase in candidates but a clear decrease in top tier talent looking for work

Outlook for 2013 There will be little change and the market is likely to remain fairly static. There will always be a reasonable flow of senior finance vacancies and for 2013 this is likely to continue. We expect there to be movement at the â&#x20AC;&#x2DC;second in chargeâ&#x20AC;&#x2122; level. Group finance controllers, heads of finance, deputy finance directors and divisional finance directors are careerminded and ambitious professionals, who are unwilling to wait around for the markets to improve and will seek quicker routes to the number one job. There is a strong likelihood that the number of top tier candidates will continue to shrink as more and more businesses set out clearer business plans and strategies for growth that tie people in.

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 54% Budget cuts 41% Salary freeze 36% Recruitment freeze 35% Profitability of business 35%

More confident 20% Respondents could choose more than one answer from a choice of 14

As confident 50% Less confident 30%

Expectations for personal salary and job security in the next 12 months

How would you rate your current job security?

Companies are taking longer to make hiring decisions, over-interviewing at initial rounds, not planning out the process as fully as they should, and involving a larger group of internal stakeholders than normal. There is less ‘fishing’ than there was in 2009 to 2011, which is a positive sign. Chief executive officers and managing directors are no longer keen to have exploratory coffees with everyone and anyone who comes their way. We’re increasingly finding that key senior decision makers will only really meet people if they have a role in mind and can see where a person can add immediate value, in which case they’ll be willing to free up room to a create a role for them.

52% 52%

52%

Salary freeze 35%

Secure 67%

52%

Redundancy 6%

Insecure 33%

Shorter working week 1%

52%

Salary reduction 1%

There is a tendency to hire interim professionals for an initial three to six month period in cases where the process has been dragging. Not only does this fill the gap and buy more time for the permanent process to complete, but it can often result in a successful interim to permanent hire.

52%

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?

52%

of respondents selected business growth or expansion as the main reason for an increase in staff

42%

What is your employer’s recruitment strategy?

Remained the 42% same

Medium term (6-12 months ahead) 17% Long term (1-2 years) 12%

Remained 42%

the same 30% Increased

Remained

the same Decreased 25%

Not sure 3%

Short term (0-6 months ahead) 49%

Non-existent 19% of respondents selected headcount reductions as the main reason for a decrease in staff

Not sure 8%

FINANCIAL SERVICES

Reactions to uncertain market conditions

JOB SECURITY

LONDON

EXPERIENCE

Supply and demand There is still a large supply of senior finance individuals who have quite linear experience in relatively straightforward reporting roles, have jumped around too much or been forced into the market and taken too much time off. There has also been an increase in chief financial officers and finance directors at the £120,000 to £200,000 bracket willing to move and sacrifice equity for a more rewarding longer term opportunity. Reasons are mainly the desire for fresh challenges, lack of growth or an unclear business model that is difficult to buy into.

Length of time in the accountancy, finance or advisory profession

Length in current role

77% 23 %

LONDON FINANCIAL SERVICES

SENIOR FINANCE Career Insight

11-15 years

0 to 3 years 1%

However, there is a clear shortage of hands-on controllers or heads of finance that have covered everything, in particular regulatory reporting, governance and risk. This shortage is particularly acute at the £80,000 to £120,000 level, where there are very few candidates with the technical skills and experience to immediately step in and operationally run a finance team.

HOURS WORKED Average hours worked per week

49% of respondents chose taking on more responsibility as the main reason for the increase in working hours

1-2

2-3 3-5 5-10 >10 years

4 to 6 years 4%

Less than 1 year 38%

7 to 10 years 8%

1 to 2 years 19%

11 to 15 years 27%

2 to 3 years 16%

16 to 20 years 19%

3 to 5 years 15%

21 to 25 years 18%

5 to 10 years 8%

More than 25 years 23%

More than 10 years 4%

Skills in demand

How has the number of hours changed in the last 12 months?

Increased 33% Remained the same 55% Decreased 12%

At face value, there has only been very incremental growth and only the occasional role (say one in every four assignments) created as a result of growth or mergers and acquisitions activity. On the banking side, there has been growth in regulatory and governance, where we’ve seen a few newly created ‘head of’ titles. There has also been some movement across the small to medium-sized banks and capital market companies, where there has been an increase in attrition. In fund management, there has been a slight increase in new senior finance roles, but almost all are as a result of the normal cycle of people switching jobs. Insurance has seen probably the biggest increase in senior level hires. This is more so at chief financial officer or group level, and across medium to large-sized insurers, particularly the Lloyds market and some of the FTSE 250 players.

Taking the next step in your career

Top 5 places respondents would consider relocating to in the next two years

Top 5 reasons for respondents wanting to relocate

DON’T SETTLE FOR SECOND BEST Be clear about what you want and go out there and get it. USE A VARIETY OF METHODS TO FIND OUT WHAT’S OUT THERE Your own network (every senior professional you’ve worked a late night for who owes you a coffee), LinkedIn, contingent and search firms, networking events, alumni associations etc. With the market still relatively static, you need to cast the net wider to find your next opportunity. DON’T OVER ANALYSE PROCESSES WHEN THINGS GO QUIET With the market relatively slow, interview timelines, feedback and time to hire are dragging out, so patience is more of a virtue than ever.

Improved quality of life 68%

Australia 32% Mainland Europe 27%

Different culture 56%

Within the UK 24%

New career opportunity 47%

Singapore 21%

Better employment opportunities 47%

Respondents could choose more than one country from a choice of 14

Improved salary 45% 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 33% Higher salary 22% Redundancy 21% End of contract 15% Respondents could choose up to three reasons

36% of respondents anticipate changing roles in the next 12 months

How can you capitalise on candidates moving on? Sell the dream… The opportunity is there for organisations to capitalise on new candidates coming onto the market. Any chief executive officer, managing director, chief operating officer, chief finance officer who is able to clearly articulate their strategy and vision for the next few years buys themselves instant credibility amongst a large proportion of senior finance executives who are tired of incoherent messages.

FINANCIAL SERVICES

RELOCATION

LONDON

LONDON FINANCIAL SERVICES

SENIOR FINANCE Salaries & Benefits

Spotlight on salaries and bonuses Overall compensation has remained reasonably consistent, except at the £80,000 to £120,000 level. Chief financial officers, chief operating officers and chief executive officers have been pushing hard on basic salaries and even in some cases willing to lose someone for the sake of £5,000. In terms of bonuses, there have been very few direct equity or long term incentive plans out there for most people in the £80,000 to £150,000 bracket, although there have

been plenty of ‘creative’ schemes around cash bonuses, split or deferred payments, share options etc, to tie in senior finance executives in the short to medium term. Interim rates have dropped somewhat as organisations have been spoilt for choice in some areas, given the increase in immediately available candidates in the market from redundancies and restructures over the course of 2012.

REMUNERATION When was your last pay review?

Satisfaction with current remuneration

Pe r

ent an m

Pe r

6 to 12 months ago 33% More than 12 months ago 15% Not applicable 18%

34%

of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles.

Pe r

ent an m

of respondents received a pay increase in their last pay review

ent an m

74%

Pe r

ent an m

Pe r

Less than 6 months ago 34%

t rac nt

ent an m

Pe r

Satisfied 53%

Satisfied 66%

Neither satisfied nor dissatisfied 24%

Neither satisfied nor dissatisfied 20%

Dissatisfied 23%

Dissatisfied 14%

Job title

Salary range

Daily rate

2012

2013

2012

2013

Financial Controller | small to medium sized company

£80,000-£100,000

£350-£450

Financial Controller | larger company/divisional role

£90,000-£120,000

£450-£500

Finance Director/Chief Financial Officer | small to medium sized company

£100,000-£120,000

£500-£600

Head of Finance

£100,000-£120,000

£600-£700

Group Financial Controller

£110,000-£140,000

£500-£600

Finance Director/Chief Financial Officer | larger company/divisional role

£120,000-£150,000

£550-£750

£150,000-£250,000+

£800-£1500

Group Finance Director/Group Chief Financial Officer

Overall compensation has remained reasonably consistent, except at the £80,000 to £120,000 level where chief financial officers, chief operating officers and chief executive officers have been pushing hard on base salaries, willing to lose someone for the sake of £5,000

FINANCIAL SERVICES

Senior Finance

LONDON

LONDON FINANCIAL SERVICES

SENIOR FINANCE Salaries & Benefits BENEFITS

Attracting top talent CLEARLY COMMUNICATE EXPECTATIONS Be clear about what you expect from the person you bring on board and make sure you sell this to candidates. Having a value proposition is crucial to attracting the best people out there. ADD VALUE TO THE PERSON’S CV Many senior finance professionals are fed up of a lack of strategy, conflict at board level or short term decision making. Although this can sometimes be difficult to articulate given how the markets are, a couple of key objectives that ‘buy in’ your hire are crucial. PLAN THE PROCESS Weed out diary conflicts and ensure all people involved in the process are clear on what the sell is. In 2012 we worked on a number of senior finance assignments where messages were distorted and top tier people dropped out of the running. SEARCH FIRMS AREN’T ALWAYS THE BEST OPTION We’ve been involved in a couple of assignments where a chief executive officer or human resources director has retained a firm to fill a senior hire, but the firm has been unable to deliver for a variety of reasons, for example limited access to a broad candidate pool, fees, etc. Consider other resources to find you the talent you are looking for.

Top 5 benefits currently received

25 days holiday or more 82% Company pension scheme 71% Private healthcare 64% Mobile phone/ blackberry/PDA 61% Insurance (PMI/death in service/life insurance) 57% Respondents could select all benefits that applied

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* Childcare vouchers Season ticket loan Sabbatical Mortgage relief Daily subsidised meals

48%

*PMI/death in service/life insurance

48% 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?

45%

As a percentage of your basic salary, what was your bonus in 2012?

Yes 51% No, not awarded one 18% No, not entitled to receive one 31%

of respondents received the same amount of bonus in 2012 and 2011

10 to 19% of salary 29% 20 to 29% of salary 26%

45% of respondents were dissatisfied with their bonus

38%

1 to 9% of salary 27%

30 to 39% of salary 10%

10 - 19% of salary

40 to 49% of salary 2% 50 to 69% of salary 4% More than 70% of salary 2%

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

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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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