The state of pay

We pick the bones out of the ‘GAAPweb 2023 Salary Survey: Findings, Revelations and Prosperity for the Accounting Profession’

GAAPweb has launched its annual 2023 salary survey, detailing the finer points of the working lives of more than 1,300 finance professionals, from salaries and bonuses to hybrid working policies and in-demand skills. With new-found employee expectations being brought to the forefront of the recruitment landscape, GAAPweb’s analysis reveals the impact of the past 12 months on the candidatedriven market.

This year has seen employers witness a year of financial turbulence, with pressure to provide increased remuneration and reward to attract new starters and retain loyal talent.

Some 60% of respondents received a salary increase (a 66% uplift on 2021 figures), with 51% being awarded an additional bonus. Another year-on-year augmentation reiterates the demands of the candidate-driven market and economic pressures on businesses, with many companies offering cost-of-living payments and salary boosts to those impacted by the crisis. Increases in salary were reported across a broad range of finance and accountancy job titles, including entry level jobs, junior roles on the hierarchical ladder, and PQ positions. Fifty-eight per cent of accountants saw a pay increase, alongside 47% of assistant accountants and 63% of management accountants. Salary amelioration aligns with an increased bonus structure across the board, with 41% of those receiving a bonus taking home a 3%-5% supplement.

We’ve seen a soar in hybrid working, with the employer responding to the demands of the candidate. Some 68% of the GAAPweb audience were found to be in a hybrid working model, something that just over a quarter of respondents (26%) noted as the factor they valued most in their job. With a mere 1% difference between those who noted ‘salary’ (27%) as their top priority in a job, it’s clear to see the impact hybrid working has had on our work-life balance. The ‘structured freedom’ offered to PQs and fellow accountants alike not only aids employees on a practical level, it benefits both productivity and creativity in the workplace.

Turning to industry, 2023 brings a new leader to the forefront, with the pharmaceutical industry surpassing fintech for first position. Up 19%, candidates now earn an average salary of £92,206 a year, with fintech following in a close second with an average salary of £91,905. For those looking to switch sectors, or start their accounting venture, it’s good to note that the greatest pay increase lies with the IT and telecoms industry, with an impressive 27% uplift on 2022 figures. Regarding business type, FTSE 350 companies continue to lead the salary league, closely followed by Big 4 accountancy firms.

The competition for salary naturally adheres to external factors such as location. Not surprisingly, London retains its reputation as the highest-earning location. In first place, the average salary comes in at £78,338 across the board, with those working in Canary Wharf reaping the highest pay.

Nationally, finance professionals based in Scotland saw the greatest salary increase; a 31% elevation of 2022 figures to be exact. Aside from the North-East revealing an 11% boost, other regions across the UK saw a slight dip in average wage. Despite the widespread implementation of hybrid working, Wales saw a 9% decrease and South-east England (outside of London) saw a 5% drop.

For our PQ niche, 54% are represented by women. Whilst the challenge to achieve gender parity in senior roles continues, 2023 brings us some subtle breakthroughs, with female representation in top paying sectors demonstrating welcome movement.

Women in fintech now stands at 52%, insurance at 63% and pharmaceutical – the top paying sector – at 76%. Since the GAAPweb survey analysis began in 2018, the pay gap has narrowed by 4%. If this rate of change continues, salary parity between genders won’t be achieved until 2051. With women in PQ positions taking the lead in representation and pay, we strive to see the continuation of the trend; with PQ accountants aiding the overall goal of gender equality and pay parity.

Go to 2023 GAAPweb Salary Survey to download the full survey. View the latest Part Qualified Accountancy & Finance jobs on site.

• Thanks to GAAPweb for this article

Dear Karen

Ask PQ’s very own agony aunt Karen Young when you need advice from a real expert. Email your dilemma to graham@ pqmagazine.com, and he will pass on the best ones to Karen

THE DILEMMA

I want to help build a greener future, but I don’t know how to embark on a sustainable career pathway in accountancy.

Menstruation, menopause and mental health

Why do women increasingly feel unable to talk about mental and personal health challenges in the workplace

A growing number of women feel uncomfortable talking about their mental and personal health challenges in the workplace, according to a new Deloitte Global report, called ‘Women@Work: A Global Outlook’.

The research, now in its third year, surveyed 5,000 women in 10 countries, including 500 working women in the UK, to better understand the experiences of women in the workplace.

The research revealed that when it comes to menstruation and menopause, many employees suffer in silence: more than a quar-

In brief

KAREN’S RESPONSE

It’s promising to hear that you want to put your passion for sustainability into practice and a career in accountancy could certainly allow you to make a positive difference to the planet.

Firstly, familiarise yourself with today’s terminology such as Corporate Social Responsibility (CSR) and Environmental, Social and Governance (ESG) and what these terms mean for businesses. Many finance organisations today emphasize their ESG strategies, so accountancy roles that are centred on embracing these initiatives are increasingly crucial.

Sustainability is the ‘next frontier’ of reporting, and finance departments are playing a central role in integrating sustainability standard processes. Therefore, it’s a good idea to keep up to date with the latest news and trends when it comes to sustainability, as your knowledge will be your power.

If you’re currently working find out if your organisation offers training that will help you lay the groundwork for a successful sustainability career in accountancy.

Dedicate time to discover the sustainability roles available within accountancy, by speaking to a recruitment expert for example, so you’re clear about what pathways are available to you. Highlight your interest in sustainability in a job application, whether that be on your CV or in an interview, so your genuine desire and determination to make a positive contribution to the world shines through.

• Karen Young is a director at Hays. She is passionate about helping people to find the right job and companies the right person

FTSE 100 CEO pay up 12%

The median FTSE 100 CEO package increased by 12% last year – from £3.72m in 2021 to £4.15m in 2022 – based on Deloitte analysis of data from the first 55 companies to publish their 2022 annual reports.

CEO annual bonuses remained high in 2022, with a median pay out of 76% of the maximum award. This was lower than in 2021 when it was 85% of maximum, but slightly above typical prepandemic levels.

Median long-term incentive vesting – the extent to which performance conditions are achieved under long term incentive plans – was 58% of maximum, with share award values generally reflecting strong ter of women (28%) experiencing symptoms related to menopause and 40% work through menstruation pain without taking time off.

Women in the UK experiencing challenges related to menopause are more likely than their global counterparts to work through pain (30% in the UK compared with 20% of global respondents).

There has been a significant decline in the number of respondents who feel comfortable share price performance at the end of 2022 across most sectors.

Two-day minimum Lloyds Banking Group has told its hybrid workers they will have to come into the office at least two days a week. And the bank has told staff it will be using ‘card swipe data’ to make sure that this happens.

CEO Charlie Nunn announced the change just before the first May Bank Holiday in the UK, and said the move was driven by the need to increase performance, create a more supportive environment and ensure equity. He explained: “We want flexible working to be fair, inclusive and productive for all.”

Nunn also said the bank will talking about mental health in the workplace: only 28% of UK respondents feel comfortable talking about it at work, compared with 45% last year.

Jackie Henry, managing partner for people and purpose, Deloitte UK said:

“Our research shows that there is a stigma around discussing mental health and women’s issues in UK workplaces, but it’s concerning to see that this has worsened in the last year.” start a pilot into the concept of a ‘compressed working’ week, in effect a move to a four-day working week.

Insolvencies on the

rise

The number of firms going bust in the first three months of 2023 came dangerously close to a 13-year high, according to a report in the independent newspaper.

The pandemic, rising borrowing costs and inflation wreaked havoc on businesses in England and Wales. The number of insolvencies surged by 18% on the same period last year to 5,747. There were also 4,739 creditors’ voluntary liquidations (CVLs), close to the highest quarterly level since records began in 1960.

The PQ Book Club: books you should read

Make Work Healthy: Creating a Sustainable Organization with High-Performing Employees, by John S. Ryan and Michael J. Burchell (Wiley £21.99)

The world of work as we know it has gone, and it was never aligned with sustainable performance anyway, claim John Ryan and Michael Burchell in their new book Make Work Healthy.

The authors want today’s leaders to focus on the concept of health, but move away from ad hoc, tick-box, tactical models that merely aim to reduce absenteeism and acute sickness. Instead, they need to take a strategic, data-driven and culturally based approach to improving productivity, work capacity and sustainability.

They believe we need to challenge all the old ways that make employees sick and replace them with cultures, systems, practices and processes that make work healthy.

That means we need to stop seeing health as the absence of illness and to focus on the aspects that make us healthy and resilient and our lives sustainable.

Ryan and Burchell say what people need is an ordered and consistent workplace, not a constantly chaotic one – we need to be able to understand and make sense of the madness.

Work also must have purpose. If the challenge is worthwhile then inevitably we bring energy and determination to it.

They end their book quoting world-renowned performance psychologist Jim Loehr, who says stress is necessary for a highperformance life, but you need to build in recovery, as growth happens during recovery. The fitter you are the less time you need for recovery.

PQ rating: 4/5 We loved the stories of healthy success, from PwC and its personalised learning plan to Deloitte and its acknowledgement of burnout. These real-world examples of how companies are tackling the health crisis make this a really accessible book.