2018 - marks sattin market insight report 2… · a light on some work to be done by employers...
TRANSCRIPT
SALARY & MARKET TREND REPORT
MARKET INSIGHT
2018
reflected in recent surveys we conducted with cross sector CFO’s, who expressed that they expect to add to their teams over the coming 12 months, particularly in the services and technology sectors. These findings concur with PWC’s CEO Survey as our respondents said that they were more secure in their roles and more confident about the economic prospects facing their company this year when compared to last year. We expect the market to remain stable, with London enjoying moderate growth in recent times and this is on a par with that of the regions we operate in.
Interestingly, the USA featured across the report as the top destination that finance professionals would consider relocating to, narrowly followed by Australia. Similar to last year’s stats, candidates deem holiday allowance, pension contributions and bonuses as the most important benefits, and encouragingly our data shows that they are currently receiving these benefits. However, our report also reveals that 83% of professionals rank flexible working hours as ‘very important’ but only 50% of employers promote flexible working in their organisations. The survey also shines a light on some work to be done by employers around their diversity strategies, with 17% of respondents not sure if their organisation has an official diversity policy.
I would like to thank the 1,200 people who took the time to contribute to our survey and I hope that you find the content useful. We have made a donation of 25p to our charity partner ‘Solving Kids’ Cancer’ for every response we received.
Best wishes,
Matt WilcoxManaging Director
I N T R O D U C T I O NWelcome to the 2018 Marks Sattin Market Insight report - a year in which we celebrate 30 years of trading.
In this report, we discuss the employment market trends over the past 12 months and take a look ahead for the remainder of the year. We benchmark salaries across our specialisms and provide commentary on what clients are looking for, as well as what factors motivate people to move roles. We hope it will serve as a great tool to both candidates considering their options and hiring organisations benchmarking salaries.
You will learn key insights from our core functions in accountancy, from part qualified up to executive level, both permanent and interim, across financial services, commerce and industry and our specialist divisions: corporate finance, audit & assurance, internal audit, compliance, risk, business change & technology and taxation.
Our analysis covers most major hubs across the UK and Ireland from London and Reading in the South-East, to Birmingham in the Midlands, Manchester and Leeds in the North and Dublin in Ireland, so it provides a very balanced view on the UK and Irish employment market.
2017 was a mixed year for the UK and Ireland – hiring levels within financial services diminished in the South East when compared to previous years; however growth in our regional offices in Birmingham, Manchester and Leeds balanced this out. Employment activity in these locations was spurred by a bounce back in the UK manufacturing industry, thanks to a stronger global economy in more recent times and a more competitive currency. Similarly, the Dublin market is buoyant as organisations set up business units in Ireland as a hedge against Brexit.
The optimistic outlook has continued this year, with hiring levels remaining at what we would describe as consistent levels across the board. This optimism was
N I N T H E D I T I O N
MIDLANDSKey Findings
Commerce & Industry
Specialist Markets
Executive & Interim
MIDLANDSFloor 2
3 Brindley Place
Birmingham, B1 2HL
+44 (0)121 231 7150 [email protected]
Midlands
K E Y F I N D I N G SMARKET PERSPECTIVE
Compared to 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*
How would you rate your current job security?
ECONOMIC PROSPECTS
JOB SECURITY
Less confidentMore confident As confident
62% 26%12%
Secure
Insecure
84%16%
84% of respondents were satisfied in their current role
72% of respondents expect a salary increase in the next 12 months
*Respondents could choose more than one answer
52%42%
35%26% 23%
Business process/ policy changes
Profitability of business
Budget cuts Job cutsGreater focus on regulatory issues
CAREER INSIGHT
How has the number of staff in your team changed in the past 12 months?
How has the number of hours changed in the last 12 months?
Top 3 places respondents would consider relocating to in the next two years (outside the UK)*
Top 3 reasons for respondents wanting to relocate*
HOURS WORKED
RELOCATION
HEADCOUNT
*Respondents could choose more than one answer
*Respondents could choose more than one answer
Increased
Decreased
Remained the same
Unsure
38%
17%
42%
3%
24% 8% 68%
Increased Decreased Remained the same
35% of respondents would not relocate
Average hours worked per week is 36-45
1
2
3
Experience a different culture
New career opportunity
Better work-life balance/ standard of living
Australia25%29% USA 24% Canada
Midlands
Top 5 reasons for leaving last role*
MOVING ON
Higher salaryNew challenge/more interesting work Career development
Better work-life balance Lack of career progression
31% 27% 24% 19% 17%
*Respondents could choose more than one answer
27% of respondents anticipate changing roles in the next 12 months
SALARIES & BENEFITS
When was your last pay review?
Satisfaction with current remuneration
REMUNERATION
Less than 6 months
6 - 12 months
More than 12 months
Not applicable
35%
31%
8%
26%
63% of respondents received a salary increase in their last pay review
63% of respondents perceive a 5-15% salary increase as acceptable if they were to move roles
Satisfied
Dissatisfied
80% 20%
Yes No No, not entitled to receive one
Benefits considered most and least important when considering a new role
Did you receive a bonus in 2017?
As a percentage of your basic salary, what level was your bonus in 2017?
BENEFITS
BONUS
25 days holiday or more
Company pension scheme
Annual bonus scheme
Season ticket loan
Subsidised/free meals
Leisure facilities
Most important Least important
56% 21% 23%
76% of respondents were satisfied with their bonus
65% of respondents received a higher bonus in 2017 than in 2016
1 - 9% of salary
10 - 19% of salary
20 - 29% of salary
30 - 39% of salary
50 - 100% of salary
54%22%16%3%5%
Midlands
M I D L A N D S
Overview
The Midlands continues to play a key role in the UK economy with the region’s manufacturing sector representing 22% of total output. A successful bid on the 2022 Commonwealth Games has meant significant investment in terms of construction and infrastructure and HS2 is soon to become a reality, allowing passengers to travel to London in 38 minutes. With some of the lowest vacancy rates in commercial property, there is a real buzz around the region, with foreign investment rising by 21% last year. Given the business potential, it is no surprise that many firms are leaving London to take advantage of the more favourable real estate costs, HSBC being the highest profile case.
The first quarter of 2018 has been immensely busy across all levels, and with confidence high, this looks set to continue. There has been a significant rise in external hiring from our larger PSL clients with SMEs following suit. Qualified vacancies registered in this period were up 31% year on year, with a rise of 48% for part qualified and 22% for transactional roles.
A buoyant market
Newly qualified ACA/ACCA/ACMAs are always in demand, given the general shortage of candidates in this area. Many companies are looking to get ahead of the competition by interviewing and offering roles to part qualified candidates, subject to them passing final exams. The two years post qualified market is also buoyant with clients looking to hire professionals making their second move. Often employers feel that 18-24 months’ industry experience gives them a better return on investment than a newly qualified candidate.
A third of our existing client base would consider taking on a school leaver to join their finance team. This number is up from 18% the previous year, demonstrating a real shift in profile perceptions. At the other end of the spectrum, we are seeing accountants getting more and more involved in
project work, whether that is system, change or business focused. This is adding to job satisfaction levels and is a great way to develop careers.
Financial services and manufacturing continue to dominate when it comes to hiring demand, with specialist markets and construction following closely behind. Retail remains a slight concern, as the industry continues to shift from instore to online.
Salaries shift upwards
Salaries have started to rise within the last 12 months, particularly at the newly qualified to two year PQE levels, where we are seeing an average 5% increase on last year. This year was a busy year for change and transformation, and larger businesses have been looking to bolster their teams with high potential talent and future leaders from either Big 4 or top graduate schemes. This has driven salaries upwards in what is still a candidate driven market. We are also seeing bonus incentives increase and there have been some great examples of smaller businesses increasing their overall package and bonus to compete with the corporates. This has been particularly prevalent within private equity backed SMEs, retail, FMCG and supply chain.
An optimistic future
Business is booming in the Midlands and the doors are open. Securing talent will no doubt be high on the agenda for many firms who are relocating or looking to grow. Whilst it is easier than ever to advertise roles direct, the cost of getting it wrong can be huge. There are many strong ‘active’ candidates in the market, but there are just as many who are not currently looking at adverts who may be the perfect fit. Cost is always a consideration and with the increase in on site recruitment teams (who focus on vacancies across disciplines), it is always worth partnering with a specialist who has access to a wider market.
COMMERCE & INDUSTRY COMMERCE & INDUSTRY
Finance Graduate
AP/AR Assistant
Accounts Assistant
Payroll Advisor
Credit Controller
Assistant Accountant
Part Qualified | ACCA/CIMA
Finalist | ACCA/CIMA
AP/AR Manager
Payroll Manager
Credit Control Manager
Finance/Accounts Manager (QBE)
Newly Qualified | ACA/ACCA/CIMA | up to 2 years PQE
Financial Reporting | 2 - 4 years PQE
Commercial Finance | 2 - 4 years PQE
Finance Manager
FP&A Manager
Financial Controller
Head/Director of Commercial Finance/FP&A
Head/Director of Divisional Finance
Finance Director
Chief Financial Officer
£20,000 - £25,000
£18,000 - £24,000
£18,000 - £25,000
£18,000 - £25,000
£18,000 - £25,000
£23,000 - £30,000
£23,000 - £30,000
£28,000 - £32,000
£30,000 - £40,000
£30,000 - £45,000
£30,000 - £45,000
£30,000 - £45,000
£42,000 - £46,000
£50,000 - £55,000
£55,000 - £65,000
£45,000 - £60,000
£55,000 - £70,000
£65,000 - £80,000
£80,000 - £100,000
£80,000 - £100,000
£90,000 - £120,000
£100,000+
£10 - £13
£10 - £15
£10 - £15
£10 - £15
£10 - £15
£15 - £18
£15 - £18
£15 - £20
£18 - £25
£18 - £30
£18 - £30
£18 - £30
£200 - £250
£250 - £300
£275 - £350
£225 - £325
£300 - £450
£400 - £500
£500+
£500+
£650+
£800+
Job title
Job title
Salary range
Salary range
Hourly rate
Day rate
QUALIFIED
Midlands
M I D L A N D S
The specialist markets division in the Midlands remains candidate driven and fiercely competitive, with high calibre candidates across all levels and practices remaining scarce. In saying that, the outlook is promising with the usual seasonal recruitment drives taking place across advisory, tax and audit practices. The Midlands market has experienced year on year growth resulting in increased requirements at the senior level across all lines. Firms are building their practices with purpose – being very selective and strategic to build strong senior management teams.
While the practice firms have hiring needs across their teams, it has been challenging to attract talent for practice mainly due to stiff competition from industry. Industry opportunities tend to offer higher remuneration packages and are commercially charged in nature, which is often more appealing to jobseekers.
There has been little change in salaries over the past 12 months because the bracket remains wide at each level and therefore change is less notable. Multiple processes and job offers are the norm for any strong candidate, along with counter offers from current employers. This remains a problematic and regular occurrence which makes processes quite complex and can overinflate salaries.
We are seeing positive market indicators for the future – firms that were not hiring in H2 last year have kick started their hiring processes and are creating roles again. Commerce and industry remains buoyant and candidates looking for their first move will have lots of choice, thus creating a backfill of opportunities within firms.
SPECIALIST MARKETS
SPECIALIST MARKETS
Junior to Part Qualified
Qualified
Assistant Manager
Manager
Senior Manager
Director
Partner
£18,000 - £27,000
£28,000 - £35,000
£35,000 - £45,000
£45,000 - £55,000
£58,000 - £65,000
£70,000 - £90,000
£90,000+
Job title Salary range
AUDIT
SPECIALIST MARKETS
Junior to Part Qualified
Qualified
Assistant Manager
Manager
Senior Manager
Director
Partner
£18,000 - £27,000
£28,000 - £35,000
£35,000 - £45,000
£45,000 - £55,000
£58,000 - £65,000
£70,000 - £90,000
£90,000+
Job title Salary range
Analyst
Executive
Manager
Senior Manager
Director
Partner
£30,000 - £38,000
£35,000 - £42,000
£45,000 - £55,000
£58,000 - £80,000
£85,000 - £120,000
£120,000+
Job title Salary range
TAX
CORPORATE FINANCE
Midlands
M I D L A N D S
Interim opportunities across projects & change
Despite the economic and political uncertainty created by Brexit, the Midlands market has experienced an increase in hiring activity this year. Investment in infrastructure and businesses either relocating or opening new offices in the region has certainly created more opportunities and is helping to attract talent from other areas of the UK. There are a number of businesses investing in projects and strategic change across all layers and thus creating demand for interim resource with technical expertise to help them implement their initiatives.
Roles that are in demand include: interim finance project managers, interim senior business partners and senior analysts across multiple industries, and especially where businesses are looking to become more cost efficient. In particular, those with finance, hybrid IT or projects/change skills are highly sought after as companies strive for growth while becoming leaner to drive operational efficiencies and increase profitability. These candidates are in a strong position to negotiate higher daily rates and choose between multiple offers. Often, when they are secured, candidates will be asked to adhere to longer notice periods as well as being offered completion bonuses in an effort to retain top talent in what is a very fast paced and fluid market.
Strong interpersonal skills is a must in the majority of finance roles that we work on, as companies seek the ‘business partner’ who is able to challenge stakeholders and interface with all departments as they undergo operational change.
We expect the executive & interim market to keep going from strength to strength as more businesses lose permanent staff to the interim market. We suspect that businesses will adapt their hiring strategies to reflect this and therefore position themselves well to react quickly to commercial changes around them and remain industry leaders.
EXECUTIVE & INTERIM EXECUTIVE & INTERIM
Financial Controller
Head of Finance/Divisional Finance Director
Head of Change Transformation
Finance Director
Chief Financial Officer
£65,000 - £80,000
£80,000 - £100,000
£100,000+
£90,000 - £150,000
£100,000+
£400 - £500
£500+
£750+
£650+
£800+
Job title Salary range Day rate
LONDONElm Yard
13-16 Elm Street
London, WC1X 0BJ
+44 (0)207 321 5000
NORTH WESTWeWork, No. 1 Spinningfields
Quay Street
Manchester, M3 3JE
+44 (0)161 507 3090
THAMES VALLEYThe White Building
33 Kings Road
Reading, RG1 3AR
+44 (0) 118 907 8240
YORKSHIREPark Row House
19-20 Park Row
Leeds, LS1 5JF
+44 (0)113 242 8177
MIDLANDSFloor 2
3 Brindley Place
Birmingham, B1 2HL
+44 (0)121 231 7150
IRELANDRegus House, Harcourt Centre
Harcourt Road
Dublin 2
+353 (0)1 477 3118
markssattin.com
@MarksSattin
Marks Sattin
@MarksSattinuk_Ire