2018 - marks sattin market insight report 2… · consider relocating to, narrowly followed by...

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

LONDONCOMMERCE & INDUSTRYKey Findings

Part Qualified & Transactional

Newly Qualified

Key Findings

Qualified & Interim

LONDONElm Yard

13-16 Elm Street

London, WC1X 0BJ

+44 (0)207 321 5000

[email protected]

London - Commerce & Industry

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

More confident As confident Less confident

Business process/policy changes Salary increases

Profitability of business

Salary freezes

Budget cuts

43% 29% 29% 29% 21%

87% of respondents were satisfied in their current role

67% of respondents expect a salary increase in the next 12 months

InsecureSecure

93% 7%

*Respondents could choose more than one answer

PA RT Q UA L I F I E D & T R A N S A CT I O N A L

50% 36% 14%CAREER INSIGHT

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)*

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

HOURS WORKED RELOCATION

HEADCOUNT

Average hours worked per week is 36-45

Increased

Decreased

Remained the same57%

7%

36%

27%20%

53%

Increased Decreased Remained the same


Top 3 reasons for respondents wanting to relocate*


1

2

3

Experience a different culture

Better employment opportunities

New career opportunity

Australia43%

21% United Arab Emirates

43% USA



21% of respondents would not relocate

7% of respondents anticipate changing roles in the next 12 months

Top 5 reasons for leaving last role*

MOVING ON

50% 38% 19% 13% 13%

Higher salary New challenge/more interesting work

Better location/easier commute

Career development

Lack of career progression

SALARIES & BENEFITS

When was your last pay review?

REMUNERATION

36%

Less than 6 months

14%

More than 12 months

29%

6 - 12 months

21%

Not applicable

79% of respondents received a salary increase in their last pay review

64% of respondents perceive a 11-20% salary increase as acceptable if they were to move roles

43%

Satisfaction with current remuneration

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

No, not entitled to receive one

Most important Least important

100% of respondents were satisfied with their bonus

82% of respondents received a higher bonus in 2017 than in 2016

1 - 9% of salary

10 - 19% of salary

20 - 29% of salary

46%

45%

9%

25 days holiday or more

Funding towards training courses

Company pension scheme

Childcare arrangement/vouchers

Car or car allowance

Mortgage relief

Yes

No

79%

7%

14%

Satisfied Dissatisfied57%


L O N D O NC O M M E R C E & I N D U S T R Y

Salaries are on the up

After a slow start to the year, the market picked up, particularly on the permanent side. This is a common theme as clients are settling back in after the Christmas break or finalising year ends, so there’s very little movement at the junior/PQ level at the beginning of the year.

We are seeing an increase in demand for higher end part qualified roles, especially within management and financial accounting. At permanent level, there is also a real push for candidates who are mid-way through their qualifications and looking to step up to assistant accountant level and grow within the business.

There appears to be less activity at the transactional and processing level, particularly when compared to last year. This is partly due to efforts by companies to keep costs down by recruiting at part qualified/finalist level rather than newly qualified. Firms are also working to train and develop the influx of transactional hires from last year – and are increasingly outsourcing work at this level while keeping core accounting and commercial functions in London.

On the temporary and contract side, transactional AP and AR roles are in demand, often to cover maternity, absence or to help with backlogs. At the higher end, fully experienced accountants who can hit the ground running are highly sought after, particularly to support with year ends, special projects or heavy workloads.

It has been a tough year for high street retailers with decreasing footfall, which has had a knock-on effect on recruitment in this area. Hospitality has also been quieter than usual, although this sector typically experiences seasonal peaks around the summer and festive periods. Property and technology continue to be the busiest areas with the most movement and available positions.

Following a couple of stagnant years, we are now seeing an increase in salaries across the board at all levels. Counter offers are common and candidate expectations are rising. Some industries, such as media and retail, are struggling to compete with corporates and financial services, as they offer higher basic salaries, and are seeking to attract candidates by offering enhanced benefit packages.

We expect the part qualified and transactional market to remain healthy throughout the rest of the year. It is an area of finance and accounting that is less affected than others by external influences such as Brexit and Government cuts. The market for part qualified accountants in the £30k to £40k salary bracket is likely to be the most active, as companies continue to outsource transactional work either overseas or outside London.

PART QUALIFIED & TRANSACTIONAL PART QUALIFIED & TRANSACTIONAL

Graduate/Trainee Accountant

Accounts Assistant

Accounts Payable/Accounts Receivable Assistant

Senior Accounts Payable/Senior Accounts Receivable

Revenue/Billings Manager

Accounts Payable/Accounts Receivable Manager

Credit Controller

Credit Control Senior/Supervisor

Credit Control Manager

Assistant Accountant

Financial Accountant

Management Accountant

Finance Analyst

Finance Manager

£24,000 - £26,000

£24,000 - £30,000

£22,000 - £28,000

£28,000 - £35,000

£35,000 - £55,000

£35,000 - £55,000

£26,000 - £30,000

£32,000 - £38,000

£38,000 - £55,000

£30,000 - £35,000

£36,000 - £44,000

£36,000 - £44,000

£36,000 - £44,000

£40,000 - £45,000

£90 - £110

£90 - £120

£80 - £120

£100 - £140

£120 - £250

£120 - £250

£80 - £130

£100 - £160

£120 - £250

£100 - £150

£130 - £200

£130 - £200

£130 - £200

£150 - £220

Job title Salary range Day rate


The year began very positively with an increase of 24% in job registrations compared to the same period last year - the newly qualified market has always and will continue to be busy.

Newly qualified roles are constant as there’s a large demand for ACA/CIMA/ACCA qualified candidates. Generally, the more technical roles are better suited to ACA professionals coming out of practice and the commercial roles suit candidates with hands on experience in industry. The most sought after accountants were those who possess communication and relationship building skills as well as financial and technical abilities, and this will continue to be the case moving forward regardless of the role being commercially or technically focussed. With finance departments now key influencers of business performance, companies are looking for candidates who can business partner with key stakeholders.

Uplift in the energy sector

The sectors that enjoyed a consistent flow of recruitment were media, technology, property and IT services. We are seeing a slight uplift in the energy sector, however it is still subdued when compared to previous years. Similarly the hospitality and retail industries are showing less traction than previous years.

Salaries have remained static. A newly qualified accountant can earn anything from £45k to £55k, depending on business size and sector. Within retail, media and hospitality salaries are around the £45k to £50k mark, whereas you could secure a higher basic of £50k+ in property, energy or commodities.

The contract market remains buoyant, with stiff competition for qualified finance professionals between 0-2 years’ PQE, particularly for those looking for their second move within industry. Strong candidates tend to secure multiple offers and, as such we’ve seen day rates creep up from £250 to £275.

We don’t envisage any large shifts in the future for the newly qualified market as demand is steady for these candidates. However wider economic factors will of course have an impact and the outcome of Brexit trade talks and transition deals will affect the level of investment for businesses in London.


NEWLY QUALIFIED

Group/Financial Accountant

Management Accountant

Finance Analyst/Business Partner

SME Finance Manager/Controller

Internal Audit/Compliance

25%23%26%16%10%

REGISTERED VACANCIES BY DISCIPLINE

NEWLY QUALIFIED

New Qualified | ACA/CIMA/ACCA

1 year PQE

2 years PQE

£45,000 - £55,000

£50,000 - £55,000

£55,000 - £60,000

£250 - £275

£275 - £300

£300 - £325



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?

How would you rate your current job security?

Top 5 expectations for your business in the next 12 months*

ECONOMIC PROSPECTS

Q UA L I F I E D

JOB SECURITY

–+ =19% 62% 19%

More confident As confident Less confident

InsecureSecure

81% 19%

81% of respondents were satisfied in their current role

70% of respondents expect a salary increase in the next 12 months


Business process/policy changes

Greater focus on regulatory issues

Profitability of business

Job cuts

Budget cuts

47%

42%

32%

30%

23%

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

HEADCOUNT

UnsureRemained the sameDecreasedIncreased

40%15%

41%4%

CAREER INSIGHT

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

Average hours worked per week is 36-45


Australia35%

23% Canada

37% USA


1

2

3

Experience a different culture

New career opportunity

Better work-life balance/ standard of living

28% of respondents would not relocate

Increased Decreased Remained the same

31% 12% 57%


Top 5 reasons for leaving last role*

MOVING ON

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

34%

31%

12%

23%

34%28%

24% 23%

10%

Higher salaryCareer development Better work-life balance

New challenge/more interesting work

Lack of career progression

39% of respondents anticipate changing roles in the next 12 months


Satisfied

Dissatisfied

79% 21%

72% 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 48% of respondents received a higher bonus in 2017 than in 2016

Benefits considered most and least important when considering a new role

BENEFITS

BONUS

25 days holiday or more

Annual bonus scheme

Company pension scheme

Mortgage relief

Subsidised/free meals

Leisure facilities

Most important Least important

Did you receive a bonus in 2017?

As a percentage of your basic salary, what level was your bonus in 2017?

56% 18% 26%

Yes No No, not entitled to receive one

68% of respondents were satisfied with their bonus

1 - 9% of salary

10 - 19% of salary

20 - 29% of salary

30 - 69% of salary

80 - 89% of salary

26%

45%

17%

10%

2%



2017 was a positive year with an improved job flow across most sectors at the qualified level, and this year is shaping up to follow a similar trend. The majority of roles registered to date have been on the more traditional controllership side with a noticeable decline in the number of commercial or business partnering roles coming to market. For Q1 2018, over 65% of the roles we registered were reporting or technically focussed. As a result, demand for candidates with strong IFRS, controls, and process/systems development experience remains high.

The competitive edge

Clients continue to seek candidates with relevant industry experience. While it is possible to move sectors, clients take comfort in hiring candidates that know and understand the intricacies and trends within their industries, meaning candidates with relevant industry experience will always have the competitive edge.

The £90k to £120k bracket is highly competitive and hotly contested, with fewer roles available. This has been the case for some time and has created a high number of active jobseekers at this level, all vying for opportunities when they arise. Only 8% of the roles registered this year had salaries in excess of £75k, and only 4% of roles had salaries in excess of £100k.

In the macro environment, the current volatile economic climate and outcome of the Brexit negotiations adds a degree of uncertainty, however so far this has had little to no visible effect on the recruitment market to date. Despite

the revised UK economic growth forecast at 1.6% over the next five years, the latest PwC forecast suggests that UK GDP will rise by 1.8% per year from 2020 onwards - stronger than the spring statement forecast. That said there are certain sectors, particularly high street retail and hospitality, which have been adversely effected by current trading conditions while other sectors like tech, media and pharma/biotech are trading well. We’ve also seen a resurgence with some of our natural resources clients.

A balanced interim market

Within the interim market, there has been an increase in job flow at the senior end. The air of economic uncertainty has positively impacted the contract market and there’s an equal balance of commercial and technical roles.

Salaries and bonuses have remained largely unchanged, with the only notable trend being the return of the signing on bonus at the more senior end of the market. We have also seen a sharp increase in the number of counter offers which further fuels competition.

Overall the market is positive and strong candidates who can pitch themselves at the right level and play to their strengths will always find good roles.

QUALIFIED & INTERIM QUALIFIED & INTERIM

Newly Qualified

Qualified | 1 year PQE

Qualified | 2 years PQE

Qualified | 3 years PQE

Group Accountant | 2 - 4 years PQE

Finance Manager

FP&A Manager

Commercial Finance Manager

Financial Controller

Finance Director

Chief Financial Officer

£48,000 - £55,000

£50,000 - £58,000

£60,000 - £68,000

£62,000 - £70,000

£55,000 - £65,000

£55,000 - £70,000

£60,000 - £90,000

£65,000 - £90,000

£70,000 - £100,000

£90,000+

£150,000+

£250 - £275

£275 - £300

£300 - £325

£325 - £350

£300 - £400

£350 - £400

£350 - £450

£400 - £500

£400 - £500

£450 - £700

£800+


LONDONElm Yard

13-16 Elm Street

London, WC1X 0BJ

+44 (0)207 321 5000

[email protected]

NORTH WESTWeWork, No. 1 Spinningfields

Quay Street

Manchester, M3 3JE

+44 (0)161 507 3090

[email protected]

THAMES VALLEYThe White Building

33 Kings Road

Reading, RG1 3AR

+44 (0) 118 907 8240

[email protected]

YORKSHIREPark Row House

19-20 Park Row

Leeds, LS1 5JF

+44 (0)113 242 8177

[email protected]

MIDLANDSFloor 2

3 Brindley Place

Birmingham, B1 2HL

+44 (0)121 231 7150

[email protected]

IRELANDRegus House, Harcourt Centre

Harcourt Road

Dublin 2

+353 (0)1 477 3118

[email protected]

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@MarksSattin

Marks Sattin

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2018 - marks sattin market insight report 2… · consider relocating to, narrowly followed by...

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