looking ahead market overview and salary guide 2012 · fmcg sales 6 energy, oil & gas sales 8...

LOOKING AHEAD MARKET OVERVIEW AND SALARY GUIDE2012

SA-03313-2_Sales_Market_Overview_A5_v6.indd 1 07/03/2012 17:26

In a year in which the challenges on the global economy were ever increasing, and the picture that was portrayed in the media was constantly changing, the market for sales professionals remained remarkably resiliant in a number of key sectors. Companies continued to invest in their sales force as they looked to grow their market share. The technology market in particular saw an increase in the number of vacancies, as companies looked to recruit a technically astute team that were focused on growing expanding revenue streams in new products and technical advances.

The skill sets required followed the path of 2011 as clients looked to individuals to sell a complete solution rather than an individual product. Business Development personnel with industry specific experience, particularly those from a direct competitor who are able to add value immediately, were hugely in demand.Competition for talent remained fierce within these particular niche areas and it was not unusual for counter-offers from a candidates existing company to be 15-20% higher than their current salary.

Salaries and the market within other sectors remained flat with FMCG showing little sign of growth and salaries remained largely unchanged from the previous year. There was a trend for companies to increase the element of commission as an overall proportion of the salary so that individuals could still maintain their earnings but for a salary to increase they had to show a real return in their individual or team sales.

Nationally we saw those companies that worked with public sector and the construction industries were hit hardest both in terms of the number of new hires and also the salaries within those sectors.

I hope you find this year’s salary guide to be of interest and useful in your planning. For further information please do not hesitate to contact me directly

Alison GoodmanOperations Director, Hays Sales

INTRODUcTIONcONTENTS

Introduction 1

Survey insights 2

FMCG Sales 6

Energy, Oil & Gas Sales 8

Construction Sales 10

IT and Telecoms Sales 12

Media & Communication Sales 16

Manufacturing Sales 19

Recruitment Trends | 1

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SURVEY INSIGHTS

2 | Recruitment Trends Recruitment Trends | 3

Our survey of employers and employees shows that stability and the opportunity to excel with current companies might be all it takes to retain top talent

80% of those surveyed enjoy their job and felt they were still stimulated however over two thirds (67%) want to find a new job by the end of January 2012. 71% of employers report that they haven’t seen an increase in the number of sales staff choosing to leave their organisation in the last 6 months compared with the prior 12 months. Although professionals seem happy with 53% feeling their managers supported personal development – most do not seem opposed to a new opportunity.

Bonuses43% didn’t receive a bonus in 2011 whilst 26% received a quarterly bonus; 23% recieved a yearly reward and only 3% still received monthly dividends. Of those who did receive one, 5% earned £20,000 or more whilst £10,000 and below was the average.

Most bonuses received were less than in previous years, however, 75% of organisations said they hadn’t capped commission in 2011. 57% of employers don’t plan to change their current commission structures in 2012.

BenefitsSo, what makes a sales person tick? Second in preference to company car allowance (80%) and private medical cover (72%) are individual performance related bonuses – only 50% receive this and 55% of employers offer this but it’s deemed as an important benefit. Amongst the most popular benefits offered by employers are contributory pension (82%), 25+ days annual leave (80%) which they think is the most popular benefit offered to employees, and company car allowance (72%). 46% are fairly satisfied with their current benefits packages whilst 20% are fairly dissatisfied.

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career progression 100% of candidates surveyed felt they had all of the skills needed to progress in their career and employers mirrored this as 85% felt their employees have the skills to help the organisation grow, although, only 50% felt there was scope for progression in their career. Even though almost three quarters of employers surveyed hadn’t invested in staff retention strategies in 2011, this is very much an area of focus for the next 12 months (82%) as they feel the recruitment and retention of quality staff will have the greatest impact on the organisation when the economy returns to growth.

Looking aheadNearly 70% agreed their workload had increased without extra pay and only 19% felt there was no real change in their workload. 60% feel the recession has had a negative impact to their career in the long term and a high salary was deemed most important when considering a new role.

52% feel less committed to their organisation compared to this time last year and only 20% felt more commitment. Interestingly 84% of employees felt that personal commitment and dedication is a characteristic demanded most by employers today. 61% thought effective communication towards other departments, resourcefulness and ability to think creatively along with commercial awareness all came second. Candidates with the ability to business develop rather than just account manage are deemed as having the most sought after quality in the current market (65%).


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The top requirement for many FMCG companies remains to recruit good sales people who can ultimately deliver revenue to the bottom line, identify profitable partnerships and consistently exceed targets.

With confidence in particular sectors returning to the market it has been reported that Procter & Gamble will use sales from brands such as Pampers, Gillette and Pantene to fund an estimated £3 million investment in youth sport initiatives around the world as part of its long-term partnership with the Olympic Games. The company has matched its brands with athletes that complement them and will feature in advertising campaigns rolled out for each brand from January 2012.

Whilst consumers had previously been influenced by branding and remained loyal to the leading market brands across all sectors, Tesco’s recent disappointing trading figures after the ‘Big Price Drop’ campaign which ran throughout Christmas 2011 indicated a shift towards cautious buying behaviour, highlighting the challenging consumer environment at home even in seasonal periods.

A fiercer market Recruitment within the sector is still affected by the recession with an abundance of available professionals outweighing the number of jobs, however, there are always chances for talented individuals who can cultivate sustained relationships with key buyers and generate new revenue streams. We are seeing a number of clients willing to wait for the right person and they are not prepared to compromise. There is a fierce competition for top

candidates in the market and whilst salaries have remained the same; organisations are offering guaranteed bonuses and increased benefits packages to attract the very best. This in turn has boosted the headhunting market, resulting in some organisations losing their top people to competitors and the focus now is on keeping their best employees feeling valued and rewarded. From a professionals point of view the need for clear earning potential, a guaranteed bonus in the first three months of employment and increased notice periods are deemed attractive in their package as this increases stability in their roles.

Moving to a digital ageOnline advertising and the use of social media are key to tap into a pool of passive candidates who aren’t actively looking for new opportunities. It’s this ‘non-active’ pool who are typically strong performers and usually happy where they are, but a certain job or brand name can turn their head and make them consider a move.

FMcG SALES

6 | Recruitment Trends

JOB TITLE SALES ExpERIENcE AVERAGE SALARY OTE

Account Executive 1-2 years £18-23,000 £25,000

National Account Executive 2-3 years £20-28,000 £30-33,000

Account Manager 3-5 years £26-32,000 £34-37,000

National Account Manager 4-6 years £35-45,000 £40-50,000

Senior National Account Manager 5-7 years £45-60,000 £55-70,000

National Account Director 5-8 years £55-65,000 £70-80,000

Sales Manager 6-8 years £50-70,000 £70-80,000

Sales Controller 8-10 years £60-70,000 £70-80,000

Commercial Director 8-10 years £60-70,000 £75-85,000

Sales Director 10 years + £70-100,000 £100-130,000 + Shares



With energy prices continuing to rise, a well-documented oil spill in the Gulf of Mexico and more questions being posed to UK oil and gas companies on the safety of drilling in the arctic, this sector is subject to yet more change. Both cost and controversy is never far from the news.

The Petroleum Industry Association (PIA) has reported that British regulations are now the toughest in Europe and could impose an extra £1bn a year burden on British refiners. Ten refineries have closed in Britain in the last 40 years while both BP and Shell have sold plants because of poor returns and competition from bigger and more sophisticated units in the Far East.

A time of uncertainty The UK offshore oil and gas industry is an established provider of energy, employment, investment, exports and tax revenues for the UK economy. This industry has an important role to play in helping the UK withstand the pressures imposed by the current global economic situation however; the UK isn’t appealing for inventors in the medium to longer term. Relatively high development costs, a high tax rate and armored uncertainty over future tax treatment will not aid the UK industry. Exploration drilling in 2011 was significantly lower than in 2010, which is worrying at the current oil price, and one that is not being seen in other countries bordering the North Sea.

powering the marketAs always with this highly technical and engineered sector, experience and qualifications are key. Organisations want to see professionals who have sold a similar competitors technology or service in to the same customer base. Those showing short term moves on their CV’s in recent years due to the global recession are being overlooked as companies become even more selective and generally only looking at those with a solid and stable work history. A premium is also paid to professionals with product or service technical expertise as well as a network of contacts within an organisations target market.

Whilst salaries and benefits have remained at the same level the lack of skilled and available talent is still an ongoing problem. This sector has requirements for staff that understand niche and specialist areas and therefore supply is always limited. Organisations are using Hays to attract skilled talent by taking advantage of our expertise in social media and digital attraction, as well as utilising our established industry contacts.

ENERGY, OIL AND GAS SALES













Sales Director 10 years+ £70-100,000 £100-130,000 + Shares


The construction industry was one of the worst hit sectors in the recession and endured another tough year in 2011. With the level of new housing slowing and reduced mortgage approval rates, UK companies may seek a move abroad.

2011 wasn’t a good year for the construction industry and the conservative caution amongst many companies meant there were many re-structures and business plans being changed due to legislation and spending.

Whilst the sector is still at a low the introduction of the government’s New Build Indemnity Scheme in November 2011, which aids first time buyers, delivers both a significant increase in housing supply, and access to affordable mortgages for those without large savings who wish to purchase a new home. With major housebuilders included in the scheme this will result in increasing levels of new housing being built.

Building new bridges Organisations need to trade out of the recession and in doing so will continue to diversify and look to attract astute and commercial professionals that can help them break in to markets where they have little experience. There is an interest in European and International Business Development professionals who are being hired to help the business expand or break into the European market.

There is a profusion of senior professionals looking to break into different industries where there is synergy and they are not averse to interim or contract work. It goes without saying that any potential hirers are expected to be proficient in tendering and PQQs. Those who command the better salary and package are ones that show the ability to sell a solution, have vast experience and successful wins in various sectors. Salaries have been affected more than in other sectors with companies looking to merge roles as well as capping bonuses and salaries.

Great expectations Employers need to be very clear on what their proposition is. Companies want to attract the best and the better calibre of professional will always want to know what the company or role targets are so they can measure the bonus & commission scheme. They will always be interested in what their on target earning are – not just basic salaries, so they can determine whether a move will ultimately be commercially beneficial.

cONSTRUcTION SALES













With the slow but sure emergence from recession the past year has been an exciting one for the IT and telecoms industry with the espousal of Cloud aiding long-term growth plans.

Cloud computing has undoubtedly been the most discussed topic in the IT sector during the past few years. In May 2011 Forrester Research predicted that the global cloud computing market will grow from an estimated $40.7 billion in 2011 to $241 billion in 2020. In a recent survey by KPMG, it was reported that 81% of businesses are either planning, are in early or advanced stages of experimentation or already have full-on cloud implementations. According to KPMG’s head of technology Tudor Aw, “Cloud adoption is quickly shifting from a competitive advantage to an operational necessity, enabling innovation that can create new business models and will impact the long-term growth opportunities and competitiveness of businesses.”

With this is mind organisations in this sector are still recruiting, much more so within IT rather than the Telecommunications market. Although Apple posted revenue of $46.33 billion, up from $26.74 billion a year earlier it its fiscal first quarter 2012; other companies in the telecoms industry have not reported such impressive figures and the outlook for the year isn’t as expected.

Ahead of the game The key priority for organisations is to keep ahead of technological tends and be the first to market with new solutions and products. The market is very buoyant for both professionals and new jobs coming onto the scene. There is still tough competition for candidates with clients looking for a mix of technical knowledge and selling ability within a given vertical market – so it’s imperative that candidates brush–up on their product and industry knowledge.

Salaries have remained at the same level; some employers are offering enhanced bonus and benefits packages to entice the best professionals to them. Within IT, Cloud computing experience is in high demand – those with proven experience of this market are always being targeted by recruiters and also competitors.

Retaining your best staff is always a challenge, but offering year-end bonuses, a challenging and visible career path and internal project work will help to keep them engaged and feeling valued.

IT AND TELEcOM SALES



Account Executive 1-2 years £30-£35,000 £45-£50,000


Account Manager 3-5 years £35-£60,000 £80-£100,000




Sales Manager 6-8 years £40-£80,000 £70-£120,000



Sales Director 10 years + £90- £130,000 £160-£200,000

Pre Sales Variety £50- £70,000 £80- £120,000

VP of Sales Variety £100-£180,000 £250- £400,000

EMEA VP of Sales Variety £180,000 £250-£400,000

Sales Consultant Variety £50-£70,000 £90-£120,000


Sales Recruitment Trends | 15 Sales Recruitment Trends | 15

THE HEART OF A BUSINESS

IS ITS pEOpLE


MEDIA AND cOMMUNIcATION SALES



Account Executive 1–2 years £20-25,000 £35,000

Account Manager 2–4 years £20-30,000 £35,000

Field Sales Executive 2–5 years £20-25,000 £35,000

Business Development Executive 3–5 years £30-40,000 £50,000

Key Account Manager 3–5 years £30-40,000 £35-45,000

Account Director 8 years+ £40-50,000 £45-55,000

Business Development Manager 4–10 years £35-45,000 £60,000

The media and advertising industry is constantly in evolution. As we become more of a technologically driven society, hype around social media has born out of the shift towards the digital world.

Social media is very much on the marketing scene and is becoming an integral element of many consumer campaigns. Businesses are capitalising on the plethora of platforms by maximising visibility and leveraging social media to bridge the gap of connectivity between business and customers. Big and small businesses alike are using social media campaigns to get closer to the needs of their consumers and gain an advantage over competitors however a failed campaign can have a damaging effect. McDonald’s has recently admitted a social media campaign went very wrong after pulling activity that was ambushed by detractors leaving negative comments. The brand used Twitter to rally fans and encourage them to share positive stories about McDonald’s experiences The campaign, however, backfired when critics such a animal rights group PETA used this to raise issues with McDonald’s practices and unhappy customers used it to slam the restaurant chain and share negative stories. The real time element of social media meant the campaign could be stopped immediately and prevented this from manifesting into a bigger issue.

progression of the digital ageAlthough developers with experience of the technical aspects of online advertising including search engine optimisation (SEO) and pay per click (PPC) are still very much in demand, social media specialists who can add significant value to online campaigns are highly sought.

The marketplace mirrors that of 2011 and is stable with typical salaries varying on role, splitting mainly in the direction of account management – typically paying a higher basic with lower overall earning potential – and new business development – a lower basic but typically a higher earning potential.


MANUFAcTURING SALES

14 | Recruitment Trends

The global economic slowdown along with rising energy and materials costs have affected manufacturers with executives in the sector planning smart growth strategies as the market begins to recover.

Although the sector expanded again the first quarter of 2011, its sixth consecutive quarter of growth; hopes that exports from a stronger manufacturing base will help restore economic growth immediately have been hampered by Europe’s debt crisis. 2012 is undoubtedly going to be a difficult year, Government austerity will hamper growth and spending by UK consumers will also remain subdued. These challenges at home mean that growth in the economy will be more dependent on exports.

A recovering marketDemand for exports has been a key factor in the recovery for manufacturing. UK manufacturers are working to increase their export presence in fast-growing emerging markets. Although only 7% of the UK’s goods exports go to the BRIC (Brazil, Russia, India & China) economies, the value of exports to these countries has grown by 150% in the last five years, despite the financial crisis and exports to non-EU countries hit a record level in October 2011.

Companies planning to recruit say they look to hire based on their relationships with existing accounts in order to ‘buy in’ existing relationships and leverage these. Key account managers within any business remain prime targets for competitors. The ability to win new customers is primary and specialist sector knowledge within specific accounts is paramount. Companies want sales professionals to not only be experts in their field but also well connected within their customer base.


Sales Engineer/Representative 1-3 Years £20 – 35,000 £25 – 40,000

Account Executive/Manager 1-3 Years £25 – 45,000 £35- 55,000

Sales Manager 8 Years £45-55,000 £55 – 75,000

Account Director 8 Years+ £40-50,000 £45-55,000

Business Development Director 10 Years £60-70,000 £75 – 90,000

Business Development Manager 4-10 Years £35 – 50,000 £45 – 65,000

Head Of Sales/Sales Director/Vp Of Sales 15 Years £65-85,000 £75 – 100,000



© Copyright Hays plc 2012. HAYS, the Corporate and Sector H devices, Recruiting experts worldwide, the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc. The Corporate and Sector H devices are original designs protected by registration in many countries. All rights are reserved. The reproduction or transmission of all or part of this work, whether by photocopying or storing in any medium by electronic means or otherwise, without the written permission of the owner, is restricted. The commission of any unauthorised act in relation to the work may result in civil and/or criminal action.SA-03313-2

To find out more or for further market updates, please contact your local Hays consultant. Or visit hays.co.uk

About Hays SalesA successful sales team depends upon the skills of its people. In a sales environment, it’s as much about who you know as what you know. At Hays Sales, we are informed and passionate about our industry.

As recruiting experts, we provide an integrated recruitment solution to the UK’s sales market. Working across a nationwide network of offices, we offer employers a dedicated and expert recruitment service for permanent positions across all business sectors, skill sets and levels of seniority. From blue chip corporations, national and international firms through to public sector organisations, we cover the vast majority of market sectors.

If you need a well-informed opinion, advice on a specific area of recruitment or wider staffing project, our expert consultants can help you. Or if a new career is what you desire, our long-standing relationships with clients will assist you in getting that important first introduction.

SA-03313-2_Sales_Market_Overview_A5_v6.indd 22 07/03/2012 17:26

looking ahead market overview and salary guide 2012 · fmcg sales 6 energy, oil & gas sales 8...

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