market trends & salary review - · pdf filecontact me if you have any questions. ......

MARKET TRENDS & SALARY REVIEW

perceptor.com.au

FINANCE, ACCOUNTING & COMMERCIAL 2016 / 2017

Established in 1999, Perceptor has more than seventeen years of experience in recruiting high-calibre professionals into Financial, Accounting and Commercial roles across Sydney and Melbourne.

We view the market through a prism of experience and context, having worked through the full range of market conditions over many years. Our advice to clients and candidates is always thoughtful, pragmatic and objective, with an understanding of medium and long-term implications for each decision.

While clients and candidates will ultimately make their own hiring or career decisions, our continued goal is to partner with them to help them make the best possible decisions over time. It is this considered advice which provides true value to our clients and candidates, and positions us as a trusted advisor to the Financial, Accounting and Commercial community.

I invite you to read the following pages to get an update on the current market conditions, and encourage you to contact me if you have any questions.

IAN McALPINE - Managing Director Finance / Accounting / Commercial

P: 02 9227 7702 E: [email protected] perceptor.com.au

Welcome to Perceptor’s Market Trends & Salary Review for 2016 / 2017

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Market Trends & ObservationsStrong Mid-level Market & Tightening Conditions

Over the last year, the mid-level finance market has shown increasing levels of activity generating a level of churn not seen for several years. This was a welcome development for high-calibre candidates who were able to choose between multiple roles and negotiate good salary packages as the competition for talent increased.

In particular, there was increased demand for Financial and Management Accountants as well as Commercial Analysts. The recruitment process time frames became shorter as companies realised they would miss out on good candidates if they didn’t adapt to the new conditions and compress the interview process.

This led to efficient and decisive hiring processes which benefited all parties. The high demand also put some pressure on mid-level salaries, so percentage increases of 5-8% were common, well above inflation.

Continuous Structural Change & Adaptability

Although the economy has shown resilience over the last few years, the competitive pressures continue to grow and even the most successful companies have become adept at evaluating their business models and structures in the light of changing market conditions.

The advent of new technology, overseas competitors, industry disruptors and government regulatory and policy changes have had major impacts on many companies in a short period of time. The successful companies have made the hard decisions on their own strategy and delivery model which has resulted in continuous restructuring and change across most industries. It seems the changes are accelerating and that the ability to adapt will determine whether organisations succeed or fail. Naturally, these changes impact many employees – and financial teams are at the centre of making and implementing these decisions. This means that individuals need to demonstrate adaptability as a key skillset in order to succeed in the new environment.

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Diversity Agenda At Senior Levels

Over the last year, the discussion around the ratios of male to female executives and board members in corporate Australia has increased. Whilst most people acknowledge that progress has been made to improve diversity, there seems to be increasing momentum to make this a focus and work towards an even mix in leadership teams. Our clients are encouraging us to provide balanced shortlists for key roles and appear more open-minded to female candidates who have taken time out for their children or require some flexibility in hours. In the finance function generally, the ratio of senior men to women is probably 70:30, so there is a long way to go but the momentum for improving the balance is strong.

Outlook

As we said a year ago, the outlook for mid to senior Finance, Accounting and Commercial roles continues to improve. While the mid-market has picked up, the senior market is still sluggish and relatively stable. Incumbent CFOs are generally performing well and working with CEOs to drive change in their companies to adapt to the changing marketplace.

The focus on costs is continuing but the need to invest in the new business models and leverage new technologies is becoming clearer – and creating new roles and opportunities for finance professionals.

Our view is that the most successful finance professionals over the next few years will have demonstrated adaptability, resilience and leadership skills to help companies navigate this period of change. They will have good technical knowledge, understand the commercial implications of management decisions, and provide the relevant analysis to support those decisions.

They will be both generalists and specialists – possessing broad business knowledge and strong expertise in specific areas, such as the latest accounting standards or corporate strategy. Project management skills will be essential as most roles now have a project component – and if they don’t, they soon will!

With a proactive approach, finance professionals will build those skills and experiences, and position themselves well for the myriad opportunities ahead.

Global Executive Search Firms

PERCEPTORA focused search and selection practiceSalaries

$100 K to $400 K

Volume Recruitment Agencies

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Market Commentary & SalariesAt The Top End

The senior Finance market has been quite active over the last year and this consistent level of market movement should continue. Catalysts for CFO moves have been varied, but are primarily company specific rather than being driven by the state of the economy or industry trends.

A number of CFOs have moved internally to General Management roles or been promoted to an overseas role. Some have been poached by competitors or larger players while others have taken redundancy opportunities after many years with the same organisation. Ownership changes have created some movement, mainly in mid-size companies with an increase in Private Equity acquisitions and divestments.

Some CFO roles have evolved to encompass additional areas of responsibility and required a different skillset, and in some cases, an incoming CEO has decided to bring in a new CFO with fresh thinking and a new perspective.

These changes in individual organisations will continue to drive activity in the senior Finance market this year and beyond, irrespective of economic conditions.

Whilst the focus of many CFOs has been to keep a tight rein on costs, their contribution to investment decision-making is perhaps more important in the next few years, as companies seek to remain competitive in a low-growth economy. Their contribution to corporate culture should not be underestimated as they set a particular tone from the top as a key member of the leadership team.

Salaries have not really moved over the last year in this low inflation economy, although most senior finance executives have been earning strong bonuses towards the top end of the range. With CEOs remaining cost-conscious, they are careful to match the market and happy to pay incentives if individuals perform well and add value to the business.


LARGE CORPORATE (ASX100 OR MAJOR MULTINATIONAL)

Sydney & Melbourne $,000

Group CFO $700 - 900

Div CFO / Dep CFO $350 - 550

GM Finance $250 - 350

Group Financial Controller $250 - 330

Group Treasurer $240 - 320+

GM Tax $220 - 300+

Chief Risk Officer / Head of Internal Audit $220 - 300+

MEDIUM-SIZED CORPORATE (ASX300, MULTINATIONAL OR PRIVATE/PE)


CFO $300 - 400

GM Finance / Group FC $200 - 300

The figures stated show Total Package including cash, superannuation and benefits. Discretionary components such as bonus and options are excluded. Bonus components tend to range from 50 – 100% of Total Package, with large companies on the higher end.

Recent Assignments Completed

Chief Financial Officer – Australian Insurance Brand GM Finance – Major Australian Financial Services Group Head of Tax – High Profile Media Group Head of Finance – ASX Retail Group Financial Controller – Large Infrastructure Business

For further information on the CFO and Senior markets, please contact:

Ian McAlpine P: 02 9227 7702 E: [email protected]


Commercial Finance & StrategyThe Commercial Finance market has remained buoyant over the last 12 months, with candidates who can add value by partnering with business leaders consistently in demand. Commercial Finance Managers with strong analytical skills, the ability to think strategically, and aid executive decision-making have often had multiple options. In addition, candidates with strong communication skills who can build rapport and collaborate across the business are in high demand. In many cases, this ‘soft skill’ differentiates top quality candidates in the selection process.

At the less experienced end of the market, businesses are starting to hire Finance Analysts on potential and seem more willing to take candidates direct from the Big Four and professional services who have a strong financial grounding and can learn quickly.

Financial planning and analysis skills have also been sought after, especially within the listed environment. In the wake of some high-profile company profit warnings and corporate collapses, company information is being heavily analysed by equity markets, so candidates with knowledge of how to explain results to sophisticated investors are attractive.

Salaries have come under pressure at mid-levels and increased by up to 5%, but have remained stable at more senior levels.

There has also been a push by large organisations to further grow strategy teams to save on the high fees charged by the global strategy consultancy houses. Candidates that have been trained within these environments have been highly sought after and can expect multiple internal career opportunities once they have joined the corporate sector.

The figures stated show Total Package including cash, superannuation and benefits. Discretionary components such as bonus and options are excluded. Bonus components tend to range from 10 – 40% of Total Package, with senior executives on the higher end.


Head of Commercial Finance – Top 50 ASX Listed Business Senior Commercial Manager – Major Infrastructure Group Director of Strategic Initiatives – ASX Insurance Group Senior Commercial Analyst – International Pharmaceutical Head of FP & A – Major Australian Retailer

COMMERCIAL FINANCE & STRATEGY


Senior Commercial Manager $185 - 250

Planning Manager $175 - 220

Corporate Development Manager $170 - 270

Project Manager $150 - 200

Strategy Manager $150 - 190

Commercial Manager $140 - 180

Corporate Finance Analyst $130 - 165

Planning / Commercial Analyst $110 - 165

Financial Analyst (5 years+) $110 - 140

For further information on this market, please contact:

James Gallagher P: 02 9227 7707 E: [email protected]


Group Reporting, Risk & Compliance, Tax & TreasuryThere has been a consistent demand throughout the year for technical accountants and compliance professionals. High-calibre first movers from the Big Four chartered accounting firms are sought after by our listed clients in group finance positions as well as divisional accounting roles within the multinationals. We have seen a shortage of these candidates coming into the market which could be linked to the Big Four firms reducing their graduate intake three or four years ago during the Global Financial Crisis. Clients are not only looking for candidates with strong academic achievement and technical skills, but also the right behavioural traits to engage with all levels of stakeholders.

As clients have gone through major restructuring, we have seen an increase in hiring of internal auditors to work on projects specifically with process controls and governance experience. In the more specialist roles such as Tax and Risk, we have seen some activity, but most of the movement has been at the mid-levels. The newly qualified to mid-level market has seen the most activity as candidates tend to move around more to seek career advancement. This will continue to drive the market in the year ahead.

Clients want to attract the best talent in the market, but they also have to make sure they retain the talent they have. Building a high performance culture is paramount to a company’s success in attracting the best candidates available. The figures stated show Total Package including cash, superannuation and benefits.

Discretionary components such as bonus and options are excluded. Bonus components tend to range from 10 – 40% of Total Package, with senior executives on the higher end.

GROUP REPORTING, RISK & COMPLIANCE, TAX & TREASURY


Financial Controller / Manager $170 - 240

Compliance & Controls Manager $155 - 185

Tax Manager $150 - 200

Internal / IT Audit Manager $150 - 190

Treasury Manager $140 - 220

Corporate Reporting Manager $140 - 180

Management Accounting Manager $140 - 170

Financial Accounting Manager $130 - 160

Senior Tax Accountant (5 years+) $120 - 150

Senior Management Accountant $120 - 145

Group / Corporate Accountant $120 - 140

Group Treasury Accountant $110 - 140

Senior Finance Accountant $110 - 130

Risk Analyst $100 - 130

Management Accountant $90 - 120

Financial Accountant $90 - 110


Compliance Manager – Multinational Consumer Electronics Business Assurance Analyst – Large Australian Technology Group Financial Controller – ASX Top 50 Retailer Finance Manager – ASX Top 200 Financial Services Financial Controller – ASX Listed Property Investment Firm


Duncan McNeill P: 02 9227 7706 E: [email protected]

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of target bonuses paid this year on average, with some companies paying over 100%.

70%Interim & ContractingThe interim market has shown steady demand throughout the year, apart from the usual busy half-year and year-end reporting periods that showed increased demand for qualified professionals. The senior end of the market remains relatively slow-moving given that companies have continued to promote and develop internal talent-encouraging secondments that would otherwise have been contract opportunities for external candidates. The exception has been specific senior technical accounting and reporting positions where skills have been in demand. The newly qualified to mid-level is where we have seen most activity, particularly as companies continue to invest in systems and improvement projects. The trend has been to backfill core finance roles with contractors as internal employees undertake secondments onto transformation projects.

There has been a gradual increase in demand in the infrastructure and services sectors, as interim solutions have offered flexible and readily available solutions for urgent requirements driven by growth.

Perceptor continues to maintain a very strong network of qualified accounting professionals with proven backgrounds in technical accounting, management accounting, finance improvement, and commercial finance, that are open to interim assignments.

More Numbers

Recent Interim Assignments Completed

Group Financial Controller – ASX Energy Group Commercial Finance Manager – International Services FP & A Manager – Global Advisory Firm Senior Business Analyst – Telecommunications Group Finance Manager Marketing – Multinational FMCG


Steve Finch P: 02 9227 7714 E: [email protected]


is the average time taken for a candidate to find a new role at CFO-level.

6-12

MO

NTH

S

is the average tenure in a finance role at mid-levels.

2-2.5

YE

AR

S

is the average salary increase this year.

4-6%

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2016/ 2017

Key Skills in Demand for

• BUSINESS PARTNERING

• COMMERCIAL ANALYSIS

• ADAPTABILITY

• TECHNICAL REPORTING

• RELATIONSHIP BUILDING

Level 14, 9 Castlereagh Street Sydney NSW 2000

T: 02 9227 7777

Level 27, Rialto South Tower, 525 Collins Street Melbourne VIC 3000

T: 03 9935 2860

perceptor.com.au

market trends & salary review - · pdf filecontact me if you have any questions. ......

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