Market Insights 2013 For The Commerce Industry
Market Insights 2013 For The Commerce Industry
METHODOLOGY In Q4 of 2012 Marks Sattin conducted a survey with clients and candidates, focused on the demographics, length of tenure, working week, job security, career motivations, department changes, reward and bonus trends of nance professionals. Over 2,000 accountancy, nance and advisory professionals from 20 industry sectors across the UK were surveyed. The report is based on ndings received from respondents completing the survey as well as sector specic market insight and salary ranges (annual and day rates) from our experienced consultants based at Marks Sattins UK offices. Market insight and salary range data tables are provided across the following sectors and regions: Banking and Capital Markets, Change Management, Front Office, Insurance, Investment Management, Senior Finance, Commerce and Industry, Executive, Part Qualied and Transactional, Qualied, Advisory, Audit, Management Consultancy, Taxation, North West, Thames Valley and Yorkshire. It is important to note that this report is a useful guide, but if you need any tailored or specic advice please do contact us directly.
Marks Sattin is a leading multi-divisional specialist accountancy, nance and advisory recruitment consultancy. Since our formation in 1988, Marks Sattin has established an excellent reputation for providing the full range of permanent, temporary, contract and interim professionals within the public and not-for-prot sector, commerce and industry, banking and nance and public practice. Marks Sattin is a well-established specialist recruitment rm with over 100 recruitment consultants based in the UK and Ireland, and a further 60 consultants across our global offices. To give an outline on the scope and size of our operations: In 2012 we helped our clients ll more than 650 temporary placements and 850 permanent positions We currently work with 75 of the FTSE 100 companies At any one time we represent over 65,000 nance, accounting and advisory professionals throughout the UK and Ireland We currently average over 24,000 visits to the Marks Sattin website every month Marks Sattin are proud to work with a number of The Sunday Times Fast Track 100 and Best Companies to Work For.
CONTACT US
LONDON 322 High Holborn, London, WC1V 7PB +44 20 7321 5000 [email protected] NORTH WEST 3rd Floor, Centurion House, 129 Deansgate, Manchester, M2 3WR +44 161 638 8630 [email protected]
THAMES VALLEY Davidson House, Forbury Square, Reading, Berkshire RG1 3EU +44 118 900 1800 [email protected]
YORKSHIRE Park Row House, 19-20 Park Row, Leeds, LS1 5JF +44 113 242 8177 [email protected]
markssattin.co.uk
Marks Sattin
@MarksSattin
DAVE WAY
Managing Director
Dave Way, Managing Director of Marks Sattin, believes in leading by example and is committed to making Marks Sattin the best nancial recruitment company in the market. Having joined Marks Sattin as a graduate in 1999, Dave has worked at every level and division within the business, which gives him a deep understanding of the workings of nancial recruitment. As such, he has considerable expertise in providing a bespoke service for clients and candidates alike.
INTRODUCTION
KEY TRENDS
SALARIES & BENEFITS
Employers began to be slightly more forthcoming with pay rises for accountancy and advisory staff last year, with 68% of employees receiving a positive review and only 1% asked to take a pay cut. Only 30% of permanent staff and 20% of contract staff were unhappy with their current salaries, once again showing that remuneration isnt a key driver for leaving. This is further highlighted by the fact that a 5 to 10% uplift in basic salary would be acceptable should a move come about. 56% of respondents were happy with their benets packages, with the most important benets being 25 days holiday, pensions and private healthcare all of which were deemed more important than annual bonuses. The sensitive subject of bonuses was covered in depth in our survey. 47% of respondents received a bonus, 38% were not entitled to one and 15% not awarded one. These gures arent necessarily surprising, as bonuses are becoming increasingly tied to company performance and a high proportion of companies have failed to deliver on targets over the course of the year.
Only 30% of permanent staff and 20% of contract staff were unhappy with their current salaries
Of those receiving bonuses, only 44% were satised with what they received. 1 to 9% of salary was the most consistent amount paid out across the board (received by 41%) while 32% received 10 to 19% and a lucky 27% received over 20% of their basic salaries. The fact that 1 to 9% of basic salary was the most common bonus payout is perhaps a sign of the increasing scrutiny of bonuses by the wider business community, although the biggest bonuses were still paid within the nancial services sector. Our survey showed that across the board, accountants were far better looked after than other professionals. The average salary for accountancy and advisory professionals rose in 2013, a strong indicator of the value of nance professionals during uncertain and changing times.
68%
spondents ceived a
st year
ncrease
pay increase
of respondents received a last year
68%
68%
pay increase
of respondents were happy with their
56%
benets
56%
56%
benets
benets
44%
bonus
44%
44%
bonus
Our survey showed that across the board, accountants were far better looked after than other professionals
bonus
33% of respondents
actually saw an increase in the size of their teams over the past 12 months
of respondents feel secure in their current role % of respondents feel secure in their current role
78%
78
Few businesses are perceived to be taking a long term view on headcount, which is hardly surprising considering the yo-yo economy and false dawns seen over the past few years. Only 18% of respondents believed their management were planning one to two years ahead, whilst the majority (31%) thought that hiring was short term and only looking six months ahead. This lack of succession planning, which ties in with the reactive hiring weve experienced throughout 2012, will surely be to the detriment of some departments if not rectied in 2013. 33% of respondents actually saw an increase in the size of their teams over the past 12 months. Many businesses have clearly been as lean as possible in terms of headcount over the past few years, and whether this will come back to bite them is yet to be seen. 34% of our participants said their working hours increased over the past 12 months, with over half putting this down to an increase in responsibilities. This might suggest that a greater degree of variety and progression is coming into working life, as bosses are reluctant to add new heads or contractors to cover gaps in their departments.
2012 2012
of respondents felt secure in their current role % of respondents felt secure in their current role
70%
70
KEY TRENDS
MOVEMENT
Overall, we saw a consistent movement of accounting professionals throughout 2012, with many now feeling its an opportune time to re-enter the job market after staying put during the worst of the global nancial crisis. This is shown by the fact that 41% of our respondents were only in their rst year of employment in early 2013. In line with this, the majority of hires in 2012 were replacement hires. As a result, the volume of counter-offers increased signicantly across the board, as employers reacted to valued team members being offered higher salaries and rates elsewhere in the market. In 2013, this reactive element has subsided somewhat. Salaries are increasing organically, acknowledging the opportunity cost of losing the best staff to competition. The motivations for moving on to greener pastures continue to be an interesting topic for our business. Throughout the downturn, weve seen that accountants seldom move for cash, although money does remain part of the decision to move (and very rarely do candidates ever move for less!) The greatest drivers for moving continue to be career development, which top scored with 33%, with new challenge/ interesting work in second. Higher salary was cited by just 26%, showing that our respondents on the whole put their careers before cold cash. Recruiters continued to be the top source of nding roles (46%) with 13% coming from personal contacts. This shows the ever increasing importance of expanding your business network and keeping in good favour with previous employers. Where networking is concerned, 66% of respondents are now on LinkedIn and 59% on Facebook. Whilst neither will cover all of the bases in any given job search, this shows how much social media plays a prominent part in our respondents lives. 88% of respondents state that working with a recruitment agency is still a vital part of any new job search. Also of note is that 38% of candidates took only three months to nd their last role, primarily as a result of the volume of roles available and being able to dedicate enough time to the job search.
41%
42%
RELOCATION
Never more so has relocation been a hot topic within the nance community. As a result, our non-London businesses have continued to offer great opportunities to their local markets, beneting from a sizable relocation of resources and highly talented candidates from the South East to the West, North East, North West and Ireland. International opportunities are also becoming more appealing, with candidates top motivation being a better quality of life and the second being a desire to experience a new culture. Interestingly, and despite the lucrative options being advertised overseas, only 48% said that money would be the main reason for moving, which was the fourth most important reason. The USA was the most popular destination for a new working life (chosen by 42%) maybe as a result of its resurgent markets coming into 2013. The golden beaches of Australia appealed to 33% of our respondents, followed by the well-documented and high prole allure of Asia, with Singapore at 33% and Hong Kong at 32%. But with talk of bonuses being capped, corporate and personal taxes being too high and our climate being as unpredictable as our economy, is now the time to spread our wings? Not according to the 29% of our respondents who wouldnt relocate, primarily because of having settled where they are.
that working with a recruitment agency is still a vital part of any new job search.
2,016
Age
33%
Less than 25 years 7% 26 to 30 years 23% 31 to 35 years 21% 36 to 40 years 15% 41 to 50 years 22%
<25 26-30 31-35 36-40 41-49 >50 years
Work location
59% 12% 3%
KEY
Permanent Contract
2-5
years
UK
years
Which of the following best describes your qualication status?
CURRENT EMPLOYMENT
How are you currently employed?
10+
2-5
years
years
6-10
years
10+
years
10+
6-10
years
10+
years
10+ 2-5
years
6-10
years
10+
years
10+
Newly qualied 9%
6-10
2-5
years
years
6-10
10+
years
Unemployed 2%
years
10+
years
6-10
years
10+
73%
Only 2%
of respondents are unemployed
Pe r
Pe r
ent an m
ent an m
Pe r
ent an m
44% of respondents
Capital Markets Change Management Insurance Investment Banking Investment Management Retail Banking Other
SECTOR REPRESENTATION
Which of the following best describes the area/sector you currently work in?
28%
Commerce & Industry
43%
UK
Corporate Finance
Taxation Other
Management Consultancy
Public Practice
Other
Unemployed
11%
10%
6%
2%
Business process/policy change 41% Salary freeze 36% Budget cuts 35% Recruitment freeze 34%
JOB SECURITY
of respondents feel more condent about the economic prospects facing their company compared with the last 12 months
Only 20%
Expectations for personal salary and job security in the next 12 months
64%
64%
64%
64%
64%
64%
Other 14%
Respondents could choose more than one answer
UK
HEADCOUNT
What is the size of your department? How has the number of staff in your team changed in the past 12 months?
61%
34%
of respondents selected business growth or expansion as the main reason for an increase in staff
1 to 5 employees 23% 6 to 10 employees 21% 11 to 15 employees 12% 16 to 20 employees 8% More than 20 employees 36%
Remained
Not sure 5%
of respondents selected headcount reductions as the main reason for a decrease in staff
of respondents have seen an increase in the size of their team in the last 12 months
Length in current role Less than 1 year 41% 1 to 2 years 24% 2 to 3 years 15% 3 to 5 years 12% 5 to 10 years 6%
<1 1-2 2-3 3-5 5-10 >10 years
7-10 years
respondents chose taking on more responsibility as the main reason for an increase in working hours
55%of
HOURS WORKED
Average hours worked per week How has the number of hours changed in the last 12 months? Increased 34% Remained the same 53% Decreased 13%
UK
RELOCATION
Places respondents would consider relocating to in the next 2 years
% 2 4
USA 42% USA 42% Australia 33% Australia 33% Mainland Europe 28% Mainland Europe 28% Within the UK 28% Within the UK 28% Canada 24% Canada 24% Singapore 23% Singapore 23% Hong Kong 22% Hong Kong 22% UAE 19% UAE 19% New Zealand 18% New Zealand 18% Ireland 12% Ireland 12% South Africa 10% South Africa 10% Malaysia 9% Malaysia 9% China 8% China 8% India 7% India 7% Other 3% Other 3%
Respondents could choose more than one country from choice 14 Respondents could choose more than one country from aa choice ofof 14
29% of respondents
would not relocate
Top 5 reasons for respondents wanting to relocate Improved quality of life 61% Different culture 54% New career opportunity 52% Better employment opportunities 49% Improved salary 48%
Respondents could choose more than one reason from a choice of nine
MOVING ON
How do you rate the importance of the following sources when seeking a new role?
57
50
39
38 34
%
33 33
%
29
20
19
15
36% of respondents
11
7%
3%
Career development 33% New challenge/more interesting work 29% Higher salary 26% End of contract 18% Redundancy 16%
Respondents could choose up to three reasons
38% of respondents
took up to 3 months to nd their current role
KEY
Importance
Vital
50
Very important
43
38
%
Quite important
%
% 36
39
% 30
Not important
57
%
33
50
43
39
%
38 34
%
33 33
%
36
39
30
%
57
Source
11
%
29
20
19
18
% 10
22
%
50 % 15
19
18
10
%
22
57
% 39
7%
%
43
9%
3% 30
%
3%
38
34
33 33
%
36 2%
%
39
29
50
20
%
National press
19
%
43
39
15
18
22
34
11
29
33 33
%
% %
38
10
36
2%
39
3
%
9%
9%
57
29
%
20
11
3
%
%
19
15
%
7%
50
% 30
10
9%
43
39
%
2%
39
3
%
38 34
%
33 33
%
36
2%
Social networking
30
%
3%
29
%
57
20
19
% 15
18
10
%
22
%
11
3% 39
%
7%
50
3 24 % %
3%
38 34
%
33 33
%
36
39
30
%
57
20
19
15 % 50
%
18
10
%
22
9%
11
3 % 39
%
7%
4 2%3%
38 34
%
% % 33 33
36
39
30
%
29
Trade press
22
%
20
19
15
%
18
10
%
11
3%
7%
9%
2%
3%
How did you nd your current position? Recruitment consultancy or headhunter 47% Online advertising 13% Professional network or personal contact 13% Direct approach 9% Internal promotion 5% Print advertising 2% Other 2% Not currently employed 9%
Less than 6 months ago 33% 6 to 12 months ago 35% More than 12 months ago 12% Not applicable 20%
68% of respondents
33%
What was the outcome of your last pay review? Pay increase 68% Pay remained the same 31% Asked to take a pay cut 1% of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
Pe r
Co
t rac nt
ent an m
Pe r
Pe r
ent an m
ent an m
Pe r
Pe r
ent an m
ent an m
Pe r
Pe r
ent an m
ent an m
UK
BENEFITS
56%
56% of respondents were satised with their benets 25 days holiday or more 78% Company pension scheme 64% Private healthcare 54% Annual bonus scheme 48% Insurance (PMI/death in service/life insurance) 48%
Respondents could select all benets that applied
Benets considered most and least important when considering a new role 25 days holiday or more Annual bonus scheme Good company pension Private healthcare Insurance* Sabbatical Mortgage relief Season ticket loan Daily subsidised meals Childcare vouchers
*PMI/death in service/life insurance
BONUS
Did you receive a bonus in 2012?
44%
44% of respondents were satised with their bonus As a percentage of your basic salary, what was your bonus in 2012?
34%
10 to 19% of salary 32% 20 to 29% of salary 15% 30 to 49% of salary 5% 40 to 90% of salary 4% More than 90% of salary 3%
Yes 47% No, not entitled to receive one 38% No, not awarded one 15%
1-9% of salary
80
60
40
20
0 Banking and Financial Services Commerce and Industry Management Consultancy Public Practice
KEY
1 to 9% of salary 10 to 19% of salary 20 to 29% of salary 30 to 39% of salary 40 to 49% of salary
*Bonuses received as a percentage of salary
LONDON
Executive
LONDON
A shortage of quality candidates was one of the most signicant challenges for recruiters in 2012. An uncertain economy, combined with low salary ination, prompted many nance professionals to put their career search on hold. As a result of this candidate shortage, the war for talent resumed with multiple offers per candidate and counter-offers becoming more common.
A shortage of quality candidates was one of the most signicant challenges for recruiters in 2012
ECONOMIC PROSPECTS
Compared with the last 12 months, how condent do you feel about the economic prospects facing your company? Top 5 expectations for your business in the next 12 months
LONDON
LONDON
JOB SECURITY
How would you rate your current job security? Expectations for personal salary and job security in the next 12 months
55%
55% 55%
Redundancy 3%
55%
Other 8%
Respondents could choose more than one answer
63%
37%
of respondents selected business growth or expansion as the main reason for an increase in staff
27%
Short term (0-6 months ahead) 46% Medium term (6-12 months ahead) 18% Long term (1-2 years) 5%
Decreased 22% the same Not sure 5% of respondents selected headcount reductions as the main reason for a decrease in staff
Remained
LONDON
Skills in demand
Senior nance executives will be expected to maximize efficiencies, reduce internal costs and streamline processes. Finance leaders must promote themselves as more than just accountants: MDs, VPs and CEOs increasingly require all-round strong commercial individuals with excellent people management skills. Those candidates investing time in developing these areas and improving their skills will stand out from the crowd and are more likely to secure top nance positions at leading companies. Industry sector experience remains key for executive job seekers and recruiters alike. Finance professionals recognise that their specic sector knowledge can be as valuable to a potential employer as their commercial acumen and technical skills. Private equity and M&A markets have improved in early 2013 and are expected to ramp up consistently over the next few years. Experience within these areas will be a pre requisite should candidates wish to pursue a career in these elds. Senior executives with track records of fund/ capital raising and strong contacts across the City will nd themselves in high demand. There is a greater tendency for senior executives to bring resources in-house, with less outsourcing to professional providers in advisory/consultancy, legal and taxation services. Executives with experience across other disciplines will nd themselves highly sought after.
COMMERCE & INDUSTRY
86%
0 to 10 years 0% 11 to 15 years 26% 16 to 20 years 23% 21 to 25 years 24% More than 25 years 27%
<1
1-2
Less than 1 year 32% 1 to 2 years 23% 2 to 3 years 19% 3 to 5 years 16% 5 to 10 years 7% More than 10 years 3%
HOURS WORKED
Average hours worked per week How has the number of hours changed in the last 12 months?
2012 saw high demand within the digital media, advertising, infrastructure and property sectors as markets improved compared to previous years. There was a notable uplift in the number of nancial controller vacancies from the second half of 2012 through to the beginning of 2013 and we are increasingly optimistic that the more senior end of the market, at FD and CFO level, will soon follow suit.
LONDON
LONDON
RELOCATION
Top 5 places respondents would consider relocating to in the next two years
45%
Australia 34% Within the UK 28%
45%
Improved quality of life 68% Better employment opportunities 53% Different culture 53% New career opportunities 53% Improved salary 53%
Respondents could choose more than one reason from a choice of nine
Singapore 24%
Respondents could choose more than one country from a choice of 14
45%
45%
MOVING ON
Top 5 reasons for leaving last role New challenge/more interesting work 34% Career development 28% Redundancy 20% End of contract 20% Higher salary 17%
Respondents could choose up to three reasons
LONDON
Salaries and bonuses will remain tight across much of senior nance, with many individuals nding that their easiest route to a pay rise is to make a move externally. Salary increases in senior nance have been moderate, between 2 and 5%. Commercial FD and senior nance business partnering roles have seen the highest increase in salary, along with top performing CFOs continuing to be rewarded with inationbusting pay rises. Many FTSE nance directors have managed
to secure salary increases in the face of unpredictable and challenging economic conditions, along with those who have produced results in tough economic times through growing the bottom line or implementing turnarounds.
REMUNERATION
When was your last pay review? Satisfaction with current remuneration
Pe r
Pe r
Co
t rac nt
Pe r
ent an m
ent an m
ent an m
Pe r
Pe r
ent an m
ent an m
Pe r
Pe r
ent an m
ent an m
Less than 6 months ago 30% 6 to 12 months ago 39% More than 12 months ago 13% Not applicable 18%
73%
28%
of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
LONDON
LONDON
Executive Job title
Head of FP&A Group Financial Controller | SME Divisional Director Head of Group Reporting | PLC Finance Director | Private Equity Portfolio backed businesses Chief Financial Officer/Finance Director | SME Group Financial Controller | PLC Finance Director | PLC Chief Financial Officer | PLC
2013
80,000-120,000
COMMERCE & INDUSTRY
Salary increases in senior nance have been moderate, between 2 and 5%. Commercial FD and senior nance business partnering roles have seen the highest increase in salary along with top performing CFOs continuing to be rewarded with inationbusting pay rises
LONDON
RECOGNISE THE IMPORTANCE OF BENEFITS There is more to securing top talent than offering an attractive salary. You need to appreciate the value of career development, challenges within a role and work-life balance as well as a fun and engaging culture in which to work. REMEMBER INTERVIEWING IS A TWO-WAY PROCESS During the interview, it is vital organisations present themselves in a favourable light to candidates. One way to help this is to have a swift and efficient hiring process.
25 days holiday or more 82% Mobile phone/ Blackberry/PDA 73% Private healthcare 72% Company pension scheme 70% Insurance (PMI/ death in service/life insurance) 61%
Respondents could select all benets that applied
25 days holiday or more Annual bonus scheme Good company pension scheme Private healthcare Insurance*
You need to appreciate the value of career development, challenges within a role and work-life balance as well as a fun and engaging culture in which to work
Leisure facilities Season ticket loan Sabbatical Mortgage relief Daily subsidised meals
*PMI/death in service/life insurance
60%
60% of respondents were satised with their benets
BONUS
Did you receive a bonus in 2012? As a percentage of your basic salary, what was your bonus in 2012?
51%
51% of respondents were satised with their bonus
1 to 9% of salary 20% 10 to 19% of salary 27% 20 to 29% of salary 37% 30 to 39% of salary 8%
20 - 29% of salary
Yes 59% No, not awarded one 18% No, not entitled to receive one 23%
37%
LONDON
LONDON
There has been an increased demand for part qualied accountants for roles between 30,000 and 35,000, with 35% of jobs lled in 2012 being within this range compared to 21% in 2011. The majority of these roles were management accountant and nance analyst positions. As retention of part qualied accountants continued to improve through better training and development programmes, those who entered the job market in 2012 were typically presented with a number of attractive opportunities and in turn, some found themselves choosing between multiple job offers. Competition for high calibre candidates remained high throughout 2012 and demand increased as the year progressed, with 59% of vacancies requiring accountants registered in the second half of the year. As the market became more competitive, employers who were focused on attracting the best talent became more exible and open to considering different candidate proles. Instead of choosing someone based solely on the basis of their sector, software or company background, they focused on candidates technical skills and experience and in the absence of that, their aptitude and ability to pick up responsibilities quickly.
Potential for career development remains the single biggest reason why a part qualied accountant will move jobs
ECONOMIC PROSPECTS
Compared with the last 12 months, how condent do you feel about the economic prospects facing your company? Top 5 expectations for your business in the next 12 months
Business process/policy change 56% Protability of business 38%
LONDON
JOB SECURITY
How would you rate your current job security? Expectations for personal salary and job security in the next 12 months
69%
Secure 72% Insecure 28%
69%
Hires seem to be less speculative, and are instead more specic in terms of the roles and candidates needed to ll them. This is especially true in the temporary market where recruitment of part qualied and transactional accountants has typically occurred when covering specic needs, such as maternity leave, sickness cover, project work etc. One of the positive effects of recent market conditions for part qualied accountants has been the opportunity to take on more responsibility. Redundancies coupled with lower staffing budgets have allowed part qualied accountants to get involved in more complex nance tasks, particularly around month end, budgeting and forecasting as well as year-end and statutory work.
Other 9%
Respondents could choose more than one answer
HEADCOUNT
How has the number of staff in your team changed in the past 12 months?
77%
38%
of respondents selected business growth or expansion as the main reason for an increase in staff
28%
Short term (0-6 months ahead) 25% Medium term (6-12 months ahead) 15% Long term (1-2 years) 23%
Decreased 25% the same Not sure 7% of respondents selected headcount reductions as the main reason for a decrease in staff
Remained
LONDON
Skills in demand
COMMERCE & INDUSTRY
Good part qualied accountants with relevant experience remain in demand and will continue to be throughout 2013. For these candidates a good balance between stage of study and experience is still crucial, and means they will always have opportunities available to them. Demand for temporary professionals has remained constant, particularly for highly skilled management accountants and analysts with a proven track record of delivering results. These contractors are rarely out of work for more than two weeks.
61%
4-6 years
39 %
0 to 3 years 16%
<1
1-2
4 to 6 years 26% 7 to 10 years 16% 11 to 15 years 8% 16 to 20 years 3% 21 to 25 years 3% More than 25 years 1%
Less than 1 year 37% 1 to 2 years 28% 2 to 3 years 17% 3 to 5 years 10% 5 to 10 years 3% More than 10 years 5%
HOURS WORKED
Average hours worked per week How has the number of hours changed in the last 12 months?
of respondents chose taking on more responsibility as the main reason for the increase in working hours
67%
Credit control has experienced a short supply of candidates, mainly due to lower staff turnover and peoples hesitancy to leave their current roles. As a consequence companies needing to recruit in this area will nd fewer suitable candidates available, and will be forced to offer higher rates or salaries as a result.
LONDON
LONDON
RELOCATION
Top 6 places respondents would consider relocating to in the next two years
37%
Australia 30% UAE 22%
37% 37%
Improved quality of life 64% Different culture 54% Improved salary 48% New career opportunities 44% Better employment opportunities 37%
Respondents could choose more than one reason from a choice of nine
Singapore 21%
Respondents could choose more than one country from a choice of 14
37%
MOVING ON
Top 5 reasons for leaving last role Career development 35% Higher salary 25% New challenge/more interesting work 22% Redundancy 14% Better location 12%
Respondents could choose up to three reasons
37% of respondents
LONDON
COMMERCE & INDUSTRY
REMUNERATION
When was your last pay review? Satisfaction with current remuneration
Pe r
Pe r
Co
t rac nt
Pe r
ent an m
ent an m
ent an m
Pe r
Pe r
ent an m
ent an m
Pe r
Pe r
ent an m
ent an m
Less than 6 months ago 36% 6 to12 months ago 30% More than 12 months ago 18% Not applicable 16%
69%
29%
of respondents perceive an 11 to 15% salary increase as acceptable if they were to move roles
LONDON
LONDON
Part Qualified | By position Job title
Assistant Accountant Financial Accountant Management Accountant Financial Analyst Finance Manager
2013
13-17
COMMERCE & INDUSTRY
2013
13-17 15-22 17-22
2013
10-14 11-14 10-14 11-15 15-25 15-28 14-25
2013
12-20 13-20 16-30
LONDON
OFFER AN ATTRACTIVE PACKAGE, NOT JUST A COMPETITIVE SALARY Most part qualied accountants or those towards the beginning of their accountancy careers are attracted by the opportunity to develop their skills and receive study support. Put yourself in the prospective candidates shoes and consider what would attract you to this role. ENSURE YOUR SEARCH IS INCLUSIVE Direct recruitment methods such as job boards, LinkedIn and referral schemes can be a good way to source candidates, but as fewer candidates move, fewer will be actively looking by these means. So tapping into the passive candidate market is important and ensures your selection process includes as many good quality candidates as possible. DO NOT ASSUME ANYTHING You should not presume the market is slow or that there are fewer opportunities available. Companies always want to attract and hire the best talent available, therefore competition remains high. So try to ensure a quick but thorough recruitment process to avoid missing out on your rst choice candidate.
25 days holiday or more 71% Company pension scheme 54% Annual bonus scheme 40% Private healthcare 38% Insurance (PMI/ death in service/life insurance) 32%
Respondents could select all benets that applied
25 days holiday or more Good company pension scheme Flexible working Annual bonus scheme Insurance* Car or car allowance Mortgage relief Sabbatical Daily subsidised meals Mobile phone/ Blackberry/PDA
*PMI/death in service/life insurance
46%
46% of respondents were satised with their benets
BONUS
Did you receive a bonus in 2012? As a percentage of your basic salary, what was your bonus in 2012?
33%
33% of respondents were satised with their bonus
1 - 9% of salary
1 to 9% of salary 55% 10 to 19% of salary 33% 20 to 29% of salary 9% 30 to 39% of salary 3% More than 40% of salary 0%
Yes 40% No, not awarded one 26% No, not entitled to receive one 34%
52%
LONDON
Qualied
LONDON
When looking to make a move, do your research into the organisation and prospects for career progression, as well as the calibre of individuals and management within the business. After 18 months of learning the ropes in nancial reporting, candidates are increasingly being promoted to more commercial roles within the organisation. In 2013, there will be an increase in the number of companies looking at candidates from mid-tier and Big 4 rms, due to their varied experience and hands-on attributes.
Whilst moves into commercial nance positions are possible, the most readily available roles in 80% of cases are nancial accountant, group accountant and internal audit
ECONOMIC PROSPECTS
Compared with the last 12 months, how condent do you feel about the economic prospects facing your company? Top 5 expectations for your business in the next 12 months
LONDON
LONDON
JOB SECURITY
57% 57%
Expectations for personal salary and job security in the next 12 months
Redundancy 4%
57%
57%
Secure 72% Insecure 28%
57%
Other 8%
Respondents could choose more than one answer
During 2012, there were fewer opportunities for people to gain promotion and further their careers internally
LONDON
COMMERCE & INDUSTRY
Most chief nancial officers expect a gradual pick up in the economy towards the end of 2013, but will be reluctant to increase headcount
LONDON
LONDON
HEADCOUNT
How has the number of staff in your team changed in the past 12 months?
52%
36%
of respondents selected business growth or expansion as the main reason for an increase in staff
Decreased 27% the same Not sure 5% of respondents selected headcount reductions as the main reason for a decrease in staff
Remained
30%
Short term (0-6 months ahead) 42% Medium term (6-12 months ahead) 14% Long term (1-2 years) 13% Non-existent 12% Not sure 19%
LONDON
PERMANENT There has been growth in pockets of commerce and industry, with the most notable sectors being energy, natural resources and property. The professionals most in demand are Big 4 trained ACA qualied accountants with up to ve years part qualied experience and CIMA qualied accountants with up to ve years part qualied experience. We expect current levels of demand for these roles to continue.
TEMPORARY Despite seeing a gentle increase in growth across the majority of the commercial sectors over the past 12 months, businesses are still being cautious in their outlook. Both the eurozone and the emerging markets remain a concern for a number of business leaders and they are not expecting signicant changes in 2013.
EXPERIENCE
The professionals most in demand are Big 4 trained ACA qualied accountants with up to ve years part qualied experience and CIMA qualied accountants with up to ve years part qualied experience
Length of time in the accountancy, nance or advisory profession Length in current role
68%
32 %
<1
1-2
Less than 1 year 44% 7 to 10 years 24% 1 to 2 years 24% 11 to 15 years 24% 2 to 3 years 14% 16 to 20 years 12% 3 to 5 years 12% 21 to 25 years 12% More than 25 years 12% Not applicable 1% 5 to 10 years 5% More than 10 years 1%
LONDON
LONDON
Demand remains high for accountants with strong technical skills in terms of IFRS, Excel and ERP systems
HOURS WORKED
Average hours worked per week How has the number of hours changed in the last 12 months?
LONDON
COMMERCE & INDUSTRY
RELOCATION
Top 5 places respondents would consider relocating to in the next two years Australia 35% Within the UK 27%
42%
42%
42%
Canada 27%
42%
Improved quality of life 64% Different culture 58% Improved salary 50% New career opportunities 50% Better employment opportunities 43%
Respondents could choose more than one reason from a choice of nine
LONDON
PERMANENT Work-life balance and a lack of career opportunities are the most common reasons for candidates looking for other roles, as well as the threat of redundancy. If employers want to retain staff they should look to improve their benets package, offering more exible working hours, as well as clearly promoting the opportunities to develop at the company using examples of individuals career paths within the team.
TEMPORARY Talented professionals in the temporary and contract market want to keep moving their careers forward so seek senior roles that offer a number of development opportunities. If their current role has fullled this purpose, candidates will look elsewhere. Although contractors remuneration correlates with the amount of days/hours they work, work-life balance is still a very important factor for most when deciding between roles. Candidates are also increasingly seeking opportunities that facilitate exposure to commercial work and decision making processes. Being involved directly with the business is often cited as an attractive attribute in a role.
Employers should establish a clear succession plan before embarking on a search, so they have a clear plan of where roles have the potential to go within the company
If employers want to improve in these areas they should establish a clear succession plan before embarking on a search, so they have a clear plan of where roles have the potential to go within the company. On the temporary and contract side, hiring managers should try to identify skills or business exposure a candidate can add to their CV for their next role. The recruitment consultant you are dealing with will be best placed to advise and pre-empt what is important to each individual before you interview them.
MOVING ON
Top 5 reasons for leaving last role Career development 36% New challenge/more interesting work 36% Higher salary 27% End of contract 17% Redundancy 16%
Respondents could choose up to three reasons
38% of respondents
LONDON
PERMANENT Salaries and bonuses have remained largely static year on year and are likely to continue to do so for 2013. A 5% to 10% uplift in basic salaries has become the norm for individuals making an external move.
TEMPORARY Over the last ve years, and especially in the past 12 months, there have not been any signicant changes to salaries and bonuses in the temporary qualied market. However, certain skill sets in terms of systems, change management and regulatory exposure remain in demand and those with a track record of adding signicant value in their previous roles are seeing as much as a 20% increase in their rates.
REMUNERATION
When was your last pay review? Satisfaction with current remuneration
Pe r
Pe r
Co
t rac nt
Pe r
ent an m
ent an m
Pe r
ent an m
Pe r
ent an m
ent an m
Pe r
Pe r
ent an m
ent an m
Less than 6 months ago 28% 6 to 12 months ago 40% More than 12 months ago 11% Not applicable 21%
76%
40%
of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
LONDON
LONDON
Qualified | Permanent Job title
Newly Qualied CA/ACMA/ACCA Qualied | 1 year Internal Auditor Finance Manager Qualied | 2 years Group Accountant Qualied | 3 years Audit Manager FP&A Manager Commercial Finance Manager Financial Controller Finance Director Chief Financial Officer
2013
43,000-50,000
COMMERCE & INDUSTRY
50,000-55,000 45,000-60,000 55,000-70,000 55,000-67,000 55,000-65,000 62,000-68,000 60,000-70,000 60,000-85,000 65,000-90,000 65,000-90,000 90,000+ 150,000+
2013
25-30 per hour 30-35 per hour 30-40 per hour 35-40 per hour 32-38 per hour 35-45 per hour 35-45 per hour 35-45 per hour 35-45 per hour 350+ per day 350+ per day 500+ per day 800+ per day
LONDON
THE INTERVIEWER IS ALSO THE INTERVIEWEE Interviews are a two-way process where the candidate also forms an opinion of your business and considers the opportunities put in front of them. Ensure you make the right impression! BE FLEXIBLE It is important to understand the factors that contribute to a candidates decision to join a business, and identify what they are for each candidate at the offer stage, whether it is development, work-life balance, benets or remuneration. HAVE A SENSE OF URGENCY Move quickly if you like someone and run a exible and streamlined recruitment process. EMPLOYER BRANDING You need to be able to sell the business as well as the role, so make sure your brand is worth talking about. In the interview process promote the working culture and use employee success stories. Externally, use social channels to provide candidates with positive and up-to-date exposure to your companys personality and vision.
25 days holiday or more 85% Company pension scheme 76% Private healthcare 66% Annual bonus scheme 57% Insurance (PMI/ death in service/life insurance) 56%
Respondents could select all benets that applied
25 days holiday or more Annual bonus scheme Good company pension scheme Private healthcare Flexible working Leisure facilities Childcare vouchers Daily subsidised meals Season ticket loan Mortgage relief
66%
66% of respondents were satised with their benets
Respondents rated a selection of 20 benets in order of importance
BONUS
Did you receive a bonus in 2012? As a percentage of your basic salary, what was your bonus in 2012?
51%
51% of respondents were satised with their bonus
1 - 9% of salary
1 to 9% of salary 38% 10 to 19% of salary 37% 20 to 29% of salary 18% 30 to 39% of salary 3% 40 to 59% of salary 3% 60 to 100% of salary 0% More than 100% of salary 1%
Yes 52% No, not awarded one 14% No, not entitled to receive one 34%
40%
ACKNOWLEDGEMENTS
We would like to extend our appreciation to all those who completed this survey and made this market report possible. If you didnt participate, please do so next year so we can continue to develop the depth and quality of this report and provide you with a fair and balanced picture. This report is only ever intended to give a very general overview on the changing nature and complexity of the employment market for accountancy, nance and advisory professionals and can serve as a useful guide. However, if you require a more tailored and condential discussion on how this will affect your business, nance department or indeed your own career, please do not hesitate to get in touch.
Kelly
Promotion:
DISCLAIMER
This research was carried out by means of an electronic questionnaire and supplemented with data and market information that Marks Sattin has access to. The results are provided as generic market information only. Marks Sattin does not make any warranties regarding the use, validity, accuracy or reliability of the results and information obtained. Marks Sattin will not be liable for any damages of any kind arising out of or relating to use of this information. Commercial use and distribution of the contents of this document is not allowed without express and prior written consent of the author.
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