Finance and Accountancy salary survey and market insight ... · This is the most comprehensive review of salaries and recruitment trends for finance professionals across the Northern

Finance and Accountancy salary survey and market insight

T: 01442 894555 E: [email protected] W: www.mrkassociates.co.uk

2016/2017

Contents

Welcome 3

EU Referendum 4

General trends and market insight 5-7

Qualified recruitment market insight and salary survey 8

Qualified recruitment market insight 9-10

Qualified salary survey 11

Part-Qualified and QBE market insight and salary survey 12

Part-Qualified and QBE market insight and corporates 13

Part-Qualified and QBE market insight – SMEs 14

Part-Qualified and QBE market insight – Active Studiers 15

Part-Qualified and QBE salary survey 16

Transactional recruitment market insight and salary survey 17

Transactional recruitment market insight 18

Transactional recruitment salary survey 19

MRK – the statistics 20

Contract vs. Permanent – the statistics 21

Registrations, offers, interviews – the statistics 22

Temporary market insight 23

About MRK Associates 24

2 T: 01442 894555 E: [email protected] W: www.mrkassociates.co.uk

This is the most comprehensive review of salaries and recruitment trends for finance professionals across the Northern Home Counties. This insight is based on the analysis of permanent and contract /interim placements made across all finance disciplines throughout 2015 and 2016.

We are proud of this research and the findings within it, which I know you’ll find of interest. In 2015 growth continued in the UK economy, seeing a continuation of the recruitment trends from 2014 – especially to the businesses of Herts, Bucks, Beds, Oxon and London.

Yet, we are seeing new trends motivating the industry – namely the speed in which clients move to confirm their candidate of choice. We have started addressing this and other factors that will circle the industry through our blog – if you haven’t contributed, please do so. We would love to hear your point of view.

If you would like to discuss your recruitment needs or have any feedback or comments on this salary insight, please do email me: [email protected]

We look forward to working with you throughout 2016/2017.

With kind regards,

Roland SeddonManaging Director


Welcome to the MRK Associates salary review and market index 2016.

3

4

EU Referendum – the decision has been made to leave

We have published our salary survey and market insight to coincide with the MRK Associates year end 2016. Therefore, the figures for the salaries and our first-class market insight are highly relevant and up to date. What we haven’t included is the possible impact of the EU referendum. Why? Even though the result is known, we still don’t really know what will happen.

The decision has been taken; the British electorate has spoken. The UK will leave theEU. As a result, David Cameron has been replaced by Theresa May as Prime Minister (and therefore leader of the Conservative Party). Article 50, the mechanism to leave the EU, will be put into motion by Mrs May, David Davis, Secretary of State for Exiting the European Union, Boris Johnson, Foreign Secretary and Dr Liam Fox, Secretary of State for International Trade.

The only precedent to a previous EU state ‘opting out’ (then the EEC) is Greenland in 1985. That took two years to relinquish the ties Greenland and EEC had together. Fast forward 31 years and the UK is more intricately linked to the EU, therefore, us leaving the EU within 2 years is hardly likely or credible, despite EU law suggesting otherwise. Commentators close to the subject claim it could take 10 years for us to leave. Yes, 2026.

This piece has been written in the hours after the Brexit decision was announced. In the intervening time, the markets; the FTSE and £ v $ have taken a hit, as have European stock markets. Mark Carney, Governor of Bank of England, quickly put into place contingency plans to ensure the money markets were saturated with enough fiscal resources.

Interestingly a number of the other EU States – France, Holland and Czech Republic – are now queueing up to have their ‘Frexit’, ‘Hexit’ or Czexit’. The EU heads of state are desperately trying to stop any contagion. The question that has got to be asked, is the EU – in its current guise – at an end, now the UK has taken its seismic decision?

There are plenty of questions and debate to be had before any decision affecting the labour market. That’s why we decided to take this step of issuing our survey and insight. Ultimately, the status quo will likely continue for at least 12 months post UK EU referendum.


5

General trends and market insight


6

We noted candidates increased awareness of the improved market conditions resulting in many candidates becoming more specific on the type of positions they want to apply for. This does two opposite things for the market; primarily there are less relevant candidates submitted for each job but, to the contrary, these candidates are 100% committed to the recruitment process because they are genuinely interested in the job.

Similarly, how businesses approach the recruitment process was noted. Many companies were slow in understanding the urgency needed as the market developed into a more candidate driven environment. This resulted in many companies losing the candidates they preferred as they were offered positions elsewhere. This has changed now with companies taking more advice from us in terms of the timescales and processes they should follow to ensure they secure their preferred individual. The best candidates are getting 3-4 offers on the table at any one time so employers who can show decisiveness and are willing to put an offer down that sets the standard and illustrates their seriousness will win in the majority of cases.

Whilst more roles were created in 2015/16 as confidence in the market continued, there is a growing shortage of top calibre, skilled candidates. As a result clients are having to wait for the supreme candidates to become available. So, businesses are waiting for the perfect person and then must have a slick and decisive process in place to ensure they can recruit promptly. No longer do they have the luxury of an extended first interview process to ensure they have two or three good people for second interviews. The people met first will be gone by the time they meet the last one; it’s “find a good one, offer a good one!”

Market insight

“Whilst more roles were created in

2015 as confidence returns to the

market, there is a growing shortage of good calibre, skilled

candidates.”

continued...


7

Market insight

Finally, a candidate driven market also means the increased prevalence of the dreaded counter-offer. Employers are desperate to hold on to their best talent and will make crazy promises to get people to stay when they hand their notice in. Increases of £5000 - £6000 to people’s salaries have become a common occurrence so our advice to clients has been that they shouldn’t be trying to get a candidate on the cheap when offering them a job. If they offer £1000 more than their current salary then they are lining themselves up for the candidate to accept a counter-offer and they will end up back at square one.

In 2015/16, in the £24,500 - £40,000 (part-qualified) and £41,000 - £100,000 (qualified) salary bands, MRK registered significantly more jobs (a 60% increase overall) than the previous year and, although filling more jobs by volume, our % fill-rate dropped slightly. This has been due to the large increase in job registrations in a buoyant economy and the candidate shortages which have resulted as the market has changed.

This does two opposite things for the market; primarily there are less relevant candidates to submit for each job which can potentially slow a recruitment process but, to the contrary, these candidates are 100% committed to the recruitment process because they are genuinely interested in the job thus reducing withdrawals and counter-offer problems and speeding up the process.

... continued


Qualified recruitment market insight and salary survey


Despite a fall in base salaries in 2015 of 6.2%, the FTSE 100 CFOs earned the average national salary (£26,500) in just a little over 4 days, while the highest earning FTSE CFO managed this figure in slightly over 1 day. The FTSE 250 CFOs with their average salary increase of 5.4% and bonus increase of 9.9% took slightly longer averaging a touch under 9 days and the 19 female CFOs in the FTSE 350 fared better at just under 7.5days. With graduate salaries for accountants reaching the national average and a qualified chartered accountant with 2-3 years PQE being able double it the rewards for a career in accountancy are clear for all to see.

The increases in Commerce & Industry job flow seen in previous years continued throughout 2015/16 with increasing demands from candidates looking to career development within both the corporate sector and independent SMEs.

The corporates continued the trend of building in-house recruitment teams and trying to direct source employees and these teams are generally better at doing this than in previous years. Obviously this drives down recruitment costs but these teams have still struggled to find specialist individuals in this candidate driven market.

In the SME world, confidence has consistently improved/ been maintained during 2015/16 and this has seen a significant increase in the recruitment of Finance Director and Controller positions. Relevant experience is key when recruiting for SMEs. The MDs ideally look for individuals with some industry knowledge or at least some synergy of knowledge with their business and trust the years of accounting experience mean the technical skills are in place.

CFO/FD Market: CFO or Divisional FD roles are still the most desired positions but they are also the most difficult to attain. Not only is the market hugely competitive at this level but employers also have additional expectations of the candidates when they are shortlisting and interviewing. Industry or sector experience is still a key driver as clients are risk averse and the larger corporates are invariably promoting from within or utilising their internal talent partners. However, during 2015/16, the SME (£5-£90m t/o) market significantly opened up and volumes have increased hugely.

Qualified market insight2015-2016

“Relevant experience is key when recruiting for SMEs.”

continued...

9T: 01442 894555 E: [email protected] W: www.mrkassociates.co.uk

10

Qualified market insight2015-2016

FC Market: This market has also opened up during 2015/16 with many businesses looking externally when recruiting into their Financial Controller vacancies. This is for a number of reasons including succession planning for the FD, company growth, the desire for external ideas or, more commonly within the SME market, too great a step from the finance team to the FC role. Salaries still vary greatly in this market depending on the size and situation of the business. Varying from £45-90k in the region, most companies still demand full CCAB qualifications. Qualified by Experience candidates have found this a tough area with the temp to perm route their greatest chance of success.

Newly Qualifieds: The NQ market flourished in 2015/16 fuelled by the concentration of large PLCs in the area riving the demand for high performing talent. The most common source of these for the PLCs still remains the TOP 4 practices pulling recently qualified ACAs into their first position in Industry. However, in such a competitive market they have had to look beyond these usual sources for candidates finding emerging talent from smaller accountancy firms and independent businesses. The NQs trained in Industry are just as sought after as the ACAs but they will often end up in companies with turnovers from c.£40M and above. With these non-PLCs open to them, there are still multiple opportunities for each individual so, just as for the ACAs, they are receiving multiple offers and can choose the best option for them.

The signs are the NQ market will continue to thrive in 2016/17 and become even more competitive with greater speed needed by employers during the recruitment process.This will also drive salaries higher as companies fight over a finite number of people qualifying that year.

... continued


11

Salaries quoted are a range of basic salaries we would expect, they do not include bonuses, benefits or incentive plans.

Qualified salary survey

C&I Salaries 2015-2016 SME SME Corporates Corporates £’000 £’000 £’000 £’000

Senior Management

CFO/Group FD N/A N/A 80-250+ 90-250+

FD or Divisional FD 70-125 70-125 70-150+ 80-170+

FC or Group FC in Corporate 45-80 50-90 60-120+ 60-130+

Middle Management

FP&A Manager N/A N/A 55-80 55-85

Financial Analyst 35-45 38-48 38-55 40-60

Finance Manager 38-60 40-60 42-70 45-75

Financial Accountant 34-45 35-48 36-50 38-55

Management Accountant 32-46 34-48 35-48 36-52

Qualified by Experience 30-45 30-48 30-42 (N/A)* 35-48 (N/A)*

Newly Qualified

Newly Qualified 32-42 32-45 36-48 38-55

Internal Audit

Internal Audit Director N/A N/A 80-120+ 80-130+

Internal Audit Manager N/A N/A 80-120+ 80-130+

Internal Auditor N/A N/A 38-55 42-60

* QBEs are rarely recruited into Corporates

MRK Associates Oxon & Bucks Beds, Herts & Nth London

Oxon & Bucks Beds, Herts & Nth London


12

Part & Qualified By Experience (QBE) market insight and salary survey


13

At the end of 2015, there were 1.71 million unemployed people across the UK, 102,000 fewer than the quarter before and the unemployment rate was 5.2%, lower than for August to October 2014 (5.4%).

It certainly gave us hope for a strong year of employment within finance. We weren’t disappointed and have seen positive movement in the Part-Qualified & QBE markets.

The unemployment rate then fell to 5.0% in 2016, the lowest rate since October 2005.

Part-Qualified & QBE market insight 2015-201616

“It remains an area that is highly candidate driven and competitive.”

Corporates

The PLC’s and large corporate companies have remained very strict on their shortlisting criteria with the need for high calibre individuals striving to learn and develop being exceedingly high. The competition in the market remains very strong as the corporates fight over a limited pool of people so it’s an extremely candidate driven market for studiers. These companies have focused on their direct sourcing model and internal recruitment teams to look after most of the transactional and early studier finance roles, but still rely heavily on specialist agencies for the more sought after candidates (ACCA/CIMA late stage studiers). It remains an area that is highly candidate driven and competitive.


“The SME market overall has been very busy for MRK Associates in 2015 and 2016 with the continuing confidence in the economy.”

The SME market overall has been very busy for MRK Associates in 2015 and to date in 2016 with the continuing confidence in the economy. This market appears to be in an extremely healthy position and we have seen a rise in the number of transactional positions and QBE (qualified by experience) finance manager vacancies. With unemployment rates falling to a 7-year low, SME’s have gained confidence and we have seen a big uplift in the amount of recruitment that has come through small to medium sized businesses.

We have seen a common trend in 2015/16 with smaller companies either upskilling or promoting their current senior employees into business partnering and value add roles and recruiting company accountants/finance managers beneath them to run the daily finance operations. Alternatively, if a fast and specialist solution is sought, SMEs are recruiting the commercial/value-added skills into the business.

SMEs

Zurich’s SME Risk Index shows that SME confidence in the economy has continued to rise and therefore backs up this view. The number of SMEs worried about the economic climate (53%) has reduced by 31% on the figure from the beginning of the Risk Index in October 2012 (84%). Obviously this will now change with the BREXIT vote.

This means that almost half of SMEs had said they were not currently worried about the economic situation. This fall in concern was linked to decreased worries across several key factors. Nearly three quarters of SMEs said they were not concerned about bank lending, with the result that just 24% said they were worried about financing their business.

This had been accompanied by confidence that the economic situation would continue to recover. Most SMEs (57%) were confident the economic situation would further improve within the next year, compared to just 37% when the Risk Index began. Where these figures will be at the next survey is anybody’s guess.


15

Individuals getting towards the end of ACCA & CIMA qualifications remained highly sought after in 2015 and 2016 as businesses have looked to improve profit margins and enhance their foothold in the market. This is mainly due to the positive opinions circling in the industry and with unemployment remaining low throughout the year. Studying accountants are viewed as the ones that can thrive in business partnering and value-add roles. They most certainly share the same personality traits as the business leaders in progressing agendas forward.

There has still been a necessity for employers to have a mix of forward thinking, progressive individuals and very efficient, calm & assuring accountants that can keep things ticking over, whether it is AAT, ACCA or CIMA. Finance has two main types of jobs: the commercial/ analytical positions and the routine/process/reporting jobs. Companies need both to flourish so there has therefore been a correlation in both vacancies.

Encouragingly, more graduates were recruited into finance roles in 2015, showing that companies were confident with their business remaining profitable whilst the experienced staff

Active studiers

train the new employees. We will see how the 2016 graduate recruitment progresses through the summer and early autumn. Will the vote affect it?

More often than not, companies are now providing full study support to all of their graduates and this has also significantly increased in the SME market, which has moved forward positively compared to two years ago as their confidence in the economy has improved.

“Companies are now providing full study support to all of their graduates.”


16


Part-Qualified and QBE salary survey

Part-Qualified SME SME Corporates Corporates Salary 2015-2016 £’000 £’000 £’000 £’000

Assistant Management Accountant 24-27 25-28 26-30 27-30 (Early stage studier)

(Assistant) Management Accountant/ 28-32 28-33 30-35 30-35 Finance Analyst (Part-Qualified)

Management Accountant/ 33-37 33-38 35-40 35-42 Finance Analyst (Finalist)

Assistant Accountant (Early stage studier) 22-24 23-25 24-26 24-26

Assistant (Financial Accountant) 25-30 26-32 27-34 28-35 Accountant (Part-Qualified)

Financial Accountant (Finalist) 30-35 30-36 34-36 35-38

Accountant (QBE) 28-40 30-45 N/A N/A

MRK Associates Oxon & Bucks

Beds, Herts & Nth London

Oxon & Bucks



17

Transactional recruitment market insight and salary survey


18

“Small and Medium Enterprises are more comfortable than last year with the economic climate, research finds.”

Transactional recruitment has remained fairly stable throughout the year, with a constant need for credit controllers, purchase ledger clerks and early stage AAT studiers to come in at the bottom and work their way up. However, vacancies have still mainly arisen due to staff moving on or retiring, as opposed to the need to recruit because of business growth and expansion.

We have noticed a slight rise in salaries at the transactional level due to an increased confidence in the economy and an increase in the amount of multiple offers candidates are getting. Therefore, businesses are having to pay slightly more to ensure they get the candidates’ commitment.

Over the last 10 years, corporates have moved their transaction functions to shared service centres, mainly overseas. Due to this scenario, SMEs and corporates have tended to have similar numbers of vacancies (as a % ratio) due to the increasing reliance on offshore moves and the benefits they offer.

Transactional recruitment market insight


19


Transactional recruitment salary survey

Transactional Recruitment SME SME Corporates Corporates Salary 2015-2016 £’000 £’000 £’000 £’000

Accounts Assistant 20-23 20-24 21-25 22-26

Credit Controller 22-27 24-28 24-30 24-32

Credit Control Manager 27-32 27-35 30-45 32-50

Purchase/Sales Ledger Clerk 18-25 18-26 20-27 20-28

Purchase/Sales Ledger Manager 26-30 26-30 28-45 28-45

Payroll Clerk 17-25 17-26 22-27 22-29

Payroll Manager 26-30 26-30 28-45 28-45

MRK Associates Oxon & Bucks


Oxon & Bucks



Percentage of temporary/interim roles filled by MRK Associates. 2014/15 compared with 2015/16

30% increase

How many permanent roles did MRK fill in 2015/16 over 2014/15?

Registered in 2014/15

39% increase

How many more clients have you got in 2015/16 over 2014/15?

2014/15 2015/16

56%more clients

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Analysis of recruitment requirements and delivery by MRK Associates


Shortest number of days on offer to start date (2014/15 x 2015/16)

2014

32014

32014/15

3 2014

32015/16

2Temporary vs Permanent mix

Temporary vs Permanent mix

2014/15Qualified

50+ Permanent

2015/16Newly Qualified

40-50K - PermanentQualified

50+ PermanentNewly Qualified

40-50K - Permanent

By volume the Newly Qualified market overall grew 71.4% against the PQE market growing 240%.

= approx 1:5

= approx 1:5

Temporary Permanent

2014/15

2015/16

2014/15: % NQ jobs of total qualified jobs

73.7%

2015/16: % NQ jobs of total qualified jobs

58.5%

21T: 01442 894555 E: [email protected] W: www.mrkassociates.co.uk

How many candidates registered with you in

2015/16 over

2014/15?

77%increase

Average number of days between job being worked on

to offer being made (2015 x 2014)

Overall

20 days 40 days

2014/15 – 34.3 days

2015/16 – 27.29 days

Non-Qualified

20 days 40 days

2014/15 – 27.5 days

2015/16 – 24.2 days

Qualified

20 days 40 days

2014/15 – 35.3 days

2015/16 – 30.2 days

2014/15 INTERVIEWS

2015/16 INTERVIEWS

135%increase in interviews


23

The demand for high calibre, interim and temporary candidates grew from strength to strength throughout 2015 and 2016 and did not even see a “let up” in the run up to Christmas. There was a slow-down in the quarter since Easter as many companies have delayed any major investments or projects until the results of the EU Referendum vote were known but overall this year has been positive for interims. As the market has seen significant shortages of skilled permanent candidates we find clients have relied more and more on interim candidates to fill the stop gap whilst they recruit the “perfect” employee.

Companies’ improved confidence over the last 18 months has resulted in more projects being undertaken which in turn means people are seconded internally and the routine finance jobs are needed to be covered with talented temps/interims. Only the EU Referendum vote has put any dent in this.

This growth in the interim market has had a significant knock on affect with shortages of good calibre, skilled, interim candidates and as a result of this clients are having to pay higher rates as the cost of recruitment rises.

As 2016 has developed, the continuing record high employment rates, by definition, mean there is not a plentiful supply of good calibre individuals sitting at home with nothing to do. Temps/interims are being ‘recycled’ meaning as soon as they finish an assignment they are lined up for their next one.

The message to our clients is that you will need to move more quickly through the recruitment process and, if the right candidate comes along, close the deal as soon as possible to avoid disappointment.

Temp 2014/15 fill rate = 40%Temp 2015/16 fill rate = 48%

Temporary market insight

“As the market sees significant shortages of skilled permanent

candidates we find clients are relying more and more on interim candidates

to fill the stop gap whilst they recruit the ‘perfect’ employee.”


575-599 Maxted Rd, Hemel Hempstead HP2 7DX

MRK Associates is a recruitment and career advisory company specialising in three distinct areas of professional employment – finance/accountancy jobs, office support/administration jobs and revenue management/yield jobs. Our main geographical focus is in the Northern Home Counties area (Buckinghamshire, Hertfordshire, Oxfordshire and Bedfordshire) where we provide a personal, knowledgeable and professional service within these markets.

In a recent client satisfaction survey, 92% of respondents would recommend MRK Associates to friends, colleagues and peers.

When 83% of respondents inform us that the quality of the candidates we supply are outstanding/excellent, you know you can rely on MRK Associates.

When 83% of responses state that our focused programme of recruitment services met the needs of our clients, we are delighted with their faith.

Keep up to date with our latest news on our industry-shaping blog: http://www.mrkassociates.co.uk/news/

About MRK Associates

Here are just some of the topics we have covered in our blog. Helpful for clients and candidates, we have used our many years’ experience and in-touch knowledge to bring you the matters you should be aware of:

What would a Brexit do to recruitment?http://www.mrkassociates.co.uk/2016/03/jobs/what-a-brexit-would-do-to-recruitment/

How a Finance Business Partner could solve your challengeshttp://www.mrkassociates.co.uk/2016/01/jobs/a-finance-business-partner-could-solve-all-your-challenges/

What really will the finance landscape look like in 2020?http://www.mrkassociates.co.uk/2016/06/jobs/factors-and-challenges-for-finance-today-how-will-the-land-scape-look-in-2020/

Cybersecurity is important to FDshttp://www.mrkassociates.co.uk/2016/03/jobs/why-cybersecurity-is-an-increasing-priority-for-fds-tomorrow-could-be-too-late/

Things to avoid in an interviewhttp://www.mrkassociates.co.uk/2016/03/jobs/what-to-avoid-doing-in-an-interview-and-what-to-do-after/

You can also meet the team!


Documents

Finance and Accountancy salary survey and market insight ... · This is the most comprehensive review of salaries and recruitment trends for finance professionals across the Northern