2018 - markssattin.co.uk market...career development career change salaries & benefits when was...

SALARY & MARKET TREND REPORT

MARKET INSIGHT

2018

reflected in recent surveys we conducted with cross sector CFO’s, who expressed that they expect to add to their teams over the coming 12 months, particularly in the services and technology sectors. These findings concur with PWC’s CEO Survey as our respondents said that they were more secure in their roles and more confident about the economic prospects facing their company this year when compared to last year. We expect the market to remain stable, with London enjoying moderate growth in recent times and this is on a par with that of the regions we operate in.

Interestingly, the USA featured across the report as the top destination that finance professionals would consider relocating to, narrowly followed by Australia. Similar to last year’s stats, candidates deem holiday allowance, pension contributions and bonuses as the most important benefits, and encouragingly our data shows that they are currently receiving these benefits. However, our report also reveals that 83% of professionals rank flexible working hours as ‘very important’ but only 50% of employers promote flexible working in their organisations. The survey also shines a light on some work to be done by employers around their diversity strategies, with 17% of respondents not sure if their organisation has an official diversity policy.

I would like to thank the 1,200 people who took the time to contribute to our survey and I hope that you find the content useful. We have made a donation of 25p to our charity partner ‘Solving Kids’ Cancer’ for every response we received.

Best wishes,

Matt WilcoxManaging Director

I N T R O D U C T I O NWelcome to the 2018 Marks Sattin Market Insight report - a year in which we celebrate 30 years of trading.

In this report, we discuss the employment market trends over the past 12 months and take a look ahead for the remainder of the year. We benchmark salaries across our specialisms and provide commentary on what clients are looking for, as well as what factors motivate people to move roles. We hope it will serve as a great tool to both candidates considering their options and hiring organisations benchmarking salaries.

You will learn key insights from our core functions in accountancy, from part qualified up to executive level, both permanent and interim, across financial services, commerce and industry and our specialist divisions: corporate finance, audit & assurance, internal audit, compliance, risk, business change & technology and taxation.

Our analysis covers most major hubs across the UK and Ireland from London and Reading in the South-East, to Birmingham in the Midlands, Manchester and Leeds in the North and Dublin in Ireland, so it provides a very balanced view on the UK and Irish employment market.

2017 was a mixed year for the UK and Ireland – hiring levels within financial services diminished in the South East when compared to previous years; however growth in our regional offices in Birmingham, Manchester and Leeds balanced this out. Employment activity in these locations was spurred by a bounce back in the UK manufacturing industry, thanks to a stronger global economy in more recent times and a more competitive currency. Similarly, the Dublin market is buoyant as organisations set up business units in Ireland as a hedge against Brexit.

The optimistic outlook has continued this year, with hiring levels remaining at what we would describe as consistent levels across the board. This optimism was

N I N T H E D I T I O N

BUSINESS CHANGE & TECHNOLOGY

LONDONKey Findings

Change | Financial Services

Change | Commerce & Industry

Technology

LONDONElm Yard

13-16 Elm Street

London, WC1X 0BJ

+44 (0)207 321 5000

[email protected]

London - Business Change & Technology

K E Y F I N D I N G SMARKET PERSPECTIVE

Compared to the last 12 months, how confident do you feel about the economic prospects facing your company?

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

How would you rate your current job security?

ECONOMIC PROSPECTS

JOB SECURITY

–+ =13% 54% 33%

More confident As confident Less confident

Business process/policy changes Profitability of business

Salary freezes

Increase in staff recruitment

Greater focus on regulatory issues

58% 33% 33% 29% 25%

72% of respondents were satisfied in their current role

69% of respondents expect a salary increase in the next 12 months

InsecureSecure

69% 31%

*Respondents could choose more than one answer

CAREER INSIGHT

How has the number of hours changed in the last 12 months?

Top 3 places respondents would consider relocating to in the next two years (outside the UK)*

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

HOURS WORKED RELOCATION

HEADCOUNT

Average hours worked per week is 36-45

Increased

Decreased

Remained the same

Unsure

42%

21%

25%

12%

11% 11%

78%

Increased Decreased Remained the same*Respondents could choose more than one answer

Spain25%

21% Hong Kong

25% France

Top 3 reasons for respondents wanting to relocate*


1

2

3

Better employment opportunities

Experience a different culture

Friends and family



21% of respondents would not relocate

52% of respondents anticipate changing roles in the next 12 months

Top 5 reasons for leaving last role*

Satisfaction with current remuneration

MOVING ON

40% 37% 33% 23% 17%

End of contract Higher salary

New challenge/more interesting work

Career development

Career change

SALARIES & BENEFITS

When was your last pay review?

REMUNERATION

48%

Less than 6 months

28%

6 - 12 months

24%

Not applicable

68% of respondents received a salary increase in their last pay review

Satisfied

Dissatisfied

60%

40%

Benefits considered most and least important when considering a new role

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

BENEFITS

BONUS

72% of respondents perceive an 11-20% salary increase as acceptable if they were to move roles

Annual bonus scheme

25 days holiday or more

Flexible working (homeworking/flexitime)

Subsidised/free meals

Mortgage relief

Leisure facilities

Most important Least important

27% of respondents were satisfied with their bonus

19% of respondents received a higher bonus in 2017 than in 2016

1 - 9% of salary

10 - 19% of salary

20 - 29% of salary

50 - 59% of salary

55%

18%

18%

9%

44%

20%

36%

Yes

No, not entitled to receive one

No


L O N D O NB U S I N E S S C H A N G E & T E C H N O L O G Y

A stable market

2017 was a relatively stable year for financial services (FS) change management recruitment. Trepidation in the general contract market resulted in a 30% increase in permanent placements. We witnessed an exception to this in the regulatory change market, where revamped versions of the Markets in Financial Instruments Directive (MiFID II) and General Data Protection Regulation (GDPR) absorbed large amounts of specialist contractors to deliver on wide-scale change projects in almost every financial services organisation.

Due to the wave of regulatory change being thrust upon our clients, we have seen a decrease in non-essential roles, such as optimising reporting or finance. A common sentiment in the market is that now regulatory deadlines have passed, or are due to pass very soon, budgets will be free to start the more luxurious ‘in vogue’ projects. However, due to the scale and impact of the regulatory changes, we expect that businesses will start to focus on converting any slightly rushed or tactical solutions into more long-term strategic ones and talent will be needed to realise these strategic decisions.

Uncertainty around the impacts of Brexit, i.e. passporting, will see a push for change consultants to work on programmes, although in the short to medium term this uncertainty has led to hiring freezes while we look for further clarification on the final deal. Whilst we wait for the hiring freezes to be lifted in the larger/bulge bracket banks, FinTech and management consultancies are bolstering their ranks as they provide relief to end clients who are looking to outsource or, in some cases, circumnavigate cumbersome internal solutions or recruitment processes.

Contractor rates experienced on average a 17% decrease in non-specialist markets throughout last year. This is in stark contrast to specialist contractors enjoying significant rate increases towards the end of the year, due to the typical race for talent to get mission critical projects over the line for January. Although there are spikes, we are seeing the characteristic rebalancing of those numbers this year.

Senior permanent markets have held firm, especially in third party firms which have been increasingly creative in putting together packages, for example lucrative profit share schemes, that will lure away top talent from investment banks.

Looking forward, candidates should identify new trends in political and technological advances in order to sell their transferable skills to clients navigating these new unchartered territories. On the other hand, companies will look to maximise resources and try to stay ahead of the competition in harsher market conditions and through this, recognise that their top talent will always drive huge return on investment when it comes to the world of change management.

CHANGE MANAGEMENT | FINANCIAL SERVICES CHANGE MANAGEMENT | FINANCIAL SERVICES

PMO Analyst

Senior PMO

Business Analyst

Senior/Niche Business Analyst

Project Manager

Senior Project Manager

Programme Manager

Programme Director

£45,000 - £50,000

£50,000 - £70,000

£50,000 - £80,000

£65,000 - £85,000

£70,000 - £90,000

£80,000 - £100,000

£100,000 - £120,000

£120,000 - £175,000

£300 - £400

£450 - £550

£400 - £500

£500 - £700

£600 - £700

£650 - £800

£750 - £1,100

£1,000 - £1,500

Job title Salary range Day rate



A client led market at senior level

After a sluggish start to the year in the change management space, the market gained traction in the run up to the financial year end. The new budgetary cycle resulted in an encouraging uplift in job flow as new projects were approved and started gathering momentum.

Throughout 2017, the bulk of new roles fell into the mid management level (£65k to £100k / £450+ per day) and that trend looks set to continue this year. However, there has been a significant spike in senior level hires, following a dormant Q4 2017. Competition remains extremely high for these roles as the candidate base far outstrips demand. This has resulted in a client led market with a focus on industry and technical skills. Recruitment processes are also taking much longer for both contract and permanent senior roles. Organisations still have a tentative approach to hiring and we have seen a number of non-core projects getting deferred or scaled back due to concerns over Brexit and reservations about the future economic health of the UK. Because of these factors, there has been little change to permanent salaries and day rates, except in niche technical roles where talent is at a premium.

Companies look to retain knowledge

There has been a notable rise in the number of permanent change and project roles. We would expect political and economic uncertainty to encourage contract hiring, however this does not seem to be the case - if anything, companies are hiring on a permanent or fixed term basis.They have employed this strategy in a bid to keep costs down and to improve talent retention, especially on large scale multi-year transformation projects. Permanent employees naturally gain a more in-depth knowledge of

the business operations and any technical skills gaps can then be plugged with specialist contractors. Companies are favouring this approach rather than hiring large contractor teams that take their knowledge of the business and the processes with them when the project winds down.

The digital arms race continues to gain momentum as businesses vie to get to the front of the pack when it comes to their technology, processes and people. The digital reach is constantly growing within organisations, forcing business models to become more agile in order to keep up with the pace of change. No industry is immune from disruption and organisations are having to face new threats on all fronts. Often the biggest threat to the larger, established businesses are not their peers but smaller more agile organisations that have sprung up almost overnight. With low operating costs and new models of raising capital, these start-ups are able to scale quickly and gain significant market share in very little time. Larger organisations are trying to combat this through the development and deployment of: Artificial intelligence; automation; big data; customer experience; and next generation shared services. These are the areas that are starting to dominate the change and transformation landscape. With uncertainty and opportunity present in equal measures, market conditions are primed for growth in the change management and transformation space. Professionals in this area will be needed to help businesses achieve their strategic goals, whether these are to reduce costs, improve efficiency, implement new systems and technology, or grow through acquisition.

CHANGE MANAGEMENT | COMMERCE & INDUSTRY CHANGE MANAGEMENT | COMMERCE & INDUSTRY

Business Analyst

Senior Business Analyst

Project Manager

Programme Manager

Programme Director

Transformation Director

Change Analyst

Change Manager

Management Consultant

Senior Consultant

Managing Consultant

PMO

PMO Lead

Head of PMO

£45,000 - £60,000

£60,000 - £70,000

£60,000 - £80,000

£75,000 - £100,000

£100,000+

£125,000+

£40,000 - £60,000

£50,000 - £85,000

£50,000 - £70,000

£65,000 - £85,000

£85,000 - £100,000

£50,000 - £75,000

£60,000 - £80,000

£85,000+

£200 - £400

£450 - £600

£400 - £750

£500 - £850

£750+

£1,000+

£250 - £400

£350 - £500

£300 - £400

£400 - £600

£600+

£250 - £450

£450 - £650

£650+




A year of growth

2017 was a positive year for technology hiring, with the number of new roles up across the board and confidence in the market continuing to increase. Clients were more proactive about getting in touch to discuss requirements for up and coming projects and it seemed as if budget pressures were gradually beginning to ease.

Permanent hiring increased by around 15% compared to 2016, but the most noticeable trend was that the number of contract roles was up on last year by over 35%. This represents the largest year on year increase for five years and resulted in a split of 67% contract and 33% permanent across all vacancies.

Change programmes drive hiring

Many larger companies started significant technology change programmes in 2017 and the need for specialist skills to support these initiatives drove the increase in temporary hires. Feedback from clients was that they needed to become leaner and more efficient, as well as more streamlined, and that they were looking to their IT departments to exploit technology to achieve this. As a result, many programmes were centred around process and systems change, with a large number of companies looking for candidates with experience in continuous and process improvement.

As part of the emphasis on change and transformation, there was a strong trend towards companies enhancing their digital offering and over-hauling their websites in order to engage better with customers and streamline their digital journey. There was also a marked increase in the number of companies choosing to migrate their IT infrastructure into the Cloud, creating hybrid environments where legacy systems could integrate with new remote services. This was a welcome development which many chief technology officers and IT directors had been wanting for some time.

It was inevitable that GDPR legislation would drive hiring, particularly within the law and financial services sectors. This increase in hiring to support GDPR was across the entire project lifecycle, from business and data analysts through to project managers and data protection officers. These roles were split evenly across contract and permanent, with clients looking to staff short-term projects for compliance purposes as well as recruit longer term candidates to ensure continued compliance with ongoing regulation.

From a skills perspective, project managers, programme managers and business analysts are still in high demand, either to support projects that kicked off in 2016 and are now gathering momentum or to manage new ones.

The GDPR effect

In 2017 we saw increased hiring activity in the following areas:

TECHNOLOGY

• GDPR

• Digital

• Cloud services

• Continuous improvement

• Six sigma

• Information security

• Systems integration

SECTOR BREAKDOWN

Demand across industries has been relatively consistent with the only marked changes being in specialist markets (mainly law) due to the impact of GDPR, and within manufacturing/engineering as companies continue to draw on technology to support their efforts to become leaner.

ROLE BREAKDOWN

Executive Level

Project & Programme Management

Business & Systems Analysis

Technical & Solutions Architecture

Infrastructure Support

Development

5%

26%

23%

22%

21%

3%

Specialist Markets

Hospitality

Leisure

Financial Services

Property Services

Oil & Gas

Manufacturing/Engineering

23%7%5%20%15%13%17%



TECHNOLOGY

Salaries remain steady

Salaries and day rates have remained consistent with the only notable difference being GDPR and data protection related roles, due to the increase in demand for this skill.

We have seen no evidence of a gender pay gap in the roles we have been recruiting. Clients remain keen to encourage women into their IT departments and project teams, given that the technology space is still very male dominated. The gender pay gap is less evident across project management, programme analyst and business analyst roles, where there is a reasonable level of female representation, but very apparent at the more technical end of the skills spectrum.

Looking ahead

In the year ahead, GDPR and data protection will continue to gather momentum as more companies realise their shortfall in regulation compliance. We also predict there will be an increased need for true ‘change agents’ to head up and support projects, rather than just project managers who have delivered change. Companies are realising that managing change and transformation is not just a bolt on, but an important issue at the very heart of any company looking to evolve or upgrade its systems, and that specialists are needed to work alongside the business and project teams.

TECHNOLOGY

Head of IT/IT Director/CTO

Programme Manager

Project Manager

IT Manager

Development Manager

Test/QA Manager

Information Security Manager

Architect

Business Analyst

Tester

Security Analyst

GDPR/Data Protection

Infrastructure Support

Developer

IT Administrator

£95,000 - £155,000

£60,000 - £100,000

£40,000 - £70,000

£40,000 - £60,000

£45,000 - £65,000

£40,000 - £65,000

£50,000 - £95,000

£50,000 - £100,000

£40,000 - £70,000

£35,000 - £50,000

£35,000 - £65,000

£50,000 - £150,000

£25,000 - £45,000

£35,000 - £60,000

£30,000 - £55,000

£800 - £1,350

£500 - £850

£400 - £650

£350 - £500

£400 - £550

£400 - £650

£400 - £750

£400 - £850

£350 - £700

£300 - £500

£350 - £550

£400 - £1,000

£200 - £400

£350 - £500

£300 - £450


LONDONElm Yard

13-16 Elm Street

London, WC1X 0BJ

+44 (0)207 321 5000

[email protected]

NORTH WESTWeWork, No. 1 Spinningfields

Quay Street

Manchester, M3 3JE

+44 (0)161 507 3090

[email protected]

THAMES VALLEYThe White Building

33 Kings Road

Reading, RG1 3AR

+44 (0) 118 907 8240

[email protected]

YORKSHIREPark Row House

19-20 Park Row

Leeds, LS1 5JF

+44 (0)113 242 8177

[email protected]

MIDLANDSFloor 2

3 Brindley Place

Birmingham, B1 2HL

+44 (0)121 231 7150

[email protected]

IRELANDRegus House, Harcourt Centre

Harcourt Road

Dublin 2

+353 (0)1 477 3118

[email protected]

markssattin.com

@MarksSattin

Marks Sattin

@MarksSattinuk_Ire

2018 - markssattin.co.uk market...career development career change salaries & benefits when was...

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