market insights 2013 for the finance industry
DESCRIPTION
Marks Sattin is a leading specialist financial recruitment consultancy with offices in six countries around the world. With over 25 years of proven recruitment experience with some of the largest international brands in the market, Marks Sattin provides valuable insights into the Finance Sector.TRANSCRIPT
Market Insight 2013Financial Services
Accountancy, Finance & Advisory
Marks Sattin is a leading multi-divisional specialist accountancy, finance 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-profit sector, commerce and industry, banking and finance and public practice.
Marks Sattin is a well-established specialist recruitment firm 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 fill 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 finance, 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.
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 finance professionals.
Over 2,000 accountancy, finance and advisory professionals from 20 industry sectors across the UK were surveyed.
The report is based on findings received from respondents completing the survey as well as sector specific market insight and salary ranges (annual and day rates) from our experienced consultants based at Marks Sattin’s 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 Qualified and Transactional, Qualified, 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 specific advice please do contact us directly.
METHODOLOGY
CONTACT US
LONDON322 High Holborn, London, WC1V 7PB +44 20 7321 [email protected]
THAMES VALLEYDavidson House, Forbury Square, Reading, Berkshire RG1 3EU+44 118 900 [email protected]
NORTH WEST3rd Floor, Centurion House,129 Deansgate, Manchester, M2 3WR+44 161 638 [email protected]
YORKSHIREPark Row House, 19-20 Park Row, Leeds, LS1 5JF+44 113 242 [email protected]
markssattin.co.uk Marks Sattin @MarksSattin
INTRODUCTION
INTRODUCTION
Dave Way
Dave Way, Managing Director of Marks Sattin, believes in leading by example and is committed to making Marks Sattin the best financial 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 financial recruitment. As such, he has considerable expertise in providing a bespoke service for clients and candidates alike.
[email protected] +44 20 7747 9670
DAVE WAYManaging Director
2012 proved to be a year of continued upheaval for the business community, with the eurozone crisis dragging on and the double dip recession increasing uncertainty across the markets. Despite this, the accounting and advisory community didn’t su§er in the way we’d seen in the previous downturns, with job cuts and redundancies far less frequent. However, cost management was still the order of the day, with capital expenditure, new investment and increased headcount being something of a rarity.
Some businesses, industries and geographies will always buck the trend, and there was a resurgence seen throughout the qualified commerce and industry sector in later 2012. Areas such as natural resources, digital media, advertising, online retail and property were all more bullish thanks to improved trading. Conversely, high street retailers and areas such as manufacturing su§ered significantly.
Recruitment within consultancy and public practice quietened after a busy 2011, as our clients took a cautious approach to recessionary markets. Financial services and in particular, the banking community, once more came under fire. But despite this, recruitment conditions for accountants in financial services improved as the year went on, with departments increasingly finding themselves under-resourced amid heavy regulation and change. We hope you find the results of our survey as interesting as we have. Please feel free to contact me or any of the Marks Sattin team directly to find out further details. From all the team we wish you a successful year!
In Marks Sattin’s 25th year of trading, we’re delighted to have received a record number of responses to our Market Insight 2013 survey. Over 2,000 accountancy and advisory professionals provided their feedback on key areas such as salaries, bonuses and overall business confidence – as both they and their employers see it – coming into 2013.
KEY TRENDS
Employers began to be slightly more forthcoming with pay rises for accountancy and advisory sta§ last year, with 68% of employees receiving a positive review and only 1% asked to take a pay cut.
Only 30% of permanent sta§ and 20% of contract sta§ were unhappy with their current salaries, once again showing that remuneration isn’t 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 benefits packages, with the most important benefits 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 figures aren’t 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.
SALARIES & BENEFITS
Of those receiving bonuses, only 44% were satisfied 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 financial 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 finance professionals during uncertain and changing times.
Only 30% of permanent sta§ and 20%
of contract sta§ were unhappy with their current salaries
56%of respondents were happy with their
benefits
68%of respondents
received a pay increase
last year
44%of respondents were satisfied with their
bonus
56%of respondents were happy with their
benefits
68%of respondents
received a pay increase
last year
44%of respondents were satisfied with their
bonus
56%of respondents were happy with their
benefits
68%of respondents
received a pay increase
last year
44%of respondents were satisfied with their
bonus
Our survey showed that across the board, accountants were far
better looked after than other professionals
JOB SECURITY
INTRODUCTION Dave Way
Similarly to our other surveys over the past five years, the crystal ball for 2013 does not show a picture of renewed optimism, with only 20% of respondents feeling more confident about the economic prospects facing their companies compared to the last 12 months. 36% of our respondents anticipated changing roles over the next year, compared to 52% the previous year. Despite this, only 44% stated that they are currently happy within their role, perhaps showing a greater tolerance due to the current climate. Aligned with this is the clear fact that accountants find themselves far more secure in their positions than in previous years, with an overwhelming 78% feeling secure compared to 70% last year. This is clearly an encouraging statistic compared to previous surveys, where respondents expected headcount cuts as a result of the economic downturn and uncertainty. Business process/policy changes (41%) salary freezes (36%) and budget cuts (35%) are predicted for this year, showing that belt tightening and cost control are still the order of the day. Businesses are striving to ensure they maximise profits, but not to the extent of losing finance staff.
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 we’ve experienced throughout 2012, will surely be to the detriment of some departments if not rectified 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.
78%of respondents feel secure in their
current role
70%of respondents felt secure in their
current role
2013
2012
78%of respondents feel secure in their
current role
70%of respondents felt secure in their
current role
2013
2012
33% of respondents actually saw an increase in the size of their teams over the past 12 months
KEY TRENDS
MOVEMENT
Overall, we saw a consistent movement of accounting professionals throughout 2012, with many now feeling it’s an opportune time to re-enter the job market after staying put during the worst of the global financial crisis. This is shown by the fact that 41% of our respondents were only in their first 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-o§ers increased significantly across the board, as employers reacted to valued team members being o§ered 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 sta§ to competition.
The motivations for moving on to greener pastures continue to be an interesting topic for our business. Throughout the downturn, we’ve 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 finding 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 find their last role, primarily as a result of the volume of roles available and being able to dedicate enough time to the job search.
RELOCATION
Never more so has relocation been a hot topic within the finance community. As a result, our non-London businesses have continued to o§er great opportunities to their local markets, benefiting 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 profile 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 wouldn’t relocate, primarily because of having settled where they are.
42%of respondents
would relocate to the USA
41%of respondents
were only in their first year of employment
88% of respondents state that working with a recruitment agency is still a vital part of any new job search.
DemographicsKEY FINDINGS
67%
33%
67% of respondents were male and 33% female
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%
More than 50 years 12%
Age
<25years
26-30 31-35 36-40 41-49 >50
RESPONDENT PROFILE
2,016
respondents took part in this year’s survey
Greater London
64%
59%South East12%
11%
North West
7%
4%
Yorkshire & Humberside
5%12% Other9%
11%
Midlands3%
3%
KEYPermanent
Contract
Work location
Gender
LinkedIn 66%
Facebook 59%
Twitter 17%
Other 7%
None 15%
Respondents could choose more than one answer
Social networks actively used by respondents
UK
CURRENT EMPLOYMENT
2-5years
6-10years
10+years
10+ 10+ years’ PQE 36%
2-5years
6-10years
10+years
10+
5 to 10 years’ PQE 18%
2-5years
6-10years
10+years
10+
2 to 5 years’ PQE 21%2-5
years
6-10years
10+years
10+
Newly qualified 9% 2-5years
6-10years
10+years
10+
Part qualified 11%
2-5years
6-10years
10+years
10+
Qualified by experience or not qualified 5%
Permanent or fixed term contract 78%
Interim or contractor 20%
Unemployed 2%
Which of the following best describes your qualification status?
How are you currently employed?
2-5years
6-10years
10+years
10+
Only 2%of respondents are unemployed
44% of respondents are satisfied in their current role
Satisfaction with current role
Permanent
Satisfied 44%
Permanent
Neither satisfied nor dissatisfied 26%
Permanent
Dissatisfied 30%
73%
73% of respondents would recommend their employer
Other
6%Public
Practice
10%
Aud
it an
d A
ssur
ance
Cor
pora
te F
inan
ce
Taxa
tion
Oth
er
Management Consultancy
11%
Unemployed
2%
Cap
ital M
arke
ts
Cha
nge
Man
agem
ent
Insu
ranc
e
Inve
stm
ent B
anki
ng
Inve
stm
ent M
anag
emen
t
Ret
ail B
anki
ng
Oth
er
Banking & Financial
Services
28%
Adv
ertis
ing,
PR
, Med
ia a
nd P
ublis
hing
Bus
ines
s S
ervi
ces
Ene
rgy
and
Nat
ural
Res
ourc
es
Eng
inee
ring
and
Man
ufac
turin
g
FMC
G a
nd P
harm
aceu
tical
s
Pro
pert
y an
d C
onst
ruct
ion
Ret
ail a
nd C
loth
ing
Tele
com
s an
d Te
chno
logy
Oth
er
Commerce & Industry
43%
Which of the following best describes the area/sector you currently work in?
SECTOR REPRESENTATION
DemographicsKEY FINDINGS
UK
Other
6%Public
Practice
10%
Aud
it an
d A
ssur
ance
Cor
pora
te F
inan
ce
Taxa
tion
Oth
er
Management Consultancy
11%
Unemployed
2%
Cap
ital M
arke
ts
Cha
nge
Man
agem
ent
Insu
ranc
e
Inve
stm
ent B
anki
ng
Inve
stm
ent M
anag
emen
t
Ret
ail B
anki
ng
Oth
er
Banking & Financial
Services
28%
Adv
ertis
ing,
PR
, Med
ia a
nd P
ublis
hing
Bus
ines
s S
ervi
ces
Ene
rgy
and
Nat
ural
Res
ourc
es
Eng
inee
ring
and
Man
ufac
turin
g
FMC
G a
nd P
harm
aceu
tical
s
Pro
pert
y an
d C
onst
ruct
ion
Ret
ail a
nd C
loth
ing
Tele
com
s an
d Te
chno
logy
Oth
er
Commerce & Industry
43%
Market Perspective
Recruitment freeze 34%
Budget cuts 35%
Profitability of business 33%
Business process/policy change 41%
Salary freeze 36%
Respondents could choose more than one answer from a choice of 14
Top 5 expectations for your business in the next 12 monthsCompared with the last 12 months, how confident do you feel about the economic prospects facing your company?
More confident 20%
As confident 52%
Less confident 28%
ECONOMIC PROSPECTS
KEY FINDINGS
64%64%
Salary freeze 20%64%
Salary reduction 3%
64%
Shorter working week 2%
64%
Redundancy 1% 64%
Other 14%
Respondents could choose more than one answer
Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
Secure 78%
Insecure 22%
JOB SECURITY
Only 20%of respondents feel
more confident about the economic prospects facing
their company compared with the last 12 months
Short term (0-6 months ahead) 31%
Medium term (6-12 months ahead) 18%
Long term (1-2 years) 18%
Non-existent 10%
Not sure 23%
What is your employer’s recruitment strategy?
Remained the same
34%
How has the number of sta� in your team changed in the past 12 months?
What is the size of your department?
Remained the same
34%
Increased 33%
Remained the same
34%
Decreased 28% Remained the same
34%
Not sure 5%
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%
61%of respondents selected business growth or expansion as the main reason for an increase in sta§
of respondents selected
headcount reductions as the main reason for a decrease in sta§
HEADCOUNT
UK
33%of respondents have seen an increase in the size of their team in the last 12 months
36% of respondents have more than 20 employees in their department
EXPERIENCE
<1years
1-2 2-3 3-5 5-10 >10
Length in current roleLength of time in the accountancy, finance or advisory profession
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%
More than 10 years 2%
0 to 3 years 9%
4 to 6 years 19%
7 to 10 years 21%
11 to 15 years 18%
16 to 20 years 9%
More than 20 years 21%
Not applicable 3%
7-10years
More than 20 years
HOURS WORKEDAverage hours worked per week
How has the number of hours changed in the last 12 months?
Increased 34%
Remained the same 53%
Decreased 13%
55%of respondents chose taking on more responsibility as the main reason for an increase in working hours
41% of respondents have been in their current role for less than a year
Career InsightKEY FINDINGS
RELOCATION
42%
USA 42% Singapore 23% South Africa 10%
Australia 33% Hong Kong 22% Malaysia 9%
Mainland Europe 28% UAE 19% China 8%
Within the UK 28% New Zealand 18% India 7%
Canada 24% Ireland 12% Other 3%
Respondents could choose more than one country from a choice of 14
USA 42% Singapore 23% South Africa 10%
Australia 33% Hong Kong 22% Malaysia 9%
Mainland Europe 28% UAE 19% China 8%
Within the UK 28% New Zealand 18% India 7%
Canada 24% Ireland 12% Other 3%
Respondents could choose more than one country from a choice of 14
Improved quality of life61%
Di§erent culture 54%
New career opportunity 52%
Better employment opportunities 49%
Improved salary48%
Respondents could choose more than one reason from a choice of nine
Top 5 reasons for respondents wanting to relocate
29% of respondents would not relocate
UK
Improved quality of life is the main reason for respondents wanting to relocate
Places respondents would consider relocating to in the next 2 years
MOVING ON
Top 5 reasons for leaving last role
How do you rate the importance of the following sources when seeking a new role?
Career development33%
New challenge/more interesting work 29%
Higher salary 26%
End of contract18%
Redundancy 16%
Respondents could choose up to three reasons
36% of respondents anticipate changing roles in the next 12 months
57%
43%
19%
9%
2%
7%
29%
20%
33%
10%
36%
22%
11%
34%
33%
18%
39%
38%39%
15%
50%
3% 3%
30%
38% of respondents took up to 3 months to find their current role
57%
43%
19%
9%
2%
7%
29%
20%
33%
10%
36%
22%
11%
34%
33%
18%
39%
38%39%
15%
50%
3% 3%
30%
KEYImportance
Vital
Very important
Quite important
Not important
Source
57%
43%
19%
9%
2%
7%
29%
20%
33%
10%
36%
22%
11%
34%
33%
18%
39%
38%39%
15%
50%
3% 3%
30%
National press
57%
43%
19%
9%
2%
7%
29%
20%
33%
10%
36%
22%
11%
34%
33%
18%
39%
38%39%
15%
50%
3% 3%
30%
Online job boards/advertising
57%
43%
19%
9%
2%
7%
29%
20%
33%
10%
36%
22%
11%
34%
33%
18%
39%
38%39%
15%
50%
3% 3%
30%
Social networking
57%
43%
19%
9%
2%
7%
29%
20%
33%
10%
36%
22%
11%
34%
33%
18%
39%
38%39%
15%
50%
3% 3%
30%
Recruitment consultancies/headhunters
57%
43%
19%
9%
2%
7%
29%
20%
33%
10%
36%
22%
11%
34%
33%
18%
39%
38%39%
15%
50%
3% 3%
30%
Trade press
57%
43%
19%
9%
2%
7%
29%
20%
33%
10%
36%
22%
11%
34%
33%
18%
39%
38%39%
15%
50%
3% 3%
30%
Word of mouth/personal referrals/internal contact
How did you find your current position?
Recruitment consultancy or headhunter 47%
Online advertising 13%
Professional network or personal contact 13%
Direct approach9%
Internal promotion5%
Print advertising 2%
Other 2%
Not currently employed9%
REMUNERATION
What was the outcome of your last pay review?
Less than 6 months ago 33%
6 to 12 months ago 35%
More than 12 months ago 12%
Not applicable 20%
Pay increase 68%
Pay remained the same 31%
Asked to take a pay cut 1%
33% of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
Salaries & BenefitsKEY FINDINGS
68% of respondents have had a pay review in the last 12 months
Permanent
Contract
Satisfaction with current remuneration
Permanent
Satisfied 44%
Permanent
Neither satisfied nor dissatisfied 26%
Permanent
Dissatisfied 30%
Permanent
Satisfied 53%
Permanent
Neither satisfied nor dissatisfied 27%
Permanent
Dissatisfied 20%
53% of contract respondents are satisfied with their current remuneration compared with 44%
of permanent respondents
When was your last pay review?
44%
Did you receive a bonus in 2012?
Yes 47%
No, not entitled to receive one 38%
No, not awarded one 15%
44% of respondents were satisfied with their bonus
BENEFITS
BONUS
Respondents rated a selection of 20 benefits in order of importance
Benefits considered most and least important when considering a new role
25 days holiday or more
Annual bonus scheme
Good company pension
Private healthcare
Sabbatical
Mortgage relief
Season ticket loan
Daily subsidised meals
Childcare vouchers
Insurance*
56%
56% of respondents were satisfied with their benefits
34%
of respondents received the same bonus in 2012 as 2011
As a percentage of your basic salary, what was your bonus in 2012?
1 to 9% of salary 41%
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%
1-9% of salary
UK
25 days holiday or more is the most desired benefit
*PMI/death in service/life insurance
Top 5 benefits currently received
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 benefits that applied
1-9% of salary
0
20
40
60
80
100
Banking and Financial Services Commerce and Industry Management Consultancy Public Practice
Salaries & BenefitsKEY FINDINGS
A comparison of bonuses received across sectors*
50 to 79% of salary
More than 80% of salary
30 to 39% of salary
40 to 49% of salary
KEY1 to 9% of salary
10 to 19% of salary
20 to 29% of salary
BONUS
*Bonuses received as a percentage of salary
LON
DO
NFIN
AN
CIA
L SE
RV
ICE
S
LONDON
FINANCIAL SERVICES
Banking & Capital Markets
+44 20 7321 [email protected]
Manager
Manager
John Quach
Alastair Paterson
LON
DO
NFI
NA
NC
IAL
SE
RV
ICE
S
Outlook for 2013Banks will continue to scrutinise recruitment needs and costs throughout 2013. Vacancies will be o§ered initially to current employees through internal redeployment and when they are o§ered to external candidates, competition will be as fierce as 2012. Last year we noticed that employers were committed to retaining the best talent within their respective organisations and this will no doubt continue in 2013.
It’s likely that 2013 will remain static in terms of overall growth, albeit with a likely increase in permanent headcount sign o§. Several larger organisations are held together in some sections of finance and middle oce by a large temporary employee pool, due to sign o§ challenges in 2012. Although the banking and capital markets sector is still somewhat fragile, many employers have entered the new year with a more positive and upbeat attitude and commitment to pushing through with recruitment plans.
We predict a strong demand across the SME banking market and particularly within corporate banking and retail financial services companies.
Market Perspective
The big trends of 2012There was stronger demand across financial reporting and control. Most banks and capital market businesses responded to the market by investing heavily in compliance, controls and governance. Larger retail and investment banks moved towards temporary headcount, reflecting general market uncertainty and the need to provide critical mass around programmes related to structural or regulatory changes. Many candidates were also drawn from the permanent to the temporary market given the financial upside and opportunity to broaden their technical and commercial knowledge.
Recruitment freeze 45%
Salary freeze 43%
Budget cuts 42%
Greater focus on regulatory issues 39%
Business process/policy change 38%
Respondents could choose more than one answer from a choice of 14
Top 5 expectations for your business in the next 12 monthsCompared with the last 12 months, how confident do you feel about the economic prospects facing your company?
More confident 19%
As confident 57%
Less confident 24%
ECONOMIC PROSPECTS
Last year we noticed that employers were committed to retaining the best talent within their respective organisations
and this will no doubt continue in 2013
BANKING & CAPITAL MARKETS Market Perspective
LON
DO
NFIN
AN
CIA
L SE
RV
ICE
S
Salary freeze 30%
Redundancy 5%
Salary reduction 1%
Shorter working week 1%
Other 8%
Respondents could choose more than one answer
Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
Secure 65%
Insecure 35%
Short term (0-6 months ahead) 34%
Medium term (6-12 months ahead) 16%
Long term (1-2 years) 17%
Non-existent 11%
Not sure 22%
What is your employer’s recruitment strategy?
How has the number of sta� in your team changed in the past 12 months?
Remained the same 30%
Increased 29%
Not sure 4%
67%of respondents selected business growth or expansion as the main reason for an increase in sta§
of respondents selected
headcount reductions as the main reason for a decrease in sta§
HEADCOUNT
JOB SECURITYReactions to uncertain market conditions Uncertain market conditions are to a certain extent becoming the norm in financial services. As we slowly see sections of the banking sector emerge post-financial crisis, we are certain that many will avoid large scale recruitment drives and instead look to upskill existing teams.
Individuals who have demonstrated continual career advancement over the past three to five years will be looked at favourably as many career trajectories have slowed due to fewer opportunities. Candidates who are able to demonstrate a clear track record of success will be in demand in 2013.
Over the past 12 months we have seen a major push towards utilising internal recruitment teams, for example RPOs, to fill any outstanding vacancies. Although this is likely to continue for more BAU roles, there will be a strong need to utilise external resources to fill more specialist and senior vacancies.
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Market growth
FINREP covers consolidated and sub-consolidated financial reporting for supervisory purposes based on IAS/IFRS as endorsed by the European Union. Whilst many of our clients have acknowledged they will try and cover the workload internally, with the new set of data requirements, greater transparency within the data, new reporting templates and language combined with the increased time and frequency of reporting, we anticipate a demand for contractors to help adopt this new regulation.
With the Banking Reform Bill being introduced into the House of Commons in February, it will be interesting to see how the banks cope with separating their every day banking activities from more volatile investment banking trades. The government is proposing strict measures to electrify the ring fences and this will undoubtedly place a greater emphasis on governance, audit and regulatory hiring. These areas have been in high demand particularly over the past three years and there appears to be no slow down in candidates who have these specialist skills.
EXPERIENCE
70%
30%
<1years
1-2 2-3 3-5 5-10 >10
Length in current roleLength of time in the accountancy, finance or advisory profession
Less than 1 year 45%
1 to 2 years 21%
2 to 3 years 21%
3 to 5 years 7%
5 to 10 years 5%
More than 10 years 1%
0 to 3 years 13%
4 to 6 years 23%
7 to 10 years 24%
11 to 15 years 23%
16 to 20 years 6%
21 to 25 years 5%
More than 25 years 6%
7 - 10years
Supply and demandAccountants will always be in demand; however the volume of roles and specific requirements makes it a challenging environment for candidates in the current market. Financial control is where we have seen the biggest demand, especially those who have demonstrable experience of balance sheet substantiation. Likewise, candidates who are currently involved in BAU projects have seen their stock rise as the banks undertake less radical change programmes, favouring process re-engineering or continuous improvement over group wide transformation.
As the investment banks have scaled down or o§shored a lot of their product control functions over the past three years, we have received mixed messages as to when or even if this will return to the levels seen previously. When speaking to a number of candidates and clients within product control, the areas likely to see an increase in demand will be treasury or commodities.
Commercial financial business partners who have both cost and revenue experience will be in demand. Tying in with this, we have seen an increase in roles focused on business performance. The ability to create a story based on results is a hard skill to master, however banks are keen to have a more granular view of their divisional performance on a more frequent basis.
HOURS WORKEDAverage hours worked per week
How has the number of hours changed in the last 12 months?
Increased 39%
Remained the same 52%
Decreased 9%
52%of respondents chose taking on more responsibility as the main reason for the increase in working hours
Career InsightBANKING & CAPITAL MARKETS
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Why candidates are making a moveCandidates are looking for more than just a higher salary, and are seeking an employer that will o§er an opportunity for career progression, as well as an attractive benefits package.
We are finding that candidates are actually moving to lower paid roles if the positions present more opportunities – something employers are taking notice of and restructuring their benefits packages accordingly to attract top tier talent.
The flexibility to work one day a week from home seems to be a more common option in the workplace, and a very attractive one to candidates.
MOVING ONTaking the next step in your careerSTAND OUT FROM THE CROWDA CV is your first opportunity to sell yourself, so it is essential your experience, skills and achievements are highlighted clearly and concisely.
BE PREPARED AND INTERESTEDFor any interview, preparation is paramount. Make sure you know what is on your CV and that you have researched the company in detail. Showing a real interest in your prospective employer’s business will make a positive impression on your interviewer.
Top 5 reasons for leaving last role
Career development 38%
Higher salary 33%
New challenge/more interesting work 28%
End of contract 18%
Better work-life balance 13%
Respondents could choose up to three reasons
RELOCATION
Australia 36%
Hong Kong 34%
Mainland Europe 31%
Within the UK 27%
Respondents could choose more than one country from a choice of 14
Improved quality of life 61%
Better employment opportunities 55%
Improved salary 53%
New career opportunities 52%
Di§erent culture 46%
Respondents could choose more than one reason from a choice of nine
Top 5 places respondents would consider relocating to in the next two years
Top 5 reasons for respondents wanting to relocate
21% of respondents would not relocate
37% of respondents anticipate changing roles in the next 12 months
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Spotlight on salaries and bonusesSalaries have remained relatively flat and bonuses are expected to be roughly on a par with 2012 levels. A notable observation has been people’s perception of bonuses and the way these are viewed as part of total compensation. Expectations are certainly lower than they were and the general consensus is that most banks are paying out some form of bonus and the grass is not necessarily greener.
REMUNERATIONWhen was your last pay review?
Less than 6 months ago 24%
6 to 12 months ago 41%
More than 12 months ago 14%
Not applicable 21%
64% of respondents received a salary increase in their last pay review
Permanent
Contract
Satisfaction with current remuneration
Permanent
Satisfied 35%
Permanent
Neither satisfied nor dissatisfied 29%
Permanent
Dissatisfied 36%
Permanent
Satisfied 46%
Permanent
Neither satisfied nor dissatisfied 31%
Permanent
Dissatisfied 23%
27% of respondents perceive a 16 to 20% salary increase as acceptable if they were to move roles
Salaries & BenefitsBANKING & CAPITAL MARKETS
Core Finance | ACA Salary range Hourly rate
Job title 2012 2013 2012 2013
Accounts Assistant £22,000-£28,000 £22,000-£28,000 £12-£17 £12-£17
ACCA/CIMA Fundamental/Operations
£24,000-£30,000 £24,000-£30,000 £13-£17 £13-£17
ACCA/CIMA Managerial/Professional
£30,000-£35,000 £30,000-£35,000 £15-£22 £15-£22
ACCA/CIMA Finalist/Strategic £35,000-£42,000 £35,000-£42,000 £17-£24 £17-£24
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Core Finance | ACA Salary range Daily rate
Job title 2012 2013 2012 2013
Newly Qualified (non Big 4) £40,000-£45,000 £40,000-£48,000 £225-£275 £225-£275
Newly Qualified (Big 4) £45,000-£50,000 £45,000-£55,000 £250-£275 £250-£275
1-3 years’ PQE £50,000-£60,000 £50,000-£60,000 £275-£350 £275-£350
3-5 years’ PQE £60,000-£70,000 £60,000-£70,000 £350-£400 £350-£400
5-8 years’ PQE £75,000-£85,000 £75,000-£85,000 £400-£550 £400-£550
8-10 years’+ PQE £85,000-£100,000+ £85,000-£100,000+ £550-£750 £550-£750
Core Finance | ACCA/ACMA Salary range Daily rate
Job title 2012 2013 2012 2013
Newly Qualified £40,000-£45,000 £40,000-£45,000 £225-£275 £250-£300
1-3 years’ PQE £45,000-£52,000 £45,000-£52,000 £275-£350 £275-£350
3-5 years’ PQE £55,000-£65,000 £55,000-£65,000 £350-£400 £350-£400
5-8 years’ PQE £70,000-£80,000 £70,000-£80,000 £400-£550 £400-£550
8-10 years’+ PQE £80,000-£100,000+ £80,000-£100,000+ £550-£750 £550-£750
Product Control Salary range Daily rate
Job title 2012 2013 2012 2013
Newly Qualified £45,000-£55,000 £50,000-£60,000 £250-£275 £250-£275
Manager (Assistant Vice President or equivalent)
£65,000-£75,000 £60,000-£75,000 £400-£450 £400-£450
Senior Manager (Vice President or equivalent)
£75,000-£100,000 £75,000-£100,000 £450-£600 £450-£600
Head of Product Control £90,000-£120,000+ £90,000-£120,000+ £600-£800 £600-£800
Regulatory Reporting Salary range Daily rate
Job title 2012 2013 2012 2013
Newly Qualified £45,000-£50,000 £45,000-£50,000 £250-£275 £250-£275
Senior Accountant £50,000-£60,000 £50,000-£60,000 £275-£400 £275-£400
Manager (Assistant Vice President or equivalent)
£60,000-£70,000 £60,000-£70,000 £400-£450 £400-£450
Senior Manager (Vice President or equivalent)
£70,000-£80,000 £70,000-£80,000 £450-£550 £450-£550
Head of Regulatory Reporting £80,000-£100,000+ £80,000-£100,000+ £550-£750 £550-£750
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Attracting top talentINTERVIEW REPUTATION IS KEY As competition to secure the best talent continues to increase, employers need to place more emphasis on the interview experience. Making sure a candidate receives detailed feedback is imperative to an employer’s reputation. It is also essential that in an interview, the interviewer shows a genuine enthusiasm so the candidate doesn’t feel like they are just part of a process.
BE TRANSPARENTIn the interview process you need to be clear with prospective employees about the company’s vision as well as their potential role in the business, to e§ectively sell the job opportunity.
BANKING & CAPITAL MARKETS Salaries & Benefits
Did you receive a bonus in 2012?
Yes 52%
No, not awarded one 13%
No, not entitled to receive one 35%
45% of respondents were dissatisfied with their bonus
BENEFITS
BONUS
Top 5 benefits currently received
25 days holiday or more 37%
Annual bonus scheme 33%
Private healthcare 27%
Discretionary bonus scheme 27%
Company pension scheme 20%
Respondents could select all benefits that applied
Respondents rated a selection of 20 benefits in order of importance
Benefits considered most and least important when considering a new role
25 days holiday or more
Annual bonus scheme
Private healthcare
Discretionary bonus scheme
Daily subsidised meals
Season ticket loan
Sabbatical
Car or car allowance
Childcare vouchers
Good company pension scheme
55% of respondents were satisfied with their benefits
38% of respondents
received the same amount of
bonus in 2012 and 2011
As a percentage of your basic salary, what was your bonus in 2012?
1 to 9% of salary 33%
10 to 19% of salary 26%
20 to 29% of salary 13%
30 to 39% of salary 5%
40 to 49% of salary 6%
50 to 99% of salary 11%
More than 100% of salary 6%
1 - 9% of salary
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FINANCIAL SERVICES
Change Management
+44 20 7747 [email protected]
Director
Senior Consultant
Matthew Wilcox
Callum Small
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Outlook for 20132013 has seen a rise in recruitment following a quiet end to 2012. New budgets and resource plans have resulted in managers being able to achieve quicker sign o§ on roles.
The demand on risk and regulatory projects continues, with new government legislation either already released or pending. One specific regulatory area which will expand is financial reporting (FINREP), part of the CRD4 requirement for a standardised EU-wide framework for reporting. Aiming to implement this by January 2014, banks and investment firms are already beginning to build dedicated project teams for new financial reporting processes.
Customer-focused projects within commercial banking have been another growth area for some clients, as banks aim to improve their service and address previous mis-selling.
Companies will continue to fill roles internally and make the most of their contractors, reallocating resources to new projects where possible. Certain banks have large scale programmes drawing to a close and candidates have successfully moved onto new projects. This will continue for certain roles, as managers are placing as much importance on understanding internal processes, structures and systems as they are specialist knowledge. Some niche areas across finance, risk and regulatory require specialist knowledge from external candidates, as these roles are less likely to be sourced internally.
Market Perspective
The big trends of 2012Over the last couple of years, there has been a reorganisation of numerous large scale projects within banking, spanning finance, risk and regulatory. Throughout 2012, many companies reassessed their priorities resulting in structural changes, cost management initiatives and increased hiring into specific projects. There was a steady demand for regulatory and risk projects, though not quite reaching the recruitment levels of a few years ago when many of these projects were initiated.
Managers continued to strengthen teams with high calibre contractors if the desired skills and experience criteria were met, internally or externally. Specific areas in demand were similar to 2011 – liquidity, Basel III, Dodd-Frank, COREP, IFRS, anti-money laundering and FATCA (Foreign Accounts Tax Compliance Act). In addition to those areas, there was a marked increase in Lean teams across the wider financial services sector, as organisations were looking to improve the eciency of processes. People with prior experience on Lean projects, and those with Six-Sigma certifications will have seen an increase in relevant opportunities.
Salary freeze 58%
Budget cuts 53%
Greater focus on regulatory issues 33%
Business process/policy change 42%
Job cuts 39%
Respondents could choose more than one answer from a choice of 14
Top 5 expectations for your business in the next 12 monthsCompared with the last 12 months, how confident do you feel about the economic prospects facing your company?
More confident 21%
As confident 49%
Less confident 30%
ECONOMIC PROSPECTS
CHANGE MANAGEMENT
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Salary increase 37%
Redundancy 9%
Salary reduction 3%
Shorter working week 3%
Other 10%
Respondents could choose more than one answer
Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
Secure 53%
Insecure 47%
Short term (0-6 months ahead) 43%
Medium term (6-12 months ahead) 13%
Long term (1-2 years) 9%
Non-existent 9%
Not sure 26%
What is your employer’s recruitment strategy?
How has the number of sta� in your team changed in the past 12 months?
Remained the same 24%
Increased 24%
Not sure 8%
54%of respondents selected business growth or expansion as the main reason for an increase in sta§
of respondents selected
headcount reductions as the main reason for a decrease in sta§
HEADCOUNT
JOB SECURITYReactions to uncertain market conditions Market conditions have made the recruitment process more complicated as organisations have been encouraging hiring managers to recruit internally before going out to market. When recruiting externally, getting sign o§ for roles has become more dicult and the interview process more prolonged.
Overall there have been fewer roles in the market and a slightly more drawn-out process. Process aside, employers have in some cases utilised the uncertain conditions to acquire new sta§. A key factor for contractors that might not have been the case a few years ago is longevity of the role. If an employer can o§er stability, particularly the case with projects that have deadlines set by government or external bodies, then this can prove highly attractive to candidates in the current market. We are however seeing three month contracts becoming the norm across many large banks as achieving sign o§ for longer contracts is proving dicult.
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66% of respondents have more than 20 employees in their team
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Market growthNaturally the areas of growth predominately lie within areas where mandatory work has to be addressed, anti-money laundering, product mis-selling, risk systems, Basel III, liquidity and tax projects have all seen rates rise along with demand.
Other areas where bank activity has been slowing, for example equities, have not seen the same results. With hiring managers initially tasked to search internally, the increase in vacancies hasn’t always translated to an increase in available roles for external candidates.
EXPERIENCE
57%
43%
<1years
1-2 2-3 3-5 5-10 >10
Length in current roleLength of time in the accountancy, finance or advisory profession
Less than 1 year 46%
1 to 2 years 19%
2 to 3 years 12%
3 to 5 years 8%
5 to 10 years 10%
More than 10 years 5%
0 to 3 years 4%
4 to 6 years 14%
7 to 10 years 16%
11 to 15 years 22%
16 to 20 years 10%
More than 20 years 31%
Not applicable 3%
>20years
Supply and demandCost reduction is still a top priority for organisations across the industry, resulting in high demand for project management oces to track /budget and support project managers.
There has been an increased demand for market intelligence business analysts and project managers, as senior management rely on their data to make informed decisions.
Regulatory reform and new regulatory rules continue to reshape the banking landscape, prompting organisations to change systems and processes across their organisation.
Demand for business analysts with systems skills continues to rise, while strong process business analysts will also have several options as businesses look to secure their services.
New legislation around the clearing process for OTC derivatives has resulted in the initiation of a number of large scale programmes; hence the demand for SMEs and project resource with Dodd-Frank experience has grown significantly.
HOURS WORKEDAverage hours worked per week
How has the number of hours changed in the last 12 months?
Increased 28%
Remained the same 58%
Decreased 14%
63%of respondents chose taking on more responsibility as the main reason for the increase in working hours
Career InsightCHANGE MANAGEMENT
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MOVING ON
Taking the next step in your careerGET UP TO SPEED WITH TECHNOLOGYMore organisations are combining their change teams so they are more blended in terms of skill sets. As most change projects are reliant on technology, make sure you are up to speed and technically able with as many major systems as you can be.
GET AS MUCH EXPOSURE TO REGULATORY AS POSSIBLEIf you haven’t worked within regulatory before, it is an obvious place where you can enjoy a more buoyant market place if job security is important to you. Gain exposure to regulatory projects or look to try and move internally once you are in an organisation.
TRY OUT CONTRACTINGIf you are permanent within the change market you are probably experiencing a more static job market, but going contracting can open up a variety of other options not previously available to you. It comes with obvious risks surrounding job security, but handing in your notice and going contracting could broaden your skill set and career opportunities.
Top 5 reasons for leaving last role
Higher salary 30%
Career development 28%
End of contract 25%
New challenge/more interesting work 22%
Redundancy 17%
Respondents could choose up to three reasons
RELOCATION
Australia 26%
Singapore 26%
Mainland Europe 24%
Hong Kong 23%
Respondents could choose more than one country from a choice of 14
Di§erent culture 60%
Improved quality of life 60%
New career opportunity 60%
Improved salary 57%
Better employment opportunities 43%
Respondents could choose more than one reason from a choice of nine
Top 5 places respondents would consider relocating to in the next two years
Top 5 reasons for respondents wanting to relocate
42% of respondents would not relocate
46% of respondents anticipate changing roles in the next 12 months
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For the most part salaries have remained similar to the previous year
Spotlight on salaries For the most part salaries have remained similar to the previous year. Some organisations implemented cost cutting initiatives at the end of 2011 that resulted in a 10% to 15% rate reduction for some people. Rates in some areas such as product control change, where demand hasn’t been as high, are still operating closer to these reduced rates. For areas where demand is higher such as credit risk and regulatory change, rates have maintained at their previous levels. Salaries during 2012 varied depending on the organisations; some employers have strict rate cards in place whilst others can be flexible depending on the experience of the individual.
REMUNERATION
2011 2012
When was your last pay review?
Less than 6 months ago 29%
6 to12 months ago 32%
More than 12 months ago 21%
Not applicable 18%
48% of respondents’ pay remained the same in their last pay review
Permanent
Contract
Satisfaction with current remuneration
Permanent
Satisfied 42%
Permanent
Neither satisfied nor dissatisfied 24%
Permanent
Dissatisfied 34%
Permanent
Satisfied 50%
Permanent
Neither satisfied nor dissatisfied 23%
Permanent
Dissatisfied 27%
26% of respondents perceive a 6 to 10% salary increase as acceptable if they were to move roles and a further
Salaries & BenefitsCHANGE MANAGEMENT
perceive a 16 to 20% increase to be acceptable
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For areas where demand is higher such as credit risk and regulatory change, rates have maintained at their previous levels
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Project & Change Management | Permanent Salary range
Job title 2012 2013
Assistant Vice President £55,000-£65,000 £55,000-£65,000
Senior Assistant Vice President £65,000-£75,000 £65,000-£75,000
Vice President £75,000-£90,000 £75,000-£90,000
Senior Vice President £90,000-£110,000 £90,000-£110,000
Director £110,000-£160,000 £110,000-£160,000
Project & Change Management | Contract Daily rate
Job title 2012 2013
Business Analyst £400-£500 £400-£500
Senior Business Analyst £500-£700 £500-£600
Project Manager £550-£800 £500-£750
Programme Manager £700-£1000 £700-£900
Programme Director £1000+ £800-£1100
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Attracting top talentVALUE ALL EMPLOYEES EQUALLYChange contractors need to be treated as a valuable resource. Organisations should make sure they make their contract population feel just as valued as permanent employees, especially within change management as predominantly these professionals are contractors.
KEEP YOUR REPUTATION INTACTMany contractors are well networked and word of mouth can spread quickly about an organisation and a particular project. Some projects get a bad reputation and lose out on top candidates.
HAVE A CLEAR AND QUICK INTERVIEW PROCESSDon’t give high calibre professionals the time to take up other opportunities.
CHANGE MANAGEMENT Salaries & Benefits
Did you receive a bonus in 2012?
Yes 31%
No, not awarded one 11%
No, not entitled to receive one 58%
53% of respondents were satisfied with their bonus
BENEFITS
BONUS
Top 5 benefits currently received?
25 days holiday or more 76%
Company pension scheme 63%
Flexible working 49%
Private healthcare 46%
Insurance (PMI/death in service/life insurance) 41%
Respondents could select all benefits that applied
Respondents rated a selection of 20 benefits in order of importance
Benefits considered most and least important when considering a new role
25 days holiday or more
Annual bonus scheme
Flexible working
Good company pension scheme
Car or car allowance
Mortgage relief
Season ticket loan
Daily subsidised meals
Childcare vouchers
Private healthcare
44% of respondents were satisfied with their benefits
53% of respondents
received the same bonus in 2012 as 2011
As a percentage of your basic salary, what was your bonus in 2012?
1 to 9% of salary 37%
10 to 19% of salary 32%
20 to 29% of salary 5%
30 to 39% of salary 21%
40 to 49% of salary 5%
More than 50% of salary 0%
1 - 9% of salary
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FINANCIAL SERVICES
Front Oce
+44 20 7850 [email protected]
Consultant
Harry Fox
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Outlook for 2013The first half of 2013 is likely to see a demand for analysts and associates across boutiques, small to medium-sized banks and capital markets firms. The investment banking world is still very much in a hiring freeze and job trimming state of mind and is likely to continue cutting jobs for at least the next 12 to 18 months.
We have already seen mergers and acquisitions pick up in 2013, especially in the USA. With strong activity data and confidence within large consumers, M&A is driving in a direction not seen since 2005. The increase from last year is 122%, with a total value of $159.5 billion.
Europe will see a moderate upsurge, which we expect to have an impact on the London market in quarter two of 2013.
Market Perspective
The big trends of 2012During the first quarter of 2012, there was reasonable demand across mergers and acquisitions (M&A), especially within technology, media, telecommunications and consumer markets. Since mid-2012, the market has been static and flat, partly due to uncertainty and the continuing eurozone crisis. Firms have made hires but only if they can attract those sought after professionals who are able to add immediate value to the bottom line.
Recruitment freeze 40%
Salary freeze 43%
Salary increases 28%
Greater focus on regulatory issues 30%
Business process/policy change 40%
Profitability of business 28%
Respondents could choose more than one answer from a choice of 14
Top 5 expectations for your business in the next 12 monthsCompared with the last 12 months, how confident do you feel about the economic prospects facing your company?
More confident 28%
As confident 48%
Less confident 24%
ECONOMIC PROSPECTS
FRONT OFFICE
The investment banking world is still very much in a
hiring freeze and job trimming state of mind and is likely to continue cutting jobs for at
least the next 12 to 18 months
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Salary freeze 36%
Redundancy 5%
Shorter working week 2%
Salary reduction 0%
Other 3%
Respondents could choose more than one answer
Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
Secure 71%
Insecure 29%
Short term (0-6 months ahead) 27%
Medium term (6-12 months ahead) 19%
Long term (1-2 years) 21%
Non-existent 6%
Not sure 27%
What is your employer’s recruitment strategy?
How has the number of sta� in your team changed in the past 12 months?
Decreased 35%
Remained the same 17%
Not sure 5%
64%of respondents selected business growth or expansion as the main reason for an increase in sta§
of respondents selected
headcount reductions as the main reason for a decrease in sta§
HEADCOUNT
JOB SECURITYReactions to uncertain market conditions Demand for exceptional professionals remains at the top of the agenda and the bar is as high as ever. With a large supply of jobseekers in the market, employers have been able to hold out to hire the best of the bunch. Across most boutiques and small to medium-sized firms, there has been increasing pressure to source people directly and tap into personal networks when a clear and definitive need arises. In common with other sectors and industries, processes have been slow and elongated but with a noticeable decrease in speculative meetings compared with the previous few years.
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Skills in demand Most of the front oce hiring activity is still within small boutique and independent investment banks as opposed to the larger bulge brackets. Professionals with full end-to-end deal experience are currently most in demand. Employers are more likely to meet and hire people who have completed a full deal and have the experience of seeing a transaction through from start to finish.
The market is in need of a huge injection of confidence and positivity but fundamentally growth will be led by the larger bulge brackets which are still a year away from being in a hiring position again.
EXPERIENCE
75%
25%
<1years
1-2 2-3 3-5 5-10 >10
Length in current roleLength of time in the accountancy, finance or advisory profession
Less than 1 year 31%
1 to 2 years 27%
2 to 3 years 24%
3 to 5 years 9%
5 to 10 years 9%
More than 10 years 0%
0 to 3 years 14%
4 to 6 years 28%
7 to 10 years 29%
11 to 15 years 17%
16 to 20 years 3%
More than 20 years 6%
Not applicable 3%
7-10years
Supply and demandAs you would expect, there is a huge demand for analysts and associates in the oil, gas, mining and resources market. Strong financial institutions groups (FIG) professionals will still continue to be sought after. The bulk of demand is for those people able to hit the ground running and immediately bring in networks and deals.
HOURS WORKEDAverage hours worked per week
How has the number of hours changed in the last 12 months
Increased 36%
Remained the same 55%
Decreased 9%
50%of respondents chose taking on more responsibility as the main reason for the increase in working hours
Career InsightFRONT OFFICE
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Why candidates are making a moveMost candidates want to move to gain better end-to-end deal experience. Many front oce professionals would prefer to work in teams where they can develop their client facing skills alongside better originators and deal winners.
Smaller organisations can take advantage of the lack of deal exposure in larger institutions by o§ering roles that give greater exposure to a transaction.
MOVING ON
Taking the next step in your careerBE COMMERCIALLY PREPAREDConduct plenty of research before an interview and be able to talk about recent deals and how the market might be a§ecting that particular company. Showing you are completely immersed in your markets helps display your commercial acumen and will increase the likelihood of progressing to the next stage.
KNOW YOUR RECRUITERWhen dealing with recruitment firms, keep the number of agencies you are working with down to a minimum. Ensure you understand their processes and practices so that your details are kept confidential and are not sent anywhere without your permission.
STICK TO WHAT YOU WANTBe clear about what you want from your next move and stick to your guns. There are roles out there but don’t take something for the sake of it.
Top 5 reasons for leaving last role
New challenge/more interesting work 40%
Career development 37%
Higher salary 31%
Better work-life balance 15%
Better bonus potential 14%
Respondents could choose up to three reasons
RELOCATION
Within the UK 36%
Hong Kong 34%
Singapore 29%
Mainland Europe 27%
Australia 27%
Respondents could choose more than one country from a choice of 14
Improved quality of life 71%
Improved salary 61%
New career opportunity 53%
Better employment opportunities 53%
Di§erent culture 49%
Respondents could choose more than one reason from a choice of nine
Top 5 places respondents would consider relocating to in the next two years
Top 5 reasons for respondents wanting to relocate
24% of respondents would not relocate
31% of respondents anticipate changing roles in the next 12 months
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Spotlight on salaries and bonusesOver the past 12 months salaries have remained static, but bonus payouts and expectations have been at an all-time low, creating a market of two contrasting halves: one half who feel under-compensated and another half who want to sit tight and wait out the storm. As with other industries and sectors, top tier professionals will continue to command a premium and will only move for exceptional opportunities.
REMUNERATIONWhen was your last pay review?
Less than 6 months ago 31%
6 to 12 months ago 42%
More than 12 months ago 10%
Not applicable 17%
67% of respondents received a pay increase in their last pay review
Permanent
Contract
Satisfaction with current remuneration
Permanent
Satisfied 34%
Permanent
Neither satisfied nor dissatisfied 32%
Permanent
Dissatisfied 34%
Permanent
Satisfied 100%
Permanent
Neither satisfied nor dissatisfied 0%
Permanent
Dissatisfied 0%
25% of respondents perceive a 16 to 20% salary increase as acceptable if they were to move roles
Salaries & BenefitsFRONT OFFICE
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Front Office 2012 2013
Job title Salary range Average bonus Salary range Average bonus
Intern/Junior Analyst £30,000-£40,000 Nominal £30,000-£40,000 Nominal
Executive/Analyst £45,000-£60,000 10-30% £45,000-£60,000 10-30%
Manager/Associate £60,000-£80,000 20-40% £60,000-£80,000 20-40%
Associate Director/Vice President £80,000-£120,000 30-60% £80,000-£120,000 30-60%
Director £120,000-£170,000+ 60-100%+ £120,000-£170,000+ 60-100%+
Over the past 12 months salaries have remained static, but bonus payouts and expectations have been at an all-time low, creating a market of two contrasting halves
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Attracting top talentRUN A CONCISE AND EFFICIENT RECRUITMENT PROCESSInvest time into planning the interview schedule and make sure all stakeholders are bought into the hire, agreeing the role’s key selling points. Jobseekers are continually put o§ by organisations that send inconsistent and incoherent messages. Several o§ers were turned down by candidates last year due to long and drawn-out hiring processes where the message became distorted and unclear.
CONSOLIDATE INTERVIEWS INTO AS FEW MEETINGS AS POSSIBLEThe best candidates will always be in demand and the sooner you complete your hiring process the better chance you stand of beating o§ the competition.
BE CLEAR ABOUT WHAT YOUR PROPOSITION IS TO CANDIDATESMany people still believe having a role and intention to hire is enough, but it isn’t. Know what a career at your company looks like including the benefits and opportunities, and clearly communicate this at the interview.
FRONT OFFICE Salaries & Benefits
Did you receive a bonus in 2012?
Yes 61%
No, not awarded one 23%
No, not entitled to receive one 16%
36% of respondents were satisfied with their bonus
BENEFITS
BONUS
Top 5 benefits currently received
25 days holiday or more 75%
Company pension scheme 53%
Mobile phone/Blackberry/PDA 51%
Annual bonus scheme 51%
Insurance (PMI/death in service/life insurance) 44%
Respondents could select all benefits that applied
Respondents rated a selection of 20 benefits in order of importance
Benefits considered most and least important when considering a new role
25 days holiday or more
Discretionary bonus scheme
Annual bonus scheme
Mobile phone/Blackberry/PDA
Mortgage relief
Car or car allowance
Season ticket loan
Less than 25 days holiday
Daily subsidised meals
Private healthcare
42% of respondents were satisfied with their benefits
44% of respondents
received a higher bonus in 2012
than in 2011
As a percentage of your basic salary, what was your bonus in 2012?
1 to 9% of salary 22%
10 to 19% of salary 20%
20 to 29% of salary 14%
30 to 49% of salary 11%
50 to 89% of salary 14%
90 to 100% of salary 11%
More than 100% of salary 8%
1 - 9% of salary
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FINANCIAL SERVICES
Insurance
+44 20 7747 [email protected]
Manager
Senior Consultant
Victoria Martin
David Harvey
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Outlook for 20132013 should see organisations continue to dominate the headlines as a result of mergers and acquisitions, as well as consolidation. This will ensure the need for financial integration specialists and replacement hires for those that inevitably seek pastures new as a result. It’s likely we’ll also see an increase for senior level hires, financial analysts and those with commercial and strategic skills to support businesses seeking to restructure, divest or grow.
Demand across Lloyd’s syndicates will continue and we expect there to be less of a focus on Solvency II. There is also likely to be continued mergers and acquisitions activity across broker firms as large players in the market continue to grow through calculated acquisitions. This will then create new work around integration of the business.
A large number of organisations have already highlighted their plans for expansion this year in all areas of their business, including support functions. This mirrors the candidate market where a sense of confidence and optimism is returning.
As market confidence steadily returns, we predict even greater di�culty in employers retaining sta� that have been hard pressed by poor market conditions. Restored confidence will lead to an uptake in vacancies and candidates looking for pastures new, therefore benefits and sta� well-being will need to be a high priority for employers.
INSURANCE Market Perspective
The big trends of 2012There were fewer natural disasters than in 2011 and so insurers returned to profitability which helped to restore market confidence.
Attracting the best talent was fiercely competitive across the entire sector with employers vying for top candidates and some firms struggling to retain key talent.
Due to hiring managers looking to up skill their business areas, we saw a greater demand for newly qualified accountants from practice as the year progressed.
Greater focus on regulatory issues 37%
Recruitment freeze 34%
Budget cuts 34%
Profitability of business 32%
Business process/policy change 27%
Job cuts 27%
Salary freeze 27%
Respondents could choose more than one answer from a choice of 14
Top 5 expectations for your business in the next 12 monthsCompared with the last 12 months, how confident do you feel about the economic prospects facing your company?
More confident 26%
As confident 45%
Less confident 29%
ECONOMIC PROSPECTS
Benefits and sta� well-being will need to be of the utmost importance
and a high priority for current employers
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Salary freeze 28%
Redundancy 3%
Salary reduction 2%
Shorter working week 0%
Other 6%
Respondents could choose more than one answer
Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
Secure 72%
Insecure 28%
Short term (0-6 months ahead) 43%
Medium term (6-12 months ahead) 24%
Long term (1-2 years) 1%
Non-existent 1%
Not sure 31%
What is your employer’s recruitment strategy?
How has the number of sta� in your team changed in the past 12 months?
Remained the same 29%
Decreased 20%
Not sure 6%
60%of respondents selected business growth or expansion as the main reason for an increase in sta�
of respondents selected
headcount reductions as the main reason for a decrease in sta�
HEADCOUNT
JOB SECURITY
Throughout 2013 we expect to see an increase in senior level
hiring, business partnering and financial analyst roles
Reactions to uncertain market conditions Despite growing confidence many employers have largely been cautious. We are finding businesses are taking longer to make hiring decisions and so are often missing out on candidates. Salaries o�ered have often been lower than necessary, so companies o�ering attractive overall compensation have been more successful in securing the top talent. Employers who have been covering natural attrition by reassigning leavers’ duties within the existing team rather than replacing people when they leave, are now cautiously looking at expanding again.
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39% of respondents have more than 20 employees in their team
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Skills in demandLarger general and London market insurers have started hiring quite extensively, from technical accounting roles through to more analytical business partnering positions. We are expecting growth to continue into 2013 with the insurance sector as a whole faring better than other industries across financial services.
Technical insurance knowledge is currently in high demand. Hiring managers are increasingly requiring candidates to have a firm understanding of the underwriting function of the business in a bid to provide strength of industry knowledge within their finance teams. In addition to this, qualifications and academic achievements are increasingly being scrutinised to ensure that new hires are high calibre. Candidates who have qualified in practice and have up to two years’ industry experience are in high demand as their profiles show a strong academic background as well as a good foundation of insurance industry knowledge.
EXPERIENCE
68%
32%
<1years
1-2 2-3 3-5 5-10 >10
Length in current roleLength of time in the accountancy, finance or advisory profession
Less than 1 year 52%
1 to 2 years 22%
2 to 3 years 11%
3 to 5 years 9%
5 to 10 years 1%
More than 10 years 5%
0 to 3 years 6%
4 to 6 years 14%
7 to 10 years 28%
11 to 15 years 11%
16 to 20 years 14%
21 to 25 years 9%
More than 25 years 18%
7 - 10years
Supply and demandThere are fewer syndicate accountants in the active market but we have seen more senior hires. There is also a lack of Big 4 qualified ACAs and CAs with insurance experience wanting to take on core accounting/reporting roles. Our advice to hiring managers is to push out into the top 20 to 30 firms when seeking to replace or bring in new skills in the 0 to 2 years post qualified bracket.
HOURS WORKEDAverage hours worked per week
How has the number of hours changed in the last 12 months?
Increased 37%
Remained the same 55%
Decreased 8%
48%of respondents chose taking on more responsibility as the main reason for the increase in working hours
INSURANCE Career Insight
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MOVING ON
Taking the next step in your careerBE FLEXIBLE IN YOUR APPROACHDon’t rule something out just based on a job specification. Be prepared to research the role and meet with the employer before dismissal.
DON’T OVERPRICE YOURSELF Seek a salary that is in line with your experience and skills.
HAVE A CLEAR IDEA ABOUT WHAT YOU WANT And don’t be afraid to let recruiters know it.
COMMIT TO MAKING THE MOVE Invest time to thoroughly prepare for interviews, researching your prospective employer’s business and preparing for potential questions you may be asked.
Top 5 reasons for leaving last role
Career development 32%
New challenge/more interesting work 30%
Higher salary 29%
End of contract 23%
Better work-life balance 15%
Respondents could choose up to three reasons
RELOCATION
Singapore 30%
Australia 29%
Within the UK 27%
Canada 25%
Respondents could choose more than one country from a choice of 14
Di�erent culture 63%
Improved quality of life 60%
Improved salary 57%
New career opportunities 54%
Better employment opportunities 54%
Respondents could choose more than one reason from a choice of nine
Top 5 places respondents would consider relocating to in the next two years
Top 5 reasons for respondents wanting to relocate
33% of respondents would not relocate
46% of respondents anticipate changing roles in the next 12 months
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Some candidates are dissatisfied with remuneration packages and are using this as an excuse to move organisations
Spotlight on salariesThere is specific demand for professionals with direct insurance industry experience and with a real shortage of quality and active talent on the market, this ensures a premium on expected salaries.
There has also been an increase in salary expectations for newly qualified accountants moving into reporting roles in the insurance sector, reflecting the shortage of candidates looking at this level.
REMUNERATIONWhen was your last pay review?
Less than 6 months ago 30%
6 to12 months ago 43%
More than 12 months ago 4%
Not applicable 23%
80% of respondents received a salary increase in their last pay review
Permanent
Contract
Satisfaction with current remuneration
Permanent
Satisfied 58%
Permanent
Neither satisfied nor dissatisfied 20%
Permanent
Dissatisfied 22%
Permanent
Satisfied 80%
Permanent
Neither satisfied nor dissatisfied 13%
Permanent
Dissatisfied 7%
36% of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
INSURANCE Salaries & Benefits
Candidates with strong technical backgrounds, who are keen on exploring the sector but perhaps do not have direct insurance experience (e.g. auditors from commerce and industry or banking professionals) can also expect a solid remuneration.
Syndicate accountants continue to command a high premium due to the decline in numbers of those professionals who remain in the industry.
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Newly qualified accountants moving into reporting roles in the insurance sector are typically looking for £50,000 to £55,000, which is far higher than the market average
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Core Finance Salary range Daily rate
Job title 2012 2013 2012 2013
Newly Qualified £40,000-£45,000 £45,000-£50,000 £250-£300 £250-£300
Senior Accountant | 1-3 years’ PQE
£45,000-£52,000 £50,000-£60,000 £300-£350 £300-£350
Finance Manager | 3-5 years’ PQE £55,000-£65,000 £60,000-£70,000 £350-£400 £350-£400
Senior Finance Manager, 5-8 years’ PQE
£65,000-£75,000 £70,000-£85,000 £400-£450 £400-£450
Syndicate Accounting Salary range Daily rate
Job title 2012 2013 2012 2013
Syndicate Accountant £45,000-£55,000 £45,000-£55,000 £250-£300 £250-£300
Senior Syndicate Accountant £55,000-£65,000 £55,000-£65,000 £300-£350 £300-£350
Syndicate Accounting Manager £65,000-£75,000 £65,000-£75,000 £350-£400 £350-£400
Head of Syndicate Accounting £75,000-£100,000+ £75,000-£100,000+ £400-£450 £400-£450
Part Qualified Salary range Hourly rate
Job title 2012 2013 2012 2013
Accounts Assistant £22,000-£28,000 £22,000-£28,000 £12-£17 £12-£17
ACCA/CIMA Fundamental/Operations
£24,000-£30,000 £24,000-£30,000 £13-£17 £13-£17
ACCA/CIMA Managerial/Professional
£30,000-£35,000 £30,000-£35,000 £15-£22 £15-£22
ACCA/CIMA Finalist/Strategic £35,000-£42,000 £35,000-£42,000 £17-£24 £17-£24
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Attracting top talentIF YOU LIKE SOMEONE MOVE QUICKLY That perfect candidate you wanted might not be available by the time you decide. Don’t risk another firm beating you to your ideal candidate!
PAY THE RIGHT SALARY BASED ON GUIDANCEThe market isn’t as flat as it was and people won’t necessarily move for the same basic salary or a token increase.
KNOW WHAT YOU’RE LOOKING FORWe can advise and guide you through the process but it is important to have a clearly defined brief so that you make the right decision.
SELL YOUR OPPORTUNITY Sell your brand and its position within the insurance market. Make sure candidates understand the technical insurance exposure that the role can o�er, which is essential to become a finance specialist within this field in the current market.
MAKE TIME FOR HIRINGMomentum is key to being successful in your hiring strategy as the market improves.
INSURANCE Salaries & Benefits
Did you receive a bonus in 2012?
Yes 54%
No, not awarded one 10%
No, not entitled to receive one 36%
47% of respondents were satisfied with their bonus
BENEFITS
BONUS
Top 5 benefits currently received?
25 days holiday or more 80%
Company pension scheme 75%
Insurance (PMI/death in service/life insurance) 75%
Private healthcare 65%
Annual bonus scheme 59%
Respondents could select all benefits that applied
Respondents rated a selection of 20 benefits in order of importance
Benefits considered most and least important when considering a new role
25 days holiday or more
Company pension scheme
Annual bonus scheme
Insurance*
Leisure facilities
Sabbatical
Mortgage relief
Childcare vouchers
Daily subsidised meals
Private healthcare
45% of respondents were satisfied with their benefits
38% of respondents
received a higher bonus in 2012
than in 2011
As a percentage of your basic salary, what was your bonus in 2012?
1 to 9% of salary 14%
10 to 19% of salary 38%
20 to 29% of salary 18%
30 to 39% of salary 18%
40 to 49% of salary 3%
50 to 69% of salary 6%
More than 70% of salary 3%
10 - 19% of salary
* PMI/death in service/life insurance
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FINANCIAL SERVICES
Investment Management
+44 20 7321 [email protected]
Associate Director
Manager
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David Harvey
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Outlook for 2013Over this year we expect the market to mirror the second half of 2012. Asset managers are likely to remain reasonably consistent in terms of their appetite for new hires. Initial indicators from private equity and real estate firms have been positive, and whilst the environment remains challenging the majority have been upbeat around fundraising prospects with the expectation that commitments will be shored up in early 2013.
We expect to see a small increase in roles across the board as new funds come to market and existing funds either start growing or winding down. Candidate flow is likely to remain high albeit with a shortage of top tier people looking. Growth is likely to be sporadic across the sector as a whole, with private equity and boutique managers being likely places where additional headcount is brought on board.
Market Perspective
The big trends of 2012Despite some positive movements within the alternative investment sector in early 2012, a challenging fund raising environment had a negative impact on recruitment. Firms struggling to raise new funds generally had to put any recruitment plans aside and on the whole, the market remained relatively flat.
Larger investment management organisations did make a number of key structural changes which were largely linked to the shifting regulatory landscape. This resulted in an increase in the number of jobs o§ered, particularly in governance, financial control and compliance.
Greater focus on regulatory issues 36%
Salary increase 33%
Recruitment increase 25%
Profitability of business 33%
Business process/policy change 28%
Salary freeze 25%
Respondents could choose more than one answer from a choice of 14
Top 5 expectations for your business in the next 12 monthsCompared with the last 12 months, how confident do you feel about the economic prospects facing your company?
More confident 26%
As confident 55%
Less confident 19%
ECONOMIC PROSPECTS
INVESTMENT MANAGEMENT
Growth is likely to be sporadic across the sector as a whole,
with private equity and boutique managers being likely places
where additional headcount is brought on board
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Salary freeze 31%
Redundancy 7%
Shorter working week 1%
Salary reduction 1%
Other 8%
Respondents could choose more than one answer
Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
Secure 76%
Insecure 24%
Short term (0-6 months ahead) 26%
Medium term (6-12 months ahead) 21%
Long term (1-2 years) 23%
Non-existent 2%
Not sure 28%
What is your employer’s recruitment strategy?
How has the number of sta� in your team changed in the past 12 months?
Remained the same 31%
Decreased 24%
Not sure 8%
63%of respondents selected business growth or expansion as the main reason for an increase in sta§
of respondents selected
headcount reductions as the main reason for a decrease in sta§
HEADCOUNT
JOB SECURITYReactions to uncertain market conditions There has been an increase in the number of candidates taken on as short term contractors with a view to becoming permanent. This gives businesses the flexibility they require and allows them to get around potential headcount or sign o§ issues. New fund launches and smaller firms or startups are reluctant to bring finance in-house in favour of outsourcing to a third party provider. In general this has led to a slow and frustrating recruitment process for all as employers have held out for the very best talent available.
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Skills in demand Permanent and contract fund accountants with one to three years’ post qualified experience are always more challenging to source. There has been a clear increase in roles at this level, as well as new roles generated by a mixture of attrition, growth and the continual flow of roles being in-housed or outsourced. However, bright candidates with a combination of corporate and fund accounting experience in the four to five years post qualified bracket have been in short supply. Business partners and financial analysts with a detailed understanding of investment management products have also been in demand as many asset managers have looked to up skill and/or increase their Financial Planning and Analysis (FP&A) function.
EXPERIENCE
73%
27%
<1years
1-2 2-3 3-5 5-10 >10
Length in current roleLength of time in the accountancy, finance or advisory profession
Less than 1 year 43%
1 to 2 years 24%
2 to 3 years 16%
3 to 5 years 11%
5 to 10 years 6%
More than 10 years 0%
0 to 3 years 14%
4 to 6 years 29%
7 to 10 years 21%
11 to 15 years 17%
16 to 20 years 5%
More than 20 years 8%
Not applicable 6%
4-6years
Supply and demandThere has been a noticeable increase in the volume of newly qualified chartered accountants looking to make the move into core accounting and finance roles. Many also come with relevant audit or accounts preparation experience across fund management clients and are happy to take on a hands-on role. Experienced contract fund accountants with exposure to traditional funds, private equity, property or hedge funds are still the most in demand.
Strong professionals are still in demand and are likely to be given incentives to remain in roles.
HOURS WORKEDAverage hours worked per week
How has the number of hours changed in the last 12 months?
Increased 39%
Remained the same 51%
Decreased 10%
65%of respondents chose taking on more responsibility as the main reason for the increase in working hours
Career InsightINVESTMENT MANAGEMENT
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Why candidates are making a moveUnderstandably, careers are likely to have been stalled in the current market; if another business can o§er progression and/or development it will spark interest amongst candidates.
Many firms have opted to freeze salaries and reduce bonuses over the past three to four years, and at the same time people have seen their purchasing power fall. A better package will tempt many candidates to look at other firms.
Job security is also a huge factor. If a candidate feels their job is at risk in the next 12 months then it is highly likely they will already be considering options. If a prospective employer is seen as a ‘safe’ place it will be an attractive option.
MOVING ON
Taking the next step in your careerBE REALISTIC AND OPEN TO IDEASApplying for anything and everything is not the right approach and could lead to you going backwards in your career. Make sure you have a clear idea of what you want and stick to it.
DON’T TAKE A JOB SPECIFICATION AT FACE VALUEThe only real insight into the full extent of the role is a meeting. This also applies for the culture and size of a company.
BE PATIENTIf you are serious about moving, be patient! The market is still reasonably fragile and so processes can be slow and frustrating for all.
Top 5 reasons for leaving last role
Career development 38%
New challenge/more interesting work 36%
Higher salary 29%
End of contract 15%
Redundancy 13%
Respondents could choose up to three reasons
RELOCATION
Australia 36%
Singapore 34%
Hong Kong 33%
Mainland Europe 30%
Respondents could choose more than one country from a choice of 14
Improved quality of life 67%
Di§erent culture 61%
New career opportunity 60%
Better employment opportunities 54%
Improved salary 47%
Respondents could choose more than one reason from a choice of nine
Top 5 places respondents would consider relocating to in the next two years
Top 5 reasons for respondents wanting to relocate
20% of respondents would not relocate
31% of respondents anticipate changing roles in the next 12 months
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Spotlight on salaries and bonusesOver the past 12 months the average salary for candidates has remained fairly static. However, businesses have still had to pay a premium to attract the best talent in the market and o§er incentives for them to move. As the market has picked up, employers have become increasingly aware that their salary and bonus levels have to be in line with the market rate, to avoid losing current and prospective employees to the competition.
REMUNERATIONWhen was your last pay review?
Less than 6 months ago 29%
6 to 12 months ago 32%
More than 12 months ago 10%
Not applicable 29%
70% of respondents received a pay increase in their last pay review
Permanent
Contract
Satisfaction with current remuneration
Permanent
Satisfied 42%
Permanent
Neither satisfied nor dissatisfied 28%
Permanent
Dissatisfied 30%
Permanent
Satisfied 66%
Permanent
Neither satisfied nor dissatisfied 17%
Permanent
Dissatisfied 17%
29% of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles.
Salaries & BenefitsINVESTMENT MANAGEMENT
Businesses have still had to pay a premium to attract the best talent in the market
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Core Finance Salary range Daily rate
Job title 2012 2013 2012 2013
Newly Qualified £40,000-£45,000 £40,000-£47,000 £250-£275 £250-£300
Newly Qualified | Big 4 £40,000-£50,000 £45,000-£50,000 £250-£275 £250-£275
Senior Accountant | 1-3 years’ PQE
£45,000-£52,000 £45,000-£55,000 £300-£350 £300-£350
Finance Manager | 3-5 years’ PQE £55,000-£65,000 £55,000-£65,000 £350-£400 £350-£400
Senior Finance Manager | 5-8 years’ PQE
£65,000-£75,000 £65,000-£75,000 £400-£450 £400-£450
Fund Accounting Salary range Daily rate
Job title 2012 2013 2012 2013
Part Qualified Fund Accountant £30,000-£42,000 £30,000-£42,000 £225-£250 £225-£250
Fund Accountant | Newly Qualified
£40,000-£45,000 £40,000-£45,000 £250-£275 £250-£275
Fund Accountant | 1-3 years £45,000-£65,000 £45,000-£65,000 £250-£300 £250-£325
Senior Fund Accountant | 2-5 years
£55,000-£80,000 £55,000-£80,000 £300-£350 £350-£375
Fund Controller £65,000-£75,000 £65,000-£75,000 £350-400 £350-£400
Manager (Assistant Vice President or equivalent)
£55,000-£65,000 £55,000-£65,000 £300-375 £300-£375
Senior Manager (Vice President or equivalent)
£65,000-£75,000 £65,000-£75,000 £350-400 £350-£400
Head of Fund Accounting £75,000-£100,000 £75,000-£100,000 £400-500 £400-£500
Part Qualified Salary range Hourly rate
Job title 2012 2013 2012 2013
Accounts Assistant £22,000-£28,000 £22,000-£28,000 £12-£17 £12-£17
ACCA/CIMA Fundamental/Operations
£24,000-£30,000 £24,000-£30,000 £13-£17 £13-£17
ACCA/CIMA Managerial/Professional
£30,000-£35,000 £30,000-£35,000 £15-£22 £15-£22
ACCA/CIMA Finalist/Strategic £35,000-£42,000 £35,000-£42,000 £17-£24 £17-£24
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Attracting top talentBE EFFICIENT Move quickly on good candidates and have an ecient recruitment process in place to ensure you are one step ahead of the competition. On face value, we are still operating in a ‘candidate rich’ market but firms are still missing out on their preferred candidate due to a lack of urgency.
BE FAIR AND FLEXIBLEPaying market rate and having a degree of flexibility around the type of person you hire are essential things to bear in mind.
OFFER CLEAR PROGRESSIONCareer development is a major pull for candidates in the current market as they look to broaden their experience when moving roles. Having a transparent career path focused on developing the skills of a prospective employee will give you the edge in securing their services.
SELL YOUR BUSINESSThe best candidates are often well looked after by their current employer and need to be educated on the advantages of moving. This process starts with your recruitment consultant and must be continued by you.
INVESTMENT MANAGEMENT Salaries & Benefits
Did you receive a bonus in 2012?
Yes 59%
No, not awarded one 10%
No, not entitled to receive one 31%
49% of respondents were satisfied with their bonus
BENEFITS
BONUS
Top 5 benefits currently received
25 days holiday or more 79%
Private healthcare 65%
Company pension scheme 56%
Insurance (PMI/death in service/life insurance) 56%
Annual bonus scheme 46%
Respondents could select all benefits that applied
Respondents rated a selection of 20 benefits in order of importance
Benefits considered most and least important when considering a new role
25 days holiday or more
Good company pension scheme
Annual bonus scheme
Private healthcare
Season ticket loan
Sabbatical
Car or car allowance
Mortgage relief
Childcare vouchers
Discretionary bonus scheme
62% of respondents were satisfied with their benefits
54% of respondents
received a higher bonus in 2012
than in 2011
As a percentage of your basic salary, what was your bonus in 2012?
1 to 9% of salary 23%
10 to 19% of salary 31%
20 to 29% of salary 20%
30 to 49% of salary 13%
50 to 89% of salary 3%
90 to 100% of salary 5%
More than 100% of salary 5%
10 - 19% of salary
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LONDON
FINANCIAL SERVICES
Senior Finance
+44 20 7747 [email protected]
Associate Director
Glen Roberts
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Outlook for 2013There will be little change and the market is likely to remain fairly static. There will always be a reasonable flow of senior finance vacancies and for 2013 this is likely to continue.
We expect there to be movement at the ‘second in charge’ level. Group finance controllers, heads of finance, deputy finance directors and divisional finance directors are career-minded and ambitious professionals, who are unwilling to wait around for the markets to improve and will seek quicker routes to the number one job.
There is a strong likelihood that the number of top tier candidates will continue to shrink as more and more businesses set out clearer business plans and strategies for growth that tie people in.
Market Perspective
The big trends of 2012The volume of roles available remained consistent with 2011 and the market continued to be stagnant. The majority of new roles came about due to restructures or attrition rather than growth.
Overall there was an increase in candidates but a clear decrease in the top percentile of the market looking for work. We also noted a significant increase in senior finance executives being open to new roles and keen to passively see what was out there.
Employers continued to drag out the recruitment process, as they were unwilling to compromise on requirements and instead wanted to hold out for the ideal person.
There was an increase in redundant candidates coming into the interim market and a general increase in the amount of interim work, but not enough to satisfy the number of displaced and immediately available permanent candidates, as well as the normal population of interim contractors.
Salary freeze 36%
Business process/policy change 54%
Recruitment freeze 35%
Budget cuts 41%
Profitability of business 35%
Respondents could choose more than one answer from a choice of 14
Top 5 expectations for your business in the next 12 monthsCompared with the last 12 months, how confident do you feel about the economic prospects facing your company?
More confident 20%
As confident 50%
Less confident 30%
ECONOMIC PROSPECTS
SENIOR FINANCE
Overall there was an increase in candidates but a clear decrease in top tier
talent looking for work
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52%52%
Salary freeze 35%
52%
Redundancy 6%
52%
Shorter working week 1%
52%
Salary reduction 1% 52%
Other 8%
Respondents could choose more than one answer
Expectations for personal salary and job security in the next 12 months
How would you rate your current job security?
Secure 67%
Insecure 33%
Short term (0-6 months ahead) 49%
Medium term (6-12 months ahead) 17%
Long term (1-2 years) 12%
Non-existent 19%
Not sure 8%
What is your employer’s recruitment strategy?Remained
the same
42%
How has the number of sta� in your team changed in the past 12 months?
Remained the same
42%
Increased 30%
Remained the same
42%
Decreased 25% Remained the same
42%
Not sure 3%
52%of respondents selected business growth or expansion as the main reason for an increase in sta§
of respondents selected
headcount reductions as the main reason for a decrease in sta§
HEADCOUNT
JOB SECURITYReactions to uncertain market conditions Companies are taking longer to make hiring decisions, over-interviewing at initial rounds, not planning out the process as fully as they should, and involving a larger group of internal stakeholders than normal.
There is less ‘fishing’ than there was in 2009 to 2011, which is a positive sign. Chief executive ocers and managing directors are no longer keen to have exploratory co§ees with everyone and anyone who comes their way. We’re increasingly finding that key senior decision makers will only really meet people if they have a role in mind and can see where a person can add immediate value, in which case they’ll be willing to free up room to a create a role for them.
There is a tendency to hire interim professionals for an initial three to six month period in cases where the process has been dragging. Not only does this fill the gap and buy more time for the permanent process to complete, but it can often result in a successful interim to permanent hire.
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Skills in demand At face value, there has only been very incremental growth and only the occasional role (say one in every four assignments) created as a result of growth or mergers and acquisitions activity. On the banking side, there has been growth in regulatory and governance, where we’ve seen a few newly created ‘head of’ titles. There has also been some movement across the small to medium-sized banks and capital market companies, where there has been an increase in attrition.
In fund management, there has been a slight increase in new senior finance roles, but almost all are as a result of the normal cycle of people switching jobs.
Insurance has seen probably the biggest increase in senior level hires. This is more so at chief financial ocer or group level, and across medium to large-sized insurers, particularly the Lloyds market and some of the FTSE 250 players.
EXPERIENCE
77%
23%
<1years
1-2 2-3 3-5 5-10 >10
Length in current roleLength of time in the accountancy, finance or advisory profession
Less than 1 year 38%
1 to 2 years 19%
2 to 3 years 16%
3 to 5 years 15%
5 to 10 years 8%
More than 10 years 4%
0 to 3 years 1%
4 to 6 years 4%
7 to 10 years 8%
11 to 15 years 27%
16 to 20 years 19%
21 to 25 years 18%
More than 25 years 23%
11-15years
Supply and demandThere is still a large supply of senior finance individuals who have quite linear experience in relatively straightforward reporting roles, have jumped around too much or been forced into the market and taken too much time o§.
There has also been an increase in chief financial ocers and finance directors at the £120,000 to £200,000 bracket willing to move and sacrifice equity for a more rewarding longer term opportunity. Reasons are mainly the desire for fresh challenges, lack of growth or an unclear business model that is dicult to buy into.
However, there is a clear shortage of hands-on controllers or heads of finance that have covered everything, in particular regulatory reporting, governance and risk. This shortage is particularly acute at the £80,000 to £120,000 level, where there are very few candidates with the technical skills and experience to immediately step in and operationally run a finance team.
HOURS WORKEDAverage hours worked per week
How has the number of hours changed in the last 12 months?
Increased 33%
Remained the same 55%
Decreased 12%
49%of respondents chose taking on more responsibility as the main reason for the increase in working hours
Career InsightSENIOR FINANCE
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How can you capitalise on candidates moving on?Sell the dream… The opportunity is there for organisations to capitalise on new candidates coming onto the market. Any chief executive ocer, managing director, chief operating ocer, chief finance ocer who is able to clearly articulate their strategy and vision for the next few years buys themselves instant credibility amongst a large proportion of senior finance executives who are tired of incoherent messages.
MOVING ON
Taking the next step in your careerDON’T SETTLE FOR SECOND BEST Be clear about what you want and go out there and get it.
USE A VARIETY OF METHODS TO FIND OUT WHAT’S OUT THERE Your own network (every senior professional you’ve worked a late night for who owes you a co§ee), LinkedIn, contingent and search firms, networking events, alumni associations etc. With the market still relatively static, you need to cast the net wider to find your next opportunity.
DON’T OVER ANALYSE PROCESSES WHEN THINGS GO QUIETWith the market relatively slow, interview timelines, feedback and time to hire are dragging out, so patience is more of a virtue than ever.
Top 5 reasons for leaving last role
New challenge/more interesting work 34%
Career development 33%
Higher salary 22%
Redundancy 21%
End of contract 15%
Respondents could choose up to three reasons
RELOCATION
Australia 32%
Mainland Europe 27%
Within the UK 24%
Singapore 21%
Respondents could choose more than one country from a choice of 14
Improved quality of life 68%
Di§erent culture 56%
New career opportunity 47%
Better employment opportunities 47%
Improved salary 45%
Respondents could choose more than one reason from a choice of nine
Top 5 places respondents would consider relocating to in the next two years
Top 5 reasons for respondents wanting to relocate
39% of respondents would not relocate
36% of respondents anticipate changing roles in the next 12 months
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Spotlight on salaries and bonusesOverall compensation has remained reasonably consistent, except at the £80,000 to £120,000 level. Chief financial ocers, chief operating ocers and chief executive ocers have been pushing hard on basic salaries and even in some cases willing to lose someone for the sake of £5,000.
In terms of bonuses, there have been very few direct equity or long term incentive plans out there for most people in the £80,000 to £150,000 bracket, although there have
REMUNERATIONWhen was your last pay review?
Less than 6 months ago 34%
6 to 12 months ago 33%
More than 12 months ago 15%
Not applicable 18%
74% of respondents received a pay increase in their last pay review
Permanent
Contract
Satisfaction with current remuneration
Permanent
Satisfied 53%
Permanent
Neither satisfied nor dissatisfied 24%
Permanent
Dissatisfied 23%
Permanent
Satisfied 66%
Permanent
Neither satisfied nor dissatisfied 20%
Permanent
Dissatisfied 14%
34% of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles.
Salaries & BenefitsSENIOR FINANCE
been plenty of ‘creative’ schemes around cash bonuses, split or deferred payments, share options etc, to tie in senior finance executives in the short to medium term.
Interim rates have dropped somewhat as organisations have been spoilt for choice in some areas, given the increase in immediately available candidates in the market from redundancies and restructures over the course of 2012.
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Overall compensation has remained reasonably consistent, except at the £80,000 to £120,000 level where chief financial ocers, chief operating ocers and chief executive ocers have been pushing hard on base salaries, willing to lose someone for the sake of £5,000
LONDON
Senior Finance Salary range Daily rate
Job title 2012 2013 2012 2013
Financial Controller | small to medium sized company
£80,000-£100,000 £80,000-£100,000 £350-£450 £350-£450
Financial Controller | larger company/divisional role
£90,000-£120,000 £90,000-£120,000 £450-£500 £450-£500
Finance Director/Chief Financial O°cer | small to medium sized company
£100,000-£120,000 £100,000-£120,000 £500-£600 £500-£600
Head of Finance £100,000-£120,000 £100,000-£120,000 £600-£700 £600-£700
Group Financial Controller £110,000-£140,000 £110,000-£140,000 £500-£600 £500-£600
Finance Director/Chief Financial O°cer | larger company/divisional role
£120,000-£150,000 £120,000-£150,000 £550-£750 £550-£750
Group Finance Director/Group Chief Financial O°cer
£150,000-£250,000+ £150,000-£250,000+ £800-£1500 £800-£1500
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S Attracting top talentCLEARLY COMMUNICATE EXPECTATIONSBe clear about what you expect from the person you bring on board and make sure you sell this to candidates. Having a value proposition is crucial to attracting the best people out there.
ADD VALUE TO THE PERSON’S CVMany senior finance professionals are fed up of a lack of strategy, conflict at board level or short term decision making. Although this can sometimes be dicult to articulate given how the markets are, a couple of key objectives that ‘buy in’ your hire are crucial.
PLAN THE PROCESSWeed out diary conflicts and ensure all people involved in the process are clear on what the sell is. In 2012 we worked on a number of senior finance assignments where messages were distorted and top tier people dropped out of the running.
SEARCH FIRMS AREN’T ALWAYS THE BEST OPTION We’ve been involved in a couple of assignments where a chief executive ocer or human resources director has retained a firm to fill a senior hire, but the firm has been unable to deliver for a variety of reasons, for example limited access to a broad candidate pool, fees, etc. Consider other resources to find you the talent you are looking for.
SENIOR FINANCE Salaries & Benefits
45%Did you receive a bonus in 2012?
Yes 51%
No, not awarded one 18%
No, not entitled to receive one 31%
45% of respondents were dissatisfied with their bonus
BENEFITS
BONUS
Top 5 benefits currently received
25 days holiday or more 82%
Company pension scheme 71%
Private healthcare 64%
Mobile phone/blackberry/PDA 61%
Insurance (PMI/death in service/life insurance) 57%
Respondents could select all benefits that applied
Respondents rated a selection of 20 benefits in order of importance
Benefits considered most and least important when considering a new role
25 days holiday or more
Annual bonus scheme
Good company pension scheme
Private healthcare
Childcare vouchers
Season ticket loan
Sabbatical
Mortgage relief
Daily subsidised meals
Insurance*
48%
48% of respondents were satisfied with their benefits
38% of respondents
received the same amount of bonus
in 2012 and 2011
As a percentage of your basic salary, what was your bonus in 2012?
1 to 9% of salary 27%
10 to 19% of salary 29%
20 to 29% of salary 26%
30 to 39% of salary 10%
40 to 49% of salary 2%
50 to 69% of salary 4%
More than 70% of salary 2%
10 - 19% of salary
*PMI/death in service/life insurance
We would like to extend our appreciation to all those who completed this survey and made this market report possible. If you didn’t 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, finance and advisory professionals and can serve as a useful guide. However, if you require a more tailored and confidential discussion on how this will affect your business, finance department or indeed your own career, please do not hesitate to get in touch.
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.
ACKNOWLEDGEMENTS
DISCLAIMER
Editor and Marketing: Kirsty KellyAssistant Editor: Alex Voskou Alicja Skrakowski
Promotion: Your future in finance and accountancy
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