2012 Salary GuideAccounting and Finance Hiring Trends

2

Robert Half

3

2012 Salary GuideAccounting and Finance Hiring Trends

roberthalf.co.uk/salary-guide <Back Next >

Contents

From the Managing Director ......................................................... 3Using the 2012 Salary Guide .........................................................4The hiring forecast ........................................................................5Benchmarking the finance team ....................................................6Highly sought-after attributes ..................................................7Positions in demand .......................................................................8Counter-offers: a potentially counterproductive strategy ....9Accounting and finance salaries ................................................ 10Flexible recruitment for cost savings ......................................14Working with Robert Half ..........................................................15

Phil Sheridan

Managing Director United Kingdom From the Managing DirectorDear colleague

Never in history has the accounting and finance function been under such scrutiny than during the past few years. Finance teams have been charged with driving growth and efficiencies, assuming the role of trusted partner in a company’s business strategy. At the same time, more stringent standards and regulations have reaffirmed the importance of the accounting function in a company’s fiscal wellbeing. And so we enter the new era of accountancy, where commerciality meets traditional values, and sound accounting practices never go out of style. We hope this year’s salary guide will provide a sense of nostalgia as we focus on what will likely be another demanding year ahead.

Many organisations that were stretched thin during the downturn are finding they can no longer meet critical business objectives without extra resources. Access to the most current remuneration data allows you to attract top professionals to your organisation – and keep them on board. And offering a competitive salary is often the difference between welcoming employees and watching them accept job offers from elsewhere.

We’ve made many changes to our 2012 Salary Guide, including offering year-over-year percentage changes to national starting salary ranges. By incorporating the regional variance index for 11 UK geographic areas, you will be able to calculate local salaries while also identifying which roles are most in demand. This means you can identify specialisms where demand may outstrip supply and adjust remuneration accordingly.

Monitoring salary trends can be challenging. I hope you find our 2012 Salary Guide useful, and I welcome you to contact one of our recruitment consultants across our network of over 20 UK offices to discuss specific trends affecting your local area.

Regards

Phil Sheridan Managing Director United Kingdom

4

Robert Half

5

2012 Salary GuideAccounting and Finance Hiring Trends

roberthalf.co.uk/salary-guide <Back Next >

Using the salary guideConsider the 2012 Salary Guide as your business and recruitment handbook, offering starting salaries for accounting and finance professionals throughout the UK. This resource can help you determine remuneration levels for new employees, plan budgets and navigate today’s hiring environment.

The salary ranges represent starting remuneration only because factors such as seniority and policies regarding pay reviews vary by company. Bonuses and other remuneration, such as benefits and pension schemes, are also not taken into account. We’ve also surveyed chief financial officers across the UK on their remuneration plans for existing employees; we’ve highlighted this on page 13.

The most authoritative resource

We collect information from various sources, including:• Temporary, interim and permanent placements made through our branch locations• Insight from our senior recruitment managers• Exclusive research we conduct among UK senior executives• Information from the Office for National Statistics and HM Revenue & Customs• Our comprehensive analysis of current and future hiring trends

The hiring forecastDespite an air of caution, there continues to be movement in the job market., with companies hiring accounting and finance professionals to address growth initiatives. Organisations are hiring to fill vacancies due to attrition and to address emerging business opportunities and heavy workloads due to understaffed departments.

Many organisations are taking their time to ensure they make the right hire and, in some cases, require multiple sign-offs before an appointment can be made. This coupled with a tightening job market for top talent is resulting in some companies losing out on their preferences because of long recruitment periods.

“For what reasons will you increase the number of permanent accounting/finance staff?”

Source: Robert Half survey of 180 CFOs. Multiple responses allowed.

Recruiting challenges have become more pronounced, and companies are finding it more difficult to find individuals who meet all their requirements. In some cases, companies are bringing in temporary professionals as an interim solution as they address their long-term needs. This also affords them the opportunity to evaluate prospective new employees.

When asked the biggest benefits for employing temporary or interim finance/accounting staff, “managing fluctuating workloads” and “access to hard-to-find skill sets” were the two most common responses. Companies are also increasingly engaging senior interim professionals to provide expertise on critical initiatives.

Business growth or expansionRising workloads

Regulatory requirementsFinancial systems upgrades

Merger or acquisitionOther

70% 52% 30% 18% 18% 2%

6

Robert Half

7

2012 Salary GuideAccounting and Finance Hiring Trends

roberthalf.co.uk/salary-guide <Back Next >

Retention concerns

While some workers are apprehensive about what lies ahead, others who had stayed with their employer during the last downturn for the stability it afforded may be tempted to look at other opportunities. With demand for skilled accounting and finance professionals outstripping supply in many areas, companies are turning their attention to retaining key employees. In fact, 54% of CFOs are concerned about losing top financial performers to other companies in the next year.

Regional and industry variances

The hiring environment for accounting and finance professionals is stable or increasing in some areas, though, at different rates. Hiring for companies in financial, business and professional services is steady throughout the UK, although regional variances exist, of course. The natural resources and energy sectors show positive gains in London and Scotland, for example, whereas manufacturing and retail are stronger in the Midlands and South West. Public sector hiring, in contrast, has slowed as organisations try to improve efficiencies with existing resources. In some cases, however, temporary or interim professionals are being brought in for critical initiatives when budget constraints prevent taking on a permanent hire.

Benchmarking the finance teamAnother benefit of temporary and interim recruitment is cost effectiveness. The downturn underlined the need for companies to manage their recruitment strategically, addressing workload peaks and troughs without absorbing the fixed costs of permanent hires.

According to our survey of UK CFOs, the average finance team comprises 12.35 permanent employees, supplemented by 2.68 temporary or interim employees – that’s 18% of total headcount. This increases to 25% within publicly listed organisations. Benchmarking your employee mix against that of your peers will allow you to better manage your resources and budgets and, ultimately, the bottom line.

Highly sought-after attributesThe war for talent for newly qualified accountants is strong, with companies vying for individuals with a public practice background, strong technical skills and commercial acumen. Effective communication skills and personality fit are also prime considerations, especially as the finance team is being called on to work with interdepartmental teams and external clients.

Employers seek candidates who are proficient with the most popular systems and software applications. Advanced knowledge of Microsoft Excel and experience using enterprise resource planning (ERP) systems such as SAP, Oracle and Hyperion are essential skills for new hires. Database management and business intelligence software know-how is also valued.

“And in which of the following areas do you find it most challenging to recruit skilled finance professionals?”

FinanceAccounting

AuditOperational support

ComplianceOther

None of these

27%25%16%6%5%1%20%

18% of the UK’s Accounting/Finance workforce is comprised of temporary staff

18%of the UK’s accounting/finance workforce is comprised of temporary/interim staff

8

Robert Half

9

2012 Salary GuideAccounting and Finance Hiring Trends

roberthalf.co.uk/salary-guide <Back Next >

Positions in demandFinancial accountants – Demand is increasing for accountants who are qualified or in the process of obtaining an ACA, ACCA or CIMA qualification. Excellent technical skills, including experience with Excel and large ERP systems as well as exposure to IFRSs are often pre-requisites for some roles.

Financial analysts – As companies prepare for growth, they seek experienced analysts who can help them understand the story behind their financial data and identify further expansion opportunities. The most in-demand candidates have strong financial, technical and communication skills and are comfortable presenting their findings and recommendations to varied audiences.

Management accountants – To enable companies to make informed business decisions, organisations are hiring management accountants to help formulate policies and help plan and control growth initiatives. Individuals who show sound technical skills coupled with business acumen and commerciality will be in demand.

Cost accountants – As manufacturing activity has increased in certain regions, the need for skilled cost accountants has picked up as well. Professionals who can merge cost accounting with financial planning and analysis skills in a manufacturing context are in highest demand.

Credit controllers – As cash flow remains a priority for businesses, credit controllers are required to ensure payment terms are met. Companies are looking for individuals who are detail oriented and customer focused and who display effective problem-solving skills.

Legacies of the recession – newly-qualifieds in demandThe quest for newly qualified accountants has resulted in strong competition from vying companies looking to recruit and groom future leaders. At the onset of the downturn, many public practice firms slowed their graduate intake into their training accounting scheme. This has occurred in each of the last three downturns and later results in a shortage of qualified professionals to help companies manage business growth when conditions improve. With demand high and supply low, newly-qualifieds are seeing strong remuneration increases on entry into industry as companies pursue the best and brightest.

Counter-offers: a potentially counterproductive strategyAs companies grow more concerned about retaining business-critical staff, they may be tempted to extend counter-offers to employees who plan to leave for another job. The most cited issue is lack of loyalty to the organisation, but other aspects of the situation can be problematic as well. Here are four key drawbacks of counter-offers to consider:Trust may never be the same – If the employee was completely satisfied working for the company, the employee’s manager wouldn’t now be having to discuss counter-offers. Even if the requested adjustments are made, the individual may begin to question why it took the threat of departure for the company to recognise his or her value and improve the job. Some things can’t be changed – Although some employee concerns can be addressed, there may be additional considerations that can’t be resolved. For example, old conflicts with other staff members or incompatibility with the corporate culture may cause the person to rethink the decision and leave.

Salary adjustments may be complicated – A counter-offer may not only affect the department’s budget but also the team. Paying someone more than the typical pay scale could disrupt an organisation’s remuneration structure. It could also create resentment among other deserving employees.Future advancement may be limited – If competent, productive employees feel there is no room for further growth in your firm, it would be unfair to try to convince them to stay. Even with a bump up in salary, they will still likely become unhappy with their stalled career and, as a result, be less productive.

Counter-offers may solve a short-term problem, but they rarely lead to long-term satisfaction. While the prospect of losing a valued employee may seem daunting, there is a bright side: managers may uncover new stars on their team or hire someone who brings an even more impressive skill set.

10

Robert Half

11

2012 Salary GuideAccounting and Finance Hiring Trends

roberthalf.co.uk/salary-guide <Back Next >

PoSiTioN TiTle 2011 2012 % ChANge

Chief Financial Officer/Group Finance Director SME £71,250-£99,500+ £73,250-£102,000+ 2.6%

Large Company £82,000-£124,250+ £85,000-£128,000+ 3.3%

Finance Director SME £57,500-£99,000+ £57,500-£102,250+ 2.1%

Large Company £68,500-£124,250+ £69,000-£128,500+ 2.5%

Financial Controller SME £47,750-£74,500 £48,000-£77,000 2.2%

Large Company £52,500-£74,500 £52,750-£79,500 4.1%

Group Accountant SME £34,250-£57,750 £35,250-£59,000 2.4%

Large Company £48,000-£62,250 £49,500-£63,500 2.5%

Qualified Management/Financial Accountant SME £34,250-£49,750 £34,500-£52,250 3.3%

Large Company £38,250-£54,000 £39,000-£56,500 3.5%

Finance Manager SME £38,000-£53,750 £37,750-£55,250 1.4%

Large Company £38,500-£57,000 £39,500-£58,500 2.6%

Business/Financial Analyst SME £34,000-£57,500 £34,500-£59,750 3.0%

Large Company £37,000-£58,000 £37,000-£61,500 3.7%

Financial Planning & Analysis Manager SME £37,500-£66,000 £38,500-£68,500 3.4%

Large Company £38,500-£66,500 £40,000-£70,000 4.8%

Internal Audit Manager SME £41,000-£58,000 £42,000-£59,500 2.5%

Large Company £47,750-£66,250 £50,000-£66,750 2.4%

Internal Auditor SME £33,250-£53,000 £34,750-£53,500 2.3%

Large Company £35,000-£55,000 £36,500-£56,000 2.8%

Compliance Manager SME £43,250-£57,000 £43,250-£58,250 1.2%

Large Company £46,000-£58,250 £46,250-£60,500 2.4%

Risk Manager SME £42,500-£58,000 £43,500-£60,250 3.2%

Large Company £46,250-£62,000 £47,500-£64,750 3.7%

Treasury Analyst SME £32,000-£49,750 £33,000-£51,500 3.4%

Large Company £34,500-£62,000 £33,250-£64,250 1.0%

Senior Treasury Analyst SME £48,250-£77,250 £50,000-£79,250 3.0%

Large Company £57,500-£88,750 £60,250-£90,500 3.1%

Tax Specialist SME £38,250-£59,250 £38,750-£61,250 2.6%

Large Company £39,250-£62,250 £39,500-£65,000 3.0%

Tax Manager SME £59,500-£77,250 £60,000-£80,500 2.7%

Large Company £62,000-£88,750 £64,250-£90,750 2.8%

PoSiTioN TiTle 2011 2012 % ChANge

Credit Manager SME £24,500-£37,250 £24,500-£37,750 0.8%

Large Company £30,000-£45,500 £30,000-£45,750 0.3%

Credit Supervisor SME £23,250-£33,000 £23,000-£33,750 0.9%

Large Company £30,000-£33,250 £30,250-£34,500 2.4%

Credit Controller SME £17,750-£24,750 £18,000-£25,250 1.8%

Large Company £19,000-£29,500 £19,000-£30,250 1.5%

Assistant Accountant SME £18,500-£23,250 £18,750-£24,000 2.4%

Large Company £19,250-£24,750 £19,750-£25,750 3.4%

Assistant Management/Financial Accountant SME £19,750-£28,750 £20,250-£29,500 2.6%

Large Company £21,750-£30,750 £22,500-£31,750 3.3%

Ledger Supervisor SME £23,250-£31,750 £24,000-£32,000 1.8%

Large Company £24,750-£33,250 £25,500-£33,500 1.7%

Purchase/Sales Ledger Clerk SME £17,750-£24,750 £18,250-£25,750 3.5%

Large Company £19,250-£25,000 £19,000-£26,750 3.4%

Payroll Manager/Supervisor SME £23,000-£33,000 £23,500-£33,250 1.3%

Large Company £24,750-£36,500 £25,250-£37,000 1.6%

Payroll Administrator/Clerk SME £19,000-£21,000 £19,250-£21,500 1.9%

Large Company £20,500-£22,000 £20,750-£22,500 1.8%

PoSiTioN TiTle 2011 2012 % ChANge

Partner Small-mid size £96,000+ £100,000+ 4.2%

Large £102,500-£414,250+ £108,000-£430,000+ 4.1%

Director Small-mid size £57,500-£66,250 £59,250-£69,250 3.8%

Large £75,250-£165,750 £78,000-£173,500 4.4%

Senior Manager Small-mid size £41,000-£49,500 £42,500-£52,250 4.7%

Large £54,750-£91,000 £57,000-£94,500 3.9%

Manager Small-mid size £30,000-£41,500 £32,000-£42,500 4.2%

Large £41,000-£58,000 £42,000-£61,750 4.8%

Senior Small-mid size £27,500-£37,250 £28,750-£38,750 4.2%

Large £34,250-£45,500 £34,750-£48,250 4.1%

Supervisor Small-mid size £24,500-£33,000 £25,500-£34,250 3.9%

Large £27,500-£33,250 £28,500-£34,500 3.7%

Trainee Small-mid size £16,500-£20,750 £17,250-£21,250 3.4%

Large £17,250-£24,750 £17,750-£25,750 3.6%

National accounting and finance salaries

12

Robert Half

13

2012 Salary GuideAccounting and Finance Hiring Trends

roberthalf.co.uk/salary-guide <Back Next >

Customising salaries for local marketsThe national salary ranges can be customised for each of the 11 UK regions with the local variances listed below. The index figures are a guide for determining average starting salaries. Factors including company size, employee benefits, candidate skill sets and current market trends may affect actual remuneration.

The information is supported by data from HM Revenue & Customs, the Office for National Statistics, expertise of our local recruitment consultants, research of UK CFOs and placements across our UK branch network. The average salary index for all UK markets is 100.

Follow the steps below to calculate the approximate salary range for a specific position in your area. Example – compliance manager at a small- and medium-sized enterprise (SME) in the East Midlands.

1. Find the position and national salary range for a compliance manager at an SME on page 10. The salary range is £43,250 to £58,250.

2. Find the index number below. The index number for the East Midlands is 80.3%.

3. Multiply the low end of the national salary range by the index number as a percentage. £43,250 x 80.3% = £34,730.

4. Repeat using the high end of the salary range. £58,250 x 80.3% = £46,775.

5. The approximate starting salary range for a compliance manager at an SME in the East Midlands is £34,730 to £46,775.

UK Region Variance indexUnited Kingdom 100.0%Scotland 87.7%North East England 73.6%North West England 78.8%Yorkshire 77.9%East Midlands 80.3%West Midlands 79.0%East of England 93.9%London 120.7%South East England 101.3%South West England 80.6%Wales 73.1%

Regional variances

Remuneration for existing employees

“Thinking about remuneration within your finance and accounting department, in the next six months do you think salaries for existing staff (excluding bonuses) will”

“And how much, on average, do you anticipate increasing existing staff salaries by in the next six months?”

Source: Survey of 180 UK CFOs.

7% 21% 43% 24% 5%

1-2%3-4%5-6%

7-10%More than 10%

IncreaseStay the same

Decrease

23%65%12%

PoSiTioN TiTlE 2011 2012 % chANgE

Part Qualified – Stage 1 SME £16,250-£23,000 £16,500-£24,000 3.2%

Large Company £17,500-£23,750 £17,500-£24,750 2.4%

Part Qualified – Stage 2 SME £17,000-£27,250 £17,500-£28,250 3.4%

Large Company £17,750-£32,250 £18,500-£33,000 3.0%

Part Qualified – Stage 3 SME £19,750-£32,250 £20,500-£33,000 2.9%

Large Company £20,250-£35,750 £20,500-£37,000 2.7%

Part Qualified – Stage 4 SME £23,000-£38,000 £23,500-£39,500 3.3%

Large Company £24,000-£42,000 £24,500-£44,000 3.8%

Newly Qualified SME £28,000-£43,000 £30,000-£46,000 7.0%

Large Company £30,000-£45,000 £33,000-£48,000 8.0%

Salaries for Part Qualified (PQ) and Newly Qualified (NQ) professionals may be captured in the functional roles listed. These should be used as a guide and do not need a regional variance applied. Please speak with a recruitment consultant in your region to discuss trends affecting the local market.

PQ/NQ

14

Robert Half

15

2012 Salary GuideAccounting and Finance Hiring Trends

roberthalf.co.uk/salary-guide <Back Next >

Flexible recruitment for cost savings

As companies try to control costs, one of the first places they often look to cut is their

workforce. In the most recent recession, redundancies left many organisations under-

resourced once conditions improved and workloads began to increase.

Flexible recruitment models that supplement a core permanent workforce with skilled

temporary and interim workers have proved the ideal solution for businesses hoping to

avoid the cycle of adding and subtracting headcount that often results from a changing

economy. Using this approach, companies can convert a portion of their fixed recruitment

costs into a variable expense tied to workload levels.

Businesses increasingly recognise that bringing in talented interim professionals can

be a key part of their comprehensive recruitment strategy in any economy. Permanent

employees form the core of the workforce and, typically, embody the personal and

cultural fit of the organisation, while interim staff augment their efforts technically as

needed. Project professionals also can provide access to skills unavailable in-house or

not needed year-round.

The bottom line: flexible recruitment gives a company resource and cost-control options

it wouldn’t otherwise have.

Working with Robert HalfRobert Half is the world’s leading specialised recruitment consultancy, and our Robert Half Finance & Accounting and Robert Half Management Resources divisions place accounting and finance professionals on a temporary and permanent basis and on a senior-level interim basis, respectively.

There is no substitute for the human touch when hiring. While any number of online or technology tools can identify potential hires, they can’t tell you about the person behind the profile. We take the time to understand the unique needs and cultures of the businesses we serve. Then, we carefully choose professionals with skills, work styles and career goals that align with those businesses.

How else is Robert Half different from other recruitment consultancies and hiring resources?

We find the most effective match. We have one of the largest networks of skilled talent in the recruitment industry, as well as access to job candidates that other sources don’t. Among other distinctions, our status as the exclusive partner of The Wall Street Journal allows us frequent exposure to highly skilled professionals who are dedicated to their careers.

We lead you through the process. We guide you through every step of the hiring process. We can help you determine your recruitment needs, set remuneration levels and handle hurdles along the way, such as addressing a potential candidate’s counter-offer. Communication is our specialism.

We provide immediate assistance. The hiring process can be long and drawn out, and you may need help right away. We use the recruitment industry’s most advanced technology to quickly identify candidates who meet your exact needs.

We meet any need. Robert Half can provide you with a choice of skilled candidates with specific expertise and experience to match your unique needs. No matter your budget or requirements, we can find a skilled professional who can assist your business.

For more information about Robert Half’s financial recruitment divisions and how we can help meet your specific needs, please call 08705 329635 or visit roberthalf.co.uk. To stay informed of the latest trends affecting the UK employment market, follow us at roberthalfuk.

© 2011 Robert Half.An Equal Opportunity Employer. RH-UK-0198-SG-1011

08705 329635roberthalf.co.uk

Our specialised services

Robert half Finance & AccountingRobert Half Finance & Accounting is the world’s first and largest recruitment consultancy specialising in the placement of accounting and finance professionals on a temporary and permanent basis.

Robert half Management ResourcesRobert Half Management Resources is the largest premier provider of senior level accounting and finance professionals on a project and interim basis.

Robert half Financial Services groupRobert Half Financial Services Group specialises in placing high calibre banking and capital markets professionals on a temporary and permanent basis.

Robert half TechnologyRobert Half Technology is a leading provider of IT professionals on a contract and permanent basis.

Robert half human ResourcesRobert Half Human Resources specialises in the placement of highly-skilled HR professionals on a project, interim and permanent basis.

officeTeamOfficeTeam specialises in the placement of highly skilled administrative and office support professionals on a temporary and permanent basis.