market insights 2013 - professional services

8/12/2019 Market Insights 2013 - Professional Services

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Market Insight 2013

Professional Services

Accountancy, Finance & Advisory

Marks

Sattin


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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

Sattins UK offices.

Market insight and salary

range data tables are

provided across the followingsectors 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

LONDON

322 High Holborn,London, WC1V 7PB

+44 20 7321 5000

[email protected]

THAMES VALLEY

Davidson House,

Forbury Square,

Reading, Berkshire RG1 3EU

+44 118 900 1800

[email protected]

NORTH WEST

3rd Floor, Centurion House,129 Deansgate, Manchester,

M2 3WR

+44 161 638 8630

[email protected]

YORKSHIRE

Park Row House,

19-20 Park Row,

Leeds, LS1 5JF

+44 113 242 8177

[email protected]

markssattin.co.uk Marks Sattin @MarksSattin


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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 expertisein 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

didnt suffer in the way wed seen in the previous downturns,

with job cuts and redundancies far less frequent. However,

cost management was still the order of the day, with capitalexpenditure, 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 suffered 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 Sattins 25th year of trading, were 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 keyareas such as salaries, bonuses and overall business confidence as both

they and their employers see it coming into 2013.


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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 previousyears, 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 weve 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 theircurrent role

l

i i

l

2013

l

i i

l

70%of respondents felt

secure in theircurrent role

2012

33%of respondentsactually saw an increase in

the size of their teams over

the past 12 months


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KEY TRENDS

MOVEMENT

Overall, we saw a consistent movement of accountingprofessionals throughout 2012, with many now feeling its an

opportune time to re-enter the job market after staying put

during the worst of the global 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-offers increased significantly across the board, as

employers reacted to valued team members being offered

higher salaries and rates elsewhere in the market. In 2013,

this reactive element has subsided somewhat. Salaries are

increasing organically, acknowledging the opportunity cost of

losing the best staff to competition.

The motivations for moving on to greener pastures continue

to be an interesting topic for our business. Throughout the

downturn, weve seen that accountants seldom move for cash,

although money does remain part of the decision to move (and

very rarely do candidates ever move for less!)

The greatest drivers for moving continue to be career

development, which top scored with 33%, with new challenge/

interesting work in second. Higher salary was cited by just 26%,

showing that our respondents on the whole put their careers

before cold cash.

Recruiters continued to be the top source of 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 beingable 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 offer 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 marketscoming 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 wouldnt

relocate, primarily because of having settled where they are.

42%of respondents

would relocate tothe USA

41%of respondents

were only in their

first yearofemployment

88%of respondents statethat working with a recruitment

agency is still a vital part of any

new job search.


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UK

CURRENT EMPLOYMENT

y r

y r

y r

10+ 10+ years PQE 36%

y r

6-10y r

y r

5 to 10 years PQE

18%

2-5y r

y r

y r

2 to 5 years PQE 21%

Newly qualified 9%r

r

r

Part qualified 11%

r

r

r

Qualified by experience

or not qualified 5%

Permanent or fixed

term contract 78%

Interim or contractor

20%

Unemployed 2%

Which of the following bestdescribes your qualificationstatus?

How are you currently employed?

10+years

Only2%of respondents

are unemployed

44%of respondentsare satisfied in their current role

Satisfaction with currentrole

Satisfied 44%

Neither satisfied nor

dissatisfied26%

Dissatisfied 30%

73%

73%of respondents would

recommend their employer


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CapitalMarkets

ChangeManagement

Insurance

InvestmentBanking

InvestmentManagement

RetailBanking

Other

Banking

& Financial

Services

28%

Advertising,PR,MediaandPublishing

BusinessServices

EnergyandNaturalResources

En

gineeringandManufacturing

FMCG

andPharmaceuticals

PropertyandConstruction

RetailandClothing

TelecomsandTechnology

Other

Commerce

& Industry

43%

Which of the following best describes the area/sector you currently work in?

SECTOR REPRESENTATION

DemographicsKEY FINDINGS


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UK

Other

6%

Public

Practice

10%

AuditandAssurance

CorporateFinance

Taxation

Other

Management

Consultancy

11%

Unemployed

2%


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Market Perspective

Recruitment freeze34%Budget cuts35%

Profitability of business 33%

Business process/policy change41%Salary freeze36%

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 12months, how confident doyou feel about the economicprospects facing yourcompany?

More confident 20%

As confident 52%

Less confident 28%

ECONOMIC PROSPECTS

KEY FINDINGS

64%

Salary freeze 20%

Salary reduction 3%

Shorter working week

2%

Redundancy 1%

Other 14%

Respondents could choose morethan one answer

Expectations for personalsalary and job security in

the next 12 months

How would you rate yourcurrent job security?

Secure 78%

Insecure 22%

JOB SECURITY

Only20%of respondents feel

more confident about the

economic prospects facing

their company compared

with the last 12 months


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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 employersrecruitment strategy?

Remainedthe same

34%

How has the number ofstaff in your team changedin the past 12 months?

What is the size of yourdepartment?

Increased 33%

Decreased 28%

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 staff

of respondents

selected

headcount reductions as the

main reason for a decrease

in staff

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


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EXPERIENCE

10

Length in current roleLength of time in the

accountancy, finance oradvisory 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%

7-10

years

More than

20 years

HOURS WORKED

Average hours worked perweek

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

Increased 34%

Remained the same

53%

Decreased 13%

55%ofrespondents

chose taking

on more

responsibility as

the main reason

for an increase in

working hours

41%of respondents have been in theircurrent role for less than a year

Career InsightKEY FINDINGS


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RELOCATION

42%

USA42% Singapore23% South Africa10%

Australia33% Hong Kong22% Malaysia9%

Mainland Europe 28% UAE 19% China 8%

Within the UK28% New Zealand18% India7%

Canada 24% Ireland 12% Other 3%

Respondents could choose more than one country from a choice of 14

USA42% Singapore23% South Africa10%

Australia33% Hong Kong22% Malaysia9%

Mainland Europe 28% UAE 19% China 8%

Within the UK28% New Zealand18% India7%

Canada 24% Ireland 12% Other 3%

Respondents could choose more than one country from a choice of 14

Improved quality of life

61%

Different culture 54%

New career opportunity

52%

Better employment

opportunities 49%

Improved salary

48%

Respondents could choose morethan one reason from a choice of nine

Top 5 reasons forrespondents wanting torelocate

29%of respondentswould not relocate

UK

Improvedquality of lifeis the main reason for

respondents wanting

to relocate

Places respondents would consider relocating to in the next 2 years


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MOVING ON

Top 5 reasons for leavinglast role

How do you rate the importance of the following

sources when seeking a new role?

Career development

33%

New challenge/more

interesting work 29%

Higher salary 26%

End of contract

18%

Redundancy 16%

Respondents could choose up tothree reasons

36%of respondentsanticipate changing roles

in the next 12 months

57%

19%

7%

29%

20%

33%

11%

34%

33%

39%

15%

3%

38%of respondentstook up to 3 months to

find their current role


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43%

9%

2%

10%

36%

22%

18%

39%

38%

50%

3%

30%

KEYImportance

Vital

Very important

Quite important

Not important

Source

National press

Online job boards/

advertising

Social networking

Recruitment

consultancies/

headhunters

Trade press

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 approach

9%

Internal promotion

5%

Print advertising 2%

Other 2%

Not currently employed

9%


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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%ofrespondents perceive a

5 to 10%salary increase

as acceptable if they were

to move roles

Salaries & BenefitsKEY FINDINGS

68%of respondentshave had a pay review in the

last 12 months

Per

manen

t

Co

ntract

Satisfaction with current remuneration

Satisfied 44%

Neither satisfied nordissatisfied26%

Dissatisfied 30%

Satisfied 53%

Neither satisfied nordissatisfied 27%

Dissatisfied 20%

53%of contractrespondents are

satisfied with their

current remuneration

compared with 44%of permanent

respondents

When was your last pay review?


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44%

Did you receive a bonus in2012?

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 20benefits in order of importance

Benefits considered mostand least important whenconsidering 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%


satisfied with their benefits

34%of respondents received the

same bonus in 2012 as 2011

As a percentage of yourbasic salary, what was yourbonus 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 moreis the most

desired

benefit

*PMI/death in service/life insurance

Top 5 benefits currentlyreceived

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 benefitsthat applied

1-9%

of salary


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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


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Senior Manager

Ewa Stefanska

LONDON

PROFESSIONAL SERVICES

Advisory

+44 20 7747 [email protected]

Manager

Leyla Ozbek


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LONDON

PROFESSIONA

LSERVICE

ADVISORY Market Perspective

The big trends of 2012

The past 12 months have been difficult for the advisory market,

particularly in corporate finance and transaction services, asfirms simply havent been in a position to do deals. As a result,

growth has been minimal with many companies focusing on

redeploying staff to other areas of the business to ensure they

are still being utilised.

Most of the redeployed staff have moved to restructuring,

the main area of advisory that has seen an upturn in activity

this year, due to firms having to deal with the fallout of the

economic crisis, particularly on the high street. However, this

increase in activity has not directly translated to movement

in recruitment, as many of the larger firms have been able to

meet demand for increased headcount through these internalmoves.

Forensics has also had a very positive year, particularly in the

second half, with many of the boutiques experiencing growth

and recruiting as a result. This is a trend that we expect to

continue during 2013.

Recruitment freeze43%


Business process/policy change41%Salary freeze39%Greater focus on regulatory issues29%


Top 5 expectations for your business in the next 12 months

Compared with the last 12 months, how confident do you feelabout the economic prospects facing your company?

More confident 28%

As confident 48%

Less confident 24%

ECONOMIC PROSPECTS

Outlook for 2013Recruitment levels within transaction services and corporate

finance are unlikely to return to pre-2011 levels until the

second half of the year and into 2014. However, the more

robust sectors within advisory, such as restructuring

and forensics, should continue to recruit steadily.

In 2012 we saw firms become exceptionally fussy about the

sort of candidates they were recruiting and in most cases

they would only seek to hire someone with extensive advisory

experience. In 2013 we anticipate a shift in this trend, with roles

giving candidates the opportunity to move directly from audit

into advisory, something we have not seen in over 12 months.

Businesses seem to be recovering from the double-

dip recession and decision makers do have more

confidence in the market, so we expect this positive

trend to continue in 2013, helping to significantly boost

deal activity. The results from this should become evident

towards the beginning of the third quarter in the form of

an increase in hiring numbers from the larger firms.

We have already experienced an influx of roles from a number

of the large American advisory boutiques seeking exceptional

corporate restructuring candidates to bolster their growing

teams. Many of these firms are seeking to hire the very best

candidates that have qualified in audit at a leading accountancy

firm, and then spent a minimum of two years working within

a core restructuring or corporate recovery role. The Big 4

remain very quiet on the recruitment side within this sector,

as a large proportion of their transaction services teams are

currently seconded into restructuring, filling any skills shortagesthat may exist and negating the need to hire externally.


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LONDON

PROFESSIONA

LSERVICE

Career InsightADVISORY

Market growthWe continue to see growth in recovery and insolvency, and this

is likely to continue in 2013. Whilst this is a sector that will still

face many challenges throughout the year, these are the areas

of advisory that, by their very nature, are in the best position

to capitalise on the ongoing uncertainties in the market.

Many companies fell victim to the recession last year such

as Comet, JJB Sports, Clinton Cards, Game and Habitat,

and whilst this has meant job losses and consolidation

across the retail sector, this work has kept insolvency and

restructuring specialists busy in a time when many other

teams are struggling to build a steady pipeline of work.

As economic uncertainty continues, restructuring will

remain busy, with the main sectors affected being retail,

restaurants, and commercial real estate. Candidateswho specialise in any of these areas will be particularly

sought after. After several years of the famous amend-

and-extend philosophy from lenders, 2013 is likely to

see more corporate bankruptcies than last year too.

Supply and demandThere is certainly a shortage of strong candidates at the

one to three year qualified level within advisory. This has

been driven by the wider changes in the market which

have made it impossible for newly qualified candidates to

make a move into advisory immediately upon qualification.

Accountants, who have qualified in audit but also managed

to gain some advisory exposure along the way in the form of

a secondment or more diversified workload, will be in high

demand throughout 2013 and these will be the people in

a position to command the most competitive packages.

Those at the more senior levels within the advisory market haveseen the most consistent demand for their skill set throughout

the recession and this is likely to continue throughout 2013.

EXPERIENCE

77%

23%

10

Length in current roleLength of time in theaccountancy, finance oradvisory profession


1 to 2 years 25%

2 to 3 years 25%

3 to 5 years 8%

5 to 10 years 12%


0 to 3 years 14%

4 to 6 years 24%

7 to 10 years 31%

11 to 15 years 16%

16 to 20 years 5%

21 to 25 years 7%

More than 25 years

3%

7 - 10

years

HOURS WORKED

Average hours worked per

week

How has the number of

hours changed in the last12 months?

Increased 33%

Remained the same

56%

Decreased 11%

50%of respondents chose

taking on more

responsibilityas the

main reason for the

increase in working

hours


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MOVING ON

Taking the next step inyour career

BE REALISTIC ABOUT WHAT ROLES ARE OUT THERETake time to understand the recruitment market in your sector.

Career moves in advisory have become increasingly difficult in

the downturn. Whilst professionals still suffer from a shortage

of roles, candidates need to ensure that they are taking short

term steps that will help them to achieve their long term goals.

SPEND TIME ON YOUR CV

Your CV is your route into any organisation. You will only have

one opportunity with each employer for it to make an impact.

BE PROACTIVE IN YOUR JOB SEARCH

Partner with a recruiter that genuinely understands yourmarket and can help you to achieve your long term career

goals. This will pay dividends when it comes to interview

stage as they can give you in depth information about the

organisation you are meeting and offer tips and advice to help

you beat the competition.

SENIOR LEVELS

Whilst junior level candidates are facing stiff competition for

a very small number of roles, directors and partners that can

demonstrate a strong track record of successful business

development are in the unique position of being able to create

roles for themselves. Almost all firms will continue to meet

with, and hire, professionals that can directly impact the

bottom line and help to grow new areas of business.


New challenge/more


Career development

34%

Higher salary 26%

Better work-life

balance 14%

Better bonus potential

12%


RELOCATION

38%

Within the UK 33%

Hong Kong31%

Singapore 29%

Australia 28%

Respondents could choose morethan one country from a choice of 14


67%

Improved salary 56%

Better employment

opportunities 54%


51%



Top 5 places respondentswould consider relocatingto in the next two years



29%of respondents anticipate changingroles in the next 12 months

Why candidates aremaking a move

Unlike in previous years, when money was a significant factor

in a candidates decision to move, we have seen a real shift

where the main drivers for candidates have become things like

security, culture and medium to long term career progression

prospects. One of the Big 4 firms in particular has recognised

this change and re-evaluated their benefits accordingly; we have

already seen the impact of this in how they are perceived as anemployer of choice by candidates.

It is important that organisations are aware of this shift in

candidates priorities when trying to attract the best in the

market, as simply paying the highest salary will no longer

suffice. Throughout the interview process candidates will

want to understand whether the role they are considering

can offer them opportunities to develop their skills and learn

new ones, whilst also providing security. We urge companies

to maximise the opportunity they have at interview to convey

this to prospective employees, as all too often employers see

interviewing as a one-way process.

ONDON


25/55

LONDON

PROFESSIONA

LSERVICE

Salaries & BenefitsADVISORY

When was your lastpay review?

Less than 6 months

ago 33%

6 to 12 months ago

39%

More than 12 months

ago 9%

Not applicable 19%

69%of respondentsreceived a salary increase in

their last pay review

Perm

anent

Con

tra

ct


Satisfied 36%


dissatisfied29%

Dissatisfied 35%

Satisfied 75%


dissatisfied 25%

Dissatisfied 0%

28%of respondentsperceive a 5 to 10%salary

increase as acceptable if

they were to move roles

Spotlight on salaries

and bonusesGrowth in the deals sector in 2012 was slow, so salaries

remained consistent with the previous year and in many

instances bonuses disappeared entirely. Companies were

focused on retaining staff and keeping them busy, rather

than being in a position to consider pay rises; the result being

that pay rises tended to be small, and in line with inflation.

Forensics saw a small uplift in salaries compared to last

year, as this area proved more robust than corporate

finance and transaction services. A steady pace of

REMUNERATION

Growth in the deals sector in

2012 was slow, so salaries

remained consistent with

the previous year and in

many instances bonuses

disappeared entirely

recruitment throughout the year meant that there was

candidate movement, prompting firms to introduce

small pay rises in order to entice their staff to stay.

Corporate recovery and insolvency also saw small pay rises

across all levels, and this is one area where the majority of

candidates still reported receiving their annual bonus.


26/55

ONDON

Transactional Services/Corporate Finance

Big 4 salary range Mid-tier salary range

Job title 2012 2013 2012 2013

Analyst 22,000-34,000 22,000-34,000 20,000-33,000 20,000-33,000

Executive 44,000-50,000 42,000-48,000 40,000-45,000 40,000-45,000

Manager 55,000-70,000 54,000-65,000 55,000-60,000 50,000-60,000

Senior Manager 75,000-95,000 70,000-90,000 60,000-70,000 60,000-70,000

Director 95,000-150,000 95,000-150,000 75,000-110,000 75,000-100,000

Partner 150,000-700,000 150,000-500,000 100,000-200,000 100,000-200,000

Insolvency | Recovery Big 4 salary range Mid-tier salary range

Job title 2012 2013 2012 2013

Junior Administrator 20,000-27,000 20,000-30,000 18,000-24,000 20,000-30,000

Senior Administrator 22,000-43,000 23,000-45,000 33,000-43,000 30,000-44,000

Assistant Manager 42,000-50,000 40,000-52,000 38,000-45,000 44,000-50,000

Manager 50,000-78,000 50,000-70,000 45,000-60,000 50,000-60,000

Senior Manager 70,000-100,000 65,000-100,000 60,000-90,000 60,000-85,000

Director 80,000-190,000 90,000-190,000 75,000-100,000 75,000-100,000

Partner 150,000-550,000 150,000-550,000 100,000-200,000 100,000-200,000

Forensics Big 4 salary range Mid-tier salary range

Job title 2012 2013 2012 2013

Part Qualified 20,000-33,000 20,000-35,000 16,000-28,000 16,000-28,000

Newly Qualified 42,000-50,000 42,000-50,000 38,000-45,000 38,000-45,000

Manager 50,000-75,000 50,000-70,000 48,000-55,000 48,000-55,000

Senior Manager 75,000-100,000 75,000-100,000 60,000-90,000 55,000-90,000

Director 80,000-190,000 80,000-190,000 75,000-100,000 75,000-100,000

Partner 140,000-550,000 140,000-550,000 100,000-200,000 100,000-200,000


27/55

LONDON

PROFESSIONA

LSERVICE

Salaries & BenefitsADVISORY

44%


Yes 59%

No, not awarded one

22%

No, not entitled to

receive one 19%



BENEFITS

BONUS


25 days holiday or

more 76%

Annual bonus scheme

54%

Flexible benefits 46%

Car or car allowance21%

Less than 25 days

holiday 16%



Benefits considered most

and least important whenconsidering a new role

25 days holiday

or more

Annual

bonus scheme

Discretionary

bonus scheme

Mobile phone/

Blackberry/PDA

Sabbatical

Childcare

vouchers

Mortgage relief

Less than 25

days holiday

Season

ticket loan

Private

healthcare

49%



47%of respondents

received a higher

bonus in 2012

than in 2011

As a percentage of your basicsalary, what was your bonusin 2012?


10 to 19% of salary

23%

20 to 29% of salary14%



70 to 100% of salary

16%

More than 100% 7%

1 - 9%

of salary

Attracting top talentOFFER DEVELOPMENT AND TRAINING

Uncertain market conditions have seen candidates desire

to move for financial gains all but disappear, so you must

be able to offer candidates long term career prospects and

opportunities for professional development. This could be in

the form of training or additional qualifications, for example the

CFA or an MBA.

TIMING IS KEY

With such few strong candidates available, it does not take

long for them to get snapped up. Often the largest firmsare victims of their own compliance, which can slow down

processes and result in them losing out on the best talent to

boutiques, who can move more quickly. Larger firms need to

address this issue if they want to stop this trend.


28/55

LONDON


Audit & Assurance


Consultant

Manager

Leyla Ozbek

Robert Webb


29/55

LONDON

PROFESSIONA

LSERVICE

AUDIT & ASSURANCE Market Perspective

The big trends of 2012Redundancies were commonplace and even the safe

accountancy profession was not exempt from cuts, withsome of the Big 4 imposing four-day weeks on senior

staff. Those that should have been promoted were not,

and those that hoped for pay rises experienced pay

freezes. Many auditors who in normal circumstances

would have looked for a new job, creating new positions

for others, stayed put, causing difficulties in external

audit recruitment, especially in the larger firms.

There was some growth in the SME accountancy market

with many businesses hiring consistently throughout 2012

at the audit senior and manager level. This was due to

client demands for compliance audits and fewer graduatesrecruited throughout the recession to save costs. This

resulted in a smaller pipeline of auditors on hand to step

in at busy periods, compared to larger firms who have

kept a high level of trainee auditors since the recession.

Budget cuts34%


Business process/policy change32%

Salary freeze42%

Increase in staff recruitment34%


Top 5 expectations for your business in the next 12 monthsCompared with the last12 months, how confidentdo you feel about theeconomic prospects facingyour company?

More confident 16%

As confident 58%

Less confident 26%

In the second

half of 2012

IT assurance

and risk

management

positions rose

by 20%

ECONOMIC PROSPECTS

Outlook for 2013The second half of 2012 saw a significant rise in IT assurance

and risk management positions (rose by 20% compared to the

same period in 2011), especially in the Big 4 and top 10, with

many firms searching for specialist accountants with specific

core skills. This rise was due to failures of risk managementin the late noughties, particularly in the financial services

sector, which contributed to the recent recession. As a result

IT assurance and risk management will be a key feature in the

accountancy profession in 2013 and we are finding that most

of the key players are stocking up on the best candidates early.

Recruitment will continue to happen on a case by case

basis and the Big 4 are not likely to recruit in large numbers.

There will be a rise in risk management, compliance

and IT assurance roles at all levels, from newly qualified,

40,000 per annum, to senior management, 70,000

per annum, which is likely to be a focus area for us.


30/55

65%

Salary freeze 29%

Salary reduction 1%


1%

Redundancy 1%

Other 3%


Expectations for personal

salary and job security inthe next 12 months

How would you rate your

current job security?

Secure 87%

Insecure 13%

Reactions to uncertain

market conditionsAudit firms are now facing new regulatory proposals with

audit rotation being a key driver to this, which in turn has

created a real uncertainty in 2013. With the recent merger

of BDO and PKF, are we starting to see the first signs of

mid-tier firms reacting to the uncertain market conditions?

As the sixth largest accountancy firm in Britain, this puts

them in a position to take on the FTSE 250 firms. Leading

on from this, the smaller mid-tier firms are also expected to

rethink their strategies, differentiating themselves through

creating niche markets. This in turn will enable them to

compete against the bigger players and all firms need tobe ready to react when these changes are put into place.

Although there is uncertainty in the market, we have

started to see signs of improvement as demand is

increasing for auditors at all levels. In quarter four of

2012 we registered 15% more audit roles compared to

the same quarter in 2011. Employers have also been

more positive towards graduate recruitment in 2013.

This is encouraging for the future candidate pipeline for

both newly qualified and more senior level candidates.

JOB SECURITY

HEADCOUNT


Remained the same

34%

Increased 28%

Not sure 1%


business growth or

expansion as the main

reason for an increase

in staff

of respondents

selected

voluntary departures as the


in staff


ahead) 29%

Medium term (6-12

months ahead) 23%


30%

Non-existent 6%

Not sure 12%


ONDON

55%ofrespondents have

more than 20

employees in their

team


31/55

LONDON

PROFESSIONA

LSERVICE

Career InsightAUDIT & ASSURANCE

Skills in demandAccountants with IT assurance, risk management and

compliance skill sets are in demand, and these roles are

emerging as the most secure jobs in practice. Not only are

vacancies growing well into 2013 but salaries are as well, as

practices strengthen their internal compliance functions.

Auditors with FSA experience are also in demand. Many

firms seemed to reduce their FSA offering throughout the

recession but are now starting to see improvements.

Supply and demandThere has simply been a lack of readily available auditors

actively looking for a new role, as the best candidates

seem to be staying put. In 2012 we saw a lack of home

grown quality auditors across the market, especially at

audit senior level, and registered 20% fewer auditors in

quarter four of 2012 than in quarter four of 2011.

The lack of homegrown talent coming through appears to be a

result of practices taking on fewer graduate ACA/ACCA trainees

throughout the recession. However, graduate recruitmentseems to be a high priority for most accountancy firms in

2013 and we therefore expect to see an upwards spike in

homegrown auditors across the market in 2013 and 2014.

EXPERIENCE

68%

32%

10



1 to 2 years 25%

2 to 3 years 28%

3 to 5 years 20%

5 to 10 years 13%


0 to 3 years 25%

4 to 6 years 33%

7 to 10 years 22%

11 to 20 years 13%

21 to 25 years 4%

More than 25 years

3%

4 - 6

years

HOURS WORKED


week



Increased 35%

Remained the same

56%

Decreased 9%


understaffing or

lack of resources

as the main reason

for the increase in

working hours


32/55

MOVING ON

Taking the next step in

your careerBE REALISTIC AND AWARE OF YOUR EXPERIENCE

The market is very different to what it was a few years ago;

exciting roles once in abundance within corporate finance and

transaction services are now few and far between. If you have

not had exposure to corporate finance, its unlikely you will

walk into a corporate finance role. So be realistic about the

experience you have, and take steps to achieving your long

term goals.

BE PROACTIVEMeet with a recruiter who understands your career goals.

They can talk to you about relevant jobs that have just come

onto the market and make introductions to key partners within

accountancy firms, helping you to beat the competition.

YOUR CV IS YOUR ROUTE INTO A BUSINESS

Spend time making your CV as good as it can be. Include all

relevant experience and key achievements, remembering to

differentiate yourself through the skills you can offer.


Career development

34%

Higher salary 28%

New challenge/more


Relocation 13%

Redundancy 10%


RELOCATION

Australia 40%

Within the UK 34%

Canada 29%

Mainland Europe28%




65%


60%

Improved salary 58%

Better employment

opportunities 56%






Why candidates aremaking a move

Candidates are moving firms not just for an increase in salary,

but for additional benefits and opportunities to further develop

their career and skill set.

A chance to work with larger clients and a more varied portfolio

appear to be key motivations for candidates wanting a new role,

as well as attractive benefits such as non-contributory pensions,

more holidays and private healthcare schemes.

If organisations want to capitalise on this they need to show

candidates there is a clear route for progression within the firm,

outlining the opportunities to develop and the support they will

be given to do this.

Appraisal systems and objective setting can help individuals

achieve their targets and support them to reach the next level

in their career, whilst playing an important part in helping the

business meet their objectives.

ONDON


33/55

LONDON

PROFESSIONA

LSERVICE

Salaries & BenefitsAUDIT & ASSURANCE

When was your lastpay review?

Less than 6 months

ago 54%

6 to12 months ago

28%

More than 12 months

ago 9%

Not applicable 9%



Pe

rmanent

Con

tra

ct


Satisfied 29%


dissatisfied20%

Dissatisfied 51%

Satisfied 20%


dissatisfied 40%

Dissatisfied 40%




Spotlight on salaries

and bonusesAlthough 2012 salaries and bonuses remained fairly

static, 2013 is predicted to see an increase. IT audit and

compliance positions are set to see the biggest increases

in salaries, especially at audit senior level and assistant

manager levels, as these areas are where employers want

to tempt candidates into a niche area once fully qualified.

We are seeing auditors with FSA and insurance

experience in demand and we believe that employers

will have to pay the top end of their salary banding

to secure the top talent in the market.

REMUNERATION

IT audit and compliance

positions will see the

biggest increases in salaries,

especially at audit senior and

assistant manager levels


34/55

ONDON

Audit and Accounts Big 4 salary range Mid-tier salary range

Job title 2012 2013 2012 2013

Trainee 25,000-30,000 25,000-30,000 21,000-28,000 20,000-28,000

Finalist 30,000-35,000 30,000-35,000 25,000-28,000 25,000-30,000

Newly Qualified 42,000-46,000 42,000-45,000 38,000-44,000 38,000-44,000

Manager 52,000-64,000 52,000-64,000 52,000-60,000 50,000-60,000

Senior Manager 75,000-90,000 75,000-90,000 61,000-75,000 60,000-70,000

Director 100,000-150,000 100,000-150,000 75,000-100,000 70,000-100,000

Partner 140,000-350,000 140,000-350,000 80,000-180,000 80,000-180,000

Risk and IT Assurance Big 4 salary range Mid-tier salary range

Job title 2012 2013 2012 2013

Trainee 25,000-30,000 25,000-30,000 20,000-25,000 20,000-25,000

Finalist | 2+ years 30,000-35,000 30,000-35,000 25,000-30,000 25,000-30,000

Newly Qualified 40,000-45,000 40,000-45,000 40,000-45,000 40,000-45,000

Manager 50,000-60,000 50,000-60,000 50,000-60,000 50,000-60,000

Senior Manager 80,000-90,000 80,000-90,000 60,000-70,000 60,000-70,000

Director 100,000-150,000 100,000-150,000 75,000-100,000 75,000-100,000

Partner 150,000-350,000 150,000-350,000 85,000-185,000 85,000-185,000

Although 2012 salaries and

bonuses remained fairly static

around at 40,000 to 50,000,

2013 looks set to be different


35/55

LONDON

PROFESSIONA

LSERVICE

Salaries & BenefitsAUDIT & ASSURANCE

42%Did you receive a bonus in2012?

Yes 35%

No, not awarded one

19%

No, not entitled to

receive one 46%


dissatisfied with their bonus

BENEFITS

BONUS


Company pension

scheme 55%

25 days holiday or

more 54%

Less than 25 days

holiday 42%


Insurance (PMI/death

in service/life insurance)

34%





25 days holiday

or more

Good company

pension scheme

Annual bonus

scheme

Flexible

working

Mortgage relief

Less than 25

days holiday

Childcare

vouchers

Daily

subsidised meals

Season

ticket loan

Private

healthcare

42%


dissatisfied with their benefits

46%of respondents

received a higher

bonus in 2012

than in 2011



10 to 19% of salary

21%

1 - 9%

of salary

Attracting top talentHAVE A SENSE OF URGENCY

The best candidates do not stay on the market for long. If youare interested in them, no doubt your competitors are too.

Being proactive, making quick decisions and reducing time

between interviews will help secure the most talented auditors.

SELL YOUR EMPLOYER BRAND

Interviews are not just an opportunity for candidates

to sell what they can offer their prospective employer;

its also an opportunity for employers to sell what they

can offer a prospective employee. The role you are

selling should be an attractive one with a competitive

employee benefits package to complement it.

USE A SPECIALIST RECRUITMENT AGENCY

Work with someone who understands your business and

who has perhaps helped you in the past. They are likely to

know the best candidates in the market, even the ones who

are not looking, and can directly approach them for you.

MEETING THE TEAM

Its important candidates get visibility of the personalities

they will be potentially working with. Moving jobs is a big

thing, so arranging an informal get together between them

and the team can really help them with their decision.


36/55

LONDON


Management

Consultancy


Senior Consultant

Chris Saull

Associate Director

Oliver Phoenix


37/55

LONDON

PROFESSIONA

LSERVICE

MANAGEMENT CONSULTANCY Market Perspective

The big trends of 2012Regulatory changes continued to sweep across both public

and private sectors with a profound effect on financialservices. This gave rise to the biggest trend of 2012 and will

no doubt continue into 2013. As a result financial services

organisations turned to consulting firms, who were equipped

to analyse, strategise and implement the changes necessary

to keep up with the uncertain regulatory landscape.

Large scale transformation programmes, driven by the top

tier banks in areas such as Basel III and the Dodd-Frank

Act, meant consulting firms with particular subject matter

expertise in these areas saw a real uptake in business. As

a result, larger firms saw a shift from front end strategic

advisory within regulatory towards the large scale project/programme management skills needed to implement these


Business process/policy change28%Salary increase 28%

Salary freeze34%Increase in staff recruitment37%



More confident 28%

As confident 50%

Less confident 22%

The rise and introduction of risk, regulation

and compliance practices within established

consulting firms and smaller boutiques was a

notable trend of 2012

ECONOMIC PROSPECTS

changes. This increased demand allowed boutiques and

specialists to join the action; smaller project teams, moresubject matter experts and lower consulting fees made

using consulting firms a no-brainer at a time where cost

cutting was essential to the survival of many organisations.

Consulting firms with relatively small headcounts,

complemented by an associate pool, became more prevalent

to take advantage of short term regulatory change within

the banks. The rise and introduction of risk, regulation and

compliance practices within established consulting firms

and smaller boutiques was a notable trend of 2012 and

we expect this to stay on the strategic agenda of C-suites

across the business world long into 2013 and beyond.


38/55

Outlook for 2013The importance of risk and regulatory change will continue

to be a major trend that will consume the budgets of

financial services organisations, driven by the introduction

of the Prudential Regulation Authority in April 2013.

Due to the various regulatory changes within this area,

including Dodd-Frank and Basel III, we expect to see

a continued steady growth across financial services

management consultancy services. Insurance is set to be

an exception as firms scale back on revenue predictions

following recent Solvency II delays and confusion.

Consultancies who were reluctant to hire in 2012

are now recruiting more consultants to deliver large

scale change programmes with leading banks,

which provide them with strong core revenue.

Big data continues to be an area of focus within the

banking world, with strong growth forecast within the

firms/service lines specialising in strategic analytics.

As the US leads the way in the recovery, confidence

has started to trickle back into the board rooms of the

most influential businesses in the world, resulting in a

reallocation of funds to external consultancy firms to

ensure maximum efficiency and minimum waste. This has

resulted in an uplift in revenue across most industries, with

the oil and gas and FMCG sectors particularly strong.

The public sector has also started to show signs of life, with

many consultancies expecting to be able to generate more

significant revenue from this area through 2013 and beyond.

Operational change and transformation continue to be of

most value, with even the pure play strategy firms, who

have been hit particularly hard by recent market conditions,

gravitating more towards assignments in this area.

As market confidence has improved and firms have brought

hiring levels back above attrition rates, we expect to see a

less turbulent year ahead with modest growth in the volume

of hires throughout commerce and industry and a more

consistent and positive approach to hiring as a result.

JOB SECURITY

Salary freeze 18%

Salary reduction 3%


2%

Redundancy 1%

Other 13%

Respondents could choose more

than one answer

Expectations for personalsalary and job security inthe next 12 months

How would you rate yourcurrent job security?

Secure 78%

Insecure 22%

ONDON


39/55

LONDON

PROFESSIONA

LSERVICE

Market growthThe outlook for 2013 is positive but the term cautious

optimism has never been truer. Businesses are starting to

come back to consulting firms for assistance, which is clear

to see from the influx of roles being released by the large

consulting firms in areas such as risk, regulation, finance

transformation, performance improvement and organisational

design. We expect this influx to filter down to the rest of the

market throughout the year.

There are two sectors that stand out as showing the most

potential for growth: the seemingly recession-proof oil and gas

sector, due to continued demand for oil and public pressureto reduce energy costs, and the financial services sector, due

to regulatory change. Both areas are growing exponentially

with regards to consulting capabilities, to the point where

some smaller consultancy firms have had the foresight to

scale back operations in other sectors to retrench and focus

all of their resources on financial services and oil and gas.

42%


Remained the same

31%

Decreased 24%

Not sure 3%


business growth or



in staff

of respondents

selected

voluntary departures as the


in staff

HEADCOUNT

MANAGEMENT CONSULTANCY Market Perspective


more than 20

employees in their

team

The first half of the year

looks set to be busy for

everyone involved in the

consulting process making

it the ideal time to start

seeking new opportunities


40/55

In 2012 hiring decisions

became much more

important as the ability tohide a bad hire within large

organisations became more

difficult due to downsizing

and redundancies.

Short term (0-6

months ahead) 39%

Medium term (6-12

months ahead) 23%


25%

Non-existent 4%

Not sure 9%


Reactions to uncertainmarket conditionsAs a direct response to the economy, companies

have adapted their recruitment expectations. Some

consulting firms have changed their criteria in order to

hire versatile candidates that can work on more than one

project type in more than one area of the business.

In 2012 hiring decisions became much more important

as the ability to hide a bad hire within large organisations

became more difficult due to downsizing and

redundancies. Some organisations froze recruitment

altogether, some for the whole year; others just became

picky, wanting all new hires to tick every single box and

make an immediate impact with minimal support.

Companies with European offices in countries like Italy,

Greece and Spain, whose fortunes and pipelines were

particularly sparse, were able to transfer European

consultants across to their UK operations to cut down

on UK recruitment costs. This has been at all levels fromanalysts and consultants to managers and partners.

Others were in a position where voluntary and compulsory

redundancies were the only option due to increasingly full

benches and fruitless business development drives.

ONDON


41/55

LONDON

PROFESSIONA

LSERVICE

Career InsightMANAGEMENT CONSULTANCY

Skills in demand

At present the skill sets that are most in demand acrossconsulting are finance, risk and regulatory change,

business change management, performance improvement,

organisational design, and quantitative analysis/modelling.

Business analytics and operational research are also in

demand, with a number of the large firms investing in the area.

Project and programme management are still in demand as

the banks continue to deliver large scale change projects.

We expect this trend to continue throughout the first

half of the year, with the potential introduction of pure

play strategy as the economy continues to improve

and strategy becomes less of a luxury item.

Supply and demandFinance and risk have been particularly strong in terms of

demand for candidates. However, with continued regulatory

changes, especially within banking, there has been a lot of

competition from the banks as candidates are attracted to the

high day rates of contracting. Other than that, most areas have

remained steady and we have seen an uplift in demand across

the board since the last quarter of 2012. The only exception has

been Solvency II focused roles, where the likely delay has meant

insurers are scaling back their implementation programmes.

We are currently seeing a shortage of candidates across

all areas of consultancy, because of the unpredictability of

the market. Candidates are continuing to be risk adverse,

preferring to stay with an employer where they have built

up an internal network and reputation. Due to this, they

have high, sometimes unrealistic expectations in what

they want from a move in order to counter this risk.

EXPERIENCE

78%

22%

10



1 to 2 years 25%

2 to 3 years 18%

3 to 5 years 7%

5 to 10 years 8%


0 to 3 years 19%

4 to 6 years 22%

7 to 10 years 16%

11 to 15 years 16%

16 to 20 years 8%

21 to 25 years 5%

More than 25 years

8%

Not applicable 6%

4 - 6

years

HOURS WORKED


week



Increased 32%

Remained the same

50%

Decreased 18%


taking on more

responsibility as the

main reason for the

increase in working

hours


42/55

MOVING ON

Taking the next step in

your careerTHINK IT THROUGH

Gaining clarity before making a move is essential. Think about

your motivations, goals and have a clear picture of what your

next role will look like. Candidates who are not completely

confident about a move often perform badly in the interview

process and potentially burn bridges with firms that may well

be of interest to them a few months down the line.

HAVE YOUR END GOAL IN MIND

It is not always possible to move straight into your dream jobso there are often ways of taking steps closer to it. Attempting

to work on projects more closely related to your target role in

your current firm or positioning yourself for an internal switch

can help sway your CV towards that dream job.

COMMITMENT AND PREPARATION

Strong commitment throughout a recruitment process can

impress a prospective employer, and gives those candidates

a clear competitive advantage over others. Preparation for

interviews is another topic clients frequently raise, and acts as

an indicator that companies use to identify who is really keen

on the business and the opportunity on offer.


Career development

44%

New challenge/more


Higher salary 35%

End of contract 12%

Redundancy 12%


RELOCATION

Mainland Europe 42%

Singapore 39%

Hong Kong 37%

Australia35%



66%


63%

Improved salary 55%


Better employment

opportunities 51%






The past 12 months have seen their

fair share of redundancies acrossthe board, especially within financial

services, which has led to a sharp

increase of immediately available

candidates from various areas, often

internal change management teams

within the larger banks.

ONDON


43/55

LONDON

PROFESSIONA

LSERVICE

Salaries & BenefitsMANAGEMENT CONSULTANCY

When was your last payreview?

Less than 6 months

ago 42%

6 to 12 months ago

32%

More than 12 months

ago 9%

Not applicable 17%

Spotlight on salaries,

bonuses and benefitsAlthough base salaries have been static through 2012 and

bonuses low across both consulting and industry alike, we

have seen a slight uplift in total compensation levels, with

a noticeable increase in the number of companies offering

car allowances, share options, sign-on bonuses or softer

benefits, such as working from home. This is especially

true of the larger companies, where the set salary bandings

do not allow for much movement on basic salary.

With market turbulence meaning low or no bonuses, along

with increased regulation in the financial services market beinga worry for the future of bonuses in general, candidates are

increasingly seeing a bonus as a bonus in the literal sense of

the word, and are less inclined to view this as a tangible part

of their package. Meaning whatever the total compensation,

a strong base/bonus ratio will nearly always win out.

The market environment has highlighted certain skill

sets that are highly sought after, which has resulted in a

noticeable rise in salary expectations. Certain areas such

as risk management have seen a large degree of fluctuation

in basic salaries and total packages being offered by

consulting firms, with some candidates attempting to name

their price. In an attempt to compete, a number of firms

are adding a greater degree of flexibility to their offers using

aspects such as equity and sign-on bonuses to attract

candidates without breaking their salary bandings.

Work-life balance is becoming more important. Whilst the

majority of consultants in the market understand the need for

travel and completing projects before a deadline, businesses

that offer any flexibility or perks benefit from greater candidate

attraction and employee retention. Some businesses have

enjoyed such success through offering more flexibility in working

from home and frequent return from international assignments.

Although base salaries have

been static through 2012

and bonuses low across both

consulting and industry alike,

we have seen a slight uplift in

total compensation levels


44/55

ONDON

Large consultancies

Job title Experience 2012 2013

Analyst Graduate level 25,000-35,000 25,000-35,000

Consultant/Senior Consultant 2-6 years 40,000-60,000 40,000-60,000

Manager 5-8 years 60,000-80,000 60,000-80,000

Director/Senior Manager 8-15 years 80,000-130,000 80,000-130,000

Partner 15+ years 150,000+ 150,000+

Specialists

Job title Experience 2012 2013

Analyst Graduate level 25,000-35,000 25,000-35,000

Consultant 3-7 years 45,000-58,000 45,000-62,000

Manager 8-12 years 65,000-90,000 65,000-95,000

Director 12-15 years 100,000-140,000 100,000-150,000

Partner 15+ years 140,000+ 150,000+



Perm

anent

Con

tra

ct


Satisfied 42%


dissatisfied27%

Dissatisfied 31%

Satisfied 65%


dissatisfied 26%

Dissatisfied 9%




REMUNERATION


45/55

LONDON

PROFESSIONA

LSERVICE

Salaries & BenefitsMANAGEMENT CONSULTANCY


Yes 52%

No, not awarded one

15%

No, not entitled to

receive one 33%



BENEFITS

BONUS


25 days holiday or

more 78%

Mobile phone/

Blackberry/PDA 60%


Company pensionscheme 55%

Insurance (PMI/

death in service/life

insurance) 51%





25 days holiday

or more

Annual bonus

scheme

Private

healthcare

Mobile/

Blackberry/PDA

Less than 25

days holiday

Mortgage relief

Daily

subsidised meals

Season ticket

loan

Childcare

vouchers

Good

company pension



45%of respondents

received a higher

bonus in 2012

than in 2011



10 to 19% of salary30%

20 to 29% of salary

12%

30 to 39% of salary

17%

40 to 49% of salary

5%

50 to 69% of salary

2%

More than 70% of

salary 1%

1 - 9%

of salary

Attracting top talentMAKE CANDIDATES FEEL VALUED

Strong candidates can choose from multiple offers, so sellingyour company to the candidate during the recruitment process

is key, even if you are a top tier business. Offer attractive

packages, but also sell the softer benefits, along with company

culture, client exposure and work-life balance.

Companies using telephone interviews or predominantly HR

driven processes often lose out on quality candidates who

havent felt valued during the process. When faced with multiple

offers, candidates tend to make their decision based on the

people they have met or their experience of the company.

Those companies tend to secure the best talent, winning out

even over competitors offering more money. As such, facetime with line managers is important, whether this is a quick

coffee with a partner, casual drinks with the team, or even an

unarranged phone call to explain a delay in feedback. This can

be the crucial difference in whether an offer is accepted.

HAVE AN EFFICIENT RECRUITMENT PROCESS

The speed and efficiency of the recruitment process are critical

to successful hiring. Companies that can complete processes

within a short time scale really have the edge, with flexibility on

interview times being helpful to candidates who are busy on

client assignments.

ENSURE YOUR REPUTATION IS STRONG

Candidates often decide whether to apply for a role from what

they have heard and/or read from others. The poor quality of

projects on offer and limited opportunities for promotion are

some of the key reasons for a candidate not wanting to join.


46/55

Consultant

LONDON


Taxation


Senior Manager

Ewa Stefanska

Richard Jennings


47/55

LONDON

PROFESSIONA

LSERVICE

TAXATION Market Perspective

The big trends of 20122012 was a strong year of growth for regulation within

the tax market. With HMRC tightening its grip on largecorporate organisations, there has been a larger media

focus on tax avoidance. It is expected that tighter

regulations will be put in place as the use of off-shore

accounts is becoming a large concern for HMRC.

These movements have made firms get their houses in order

and candidates with strong technical knowledge in areas

such as compliance and reporting were in demand. This

was a bit of a dent to many candidates hopes, as they tend

to prefer the idea of advisory work. We have therefore had

to educate the candidates and manage their expectations

accordingly. This is a trend we expect to continue into 2013.

Recruitment freeze30%

Budget cuts43%

Profitability of business27%

Business process/policy change40%

Salary freeze57%

Greater focus onregulatory issues27%



More confident 18%

As confident 41%

Less confident 41%

2012 was the year of

growth in compliance

and regulation

ECONOMIC PROSPECTS

Outlook for 2013Most firms are still uncertain about the future and the general

message seems to be wait and see. Firms are waiting

for quarterly results before making any major recruitment

decisions. However, the mood does seem more positive

and it appears that 2013 will be a better year for all.

We predict recruitment for assistant manager level

roles to continue; newly qualified candidates have

stayed in their current positions for the last couple ofyears and will now start to move up the ranks, so new

talent will have to be recruited to fill the gaps.

Global mobility should continue to increase. Large firms are

utilising their international staff much more due to recruitment

budget cuts, and internal recruitment has increased as

clients are forced into recruiting staff from different teams

rather than finding the perfect candidate externally. This

is an effective way to save money in difficult times, but is

it the right way to go? Sometimes, quicker and cheaper

wins can negatively affect businesses in the long run.


48/55

59%

Salary freeze 38%

Redundancy 4%

Salary reduction 0%


0%

Other 2%


Expectations for personal

salary and job security inthe next 12 months

How would you rate your

current job security?

Secure 78%

Insecure 22%

Reactions to uncertainmarket conditionsThe general trend is that companies are doing more with

less; maximising their current staff to work more efficiently.

If an employer is prepared to train a new recruit, they will

look internally and if they decide to recruit externally, their

expectations of the new hire will be extremely high.

Organisations are cautious not to over recruit and typically

have only hired to replace someone who has left. There

has, however, been a 15% increase in long term, fixed-termcontracts as it has been easier to manage headcount in this

way. This has been effective, but businesses have had to

be flexible to do this as high-calibre talent with the desired

experience for these roles are not always prepared to leave

a permanent role for a nine month contract for example.

JOB SECURITY

HEADCOUNT

36%


Remained the same

36%

Decreased 24%

Not sure 4%


business growth or



in staff

of respondents

selected

headcount reductions as the


in staff


ahead) 32%

Medium term (6-12

months ahead) 21%


8%

Non-existent 0%

Not sure 39%


ONDON


between 1 and 5

employees in their

team


49/55

LONDON

PROFESSIONA

LSERVICE

Career InsightTAXATION

Market growthWith FATCA regulation being pushed back, the need

for candidates with this skill set is likely to increase

in 2013 as new regulations are introduced. Some

companies implemented the necessary changes in

2012 whilst others have waited until this year.

There is also likely to be a decrease in tax planning, but an

increase in tax structuring. Businesses that are currently using

tax havens and not paying adequate taxes in the UK are

worried about being identified by the press. There is going to

be a greater need for specialists to come in and get taxes in

order, or fight the HMRC to protect current procedures, so

that firms avoid being named and shamed in the public eye.

Supply and demandWe have identified an increase in mid-tier firms recruiting

candidates with dual handling experience into personal tax

teams. Expat tax services used to be offered predominantly

by the top 10 accountancy firms and specialist boutiques.

However, with the world becoming smaller and employees

being seconded more, companies are keen to ensure

they are compliant and not overpaying on their taxes. With

this increase in demand for dual handling candidates,

it has become a struggle to service all these roles.

With regards to in-house recruitment, we believe that this

will continue to grow. Many in-house tax teams are still verycautious about bringing in too many employees at present.

However, with a more robust market predicted, we wouldnt be

surprised if we began to see more in-house finance teams finally

making their move by bringing in a tax accountant. Candidates

that suit these positions tend to be from mid-tier firms who have

a broader understanding across a variety of tax disciplines.

EXPERIENCE

66%

34

%

10



1 to 2 years 41%

2 to 3 years 9%

3 to 5 years 14%

5 to 10 years 7%


0 to 3 years 4%

4 to 6 years 20%

7 to 10 years 26%

11 to 15 years 29%

16 to 20 years 5%

21 to 25 years 5%

More than 25 years

11%

11-15

years

HOURS WORKED


week



Increased 37%

Remained the same

50%

Decreased 13%


taking on more

responsibilityas themain reason for the

increase in working

hours

There is going to be a greater need

for specialists to come in and get

taxes in order, or fight the HMRC

to protect current procedures, so

that firms avoid being named and

shamed in the public eye


50/55

MOVING ON

Taking the next step inyour career

REGULARLY UPDATE YOUR CV

List your education qualifications, identify key achievements

under each employer and show clear progression throughout.

A CV is your first introduction to a prospective employer so

make sure you get it right.

UPDATE YOUR LINKEDIN PROFILE

Social media, especially LinkedIn, is regularly used by

recruiters and employers to identify good talent. If you are

open to hearing about new opportunities, make sure y

market insights 2013 - professional services

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