marks sattin market insight 2013 (professional services)

Market Insight 2013Professional Services

Accountancy, Finance & Advisory

Marks Sattin is a leading multi-divisional specialist accountancy, finance and advisory recruitment consultancy. Since our formation in 1988, Marks Sattin has established an excellent reputation for providing the full range of permanent, temporary, contract and interim professionals within the public and not-for-profit sector, commerce and industry, banking and finance and public practice.

Marks Sattin is a well-established specialist recruitment firm with over 100 recruitment consultants based in the UK and Ireland, and a further 60 consultants across our global offices.

To give an outline on the scope and size of our operations:• In 2012 we helped our clients fill more than 650 temporary placements and 850 permanent

positions • We currently work with 75 of the FTSE 100 companies• At any one time we represent over 65,000 finance, accounting and advisory professionals

throughout the UK and Ireland• We currently average over 24,000 visits to the Marks Sattin website every month• Marks Sattin are proud to work with a number of The Sunday Times Fast Track 100 and

Best Companies to Work For.

In Q4 of 2012 Marks Sattin conducted a survey with clients and candidates, focused on the demographics, length of tenure, working week, job security, career motivations, department changes, reward and bonus trends of finance professionals.

Over 2,000 accountancy, finance and advisory professionals from 20 industry sectors across the UK were surveyed.

The report is based on findings received from respondents completing the survey as well as sector specific market insight and salary ranges (annual and day rates) from our experienced consultants based at Marks Sattin’s UK offices.

Market insight and salary range data tables are provided across the following sectors and regions:

Banking and Capital Markets, Change Management, Front Office, Insurance, Investment Management, Senior Finance, Commerce and Industry, Executive, Part Qualified and Transactional, Qualified, Advisory, Audit, Management Consultancy, Taxation, North West, Thames Valley and Yorkshire.

It is important to note that this report is a useful guide, but if you need any tailored or specific advice please do contact us directly.

METHODOLOGY

CONTACT US

LONDON322 High Holborn, London, WC1V 7PB +44 20 7321 [email protected]

THAMES VALLEYDavidson House, Forbury Square, Reading, Berkshire RG1 3EU+44 118 900 [email protected]

NORTH WEST3rd Floor, Centurion House,129 Deansgate, Manchester, M2 3WR+44 161 638 [email protected]

YORKSHIREPark Row House, 19-20 Park Row, Leeds, LS1 5JF+44 113 242 [email protected]

markssattin.co.uk Marks Sattin @MarksSattin

INTRODUCTION

INTRODUCTION

Dave Way

Dave Way, Managing Director of Marks Sattin, believes in leading by example and is committed to making Marks Sattin the best financial recruitment company in the market. Having joined Marks Sattin as a graduate in 1999, Dave has worked at every level and division within the business, which gives him a deep understanding of the workings of financial recruitment. As such, he has considerable expertise in providing a bespoke service for clients and candidates alike.

[email protected] +44 20 7747 9670

DAVE WAYManaging Director

2012 proved to be a year of continued upheaval for the business community, with the eurozone crisis dragging on and the double dip recession increasing uncertainty across the markets. Despite this, the accounting and advisory community didn’t su§er in the way we’d seen in the previous downturns, with job cuts and redundancies far less frequent. However, cost management was still the order of the day, with capital expenditure, new investment and increased headcount being something of a rarity.

Some businesses, industries and geographies will always buck the trend, and there was a resurgence seen throughout the qualified commerce and industry sector in later 2012. Areas such as natural resources, digital media, advertising, online retail and property were all more bullish thanks to improved trading. Conversely, high street retailers and areas such as manufacturing su§ered significantly.

Recruitment within consultancy and public practice quietened after a busy 2011, as our clients took a cautious approach to recessionary markets. Financial services and in particular, the banking community, once more came under fire. But despite this, recruitment conditions for accountants in financial services improved as the year went on, with departments increasingly finding themselves under-resourced amid heavy regulation and change. We hope you find the results of our survey as interesting as we have. Please feel free to contact me or any of the Marks Sattin team directly to find out further details. From all the team we wish you a successful year!

In Marks Sattin’s 25th year of trading, we’re delighted to have received a record number of responses to our Market Insight 2013 survey. Over 2,000 accountancy and advisory professionals provided their feedback on key areas such as salaries, bonuses and overall business confidence – as both they and their employers see it – coming into 2013.

KEY TRENDS

Employers began to be slightly more forthcoming with pay rises for accountancy and advisory sta§ last year, with 68% of employees receiving a positive review and only 1% asked to take a pay cut.

Only 30% of permanent sta§ and 20% of contract sta§ were unhappy with their current salaries, once again showing that remuneration isn’t a key driver for leaving. This is further highlighted by the fact that a 5 to 10% uplift in basic salary would be acceptable should a move come about. 56% of respondents were happy with their benefits packages, with the most important benefits being 25 days holiday, pensions and private healthcare – all of which were deemed more important than annual bonuses. The sensitive subject of bonuses was covered in depth in our survey. 47% of respondents received a bonus, 38% were not entitled to one and 15% not awarded one. These figures aren’t necessarily surprising, as bonuses are becoming increasingly tied to company performance and a high proportion of companies have failed to deliver on targets over the course of the year.

SALARIES & BENEFITS

Of those receiving bonuses, only 44% were satisfied with what they received. 1 to 9% of salary was the most consistent amount paid out across the board (received by 41%) while 32% received 10 to 19% and a lucky 27% received over 20% of their basic salaries.

The fact that 1 to 9% of basic salary was the most common bonus payout is perhaps a sign of the increasing scrutiny of bonuses by the wider business community, although the biggest bonuses were still paid within the financial services sector. Our survey showed that across the board, accountants were far better looked after than other professionals. The average salary for accountancy and advisory professionals rose in 2013, a strong indicator of the value of finance professionals during uncertain and changing times.

Only 30% of permanent sta§ and 20%

of contract sta§ were unhappy with their current salaries

56%of respondents were happy with their

benefits

68%of respondents

received a pay increase

last year

44%of respondents were satisfied with their

bonus


benefits

68%of respondents


last year


bonus


benefits

68%of respondents


last year


bonus

Our survey showed that across the board, accountants were far

better looked after than other professionals

JOB SECURITY

INTRODUCTION Dave Way

Similarly to our other surveys over the past five years, the crystal ball for 2013 does not show a picture of renewed optimism, with only 20% of respondents feeling more confident about the economic prospects facing their companies compared to the last 12 months. 36% of our respondents anticipated changing roles over the next year, compared to 52% the previous year. Despite this, only 44% stated that they are currently happy within their role, perhaps showing a greater tolerance due to the current climate. Aligned with this is the clear fact that accountants find themselves far more secure in their positions than in previous years, with an overwhelming 78% feeling secure compared to 70% last year. This is clearly an encouraging statistic compared to previous surveys, where respondents expected headcount cuts as a result of the economic downturn and uncertainty. Business process/policy changes (41%) salary freezes (36%) and budget cuts (35%) are predicted for this year, showing that belt tightening and cost control are still the order of the day. Businesses are striving to ensure they maximise profits, but not to the extent of losing finance staff.

Few businesses are perceived to be taking a long term view on headcount, which is hardly surprising considering the yo-yo economy and false dawns seen over the past few years. Only 18% of respondents believed their management were planning one to two years ahead, whilst the majority (31%) thought that hiring was short term and only looking six months ahead. This lack of succession planning, which ties in with the reactive hiring we’ve experienced throughout 2012, will surely be to the detriment of some departments if not rectified in 2013. 33% of respondents actually saw an increase in the size of their teams over the past 12 months. Many businesses have clearly been as lean as possible in terms of headcount over the past few years, and whether this will come back to bite them is yet to be seen. 34% of our participants said their working hours increased over the past 12 months, with over half putting this down to an increase in responsibilities. This might suggest that a greater degree of variety and progression is coming into working life, as bosses are reluctant to add new heads or contractors to cover gaps in their departments.

78%of respondents feel secure in their

current role

70%of respondents felt secure in their

current role

2013

2012

78%of respondents feel secure in their

current role

70%of respondents felt secure in their

current role

2013

2012

33% of respondents actually saw an increase in the size of their teams over the past 12 months

KEY TRENDS

MOVEMENT

Overall, we saw a consistent movement of accounting professionals throughout 2012, with many now feeling it’s an opportune time to re-enter the job market after staying put during the worst of the global financial crisis. This is shown by the fact that 41% of our respondents were only in their first year of employment in early 2013. In line with this, the majority of hires in 2012 were replacement hires. As a result, the volume of counter-o§ers increased significantly across the board, as employers reacted to valued team members being o§ered higher salaries and rates elsewhere in the market. In 2013, this reactive element has subsided somewhat. Salaries are increasing organically, acknowledging the opportunity cost of losing the best sta§ to competition.

The motivations for moving on to greener pastures continue to be an interesting topic for our business. Throughout the downturn, we’ve seen that accountants seldom move for cash, although money does remain part of the decision to move (and very rarely do candidates ever move for less!)

The greatest drivers for moving continue to be career development, which top scored with 33%, with new challenge/interesting work in second. Higher salary was cited by just 26%, showing that our respondents on the whole put their careers before cold cash.

Recruiters continued to be the top source of finding roles (46%) with 13% coming from personal contacts. This shows the ever increasing importance of expanding your business network and keeping in good favour with previous employers. Where networking is concerned, 66% of respondents are now on LinkedIn and 59% on Facebook. Whilst neither will cover all of the bases in any given job search, this shows how much social media plays a prominent part in our respondents’ lives. 88% of respondents state that working with a recruitment agency is still a vital part of any new job search. Also of note is that 38% of candidates took only three months to find their last role, primarily as a result of the volume of roles available and being able to dedicate enough time to the job search.

RELOCATION

Never more so has relocation been a hot topic within the finance community. As a result, our non-London businesses have continued to o§er great opportunities to their local markets, benefiting from a sizable relocation of resources and highly talented candidates from the South East to the West, North East, North West and Ireland. International opportunities are also becoming more appealing, with candidates’ top motivation being a better quality of life and the second being a desire to experience a new culture. Interestingly, and despite the lucrative options being advertised overseas, only 48% said that money would be the main reason for moving, which was the fourth most important reason.

The USA was the most popular destination for a new working life (chosen by 42%) maybe as a result of its resurgent markets coming into 2013. The golden beaches of Australia appealed to 33% of our respondents, followed by the well-documented and high profile allure of Asia, with Singapore at 33% and Hong Kong at 32%.

But with talk of bonuses being capped, corporate and personal taxes being too high and our climate being as unpredictable as our economy, is now the time to spread our wings? Not according to the 29% of our respondents who wouldn’t relocate, primarily because of having settled where they are.

42%of respondents

would relocate to the USA

41%of respondents

were only in their first year of employment

88% of respondents state that working with a recruitment agency is still a vital part of any new job search.

DemographicsKEY FINDINGS

67%

33%

67% of respondents were male and 33% female

Less than 25 years 7%

26 to 30 years 23%

31 to 35 years 21%

36 to 40 years 15%

41 to 50 years 22%

More than 50 years 12%

Age

<25years

26-30 31-35 36-40 41-49 >50

RESPONDENT PROFILE

2,016

respondents took part in this year’s survey

Greater London

64%

59%South East12%

11%

North West

7%

4%

Yorkshire & Humberside

5%12% Other9%

11%

Midlands3%

3%

KEYPermanent

Contract

Work location

Gender

LinkedIn 66%

Facebook 59%

Twitter 17%

Other 7%

None 15%

Respondents could choose more than one answer

Social networks actively used by respondents

UK

CURRENT EMPLOYMENT

2-5years

6-10years

10+years

10+ 10+ years’ PQE 36%

2-5years

6-10years

10+years

10+

5 to 10 years’ PQE 18%

2-5years

6-10years

10+years

10+

2 to 5 years’ PQE 21%2-5

years

6-10years

10+years

10+

Newly qualified 9% 2-5years

6-10years

10+years

10+

Part qualified 11%

2-5years

6-10years

10+years

10+

Qualified by experience or not qualified 5%

Permanent or fixed term contract 78%

Interim or contractor 20%

Unemployed 2%

Which of the following best describes your qualification status?

How are you currently employed?

2-5years

6-10years

10+years

10+

Only 2%of respondents are unemployed

44% of respondents are satisfied in their current role

Satisfaction with current role

Permanent

Satisfied 44%

Permanent

Neither satisfied nor dissatisfied 26%

Permanent

Dissatisfied 30%

73%

73% of respondents would recommend their employer

Other

6%Public

Practice

10%

Aud

it an

d A

ssur

ance

Cor

pora

te F

inan

ce

Taxa

tion

Oth

er

Management Consultancy

11%

Unemployed

2%

Cap

ital M

arke

ts

Cha

nge

Man

agem

ent

Insu

ranc

e

Inve

stm

ent B

anki

ng

Inve

stm

ent M

anag

emen

t

Ret

ail B

anki

ng

Oth

er

Banking & Financial

Services

28%

Adv

ertis

ing,

PR

, Med

ia a

nd P

ublis

hing

Bus

ines

s S

ervi

ces

Ene

rgy

and

Nat

ural

Res

ourc

es

Eng

inee

ring

and

Man

ufac

turin

g

FMC

G a

nd P

harm

aceu

tical

s

Pro

pert

y an

d C

onst

ruct

ion

Ret

ail a

nd C

loth

ing

Tele

com

s an

d Te

chno

logy

Oth

er

Commerce & Industry

43%

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

SECTOR REPRESENTATION

DemographicsKEY FINDINGS

UK

Other

6%Public

Practice

10%

Aud

it an

d A

ssur

ance

Cor

pora

te F

inan

ce

Taxa

tion

Oth

er


11%

Unemployed

2%

Cap

ital M

arke

ts

Cha

nge

Man

agem

ent

Insu

ranc

e

Inve

stm

ent B

anki

ng

Inve

stm

ent M

anag

emen

t

Ret

ail B

anki

ng

Oth

er

Banking & Financial

Services

28%

Adv

ertis

ing,

PR

, Med

ia a

nd P

ublis

hing

Bus

ines

s S

ervi

ces

Ene

rgy

and

Nat

ural

Res

ourc

es

Eng

inee

ring

and

Man

ufac

turin

g

FMC

G a

nd P

harm

aceu

tical

s

Pro

pert

y an

d C

onst

ruct

ion

Ret

ail a

nd C

loth

ing

Tele

com

s an

d Te

chno

logy

Oth

er

Commerce & Industry

43%

Market Perspective

Recruitment freeze 34%

Budget cuts 35%

Profitability of business 33%

Business process/policy change 41%

Salary freeze 36%

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

Top 5 expectations for your business in the next 12 monthsCompared with the last 12 months, how confident do you feel about the economic prospects facing your company?

More confident 20%

As confident 52%

Less confident 28%

ECONOMIC PROSPECTS

KEY FINDINGS

64%64%

Salary freeze 20%64%

Salary reduction 3%

64%

Shorter working week 2%

64%

Redundancy 1% 64%

Other 14%


Expectations for personal salary and job security in the next 12 months

How would you rate your current job security?

Secure 78%

Insecure 22%

JOB SECURITY

Only 20%of respondents feel

more confident about the economic prospects facing

their company compared with the last 12 months

Short term (0-6 months ahead) 31%

Medium term (6-12 months ahead) 18%

Long term (1-2 years) 18%

Non-existent 10%

Not sure 23%

What is your employer’s recruitment strategy?

Remained the same

34%

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

What is the size of your department?

Remained the same

34%

Increased 33%

Remained the same

34%

Decreased 28% Remained the same

34%

Not sure 5%

1 to 5 employees 23%




More than 20 employees 36%

61%of respondents selected business growth or expansion as the main reason for an increase in sta§

of respondents selected

headcount reductions as the main reason for a decrease in sta§

HEADCOUNT

UK

33%of respondents have seen an increase in the size of their team in the last 12 months

36% of respondents have more than 20 employees in their department

EXPERIENCE

<1years

1-2 2-3 3-5 5-10 >10

Length in current roleLength of time in the accountancy, finance or advisory profession

Less than 1 year 41%

1 to 2 years 24%

2 to 3 years 15%

3 to 5 years 12%

5 to 10 years 6%


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%


Not applicable 3%

7-10years

More than 20 years

HOURS WORKEDAverage hours worked per week

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

Increased 34%

Remained the same 53%

Decreased 13%

55%of respondents chose taking on more responsibility as the main reason for an increase in working hours

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

Career InsightKEY FINDINGS

RELOCATION

42%

USA 42% Singapore 23% South Africa 10%

Australia 33% Hong Kong 22% Malaysia 9%

Mainland Europe 28% UAE 19% China 8%

Within the UK 28% New Zealand 18% India 7%

Canada 24% Ireland 12% Other 3%

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

USA 42% Singapore 23% South Africa 10%

Australia 33% Hong Kong 22% Malaysia 9%

Mainland Europe 28% UAE 19% China 8%

Within the UK 28% New Zealand 18% India 7%

Canada 24% Ireland 12% Other 3%


Improved quality of life61%

Di§erent culture 54%

New career opportunity 52%

Better employment opportunities 49%

Improved salary48%

Respondents could choose more than one reason from a choice of nine

Top 5 reasons for respondents wanting to relocate

29% of respondents would not relocate

UK

Improved quality of life is the main reason for respondents wanting to relocate

Places respondents would consider relocating to in the next 2 years

MOVING ON

Top 5 reasons for leaving last role

How do you rate the importance of the following sources when seeking a new role?

Career development33%

New challenge/more interesting work 29%

Higher salary 26%

End of contract18%

Redundancy 16%

Respondents could choose up to three reasons

36% of respondents anticipate changing roles in the next 12 months

57%

43%

19%

9%

2%

7%

29%

20%

33%

10%

36%

22%

11%

34%

33%

18%

39%

38%39%

15%

50%

3% 3%

30%

38% of respondents took up to 3 months to find their current role

57%

43%

19%

9%

2%

7%

29%

20%

33%

10%

36%

22%

11%

34%

33%

18%

39%

38%39%

15%

50%

3% 3%

30%

KEYImportance

Vital

Very important

Quite important

Not important

Source

57%

43%

19%

9%

2%

7%

29%

20%

33%

10%

36%

22%

11%

34%

33%

18%

39%

38%39%

15%

50%

3% 3%

30%

National press

57%

43%

19%

9%

2%

7%

29%

20%

33%

10%

36%

22%

11%

34%

33%

18%

39%

38%39%

15%

50%

3% 3%

30%

Online job boards/advertising

57%

43%

19%

9%

2%

7%

29%

20%

33%

10%

36%

22%

11%

34%

33%

18%

39%

38%39%

15%

50%

3% 3%

30%

Social networking

57%

43%

19%

9%

2%

7%

29%

20%

33%

10%

36%

22%

11%

34%

33%

18%

39%

38%39%

15%

50%

3% 3%

30%

Recruitment consultancies/headhunters

57%

43%

19%

9%

2%

7%

29%

20%

33%

10%

36%

22%

11%

34%

33%

18%

39%

38%39%

15%

50%

3% 3%

30%

Trade press

57%

43%

19%

9%

2%

7%

29%

20%

33%

10%

36%

22%

11%

34%

33%

18%

39%

38%39%

15%

50%

3% 3%

30%

Word of mouth/personal referrals/internal contact

How did you find your current position?

Recruitment consultancy or headhunter 47%

Online advertising 13%

Professional network or personal contact 13%

Direct approach9%

Internal promotion5%

Print advertising 2%

Other 2%

Not currently employed9%

REMUNERATION

What was the outcome of your last pay review?

Less than 6 months ago 33%

6 to 12 months ago 35%

More than 12 months ago 12%

Not applicable 20%

Pay increase 68%

Pay remained the same 31%

Asked to take a pay cut 1%

33% of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles

Salaries & BenefitsKEY FINDINGS

68% of respondents have had a pay review in the last 12 months

Permanent

Contract

Satisfaction with current remuneration

Permanent

Satisfied 44%

Permanent


Permanent

Dissatisfied 30%

Permanent

Satisfied 53%

Permanent


Permanent

Dissatisfied 20%

53% of contract respondents are satisfied with their current remuneration compared with 44%

of permanent respondents

When was your last pay review?

44%

Did you receive a bonus in 2012?

Yes 47%

No, not entitled to receive one 38%

No, not awarded one 15%

44% of respondents were satisfied with their bonus

BENEFITS

BONUS

Respondents rated a selection of 20 benefits in order of importance

Benefits considered most and least important when considering a new role

25 days holiday or more

Annual bonus scheme

Good company pension

Private healthcare

Sabbatical

Mortgage relief

Season ticket loan

Daily subsidised meals

Childcare vouchers

Insurance*

56%

56% of respondents were satisfied with their benefits

34%

of respondents received the same bonus in 2012 as 2011

As a percentage of your basic salary, what was your bonus in 2012?

1 to 9% of salary 41%





More than 90% of salary 3%

1-9% of salary

UK

25 days holiday or more is the most desired benefit

*PMI/death in service/life insurance

Top 5 benefits currently received

25 days holiday or more 78%

Company pension scheme 64%

Private healthcare 54%

Annual bonus scheme 48%

Insurance (PMI/death in service/life insurance) 48%

Respondents could select all benefits that applied

1-9% of salary

0

20

40

60

80

100

Banking and Financial Services Commerce and Industry Management Consultancy Public Practice

Salaries & BenefitsKEY FINDINGS

A comparison of bonuses received across sectors*

50 to 79% of salary

More than 80% of salary

30 to 39% of salary

40 to 49% of salary

KEY1 to 9% of salary

10 to 19% of salary

20 to 29% of salary

BONUS

*Bonuses received as a percentage of salary

LON

DO

NP

RO

FES

SIO

NA

L SE

RV

ICE

S

Senior Manager

Ewa Stefanska

LONDON

PROFESSIONAL SERVICES

Advisory

+44 20 7747 [email protected]

Manager

Leyla Ozbek

LON

DO

NP

RO

FES

SIO

NA

L S

ER

VIC

ES

ADVISORY Market Perspective

The big trends of 2012The past 12 months have been dicult for the advisory market, particularly in corporate finance and transaction services, as firms simply haven’t been in a position to do deals. As a result, growth has been minimal with many companies focusing on redeploying sta§ to other areas of the business to ensure they are still being utilised.

Most of the redeployed sta§ 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 internal moves.

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.




Salary freeze 39%

Greater focus on regulatory issues 29%


Top 5 expectations for your business in the next 12 months

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

More confident 28%

As confident 48%

Less confident 24%

ECONOMIC PROSPECTS

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 shortages that may exist and negating the need to hire externally.

LON

DO

NP

RO

FES

SIO

NA

L SE

RV

ICE

S

61%61%

Salary freeze 34%

61%

Redundancy 4%

61%


61%

Salary reduction 0% 61%

Other 4%




Secure 73%

Insecure 27%

Reactions to uncertain market conditions In 2012 employers were extremely cautious in their approach to recruitment and this looks set to continue, certainly for the first six months of 2013. The larger firms in particular have ceased to recruit in many areas of advisory, such as corporate finance and transaction services, and are only seeking to make business critical external hires.

In contrast, areas such as corporate recovery, restructuring and forensics have been able to capitalise on the economic downturn to a certain extent and so business, and indeed recruitment, has remained consistent for them over the past 12 months. Many of the boutiques are experiencing growth in these areas, much more so than practice firms, as they are able to o§er a specialist service o§ering and we anticipate this growth will continue.

JOB SECURITY

HEADCOUNT

38%


38%

Decreased 34%

38%


38%

Not sure 3%



voluntary departures as the main reason for a decrease in sta§




Non-existent 6%

Not sure 25%


LONDON

39% of respondents have more than 20 employees in their team

LON

DO

NP

RO

FES

SIO

NA

L S

ER

VIC

ES

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 a§ected being retail, restaurants, and commercial real estate. Candidates who 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 have seen the most consistent demand for their skill set throughout the recession and this is likely to continue throughout 2013.

EXPERIENCE

77%

23%

<1years

1-2 2-3 3-5 5-10 >10



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%


7 - 10years



Increased 33%


Decreased 11%

50%of respondents chose

taking on more responsibility as the

main reason for the increase in working

hours

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MOVING ON

Taking the next step in your careerBE REALISTIC ABOUT WHAT ROLES ARE OUT THERETake time to understand the recruitment market in your sector. Career moves in advisory have become increasingly dicult in the downturn. Whilst professionals still su§er 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 CVYour 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 SEARCHPartner with a recruiter that genuinely understands your market 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 o§er tips and advice to help you beat the competition.

SENIOR LEVELSWhilst junior level candidates are facing sti§ 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.



Career development 34%

Higher salary 26%

Better work-life balance 14%

Better bonus potential 12%


RELOCATION

38%

38%

Within the UK 33%

38%

Hong Kong 31%

38%

Singapore 29%

38%

Australia 28%


Improved quality of life 67%

Improved salary 56%


New career opportunity51%



Top 5 places respondents would consider relocating to in the next two years




Why candidates are making a moveUnlike in previous years, when money was a significant factor in a candidate’s 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 an employer 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 suce. Throughout the interview process candidates will want to understand whether the role they are considering can o§er 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.

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Salaries & BenefitsADVISORY





Not applicable 19%

69% of respondents received a salary increase in their last pay review

Permanent

Contract


Permanent

Satisfied 36%

Permanent


Permanent

Dissatisfied 35%

Permanent

Satisfied 75%

Permanent


Permanent

Dissatisfied 0%


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 sta§ 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 sta§ 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.

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LONDON

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

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Salaries & BenefitsADVISORY

44%


Yes 59%




BENEFITS

BONUS



Annual bonus scheme 54%

Flexible benefits 46%

Car or car allowance21%

Less than 25 days holiday 16%





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








More than 100% 7%

1 - 9% of salary

Attracting top talentOFFER DEVELOPMENT AND TRAININGUncertain market conditions have seen candidates’ desire to move for financial gains all but disappear, so you must be able to o§er 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 KEYWith such few strong candidates available, it does not take long for them to get snapped up. Often the largest firms are 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.

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LONDON


Audit & Assurance


Consultant

Manager

Leyla Ozbek

Robert Webb

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NA

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AUDIT & ASSURANCE Market Perspective

The big trends of 2012Redundancies were commonplace and even the ‘safe’ accountancy profession was not exempt from cuts, with some of the Big 4 imposing four-day weeks on senior sta§. 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 diculties 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 graduates recruited 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 cuts 34%



Salary freeze 42%

Increase in sta� recruitment 34%



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 management in 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.

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65%65%

Salary freeze 29%65%

Salary reduction 1%

65%


65%

Redundancy 1% 65%

Other 3%




Secure 87%

Insecure 13%

Reactions to uncertain market conditions Audit 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, di§erentiating themselves through creating niche markets. This in turn will enable them to compete against the bigger players and all firms need to be 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



Increased 28%

Not sure 1%







Non-existent 6%

Not sure 12%


LONDON


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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 o§ering 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 recruitment seems 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%

<1years

1-2 2-3 3-5 5-10 >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%


4 - 6years



Increased 35%


Decreased 9%


understa�ng or lack of resources as the main reason for the increase in

working hours

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NP

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NA

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MOVING ON

Taking the next step in your careerBE REALISTIC AND AWARE OF YOUR EXPERIENCEThe market is very di§erent 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, it’s 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 PROACTIVE Meet 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 BUSINESSSpend time making your CV as good as it can be. Include all relevant experience and key achievements, remembering to di§erentiate yourself through the skills you can o§er.



Higher salary 28%


Relocation 13%

Redundancy 10%


RELOCATION

Australia 40%

Within the UK 34%

Canada 29%

Mainland Europe 28%





Improved salary 58%







Why candidates are making a moveCandidates 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.

LONDON

LON

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NP

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NA

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Salaries & BenefitsAUDIT & ASSURANCE



6 to12 months ago 28%


Not applicable 9%


Permanent

Contract


Permanent

Satisfied 29%

Permanent


Permanent

Dissatisfied 51%

Permanent

Satisfied 20%

Permanent


Permanent

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

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LONDON

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 di§erent

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Salaries & BenefitsAUDIT & ASSURANCE

42%Did you receive a bonus in 2012?

Yes 35%



42% of respondents were dissatisfied with their bonus

BENEFITS

BONUS




Less than 25 days holiday 42%







Good company pension scheme

Annual bonus scheme

Flexible working

Mortgage relief


Childcare vouchers


Season ticket loan

Private healthcare

42%

42% of respondents were dissatisfied with their benefits

46% of respondents


than in 2011




1 - 9% of salary

Attracting top talentHAVE A SENSE OF URGENCYThe best candidates do not stay on the market for long. If you are 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 BRANDInterviews are not just an opportunity for candidates to sell what they can o§er their prospective employer; it’s also an opportunity for employers to sell what they can o§er 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 AGENCYWork 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 TEAMIt’s 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.

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LONDON




Senior Consultant

Chris Saull

Associate Director

Oliver Phoenix

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MANAGEMENT CONSULTANCY Market Perspective

The big trends of 2012Regulatory changes continued to sweep across both public and private sectors with a profound e§ect on financial services. 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



Salary increase 28%

Salary freeze 34%

Increase in sta� recruitment 37%



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, more subject 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.

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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 eciency 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%


Redundancy 1%

Other 13%




Secure 78%

Insecure 22%

LONDON

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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 pressure to 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%


42%


42%

Decreased 24%

42%

Not sure 3%




HEADCOUNT

MANAGEMENT CONSULTANCY Market Perspective


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

LON

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NP

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SIO

NA

L SE

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S

In 2012 hiring decisions became much more

important as the ability to hide a bad hire within large

organisations became more dicult due to downsizing

and redundancies.




Non-existent 4%

Not sure 9%


Reactions to uncertain market conditions As 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 dicult 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 oces 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 from analysts 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.

LONDON

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Career InsightMANAGEMENT CONSULTANCY

Skills in demandAt present the skill sets that are most in demand across consulting 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%

<1years

1-2 2-3 3-5 5-10 >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%


Not applicable 6%

4 - 6years



Increased 32%


Decreased 18%

56%of respondents chose taking on more responsibility as the main reason for the increase in working hours

LON

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NP

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NA

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S

MOVING ON

Taking the next step in your careerTHINK IT THROUGHGaining 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 MINDIt is not always possible to move straight into your dream job so 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 o§er.




Higher salary 35%

End of contract 12%

Redundancy 12%


RELOCATION

Mainland Europe 42%

Singapore 39%

Hong Kong 37%

Australia 35%




Improved salary 55%








The past 12 months have seen their fair share of redundancies across the 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.

LONDON

LON

DO

NP

RO

FES

SIO

NA

L S

ER

VIC

ES

Salaries & BenefitsMANAGEMENT CONSULTANCY





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 o§ering 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 being a 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 o§ered 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 o§ers 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 o§er any flexibility or perks benefit from greater candidate attraction and employee retention. Some businesses have enjoyed such success through o§ering 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

LON

DO

NP

RO

FES

SIO

NA

L SE

RV

ICE

S

LONDON

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+


Permanent

Contract


Permanent

Satisfied 42%

Permanent


Permanent

Dissatisfied 31%

Permanent

Satisfied 65%

Permanent


Permanent

Dissatisfied 9%


REMUNERATION

LON

DO

NP

RO

FES

SIO

NA

L S

ER

VIC

ES

Salaries & BenefitsMANAGEMENT CONSULTANCY


Yes 52%




BENEFITS

BONUS



Mobile phone/Blackberry/PDA 60%








Annual bonus scheme

Private healthcare

Mobile/Blackberry/PDA


Mortgage relief


Season ticket loan

Childcare vouchers

Good company pension


45% of respondents


than in 2011








More than 70% of salary 1%

1 - 9% of salary

Attracting top talentMAKE CANDIDATES FEEL VALUED Strong candidates can choose from multiple o§ers, so selling your company to the candidate during the recruitment process is key, even if you are a top tier business. O§er 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 haven’t felt valued during the process. When faced with multiple o§ers, 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 o§ering more money. As such, face time with line managers is important, whether this is a quick co§ee 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 di§erence in whether an o§er is accepted.

HAVE AN EFFICIENT RECRUITMENT PROCESSThe speed and eciency 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 STRONGCandidates often decide whether to apply for a role from what they have heard and/or read from others. The poor quality of projects on o§er and limited opportunities for promotion are some of the key reasons for a candidate not wanting to join.

LON

DO

NP

RO

FES

SIO

NA

L SE

RV

ICE

S

Consultant

LONDON


Taxation


Senior Manager

Ewa Stefanska

Richard Jennings

123

LON

DO

NP

RO

FES

SIO

NA

L S

ER

VIC

ES

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 large corporate 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 o§-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.


Budget cuts 43%



Salary freeze 57%

Greater focus on regulatory issues 27%



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 of years 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 sta§ much more due to recruitment budget cuts, and internal recruitment has increased as clients are forced into recruiting sta§ from di§erent teams rather than finding the perfect candidate externally. This is an e§ective way to save money in dicult times, but is it the right way to go? Sometimes, quicker and cheaper wins can negatively a§ect businesses in the long run.

LON

DO

NP

RO

FES

SIO

NA

L SE

RV

ICE

S

59%59%

Salary freeze 38%

59%

Redundancy 4% 59%

Salary reduction 0%

59%


59%

Other 2%




Secure 78%

Insecure 22%

Reactions to uncertain market conditions The general trend is that companies are doing more with less; maximising their current sta§ to work more eciently. 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-term contracts as it has been easier to manage headcount in this way. This has been e§ective, 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%


36%


36%

Decreased 24%

36%

Not sure 4%



headcount reductions as the main reason for a decrease in sta§




Non-existent 0%

Not sure 39%


LONDON

35% of respondents have between 1 and 5 employees in their team

LON

DO

NP

RO

FES

SIO

NA

L S

ER

VIC

ES

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 o§ered 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 very cautious about bringing in too many employees at present. However, with a more robust market predicted, we wouldn’t 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%

<1years

1-2 2-3 3-5 5-10 >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%


11-15years



Increased 37%


Decreased 13%


taking on more responsibility as the

main 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

LON

DO

NP

RO

FES

SIO

NA

L SE

RV

ICE

S

MOVING ON

Taking the next step in your careerREGULARLY 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 your LinkedIn profile is as complete as possible, highlighting the key skills and experience you have to ensure your profile matches your ongoing career aspirations.

DIFFERENTIATE YOURSELF As the market is tough, anything you can do to di§erentiate yourself from the competition is worth doing. For example, if your employer is willing to sponsor you for a CTA or any other qualification, do it.

HIGHLIGHT YOUR MARKET AWARENESS Keep up to date with market trends as these a§ect all businesses. FATCA experience will be very sought after this year and if you are working in a financial services team and have had any FATCA experience, even if it is minimal, include this on your CV.




Higher salary 35%

Better work-life balance 20%

More responsibility13%


RELOCATION

48%

48%

Australia 38%

48%

Mainland Europe 32%

48%

Within the UK 32%

48%

Canada 26%

48%

New Zealand 26%






Improved salary 46%






Why candidates are making a move2012 was a frustrating year for many, with promotion and salary freezes commonplace. Therefore it is important to outline career prospects and growth plans from the start, even if they will not take place straight away. Candidates need to be in the know and be aware of what they can achieve.

The new generation of tax professionals are interested in new experiences, flexibility and training. They are interested in travel opportunities, mentors they can learn from and flexibility in their work so they can pursue their interests out of the oce. Employers need to be aware of this, as the market is changing and the new generation of talent coming through have di§erent priorities to previous years.

LONDON

LON

DO

NP

RO

FES

SIO

NA

L S

ER

VIC

ES

Salaries & BenefitsTAXATION



6 to12 months ago 30%


Not applicable 20%


Permanent

Contract


Permanent

Satisfied 50%

Permanent


Permanent

Dissatisfied 30%

Permanent

Satisfied 100%

Permanent


Permanent

Dissatisfied 0%

34% of respondents perceive an 11 to 15% salary increase as acceptable if they were to move roles

Spotlight on salaries and bonusesGenerally we have seen frustration across the board due to a lack of promotions. However, due to skills shortages and high demand in certain areas already discussed, we have seen increases in salaries. On average, bonuses in tax decreased from 15% in 2011 to between 0% and 10% in 2012. However, there has been a growing emphasis on benefits and o§ering employees a better working environment. For example, some of the larger firms have been a lot more open to part-time hours and working from home. Bonuses have not decreased in those specialist boutiques and consultancies

REMUNERATION

that have identified niches and specialist areas such as tax restructuring and research and development – both of which are very topical and will continue to expand in 2013.

O§ering a more tailored and personalised service at a cheaper rate than the larger established firms has allowed niche consultancies to flourish. These firms have done exceptionally well and their growth rates have been strong. They attract talent as they are able to o§er variety, entrepreneurialism, growth and therefore career progression.

LON

DO

NP

RO

FES

SIO

NA

L SE

RV

ICE

S

LONDON

Practice Tax Big 4 salary range Mid-tier salary range

Job title 2012 2013 2012 2013

1st Year Trainee £20,000-£34,000 £20,000-£34,000 £20,000-£30,000 £20,000-£34,000

Finalist | 2+ years £32,000-£45,000 £32,000-£38,000 £30,000-£42,000 £30,000-£35,000

Newly Qualified £42,000-£50,000 £42,000-£50,000 £38,000-£48,000 £35,000-£45,000

Manager £50,000-£65,000 £50,000-£65,000 £48,000-£55,000 £45,000-£55,000

Senior Manager £65,000-£90,000 £65,000-£90,000 £55,000-£75,000 £55,000-£75,000

Director £80,000-£150,000+ £80,000-£150,000+ £75,000-£120,000 £75,000-£120,000

ACA/CTA Partner £160,000+ £160,000+ £120,000+ £120,000+

Industry Tax Salary range

Job title 2012 2013

Accountant £45,000-£55,000 £42,000-£55,000

Assistant Manager £55,000-£65,000 £55,000-£65,000

Manager £65,000-£80,000 £65,000-£80,000

Senior Manager | International £80,000-£100,000 £80,000-£100,000

Director £120,000+ £120,000+

Transfer Pricing Salary range

Job title 2012 2013

Analyst £45,000-£55,000 £40,000-£55,000

Manager £55,000-£70,000 £55,000-£70,000

Senior Manager £70,000-£85,000 £70,000-£85,000

Director £85,000+ £85,000+

Indirect Tax Salary range

Job title 2012 2013

Assistant £30,000-£40,000 £30,000-£40,000

Accountant £45,000-£55,000 £40,000-£55,000

Manager £65,000-£80,000 £50,000-£80,000

Head of VAT £90,000-£110,000+ £90,000-£110,000+

LON

DO

NP

RO

FES

SIO

NA

L S

ER

VIC

ES

Salaries & BenefitsTAXATION

59%


Yes 64%




BENEFITS

BONUS






Mobile phone/Blackberry/PDA 51%





Good company pension scheme

Mobile phone/Blackberry/PDA

Insurance*


Season ticket loan

Childcare vouchers

Sabbatical

Mortgage relief

Private healthcare

55%


44% of respondents


than in 2011






More than 100% 3%

1 - 9% of salary

Attracting top talentLOOK AT NEW WAYS TO DIFFERENTIATE YOURSELFYou need to decide on your values, beliefs, culture and what they stand for. All employees need to be aligned to these values, which should be evident through your employer brand and throughout the interview process. This will help to improve retention as candidates attracted by these values will want to join the company.

OUTLINE THE BENEFITS FROM THE STARTWith salaries staying the same, benefits are becoming more important. Employers are now including the benefits package in job specifications, which is proving e§ective when selling a role to prospective employees.

BE FLEXIBLEFlexible working is becoming more popular so companies need to be more accommodating when it comes to o§ering part-time hours and the opportunity to work from home.

PAY ATTENTION TO THE JOB SPECIFICATIONS Just as candidates need to di§erentiate themselves with their CVs, employers need to do the same with job specifications. Candidates are more selective about the roles they go for as they are still uncertain about the market and fear being caught interviewing by their current employer. Therefore it is essential you sell your organisation, the varied aspects of the role, as well as the career prospects on o§er in the job specification.

*PMI/death in service/life insurance

We would like to extend our appreciation to all those who completed this survey and made this market report possible. If you didn’t participate, please do so next year so we can continue to develop the depth and quality of this report and provide you with a fair and balanced picture.

This report is only ever intended to give a very general overview on the changing nature and complexity of the employment market for accountancy, finance and advisory professionals and can serve as a useful guide. However, if you require a more tailored and confidential discussion on how this will affect your business, finance department or indeed your own career, please do not hesitate to get in touch.

This research was carried out by means of an electronic questionnaire and supplemented with data and market information that Marks Sattin has access to. The results are provided as generic market information only. Marks Sattin does not make any warranties regarding the use, validity, accuracy or reliability of the results and information obtained. Marks Sattin will not be liable for any damages of any kind arising out of or relating to use of this information. Commercial use and distribution of the contents of this document is not allowed without express and prior written consent of the author.

ACKNOWLEDGEMENTS

DISCLAIMER

Editor and Marketing: Kirsty KellyAssistant Editor: Alex Voskou Alicja Skrakowski

Promotion: Your future in finance and accountancy

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marks sattin market insight 2013 (professional services)

Economy & Finance