2012 Salary Guide

Accounting and Finance Hiring Trends

Robert Half

2012 Salary Guide

Accounting and Finance Hiring Trends

Contents

From the Managing Director.......................................................... 3

From the Managing Director

Dear colleague

Phil Sheridan Managing Director United Kingdom

Using the 2012 Salary Guide.......................................................... 4

The hiring forecast.........................................................................5 Benchmarking the finance team.....................................................6 Highly sought-after attributes................................................... 7 Positions in demand........................................................................8 Counter-offers: a potentially counterproductive strategy..... 9 Accounting and finance salaries................................................. 10 Flexible recruitment for cost savings....................................... 14

Never in history has the accounting and finance function been under such scrutiny than during the past few years. Finance teams have been charged with driving growth and efficiencies, assuming the role of trusted partner in a companys business strategy. At the same time, more stringent standards and regulations have reaffirmed the importance of the accounting function in a companys fiscal wellbeing. And so we enter the new era of accountancy, where commerciality meets traditional values, and sound accounting practices never go out of style. We hope this years salary guide will provide a sense of nostalgia as we focus on what will likely be another demanding year ahead. Many organisations that were stretched thin during the downturn are finding they can no longer meet critical business objectives without extra resources. Access to the most current remuneration data allows you to attract top professionals to your organisation and keep them on board. And offering a competitive salary is often the difference between welcoming employees and watching them accept job offers from elsewhere. Weve made many changes to our 2012 Salary Guide, including offering year-over-year percentage changes to national starting salary ranges. By incorporating the regional variance index for 11 UK geographic areas, you will be able to calculate local salaries while also identifying which roles are most in demand. This means you can identify specialisms where demand may outstrip supply and adjust remuneration accordingly. Monitoring salary trends can be challenging. I hope you find our 2012 Salary Guide useful, and I welcome you to contact one of our recruitment consultants across our network of over 20 UK offices to discuss specific trends affecting your local area. Regards

Working with Robert Half........................................................... 15

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Phil Sheridan Managing Director United Kingdom

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2012 Salary Guide

Accounting and Finance Hiring Trends

Using the salary guide

Consider the 2012 Salary Guide as your business and recruitment handbook, offering starting salaries for accounting and finance professionals throughout the UK. This resource can help you determine remuneration levels for new employees, plan budgets and navigate todays hiring environment. The salary ranges represent starting remuneration only because factors such as seniority and policies regarding pay reviews vary by company. Bonuses and other remuneration, such as benefits and pension schemes, are also not taken into account. Weve also surveyed chief financial officers across the UK on their remuneration plans for existing employees; weve highlighted this on page 13.

The hiring forecast

Despite an air of caution, there continues to be movement in the job market., with companies hiring accounting and finance professionals to address growth initiatives. Organisations are hiring to fill vacancies due to attrition and to address emerging business opportunities and heavy workloads due to understaffed departments. Many organisations are taking their time to ensure they make the right hire and, in some cases, require multiple sign-offs before an appointment can be made. This coupled with a tightening job market for top talent is resulting in some companies losing out on their preferences because of long recruitment periods.

The most authoritative resource

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

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

Business growth or expansion Rising workloads Regulatory requirements Financial systems upgrades Merger or acquisition Other 2% 18% 18% 30% 52%

70%

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

Recruiting challenges have become more pronounced, and companies are finding it more difficult to find individuals who meet all their requirements. In some cases, companies are bringing in temporary professionals as an interim solution as they address their long-term needs. This also affords them the opportunity to evaluate prospective new employees. When asked the biggest benefits for employing temporary or interim finance/accounting staff, managing fluctuating workloads and access to hard-to-find skill sets were the two most common responses. Companies are also increasingly engaging senior interim professionals to provide expertise on critical initiatives.

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2012 Salary Guide

Accounting and Finance Hiring Trends

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

Highly sought-after attributes

The war for talent for newly qualified accountants is strong, with companies vying for individuals with a public practice background, strong technical skills and commercial acumen. Effective communication skills and personality fit are also prime considerations, especially as the finance team is being called on to work with interdepartmental teams and external clients. Employers seek candidates who are proficient with the most popular systems and software applications. Advanced knowledge of Microsoft Excel and experience using enterprise resource planning (ERP) systems such as SAP, Oracle and Hyperion are essential skills for new hires. Database management and business intelligence software know-how is also valued.

Regional and industry variances

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

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

Finance Accounting Audit Operational support Compliance Other None of these

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

Benchmarking the finance team

Another benefit of temporary and interim recruitment is cost effectiveness. The downturn underlined the need for companies to manage their recruitment strategically, addressing workload peaks and troughs without absorbing the fixed costs of permanent hires. According to our survey of UK CFOs, the average finance team comprises 12.35 permanent employees, supplemented by 2.68 temporary or interim employees thats 18% of total headcount. This increases to 25% within publicly listed organisations. Benchmarking your employee mix against that of your peers will allow you to better manage your resources and budgets and, ultimately, the bottom line.

18% of the UKs Accounting/

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18%

of the UKs accounting/finance workforce Finance workforce is is comprised of temporary/interim staff

comprised of temporary staff

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2012 Salary Guide

Accounting and Finance Hiring Trends

Positions in demand
Financial accountants Demand is increasing for accountants who are qualified or in the process of obtaining an ACA, ACCA or CIMA qualification. Excellent technical skills, including experience with Excel and large ERP systems as well as exposure to IFRSs are often pre-requisites for some roles. Financial analysts As companies prepare for growth, they seek experienced analysts who can help them understand the story behind their financial data and identify further expansion opportunities. The most in-demand candidates have strong financial, technical and communication skills and are comfortable presenting their findings and recommendations to varied audiences. Management accountants To enable companies to make informed business decisions, organisations are hiring management accountants to help formulate policies and help plan and control growth initiatives. Individuals who show sound technical skills coupled with business acumen and commerciality will be in demand. Cost accountants As manufacturing activity has increased in certain regions, the need for skilled cost accountants has picked up as well. Professionals who can merge cost accounting with financial planning and analysis skills in a manufacturing context are in highest demand. Credit controllers As cash flow remains a priority for businesses, credit controllers are required to ensure payment terms are met. Companies are looking for individuals who are detail oriented and customer focused and who display effective problem-solving skills.

Counter-offers: a pote ntially counterproduct ive strategy

As companies grow mo re concerned about retain ing business-critical sta tempted to extend counte ff, they may be r-offers to employees wh o plan to leave for anothe most cited issue is lack r job. The of loyalty to the organisat ion, but other aspects of can be problematic as we the situation ll. Here are four key dra wbacks of counter-offe rs to consider: Trust may never be the same If the employee was completely satisfied the company, the emplo working for yees manager wouldnt now be having to discuss cou Even if the requested adj nter-offers. ustments are made, the individual may begin to que the threat of departure for stion why it took the company to recognise his or her value and improv e the job. Some things cant be changed Although som e em plo yee concerns can be addressed, there may be additional consideration s that cant be resolved. old conflicts with other For example, staff members or incom patibility with the corpor cause the person to ret ate culture may hink the decision and lea ve. Salary adjustments ma y be complicated A counter-offer may not onl departments budget but y affect the also the team. Paying som eone more than the typ could disrupt an organisat ical pay scale ions remuneration structu re. It could also create res among other deserving entment employees. Future advancement may be limited If com petent, productive emplo is no room for further gro yees feel there wth in your firm, it would be unfair to try to convin stay. Even with a bump ce them to up in salary, they will stil l likely become unhappy career and, as a result, wit h their stalled be less productive. Counter-offers may solve a short-term problem, but they rarely lead to long-t satisfaction. While the pro erm spect of losing a valued em ployee may seem dauntin is a bright side: managers g, there may uncover new stars on their team or hire som brings an even more imp eone who ressive skill set.

Legacies of the recession newly-qualifieds in demand

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

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Robert Half

2012 Salary Guide

Accounting and Finance Hiring Trends

National accounting and finance salaries

Position Title Chief Financial Officer/Group Finance Director SME 2011 2012 % change 2.6% 3.3% 2.1% 2.5% 2.2% 4.1% 2.4% 2.5% 3.3% 3.5% 1.4% 2.6% 3.0% 3.7% 3.4% 4.8% 2.5% 2.4% 2.3% 2.8% 1.2% 2.4% 3.2% 3.7% 3.4% 1.0% 3.0% 3.1% 2.6% 3.0% 2.7% 2.8% Trainee Supervisor Senior Manager Senior Manager Director Position Title Partner Small-mid size Large Small-mid size Large Small-mid size Large Small-mid size Large Small-mid size Large Small-mid size Large Small-mid size Large 2011 96,000+ 2012 100,000+ % change 4.2% 4.1% 3.8% 4.4% 4.7% 3.9% 4.2% 4.8% 4.2% 4.1% 3.9% 3.7% 3.4% 3.6% Payroll Administrator/Clerk Payroll Manager/Supervisor Purchase/Sales Ledger Clerk Ledger Supervisor Assistant Management/Financial Accountant Assistant Accountant Credit Controller Credit Supervisor Position Title Credit Manager SME Large Company SME Large Company SME Large Company SME Large Company SME Large Company SME Large Company SME Large Company SME Large Company SME Large Company 2011 24,500-37,250 30,000-45,500 23,250-33,000 30,000-33,250 17,750-24,750 19,000-29,500 18,500-23,250 19,250-24,750 19,750-28,750 21,750-30,750 23,250-31,750 24,750-33,250 17,750-24,750 19,250-25,000 23,000-33,000 24,750-36,500 19,000-21,000 20,500-22,000 2012 24,500-37,750 30,000-45,750 23,000-33,750 30,250-34,500 18,000-25,250 19,000-30,250 18,750-24,000 19,750-25,750 20,250-29,500 22,500-31,750 24,000-32,000 25,500-33,500 18,250-25,750 19,000-26,750 23,500-33,250 25,250-37,000 19,250-21,500 20,750-22,500 % change 0.8% 0.3% 0.9% 2.4% 1.8% 1.5% 2.4% 3.4% 2.6% 3.3% 1.8% 1.7% 3.5% 3.4% 1.3% 1.6% 1.9% 1.8% 71,250-99,500+ 73,250-102,000+

Large Company 82,000-124,250+ 85,000-128,000+ Finance Director SME 57,500-99,000+ 57,500-102,250+

Large Company 68,500-124,250+ 69,000-128,500+ Financial Controller SME Large Company Group Accountant SME Large Company Qualified Management/Financial Accountant SME Large Company Finance Manager SME Large Company Business/Financial Analyst SME Large Company Financial Planning & Analysis Manager SME Large Company Internal Audit Manager SME Large Company Internal Auditor SME Large Company Compliance Manager SME Large Company Risk Manager SME Large Company Treasury Analyst SME Large Company Senior Treasury Analyst SME Large Company Tax Specialist SME Large Company Tax Manager SME Large Company 47,750-74,500 52,500-74,500 34,250-57,750 48,000-62,250 34,250-49,750 38,250-54,000 38,000-53,750 38,500-57,000 34,000-57,500 37,000-58,000 37,500-66,000 38,500-66,500 41,000-58,000 47,750-66,250 33,250-53,000 35,000-55,000 43,250-57,000 46,000-58,250 42,500-58,000 46,250-62,000 32,000-49,750 34,500-62,000 48,250-77,250 57,500-88,750 38,250-59,250 39,250-62,250 59,500-77,250 62,000-88,750 48,000-77,000 52,750-79,500 35,250-59,000 49,500-63,500 34,500-52,250 39,000-56,500 37,750-55,250 39,500-58,500 34,500-59,750 37,000-61,500 38,500-68,500 40,000-70,000 42,000-59,500 50,000-66,750 34,750-53,500 36,500-56,000 43,250-58,250 46,250-60,500 43,500-60,250 47,500-64,750 33,000-51,500 33,250-64,250 50,000-79,250 60,250-90,500 38,750-61,250 39,500-65,000 60,000-80,500 64,250-90,750

102,500-414,250+ 108,000-430,000+ 57,500-66,250 75,250-165,750 41,000-49,500 54,750-91,000 30,000-41,500 41,000-58,000 27,500-37,250 34,250-45,500 24,500-33,000 27,500-33,250 16,500-20,750 17,250-24,750 59,250-69,250 78,000-173,500 42,500-52,250 57,000-94,500 32,000-42,500 42,000-61,750 28,750-38,750 34,750-48,250 25,500-34,250 28,500-34,500 17,250-21,250 17,750-25,750

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2012 Salary Guide

Accounting and Finance Hiring Trends

PQ/NQ
Position Title Part Qualified Stage 1 SME Large Company Part Qualified Stage 2 SME Large Company Part Qualified Stage 3 SME Large Company Part Qualified Stage 4 SME Large Company Newly Qualified SME Large Company 2011 16,250-23,000 17,500-23,750 17,000-27,250 17,750-32,250 19,750-32,250 20,250-35,750 23,000-38,000 24,000-42,000 28,000-43,000 30,000-45,000 2012 16,500-24,000 17,500-24,750 17,500-28,250 18,500-33,000 20,500-33,000 20,500-37,000 23,500-39,500 24,500-44,000 30,000-46,000 33,000-48,000 % change 3.2% 2.4% 3.4% 3.0% 2.9% 2.7% 3.3% 3.8% 7.0% 8.0%

Regional variances
UK Region
United Kingdom Scotland North East England North West England Yorkshire East Midlands West Midlands East of England London South East England South West England Wales

Variance index
100.0% 87.7% 73.6% 78.8% 77.9% 80.3% 79.0% 93.9% 120.7% 101.3% 80.6% 73.1%

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

Customising salaries for local markets

The national salary ranges can be customised for each of the 11 UK regions with the local variances listed below. The index figures are a guide for determining average starting salaries. Factors including company size, employee benefits, candidate skill sets and current market trends may affect actual remuneration. The information is supported by data from HM Revenue & Customs, the Office for National Statistics, expertise of our local recruitment consultants, research of UK CFOs and placements across our UK branch network. The average salary index for all UK markets is 100. Follow the steps below to calculate the approximate salary range for a specific position in your area. Example compliance manager at a small- and medium-sized enterprise (SME) in the East Midlands. 1. Find the position and national salary range for a compliance manager at an SME on page 10. The salary range is 43,250 to 58,250. 2. Find the index number below. The index number for the East Midlands is 80.3%. 3. Multiply the low end of the national salary range by the index number as a percentage. 43,250 x 80.3% = 34,730. 4. Repeat using the high end of the salary range. 58,250 x 80.3% = 46,775. 5. The approximate starting salary range for a compliance manager at an SME in the East Midlands is 34,730 to 46,775.

Remuneration for existing employees

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

Increase Stay the same Decrease

23% 65% 12%

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

1-2% 3-4% 5-6% 7-10% More than 10%

Source: Survey of 180 UK CFOs.

7% 21% 43% 24% 5%

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2012 Salary Guide

Accounting and Finance Hiring Trends

r cost savings Flexible recr uitment fo

is their ces they often look to cut l costs, one of the first pla tro con to try unders ies ion pan sat As com ies left many organi ent recession, redundanc rec st mo the In e. orc workf began to increase. improved and workloads resourced once conditions with skilled e permanent workforce s that supplement a cor del mo nt me hoping to ruit rec sse le Flexib solution for busine s rs have proved the ideal rke wo rim inte changing a and m ary fro tempor that often results subtracting headcount and ing add of le recruitment d cyc fixe the ir avoid t a portion of the ch, companies can conver roa app this ing Us y. econom els. ense tied to workload lev costs into a variable exp s can nted interim professional ognise that bringing in tale rec gly sin nent rea ma inc Per es y. ess Busin tegy in any econom hensive recruitment stra pre com ir the of and t al par son key per be a typically, embody the e of the workforce and, cally as employees form the cor ment their efforts techni ion, while interim staff aug sat ani org ouse or the of in-h fit le al lab cultur ess to skills unavai nals also can provide acc sio fes pro t jec Pro . ded nee not needed year-round. rec The bottom line: flexible e. hav ise erw oth nt uld it wo ruitment gives a compan y resource and cost-contr ol options

Working with Robert Half

Robert Half is the worlds leading specialised recruitment consultancy, and our Robert Half Finance & Accounting and Robert Half Management Resources divisions place accounting and finance professionals on a temporary and permanent basis and on a senior-level interim basis, respectively. There is no substitute for the human touch when hiring. While any number of online or technology tools can identify potential hires, they cant tell you about the person behind the profile. We take the time to understand the unique needs and cultures of the businesses we serve. Then, we carefully choose professionals with skills, work styles and career goals that align with those businesses. How else is Robert Half different from other recruitment consultancies and hiring resources?

We find the most effective match. We have one of the largest networks of skilled talent in the recruitment industry, as well as access to job candidates that other sources dont. Among other distinctions, our status as the exclusive partner of The Wall Street Journal allows us frequent exposure to highly skilled professionals who are dedicated to their careers. We lead you through the process. We guide you through every step of the hiring process. We can help you determine your recruitment needs, set remuneration levels and handle hurdles along the way, such as addressing a potential candidates counter-offer. Communication is our specialism. We provide immediate assistance. The hiring process can be long and drawn out, and you may need help right away. We use the recruitment industrys most advanced technology to quickly identify candidates who meet your exact needs. We meet any need. Robert Half can provide you with a choice of skilled candidates
with specific expertise and experience to match your unique needs. No matter your budget or requirements, we can find a skilled professional who can assist your business.

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

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Our specialised services

Robert Half Finance & Accounting Robert Half Finance & Accounting is the worlds first and largest recruitment consultancy specialising in the placement of accounting and finance professionals on a temporary and permanent basis. Robert Half Management Resources Robert Half Management Resources is the largest premier provider of senior level accounting and finance professionals on a project and interim basis. Robert Half Financial Services Group Robert Half Financial Services Group specialises in placing high calibre banking and capital markets professionals on a temporary and permanent basis. Robert Half Technology Robert Half Technology is a leading provider of IT professionals on a contract and permanent basis. Robert Half Human Resources Robert Half Human Resources specialises in the placement of highly-skilled HR professionals on a project, interim and permanent basis. OfficeTeam OfficeTeam specialises in the placement of highly skilled administrative and office support professionals on a temporary and permanent basis.

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