Market Insights 2013 - Professional Services

Marks Sattin
Market Insight 2013

Professional Services
Accountancy, Finance & Advisory
METHODOLOGY 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 nance professionals. Over 2,000 accountancy, nance and advisory professionals from 20 industry sectors across the UK were surveyed. The report is based on ndings received from respondents completing the survey as well as sector specic market insight and salary ranges (annual and day rates) from our experienced consultants based at Marks Sattins UK offices. Market insight and salary range data tables are provided across the following sectors and regions: Banking and Capital Markets, Change Management, Front Office, Insurance, Investment Management, Senior Finance, Commerce and Industry, Executive, Part Qualied and Transactional, Qualied, 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 specic advice please do contact us directly.
Marks Sattin is a leading multi-divisional specialist accountancy, nance 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-prot sector, commerce and industry, banking and nance and public practice. Marks Sattin is a well-established specialist recruitment rm 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 ll 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 nance, 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.
CONTACT US
LONDON 322 High Holborn, London, WC1V 7PB +44 20 7321 5000 london.uk@markssattin.com NORTH WEST 3rd Floor, Centurion House, 129 Deansgate, Manchester, M2 3WR +44 161 638 8630 manchester.uk@markssattin.com
THAMES VALLEY Davidson House, Forbury Square, Reading, Berkshire RG1 3EU +44 118 900 1800 thamesvalley.uk@markssattin.com
YORKSHIRE Park Row House, 19-20 Park Row, Leeds, LS1 5JF +44 113 242 8177 yorkshire.uk@markssattin.com
markssattin.co.uk
Marks Sattin
@MarksSattin
INTRODUCTION Dave Way

In Marks Sattins 25th year of trading, were delighted to have received a record number of responses to our Market Insight 2013 survey. Over 2,000 accountancy and advisory professionals provided their feedback on key areas such as salaries, bonuses and overall business condence as both they and their employers see it coming into 2013.
2012 proved to be a year of continued upheaval for the business community, with the eurozone crisis dragging on and the double dip recession increasing uncertainty across the markets. Despite this, the accounting and advisory community didnt suffer in the way wed seen in the previous downturns, with job cuts and redundancies far less frequent. However, cost management was still the order of the day, with 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 qualied commerce and industry sector in later 2012. Areas such as natural resources, digital media, advertising, online retail and property were all more bullish thanks to improved trading. Conversely, high street retailers and areas such as manufacturing suffered signicantly. 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 re. But despite this, recruitment conditions for accountants in nancial services improved as the year went on, with departments increasingly nding themselves under-resourced amid heavy regulation and change. We hope you nd 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 nd out further details. From all the team we wish you a successful year!
DAVE WAY
Managing Director
Dave Way, Managing Director of Marks Sattin, believes in leading by example and is committed to making Marks Sattin the best nancial 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 nancial recruitment. As such, he has considerable expertise in providing a bespoke service for clients and candidates alike.
dave.way@markssattin.com +44 20 7747 9670
INTRODUCTION
KEY TRENDS
SALARIES & BENEFITS
Employers began to be slightly more forthcoming with pay rises for accountancy and advisory staff last year, with 68% of employees receiving a positive review and only 1% asked to take a pay cut. Only 30% of permanent staff and 20% of contract staff were unhappy with their current salaries, once again showing that remuneration isnt 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 benets packages, with the most important benets 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 gures arent 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.
Only 30% of permanent staff and 20% of contract staff were unhappy with their current salaries
Of those receiving bonuses, only 44% were satised 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 nancial 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 nance professionals during uncertain and changing times.
68%
spondents ceived a
st year
ncrease
pay increase
of respondents received a last year
of respondents received a last year
68%
68%
pay increase
of respondents were happy with their
56%
benets
56%
56%
benets
benets
of respondents were satised with their
44%
bonus
44%
44%
bonus
Our survey showed that across the board, accountants were far better looked after than other professionals
bonus
INTRODUCTION Dave Way

JOB SECURITY
Similarly to our other surveys over the past ve years, the crystal ball for 2013 does not show a picture of renewed optimism, with only 20% of respondents feeling more condent 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 nd 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 prots, but not to the extent of losing nance staff.
2013 2013
33% of respondents
actually saw an increase in the size of their teams over the past 12 months
of respondents feel secure in their current role % of respondents feel secure in their current role
78%
78
Few businesses are perceived to be taking a long term view on headcount, which is hardly surprising considering the yo-yo economy and false dawns seen over the past few years. Only 18% of respondents believed their management were planning one to two years ahead, whilst the majority (31%) thought that hiring was short term and only looking six months ahead. This lack of succession planning, which ties in with the reactive hiring weve experienced throughout 2012, will surely be to the detriment of some departments if not rectied 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.
2012 2012
of respondents felt secure in their current role % of respondents felt secure in their current role
70%
70
KEY TRENDS
MOVEMENT
Overall, we saw a consistent movement of accounting professionals throughout 2012, with many now feeling its an opportune time to re-enter the job market after staying put during the worst of the global nancial crisis. This is shown by the fact that 41% of our respondents were only in their rst year of employment in early 2013. In line with this, the majority of hires in 2012 were replacement hires. As a result, the volume of counter-offers increased signicantly across the board, as employers reacted to valued team members being offered higher salaries and rates elsewhere in the market. In 2013, this reactive element has subsided somewhat. Salaries are increasing organically, acknowledging the opportunity cost of losing the best staff to competition. The motivations for moving on to greener pastures continue to be an interesting topic for our business. Throughout the downturn, weve seen that accountants seldom move for cash, although money does remain part of the decision to move (and very rarely do candidates ever move for less!) The greatest drivers for moving continue to be career development, which top scored with 33%, with new challenge/ interesting work in second. Higher salary was cited by just 26%, showing that our respondents on the whole put their careers before cold cash. Recruiters continued to be the top source of nding 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 nd their last role, primarily as a result of the volume of roles available and being able to dedicate enough time to the job search.
of respondents were only in their rst year of employment
41%
of respondents would relocate to the USA
42%
RELOCATION
Never more so has relocation been a hot topic within the nance community. As a result, our non-London businesses have continued to offer great opportunities to their local markets, beneting 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 prole allure of Asia, with Singapore at 33% and Hong Kong at 32%. But with talk of bonuses being capped, corporate and personal taxes being too high and our climate being as unpredictable as our economy, is now the time to spread our wings? Not according to the 29% of our respondents who wouldnt relocate, primarily because of having settled where they are.
88% of respondents state
that working with a recruitment agency is still a vital part of any new job search.
KEY FINDINGS Demographics

RESPONDENT PROFILE
Gender
2,016
Age
Social networks actively used by respondents

67%
respondents took part in this years survey 67%
33%
of respondents were male and 33% female
LinkedIn 66% Facebook 59% Twitter 17%
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%
<25 26-30 31-35 36-40 41-49 >50 years
Other 7% None 15%

Respondents could choose more than one answer
More than 50 years 12%
Work location
Greater London 64%
59% 12% 3%
11% South East 7% 4% North West
Midlands 3% Yorkshire & Humberside 5%
11% 12% 9% Other
KEY
Permanent Contract
2-5
years
UK
years
Which of the following best describes your qualication status?
CURRENT EMPLOYMENT
How are you currently employed?
10+
2-5
years
years
6-10
years
10+
years
10+
10+ years PQE 36%

2-5
years
6-10
5 to 10 years PQE 18% 2 to 5 years PQE 21%

2-5
years
years
10+
years
10+ 2-5
years
6-10
years
10+
years
10+
Newly qualied 9%
6-10
2-5
years
years
6-10
10+
years
Permanent or xed term contract 78% Interim or contractor 20%
Unemployed 2%
years
Part qualied 11%

10+
10+
years
Qualied by experience or not qualied 5%

10+ 2-5
years
6-10
years
Satisfaction with current role

10+
years
10+
73%
Only 2%
of respondents are unemployed
Pe r
Pe r
73% of respondents would recommend their employer
ent an m
Satised 44% Neither satised nor dissatised 26% Dissatised 30%
ent an m
Pe r
ent an m
44% of respondents
are satised in their current role
Capital Markets Change Management Insurance Investment Banking Investment Management Retail Banking Other
KEY FINDINGS Demographics
SECTOR REPRESENTATION
Which of the following best describes the area/sector you currently work in?
Banking & Financial Services

Advertising, PR, Media and Publishing Business Services Energy and Natural Resources Engineering and Manufacturing FMCG and Pharmaceuticals Property and Construction Retail and Clothing Telecoms and Technology Other
28%
Commerce & Industry
43%
UK
Audit and Assurance
Corporate Finance
Taxation Other
Management Consultancy
Public Practice
Other
Unemployed
11%
10%
6%
2%
KEY FINDINGS Market Perspective

ECONOMIC PROSPECTS
Compared with the last 12 months, how condent do you feel about the economic prospects facing your company? Top 5 expectations for your business in the next 12 months
Business process/policy change 41% Salary freeze 36% Budget cuts 35% Recruitment freeze 34%
More condent 20% As condent 52%
Protability of business 33%

Respondents could choose more than one answer from a choice of 14
Less condent 28%
JOB SECURITY
of respondents feel more condent about the economic prospects facing their company compared with the last 12 months
Only 20%
How would you rate your current job security?
Expectations for personal salary and job security in the next 12 months
64%
64%
Secure 78% Insecure 22%
64%
64%
Salary freeze 20% Salary reduction 3% Shorter working week 2% Redundancy 1%
64%
64%
Other 14%
UK
HEADCOUNT
What is the size of your department? How has the number of staff in your team changed in the past 12 months?
61%
34%
of respondents selected business growth or expansion as the main reason for an increase in staff
Remained the 34% same

the same 33% Increased Remained 34%
1 to 5 employees 23% 6 to 10 employees 21% 11 to 15 employees 12% 16 to 20 employees 8% More than 20 employees 36%
the same Decreased 28%
Remained
Not sure 5%
of respondents selected headcount reductions as the main reason for a decrease in staff
20 employees in their department

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%
36% of respondents have more than 33%
What is your employers recruitment strategy?
of respondents have seen an increase in the size of their team in the last 12 months
KEY FINDINGS Career Insight

EXPERIENCE
Length of time in the accountancy, nance or advisory profession 0 to 3 years 9% 4 to 6 years 19% 7 to 10 years 21%
More than 20 years
Length in current role 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%
<1 1-2 2-3 3-5 5-10 >10 years
11 to 15 years 18% 16 to 20 years 9% More than 20 years 21% Not applicable 3%
7-10 years
More than 10 years 2%
41% of respondents have been in their

current role for less than a year
respondents chose taking on more responsibility as the main reason for an increase in working hours
55%of
HOURS WORKED
Average hours worked per week How has the number of hours changed in the last 12 months? Increased 34% Remained the same 53% Decreased 13%
UK
RELOCATION
Places respondents would consider relocating to in the next 2 years
% 2 4
USA 42% USA 42% Australia 33% Australia 33% Mainland Europe 28% Mainland Europe 28% Within the UK 28% Within the UK 28% Canada 24% Canada 24% Singapore 23% Singapore 23% Hong Kong 22% Hong Kong 22% UAE 19% UAE 19% New Zealand 18% New Zealand 18% Ireland 12% Ireland 12% South Africa 10% South Africa 10% Malaysia 9% Malaysia 9% China 8% China 8% India 7% India 7% Other 3% Other 3%
Respondents could choose more than one country from choice 14 Respondents could choose more than one country from aa choice ofof 14
29% of respondents
would not relocate
Top 5 reasons for respondents wanting to relocate Improved quality of life 61% Different culture 54% New career opportunity 52% Better employment opportunities 49% Improved salary 48%
Respondents could choose more than one reason from a choice of nine
Improved quality of life

is the main reason for respondents wanting to relocate
MOVING ON
How do you rate the importance of the following sources when seeking a new role?
57
50
39
38 34
%
33 33
%
29
20
19
15
anticipate changing roles in the next 12 months
36% of respondents
11
7%
3%
Top 5 reasons for leaving last role
Career development 33% New challenge/more interesting work 29% Higher salary 26% End of contract 18% Redundancy 16%
Respondents could choose up to three reasons
38% of respondents
took up to 3 months to nd their current role
KEY
Importance
Vital
50
Very important
43
38
%
Quite important
%
% 36
39
% 30
Not important
57
%
33
50
43
39
%
38 34
%
33 33
%
36
39
30
%
57
Source
11
%
29
20
19
18
% 10
22
%
50 % 15
19
18
10
%
22
57
% 39
7%
%
43
9%
3% 30
%
3%
38
34
33 33
%
36 2%
%
39
29
50
20
%
National press
19
%
43
39
15
18
22
34
11
29
33 33
%
% %
38
10
36
2%
39
3
%
9%
9%
57
29
%
20
11
3
%
%
19
15
%
7%
50
Online job boards/ advertising

18
% 22
%
% 30
10
9%
43
39
%
2%
39
3
%
38 34
%
33 33
%
36
2%
Social networking
30
%
3%
29
%
57
20
19
% 15
18
10
%
22
%
11
3% 39
%
7%
50
3 24 % %
3%
38 34
%
33 33
%
36
39
30
%
57
20
19
15 % 50
%
18
10
%
22
Recruitment consultancies/ headhunters

9%
9%
11
3 % 39
%
7%
4 2%3%
38 34
%
% % 33 33
36
39
30
%
29
Trade press
22
%
20
19
15
%
18
10
%
11
3%
7%
9%
2%
3%
Word of mouth/ personal referrals/ internal contact
How did you nd your current position? Recruitment consultancy or headhunter 47% Online advertising 13% Professional network or personal contact 13% Direct approach 9% Internal promotion 5% Print advertising 2% Other 2% Not currently employed 9%
KEY FINDINGS Salaries & Benets

REMUNERATION
When was 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%
have had a pay review in the last 12 months
68% of respondents
33%
What was the outcome of your last pay review? Pay increase 68% Pay remained the same 31% Asked to take a pay cut 1% of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
Satisfaction with current remuneration
respondents are satised with their current remuneration compared with
53% of contract 44% of permanent

respondents
Pe r
Co
t rac nt
ent an m
Pe r
Pe r
ent an m
ent an m
Pe r
Pe r
ent an m
ent an m
Pe r
Pe r
ent an m
ent an m
UK
BENEFITS
25 days holiday or more

is the most desired benet
Top 5 benets currently received
1-9% of salary
56%
56% of respondents were satised with their benets 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 benets that applied
Benets considered most and least important when considering a new role 25 days holiday or more Annual bonus scheme Good company pension Private healthcare Insurance* Sabbatical Mortgage relief Season ticket loan Daily subsidised meals Childcare vouchers
*PMI/death in service/life insurance
Respondents rated a selection of 20 benets in order of importance
BONUS
Did you receive a bonus in 2012?
44%
44% of respondents were satised with their bonus As a percentage of your basic salary, what was your bonus in 2012?
34%
10 to 19% of salary 32% 20 to 29% of salary 15% 30 to 49% of salary 5% 40 to 90% of salary 4% More than 90% of salary 3%
of respondents received the same bonus in 2012 as 2011

1 to 9% of salary 41%
Yes 47% No, not entitled to receive one 38% No, not awarded one 15%
1-9% of salary
KEY FINDINGS Salaries & Benets

BONUS
A comparison of bonuses received across sectors*
100
80
60
40
20
0 Banking and Financial Services Commerce and Industry Management Consultancy Public Practice
KEY
1 to 9% of salary 10 to 19% of salary 20 to 29% of salary 30 to 39% of salary 40 to 49% of salary
*Bonuses received as a percentage of salary
50 to 79% of salary More than 80% of salary
LONDON
LONDON
PROFESSIONAL SERVICES
Advisory
Ewa Stefanska Senior Manager

+44 20 7747 9754 professionalservices.uk@markssattin.com
Leyla Ozbek Manager
LONDON
ADVISORY Market Perspective

The big trends of 2012
The past 12 months have been difficult for the advisory market, particularly in corporate nance and transaction services, as rms simply havent been in a position to do deals. As a result, growth has been minimal with many companies focusing on redeploying staff to other areas of the business to ensure they are still being utilised. Most of the redeployed staff have moved to restructuring, the main area of advisory that has seen an upturn in activity this year, due to rms 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 rms 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.
Outlook for 2013

Recruitment levels within transaction services and corporate nance 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 rms 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 doubledip recession and decision makers do have more condence in the market, so we expect this positive trend to continue in 2013, helping to signicantly 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 rms. We have already experienced an inux of roles from a number of the large American advisory boutiques seeking exceptional corporate restructuring candidates to bolster their growing teams. Many of these rms are seeking to hire the very best candidates that have qualied in audit at a leading accountancy rm, 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, lling any skills shortages that may exist and negating the need to hire externally.
ECONOMIC PROSPECTS
Compared with the last 12 months, how condent do you feel about the economic prospects facing your company? More condent 28% As condent 48% Less condent 24%
Top 5 expectations for your business in the next 12 months

Recruitment freeze 43% Business process/policy change 41% Salary freeze 39% Greater focus on regulatory issues 29% Protability of business 27%
LONDON
LONDON
JOB SECURITY
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 rst six months of 2013. The larger rms in particular have ceased to recruit in many areas of advisory, such as corporate nance and transaction services, and are only seeking to make business critical external hires.
61%
61% 61%
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 rms, as they are able to offer a specialist service offering and we anticipate this growth will continue.
Salary freeze 34%

61%
Redundancy 4%
61%
Shorter working week 3% Salary reduction 0%

61%
Other 4%
HEADCOUNT
How has the number of staff in your team changed in the past 12 months?
67%
38%
38% 38% 38%
Decreased 34% Remained the same 25% Not sure 3%
of respondents have more than 20 employees in their team

of respondents selected voluntary departures as the main reason for a decrease in staff
39%
LONDON
ADVISORY Career Insight

HOURS WORKED
Supply and demand

There is certainly a shortage of strong candidates at the one to three year qualied level within advisory. This has been driven by the wider changes in the market which have made it impossible for newly qualied candidates to make a move into advisory immediately upon qualication. Accountants, who have qualied in audit but also managed to gain some advisory exposure along the way in the form of a secondment or more diversied 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.
Average hours worked per week
How has the number of hours changed in the last 12 months?
50% of respondents chose
Increased 33% Remained the same 56% Decreased 11%
EXPERIENCE
Length of time in the accountancy, nance or advisory profession Length in current role
taking on more responsibility as the main reason for the increase in working hours
Market growth
We continue to see growth in recovery and insolvency, and this is likely to continue in 2013. Whilst this is a sector that will still face many challenges throughout the year, these are the areas of advisory that, by their very nature, are in the best position to capitalise on the ongoing uncertainties in the market. Many companies fell victim to the recession last year such as Comet, JJB Sports, Clinton Cards, Game and Habitat, and whilst this has meant job losses and consolidation across the retail sector, this work has kept insolvency and restructuring specialists busy in a time when many other teams are struggling to build a steady pipeline of work. As economic uncertainty continues, restructuring will remain busy, with the main sectors affected being retail, restaurants, and commercial real estate. Candidates who specialise in any of these areas will be particularly sought after. After several years of the famous amendand-extend philosophy from lenders, 2013 is likely to see more corporate bankruptcies than last year too.
77%
23 %
7 - 10 years
0 to 3 years 14% 4 to 6 years 24% 7 to 10 years 31% 11 to 15 years 16% 16 to 20 years 5% 21 to 25 years 7% More than 25 years 3%
<1
1-2
2-3 3-5 5-10 >10 years
Less than 1 year 30% 1 to 2 years 25% 2 to 3 years 25% 3 to 5 years 8% 5 to 10 years 12% More than 10 years 0%
LONDON
LONDON Taking the next step in your career

BE REALISTIC ABOUT WHAT ROLES ARE OUT THERE Take time to understand the recruitment market in your sector. Career moves in advisory have become increasingly difficult in the downturn. Whilst professionals still suffer from a shortage of roles, candidates need to ensure that they are taking short term steps that will help them to achieve their long term goals. SPEND TIME ON YOUR CV Your CV is your route into any organisation. You will only have one opportunity with each employer for it to make an impact. BE PROACTIVE IN YOUR JOB SEARCH Partner with a recruiter that genuinely understands 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 offer tips and advice to help you beat the competition. SENIOR LEVELS Whilst junior level candidates are facing stiff competition for a very small number of roles, directors and partners that can demonstrate a strong track record of successful business development are in the unique position of being able to create roles for themselves. Almost all rms will continue to meet with, and hire, professionals that can directly impact the bottom line and help to grow new areas of business.
38%
RELOCATION
Top 5 places respondents would consider relocating to in the next two years Top 5 reasons for respondents wanting to relocate
38%
Within the UK 33% Hong Kong 31%
38%
Improved quality of life 67% Improved salary 56% Better employment opportunities 54% New career opportunity 51% Different culture 47%
Respondents could choose more than one reason from a choice of nine PROFESSIONAL SERVICES
Singapore 29%
38%
Australia 28%
Respondents could choose more than one country from a choice of 14

38%
26% of respondents would not relocate

Why candidates are making a move
Unlike in previous years, when money was a signicant factor in a candidates decision to move, we have seen a real shift where the main drivers for candidates have become things like security, culture and medium to long term career progression prospects. One of the Big 4 rms in particular has recognised this change and re-evaluated their benets 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 suffice. Throughout the interview process candidates will want to understand whether the role they are considering can offer them opportunities to develop their skills and learn new ones, whilst also providing security. We urge companies to maximise the opportunity they have at interview to convey this to prospective employees, as all too often employers see interviewing as a one-way process.
MOVING ON
Top 5 reasons for leaving last role New challenge/more interesting work 35% Career development 34% Higher salary 26% Better work-life balance 14% Better bonus potential 12%
of respondents anticipate changing roles in the next 12 months
29%
LONDON
ADVISORY Salaries & Benets

Spotlight on salaries and bonuses
Growth in the deals sector in 2012 was slow, so salaries remained consistent with the previous year and in many instances bonuses disappeared entirely. Companies were focused on retaining staff and keeping them busy, rather than being in a position to consider pay rises; the result being that pay rises tended to be small, and in line with ination. recruitment throughout the year meant that there was candidate movement, prompting rms to introduce small pay rises in order to entice their staff to stay. Corporate recovery and insolvency also saw small pay rises across all levels, and this is one area where the majority of candidates still reported receiving their annual bonus.
Forensics saw a small uplift in salaries compared to last year, as this area proved more robust than corporate nance and transaction services. A steady pace of
REMUNERATION
When was your last pay review? Satisfaction with current remuneration
Pe r
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69%
of respondents received a salary increase in their last pay review
28%
of respondents perceive a 5 to 10% salary increase as acceptable if they were to move roles
Growth in the deals sector in 2012 was slow, so salaries remained consistent with the previous year and in many instances bonuses disappeared entirely
LONDON
LONDON
Transactional Services/ Corporate Finance
Big 4 salary range 2012

22,000-34,000 44,000-50,000 55,000-70,000 75,000-95,000 95,000-150,000 150,000-700,000
Mid-tier salary range 2013 2012

20,000-33,000 40,000-45,000 55,000-60,000 60,000-70,000 75,000-110,000 100,000-200,000
Job title
Analyst Executive Manager Senior Manager Director Partner
2013
20,000-33,000 40,000-45,000 50,000-60,000 60,000-70,000 75,000-100,000 100,000-200,000
22,000-34,000 42,000-48,000 54,000-65,000 70,000-90,000 95,000-150,000 150,000-500,000
Insolvency | Recovery Job title

Junior Administrator Senior Administrator Assistant Manager Manager Senior Manager Director Partner

20,000-27,000 22,000-43,000 42,000-50,000 50,000-78,000 70,000-100,000 80,000-190,000 150,000-550,000

18,000-24,000 33,000-43,000 38,000-45,000 45,000-60,000 60,000-90,000 75,000-100,000 100,000-200,000
2013
20,000-30,000 30,000-44,000 44,000-50,000 50,000-60,000 60,000-85,000 75,000-100,000 100,000-200,000
20,000-30,000 23,000-45,000 40,000-52,000 50,000-70,000 65,000-100,000 90,000-190,000 150,000-550,000
Forensics Job title

Part Qualied Newly Qualied Manager Senior Manager Director Partner

20,000-33,000 42,000-50,000 50,000-75,000 75,000-100,000 80,000-190,000 140,000-550,000

16,000-28,000 38,000-45,000 48,000-55,000 60,000-90,000 75,000-100,000 100,000-200,000
2013
16,000-28,000 38,000-45,000 48,000-55,000 55,000-90,000 75,000-100,000 100,000-200,000
20,000-35,000 42,000-50,000 50,000-70,000 75,000-100,000 80,000-190,000 140,000-550,000
LONDON
ADVISORY Salaries & Benets

BENEFITS
Attracting top talent

OFFER DEVELOPMENT AND TRAINING Uncertain market conditions have seen candidates desire to move for nancial gains all but disappear, so you must be able to offer candidates long term career prospects and opportunities for professional development. This could be in the form of training or additional qualications, for example the CFA or an MBA.
Benets considered most and least important when considering a new role
25 days holiday or more 76% Annual bonus scheme 54% Flexible benets 46% Car or car allowance 21% Less than 25 days holiday 16%
25 days holiday or more Annual bonus scheme Discretionary bonus scheme Mobile phone/ Blackberry/PDA Private healthcare Sabbatical Childcare vouchers Mortgage relief Less than 25 days holiday Season ticket loan
TIMING IS KEY With such few strong candidates available, it does not take long for them to get snapped up. Often the largest rms 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 rms need to address this issue if they want to stop this trend.
49%
49% of respondents were satised with their benets
BONUS
44%
44% of respondents were satised with their bonus
As a percentage of your basic salary, what was your bonus in 2012?
1 to 9% of salary 26% 10 to 19% of salary 23% 20 to 29% of salary 14%
1 - 9% of salary
30 to 49% of salary 9% 50 to 69% of salary 5% 70 to 100% of salary 16% More than 100% 7%
Yes 59% No, not awarded one 22% No, not entitled to receive one 19%
of respondents received a higher bonus in 2012 than in 2011
47%
LONDON
LONDON
Audit & Assurance

Leyla Ozbek Manager

Robert Webb Consultant
LONDON
AUDIT & ASSURANCE Market Perspective

Redundancies 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 staff. Those that should have been promoted were not, and those that hoped for pay rises experienced pay freezes. Many auditors who in normal circumstances would have looked for a new job, creating new positions for others, stayed put, causing difficulties in external audit recruitment, especially in the larger rms. 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 rms who have kept a high level of trainee auditors since the recession.
Outlook for 2013

The second half of 2012 saw a signicant 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 rms searching for specialist accountants with specic core skills. This rise was due to failures of risk management in the late noughties, particularly in the nancial 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 nding 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 qualied, 40,000 per annum, to senior management, 70,000 per annum, which is likely to be a focus area for us.
ECONOMIC PROSPECTS
Salary freeze 42% Budget cuts 34% Increase in staff recruitment 34% Business process/policy change 32% Protability of business 30%
More condent 16% As condent 58% Less condent 26%
In the second half of 2012 IT assurance and risk management positions rose by 20%
LONDON
LONDON Reactions to uncertain market conditions

Audit rms 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 rst signs of mid-tier rms reacting to the uncertain market conditions? As the sixth largest accountancy rm in Britain, this puts them in a position to take on the FTSE 250 rms. Leading on from this, the smaller mid-tier rms are also expected to rethink their strategies, differentiating themselves through creating niche markets. This in turn will enable them to compete against the bigger players and all rms 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 qualied and more senior level candidates.
JOB SECURITY
How would you rate your current job security? Expectations for personal salary and job security in the next 12 months
65%
65%
65%
Salary freeze 29%

65%
65%
Salary reduction 1% Shorter working week 1% Redundancy 1%

65%
Other 3%
HEADCOUNT
58%
Remained the same 34% Increased 28% Not sure 1% of respondents selected voluntary departures as the main reason for a decrease in staff
55% of respondents have
more than 20 employees in their team
LONDON
AUDIT & ASSURANCE Career Insight

HOURS WORKED Skills in demand
Accountants 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 rms seemed to reduce their FSA offering throughout the recession but are now starting to see improvements.
Average hours worked per week How has the number of hours changed in the last 12 months?
EXPERIENCE
understaffing or lack of resources as the main reason for the increase in working hours
68%
32%
Supply and demand

4-6 years
0 to 3 years 25% 4 to 6 years 33% 7 to 10 years 22% 11 to 20 years 13% 21 to 25 years 4% More than 25 years 3%
<1
1-2
2-3 3-5 5-10 >10 years
There 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 rms in 2013 and we therefore expect to see an upwards spike in homegrown auditors across the market in 2013 and 2014.
LONDON
LONDON
RELOCATION
Taking the next step in your career

BE REALISTIC AND AWARE OF YOUR EXPERIENCE The market is very different to what it was a few years ago; exciting roles once in abundance within corporate nance and transaction services are now few and far between. If you have not had exposure to corporate nance, its unlikely you will walk into a corporate nance 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 rms, helping you to beat the competition. YOUR CV IS YOUR ROUTE INTO A BUSINESS Spend time making your CV as good as it can be. Include all relevant experience and key achievements, remembering to differentiate yourself through the skills you can offer.
Top 5 places respondents would consider relocating to in the next two years
Top 5 reasons for respondents wanting to relocate
Australia 40% Within the UK 34% Canada 29% Mainland Europe 28%
Different culture 65% Improved quality of life 65% New career opportunity 60% Improved salary 58% Better employment opportunities 56%

MOVING ON
Top 5 reasons for leaving last role Career development 34% Higher salary 28% New challenge/more interesting work 23% Relocation 13% Redundancy 10%
Candidates are moving rms not just for an increase in salary, but for additional benets 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 benets 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 rm, 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.
34%
LONDON
AUDIT & ASSURANCE Salaries & Benets

Although 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 qualied.
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.
IT audit and compliance positions will see the biggest increases in salaries, especially at audit senior and assistant manager levels
REMUNERATION
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Less than 6 months ago 54% 6 to12 months ago 28% More than 12 months ago 9% Not applicable 9%
65%
38%
LONDON
LONDON
Audit and Accounts

25,000-30,000 30,000-35,000 42,000-46,000 52,000-64,000 75,000-90,000 100,000-150,000 140,000-350,000

21,000-28,000 25,000-28,000 38,000-44,000 52,000-60,000 61,000-75,000 75,000-100,000 80,000-180,000
Job title
Trainee Finalist Newly Qualied Manager Senior Manager Director Partner
2013
20,000-28,000 25,000-30,000 38,000-44,000 50,000-60,000 60,000-70,000 70,000-100,000 80,000-180,000
25,000-30,000 30,000-35,000 42,000-45,000 52,000-64,000 75,000-90,000 100,000-150,000 140,000-350,000
Risk and IT Assurance Job title

Trainee Finalist | 2+ years Newly Qualied Manager Senior Manager Director Partner

25,000-30,000 30,000-35,000 40,000-45,000 50,000-60,000 80,000-90,000 100,000-150,000 150,000-350,000

20,000-25,000 25,000-30,000 40,000-45,000 50,000-60,000 60,000-70,000 75,000-100,000 85,000-185,000
2013
20,000-25,000 25,000-30,000 40,000-45,000 50,000-60,000 60,000-70,000 75,000-100,000 85,000-185,000
25,000-30,000 30,000-35,000 40,000-45,000 50,000-60,000 80,000-90,000 100,000-150,000 150,000-350,000
Although 2012 salaries and bonuses remained fairly static around at 40,000 to 50,000, 2013 looks set to be different
LONDON
AUDIT & ASSURANCE Salaries & Benets

HAVE A SENSE OF URGENCY The 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 BRAND Interviews are not just an opportunity for candidates to sell what they can offer their prospective employer; its also an opportunity for employers to sell what they can offer a prospective employee. The role you are selling should be an attractive one with a competitive employee benets package to complement it. USE A SPECIALIST RECRUITMENT AGENCY Work with someone who understands your business and who has perhaps helped you in the past. They are likely to know the best candidates in the market, even the ones who are not looking, and can directly approach them for you. MEETING THE TEAM Its important candidates get visibility of the personalities they will be potentially working with. Moving jobs is a big thing, so arranging an informal get together between them and the team can really help them with their decision.
BENEFITS
Benets considered most and least important when considering a new role 25 days holiday or more Good company pension scheme Annual bonus scheme Flexible working Private healthcare Mortgage relief Less than 25 days holiday Childcare vouchers Daily subsidised meals Season ticket loan
Company pension scheme 55% 25 days holiday or more 54% Less than 25 days holiday 42% Private healthcare 35% Insurance (PMI/death in service/life insurance) 34%
42%
42% of respondents were dissatised with their benets
BONUS
42%
42% of respondents were dissatised with their bonus
As a percentage of your basic salary, what was your bonus in 2012?
46%
1 - 9% of salary
1 to 9% of salary 79% 10 to 19% of salary 21%
LONDON
LONDON
Management Consultancy
Oliver Phoenix Associate Director

Chris Saull Senior Consultant
LONDON
MANAGEMENT CONSULTANCY Market Perspective

Regulatory changes continued to sweep across both public and private sectors with a profound effect on nancial services. This gave rise to the biggest trend of 2012 and will no doubt continue into 2013. As a result nancial services organisations turned to consulting rms, 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 rms with particular subject matter expertise in these areas saw a real uptake in business. As a result, larger rms saw a shift from front end strategic advisory within regulatory towards the large scale project/ programme management skills needed to implement these 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 rms a no-brainer at a time where cost cutting was essential to the survival of many organisations. Consulting rms 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 rms 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.
The rise and introduction of risk, regulation and compliance practices within established consulting rms and smaller boutiques was a notable trend of 2012
ECONOMIC PROSPECTS
Protability of business 39% Increase in staff recruitment 37% Salary freeze 34% Salary increase 28% Business process/policy change 28%
LONDON
LONDON
JOB SECURITY
How would you rate your current job security? Expectations for personal salary and job security in the next 12 months Salary freeze 18% Salary reduction 3% Shorter working week 2% Redundancy 1%
Other 13% Secure 78% Insecure 22%

Outlook for 2013

The importance of risk and regulatory change will continue to be a major trend that will consume the budgets of nancial 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 nancial services management consultancy services. Insurance is set to be an exception as rms 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 rms/service lines specialising in strategic analytics. As the US leads the way in the recovery, condence has started to trickle back into the board rooms of the most inuential businesses in the world, resulting in a reallocation of funds to external consultancy rms to ensure maximum efficiency and minimum waste. This has resulted in an uplift in revenue across most industries, with the oil and gas and FMCG sectors particularly strong. The public sector has also started to show signs of life, with many consultancies expecting to be able to generate more signicant revenue from this area through 2013 and beyond. Operational change and transformation continue to be of most value, with even the pure play strategy rms, who have been hit particularly hard by recent market conditions, gravitating more towards assignments in this area. As market condence has improved and rms 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.
LONDON
MANAGEMENT CONSULTANCY Market Perspective

Market growth
The outlook for 2013 is positive but the term cautious optimism has never been truer. Businesses are starting to come back to consulting rms for assistance, which is clear to see from the inux of roles being released by the large consulting rms in areas such as risk, regulation, nance transformation, performance improvement and organisational design. We expect this inux to lter 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 nancial services sector, due to regulatory change. Both areas are growing exponentially with regards to consulting capabilities, to the point where some smaller consultancy rms have had the foresight to scale back operations in other sectors to retrench and focus all of their resources on nancial services and oil and gas.
The rst 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
HEADCOUNT
82%
42%
42%
Remained the same 31% Decreased 24% Not sure 3% of respondents selected voluntary departures as the main reason for a decrease in staff
42%
of respondents have more than 20 employees in their team
50%
LONDON
LONDON

As a direct response to the economy, companies have adapted their recruitment expectations. Some consulting rms have changed their criteria in order to hire versatile candidates that can work on more than one project type in more than one area of the business. In 2012 hiring decisions became much more important as the ability to hide a bad hire within large organisations became more difficult due to downsizing and redundancies. Some organisations froze recruitment altogether, some for the whole year; others just became picky, wanting all new hires to tick every single box and make an immediate impact with minimal support. Companies with European offices in countries like Italy, Greece and Spain, whose fortunes and pipelines were particularly sparse, were able to transfer European consultants across to their UK operations to cut down on UK recruitment costs. This has been at all levels 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.
In 2012 hiring decisions became much more important as the ability to hide a bad hire within large organisations became more difficult due to downsizing and redundancies.
LONDON
MANAGEMENT CONSULTANCY Career Insight

Skills in demand
At present the skill sets that are most in demand across consulting are nance, 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 rms investing in the area. Project and programme management are still in demand as the banks continue to deliver large scale change projects.
HOURS WORKED
Average hours worked per week How has the number of hours changed in the last 12 months?
We expect this trend to continue throughout the rst 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.

taking on more responsibility as the main reason for the increase in working hours
EXPERIENCE
78%
22 %
Supply and demand

4-6 years
0 to 3 years 19% 4 to 6 years 22% 7 to 10 years 16% 11 to 15 years 16% 16 to 20 years 8% 21 to 25 years 5% More than 25 years 8% Not applicable 6%
<1
1-2
2-3 3-5 5-10 >10 years
Finance 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.
LONDON
LONDON
RELOCATION
Taking the next step in your career

THINK IT THROUGH Gaining clarity before making a move is essential. Think about your motivations, goals and have a clear picture of what your next role will look like. Candidates who are not completely condent about a move often perform badly in the interview process and potentially burn bridges with rms that may well be of interest to them a few months down the line. HAVE YOUR END GOAL IN MIND It is not always possible to move straight into your dream 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 rm or positioning yourself for an internal switch can help sway your CV towards that dream job. COMMITMENT AND PREPARATION Strong commitment throughout a recruitment process can impress a prospective employer, and gives those candidates a clear competitive advantage over others. Preparation for interviews is another topic clients frequently raise, and acts as an indicator that companies use to identify who is really keen on the business and the opportunity on offer.
Top 5 places respondents would consider relocating to in the next two years
Top 5 reasons for respondents wanting to relocate
Mainland Europe 42% Singapore 39% Hong Kong 37% Australia 35%
New career opportunity 66% Improved quality of life 63% Improved salary 55% Different culture 53% Better employment opportunities 51%
Respondents could choose more than one reason from a choice of nine PROFESSIONAL SERVICES
MOVING ON
Top 5 reasons for leaving last role Career development 44% New challenge/more interesting work 38% Higher salary 35% End of contract 12% Redundancy 12%
The past 12 months have seen their fair share of redundancies across the board, especially within nancial services, which has led to a sharp increase of immediately available candidates from various areas, often internal change management teams within the larger banks.
37%
LONDON
MANAGEMENT CONSULTANCY Salaries & Benets

Spotlight on salaries, bonuses and benets
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, with a noticeable increase in the number of companies offering car allowances, share options, sign-on bonuses or softer benets, 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 nancial 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 uctuation in basic salaries and total packages being offered by consulting rms, with some candidates attempting to name their price. In an attempt to compete, a number of rms are adding a greater degree of exibility to their offers using aspects such as equity and sign-on bonuses to attract candidates without breaking their salary bandings. Work-life balance is becoming more important. Whilst the majority of consultants in the market understand the need for travel and completing projects before a deadline, businesses that offer any exibility or perks benet from greater candidate attraction and employee retention. Some businesses have enjoyed such success through offering more exibility in working from home and frequent return from international assignments.
When was your last pay review?
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
LONDON
LONDON
Large consultancies
Job title
Analyst Consultant/Senior Consultant Manager Director/Senior Manager Partner
Experience
Graduate level 2-6 years 5-8 years 8-15 years 15+ years
2012
25,000-35,000 40,000-60,000 60,000-80,000 80,000-130,000 150,000+
2013
25,000-35,000 40,000-60,000 60,000-80,000 80,000-130,000 150,000+
Specialists
Job title
Analyst Consultant Manager Director Partner
Experience
Graduate level 3-7 years 8-12 years 12-15 years 15+ years
2012
25,000-35,000 45,000-58,000 65,000-90,000 100,000-140,000 140,000+
2013
25,000-35,000 45,000-62,000 65,000-95,000 100,000-150,000 150,000+
REMUNERATION
Satisfaction with current remuneration
Pe r
Co
t rac nt
Pe r
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Pe r
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Pe r
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Pe r
Pe r
Pe r
21%
ent an m ent an m
ent an m ent an m
56%
LONDON
MANAGEMENT CONSULTANCY Salaries & Benets

MAKE CANDIDATES FEEL VALUED Strong candidates can choose from multiple offers, so selling your company to the candidate during the recruitment process is key, even if you are a top tier business. Offer attractive packages, but also sell the softer benets, along with company culture, client exposure and work-life balance. Companies using telephone interviews or predominantly HR driven processes often lose out on quality candidates who havent felt valued during the process. When faced with multiple offers, candidates tend to make their decision based on the people they have met or their experience of the company. Those companies tend to secure the best talent, winning out even over competitors offering more money. As such, face time with line managers is important, whether this is a quick coffee with a partner, casual drinks with the team, or even an unarranged phone call to explain a delay in feedback. This can be the crucial difference in whether an offer is accepted. HAVE AN EFFICIENT RECRUITMENT PROCESS The speed and efficiency of the recruitment process are critical to successful hiring. Companies that can complete processes within a short time scale really have the edge, with exibility on interview times being helpful to candidates who are busy on client assignments. ENSURE YOUR REPUTATION IS STRONG Candidates often decide whether to apply for a role from what they have heard and/or read from others. The poor quality of projects on offer and limited opportunities for promotion are some of the key reasons for a candidate not wanting to join.
BENEFITS
Benets considered most and least important when considering a new role 25 days holiday or more Annual bonus scheme Private healthcare Mobile/ Blackberry/PDA Good company pension Less than 25 days holiday Mortgage relief Daily subsidised meals Season ticket loan Childcare vouchers
25 days holiday or more 78% Mobile phone/ Blackberry/PDA 60% Private healthcare 57% Company pension scheme 55% Insurance (PMI/ death in service/life insurance) 51%
BONUS
Did you receive a bonus in 2012? As a percentage of your basic salary, what was your bonus in 2012? 37% of respondents were satised with their bonus 1 to 9% of salary 43% 10 to 19% of salary 30% 20 to 29% of salary 12%
1 - 9% of salary
45%
30 to 39% of salary 17% 40 to 49% of salary 5% 50 to 69% of salary 2% More than 70% of salary 1%
LONDON
LONDON
Taxation
Ewa Stefanska Senior Manager

Richard Jennings Consultant

123
LONDON
TAXATION Market Perspective

2012 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 off-shore accounts is becoming a large concern for HMRC. These movements have made rms 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.
Outlook for 2013

Most rms 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 qualied 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 ll the gaps. Global mobility should continue to increase. Large rms are utilising their international staff much more due to recruitment budget cuts, and internal recruitment has increased as clients are forced into recruiting staff from different teams rather than nding the perfect candidate externally. This is an effective way to save money in difficult times, but is it the right way to go? Sometimes, quicker and cheaper wins can negatively affect businesses in the long run.
2012 was the year of growth in compliance and regulation
ECONOMIC PROSPECTS
Salary freeze 57% Budget cuts 43% Business process/policy change 40% Recruitment freeze 30% Greater focus on regulatory issues 27% Protability of business 27%
LONDON
LONDON
JOB SECURITY

The general trend is that companies are doing more with less; maximising their current staff to work more efficiently. If an employer is prepared to train a new recruit, they will look internally and if they decide to recruit externally, their expectations of the new hire will be extremely high.
59%
59% 59%
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, xed-term contracts as it has been easier to manage headcount in this way. This has been effective, but businesses have had to be exible 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.
Salary freeze 38%

59%
Redundancy 4%
59%
Salary reduction 0% Shorter working week 0%

59%
Other 2%
HEADCOUNT
50%
36%
36%
Remained the same 36% Decreased 24% Not sure 4% of respondents selected headcount reductions as the main reason for a decrease in staff
36%
of respondents have between 1 and 5 employees in their team
35%
LONDON
TAXATION Career Insight

HOURS WORKED
Supply and demand

We have identied an increase in mid-tier rms recruiting candidates with dual handling experience into personal tax teams. Expat tax services used to be offered predominantly by the top 10 accountancy rms 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 wouldnt be surprised if we began to see more in-house nance teams nally making their move by bringing in a tax accountant. Candidates that suit these positions tend to be from mid-tier rms who have a broader understanding across a variety of tax disciplines.
Average hours worked per week
How has the number of hours changed in the last 12 months?
of respondents chose taking on more responsibility as the main reason for the increase in working hours
65%
EXPERIENCE
Market growth
With 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 identied by the press. There is going to be a greater need for specialists to come in and get taxes in order, or ght the HMRC to protect current procedures, so that rms avoid being named and shamed in the public eye.
66%
34 %
11-15 years
0 to 3 years 4% 4 to 6 years 20% 7 to 10 years 26% 11 to 15 years 29% 16 to 20 years 5% 21 to 25 years 5% More than 25 years 11%
<1
1-2
2-3 3-5 years
5-10 >10
There is going to be a greater need for specialists to come in and get taxes in order, or ght the HMRC to protect current procedures, so that rms avoid being named and shamed in the public eye
LONDON
LONDON Taking the next step in your career

REGULARLY UPDATE YOUR CV List your education qualications, identify key achievements under each employer and show clear progression throughout. A CV is your rst 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 prole is as complete as possible, highlighting the key skills and experience you have to ensure your prole matches your ongoing career aspirations. DIFFERENTIATE YOURSELF As the market is tough, anything you can do to differentiate yourself from the competition is worth doing. For example, if your employer is willing to sponsor you for a CTA or any other qualication, do it. HIGHLIGHT YOUR MARKET AWARENESS Keep up to date with market trends as these affect all businesses. FATCA experience will be very sought after this year and if you are working in a nancial services team and have had any FATCA experience, even if it is minimal, include this on your CV.
RELOCATION
Top 5 places respondents would consider relocating to in the next two years Top 5 reasons for respondents wanting to relocate
48%
Australia 38% Mainland Europe 32%
48%
Better employment opportunities 54% Improved quality of life 54% New career opportunity 51% Different culture 46% Improved salary 46%
48%
Within the UK 32% Canada 26%

48%
48%
New Zealand 26%
48%

2012 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, exibility and training. They are interested in travel opportunities, mentors they can learn from and exibility in their work so they can pursue their interests out of the office. Employers need to be aware of this, as the market is changing and the new generation of talent coming through have different priorities to previous years.
MOVING ON
Top 5 reasons for leaving last role New challenge/more interesting work 45% Career development 35% Higher salary 35% Better work-life balance 20% More responsibility 13%
29%
LONDON
TAXATION Salaries & Benets

Generally 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 benets and offering employees a better working environment. For example, some of the larger rms have been a lot more open to part-time hours and working from home. Bonuses have not decreased in those specialist boutiques and consultancies that have identied 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. Offering a more tailored and personalised service at a cheaper rate than the larger established rms has allowed niche consultancies to ourish. These rms have done exceptionally well and their growth rates have been strong. They attract talent as they are able to offer variety, entrepreneurialism, growth and therefore career progression.
REMUNERATION
Pe r
Pe r
Co
t rac nt
Pe r
ent an m
ent an m
Pe r
ent an m
Pe r
ent an m
Pe r
ent an m
Pe r
ent an m
ent an m
Less than 6 months ago 40% 6 to12 months ago 30% More than 12 months ago 10% Not applicable 20%
63%
34%
of respondents perceive an 11 to 15% salary increase as acceptable if they were to move roles
LONDON
LONDON
Practice Tax

20,000-34,000 32,000-45,000 42,000-50,000 50,000-65,000 65,000-90,000 80,000-150,000+ 160,000+

20,000-30,000 30,000-42,000 38,000-48,000 48,000-55,000 55,000-75,000 75,000-120,000 120,000+
Job title
1st Year Trainee Finalist | 2+ years Newly Qualied Manager Senior Manager Director ACA/CTA Partner
2013
20,000-34,000 30,000-35,000 35,000-45,000 45,000-55,000 55,000-75,000 75,000-120,000 120,000+
20,000-34,000 32,000-38,000 42,000-50,000 50,000-65,000 65,000-90,000 80,000-150,000+ 160,000+
Industry Tax Job title

Accountant Assistant Manager Manager Senior Manager | International Director
Salary range 2012

45,000-55,000 55,000-65,000 65,000-80,000 80,000-100,000 120,000+
2013
42,000-55,000 55,000-65,000 65,000-80,000 80,000-100,000 120,000+
Transfer Pricing Job title

Analyst Manager Senior Manager Director
Salary range 2012

45,000-55,000 55,000-70,000 70,000-85,000 85,000+
2013
40,000-55,000 55,000-70,000 70,000-85,000 85,000+
Indirect Tax Job title

Assistant Accountant Manager Head of VAT
Salary range 2012

30,000-40,000 45,000-55,000 65,000-80,000 90,000-110,000+
2013
30,000-40,000 40,000-55,000 50,000-80,000 90,000-110,000+
LONDON
TAXATION Salaries & Benets

LOOK AT NEW WAYS TO DIFFERENTIATE YOURSELF You 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 START With salaries staying the same, benets are becoming more important. Employers are now including the benets package in job specications, which is proving effective when selling a role to prospective employees. BE FLEXIBLE Flexible working is becoming more popular so companies need to be more accommodating when it comes to offering part-time hours and the opportunity to work from home. PAY ATTENTION TO THE JOB SPECIFICATIONS Just as candidates need to differentiate themselves with their CVs, employers need to do the same with job specications. 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 offer in the job specication.
BENEFITS
Benets considered most and least important when considering a new role
25 days holiday or more 82% Company pension scheme 67% Insurance (PMI/death in service/life insurance) 57% Private healthcare 53% Mobile phone/ Blackberry/PDA 51%
25 days holiday or more Good company pension scheme Mobile phone/ Blackberry/PDA Insurance* Private healthcare Daily subsidised meals Season ticket loan Childcare vouchers Sabbatical Mortgage relief
55%
*PMI/death in service/life insurance
BONUS
Did you receive a bonus in 2012? As a percentage of your basic salary, what was your bonus in 2012?
59%
59% of respondents were satised with their bonus
1 - 9% of salary
1 to 9% of salary 41% 10 to 19% of salary 31% 20 to 29% of salary 19% 30 to 99% of salary 6% More than 100% 3%
44%
ACKNOWLEDGEMENTS
We would like to extend our appreciation to all those who completed this survey and made this market report possible. If you didnt 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, nance and advisory professionals and can serve as a useful guide. However, if you require a more tailored and condential discussion on how this will affect your business, nance department or indeed your own career, please do not hesitate to get in touch.
Editor and Marketing: Kirsty Assistant Editor:
Alex Voskou Alicja Skrakowski

gaapweb.com
Kelly
Promotion:
Your future in finance and accountancy
DISCLAIMER
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.
markssattin.co.uk
Marks Sattin
@MarksSattin

Market Insights 2013 - Professional Services

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Market Insights 2013 - Professional Services

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Marks Sattin

Market Insight 2013

Accountancy, Finance & Advisory

INTRODUCTION Dave Way

dave.way@markssattin.com +44 20 7747 9670

of respondents received a last year

of respondents were happy with their

of respondents were happy with their

of respondents were satised with their

of respondents were satised with their

of respondents were satised with their

INTRODUCTION Dave Way

of respondents were only in their rst year of employment

of respondents would relocate to the USA

88% of respondents state

KEY FINDINGS Demographics

Social networks actively used by respondents

respondents took part in this years survey 67%

of respondents were male and 33% female

LinkedIn 66% Facebook 59% Twitter 17%

Other 7% None 15%

More than 50 years 12%

Greater London 64%

11% South East 7% 4% North West

Midlands 3% Yorkshire & Humberside 5%

11% 12% 9% Other

10+ years PQE 36%

5 to 10 years PQE 18% 2 to 5 years PQE 21%

Permanent or xed term contract 78% Interim or contractor 20%

Part qualied 11%

Qualied by experience or not qualied 5%

Satisfaction with current role

73% of respondents would recommend their employer

Satised 44% Neither satised nor dissatised 26% Dissatised 30%

are satised in their current role

KEY FINDINGS Demographics

Banking & Financial Services

Audit and Assurance

KEY FINDINGS Market Perspective

More condent 20% As condent 52%

Protability of business 33%

Less condent 28%

How would you rate your current job security?

Secure 78% Insecure 22%

Salary freeze 20% Salary reduction 3% Shorter working week 2% Redundancy 1%

Remained the 34% same

the same Decreased 28%

20 employees in their department

36% of respondents have more than 33%

What is your employers recruitment strategy?

KEY FINDINGS Career Insight

11 to 15 years 18% 16 to 20 years 9% More than 20 years 21% Not applicable 3%

More than 10 years 2%

41% of respondents have been in their

Improved quality of life

anticipate changing roles in the next 12 months

Top 5 reasons for leaving last role

Online job boards/ advertising

Recruitment consultancies/ headhunters

Word of mouth/ personal referrals/ internal contact

KEY FINDINGS Salaries & Benets

have had a pay review in the last 12 months

Satisfaction with current remuneration

respondents are satised with their current remuneration compared with