Robert Half - Salary Guide 2010

SALARY GUIDE 2010

2 | roberthalf.co.uk

Table of contentsAbout this guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

The recruitment environment . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Where to recruit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Skills and attributes most in demand today . . . . . . . . . . . . . . . . . . . . 5

Keeping your best people . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Maintaining staff morale . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Six sure-fire morale killers and how to avoid them . . . . . . . . . . . . . . . . . 7

Flexible recruitment solutions . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Sector snapshots: piecing together the recruitment story across the UK . . . . . . . .10

The recruitment climate across the regions. . . . . . . . . . . . . . . . . . . . .12

Regional salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Working with Robert Half . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Robert Half Salary Guide 2010 | 3

About this guideThe Robert Half Salary Guide 2010 provides a forecast of average salaries for finance and accounting professionals at SMEs and larger organisations in six regional locations across the UK:

The guide also explores the current recruitment landscape, highlights the skills and attributes most in demand today and shares some of our insight into staff retention.

Robert Half International has over 60 years of experience in specialised recruitment services, and today we operate from more than 360 locations worldwide. We have been producing comprehensive salary guides for more than five decades, with the aim of giving hiring managers and professionals the tools they need to make more informed hiring/career decisions.

The salaries detailed in this report are based on:

Thousands of permanent, temporary and interim placements made by our consultants across the UK•Local insight from our regional office network•Exclusive workplace research we conduct each year with finance and business leaders•Feedback from ongoing discussions with employers and candidates•

For clarity and ease of comparison, the salary ranges listed in this guide reflect average salaries. This helps avoid variables such as ongoing performance, seniority, tenure of service and fluctuating responsibilities that can affect remuneration packages. For the same reason, the figures listed also exclude bonuses, incentives and other benefits.

London and South East•Midlands•North •

Scotland•South Coast•South West•

For further details about the internal and external research featured within this guide, please visit roberthalf.co.uk


The recruitment environmentThe recent economic climate has certainly been a challenging one for employers and employees, but there are several reasons to be cautiously optimistic about recruitment in 2010. Certainly, the views of finance and business leaders who took part in the 2009 Robert Half Executive Round-Table Series were broadly positive. A total of 75% of those attending felt their organisations would be either slightly or much stronger once the recession is over.

Leaner structures and more efficient processes are a significant factor in this optimism. The Robert Half report Looking Ahead: UK CFOs’ Recovery Priorities reveals that more than half the finance

leaders polled saw the need to get costs back under control as a positive benefit from the recession, while 41% also thought their organisations will emerge from the downturn as more efficient entities.

This same report also highlighted that organisations are likely to exhibit a high degree of caution when recruiting in response to an economic upturn. Making strategic hires within departments most affected by business growth is seen as a major post-recession challenge. In the most efficient strategies these recruits would be complemented by temporary and/or interim staff as required, giving additional flexibility and reducing the risk of further painful downsizing of permanent hires if the economic recovery wavers.

Retaining key staff

Managing internal expectations

Managing growth

Making strategic hires to complement departments coping with growth/increased business

Attracting and recruiting high-quality candidates

Maintaining internal controls established during the recession while providing enough flexibility to maximise growth

Managing new/increased regulatory burdens

Other

Don’t knowCFOs were asked: “Which, if any, of the following do you anticipate will be the biggest challenges facing your business when the economy recovers?”

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%


WHERE TO RECRUIT

Our UK finance leaders research also indicated the sectors likely to be at the forefront of an economic upturn, and by inference where there will be a shorter lead time to establish appropriate staffing levels. Finance leaders expect the financial and business services sectors to enjoy a quicker recovery, while the retail and construction sectors may be among the slow starters, affording more time to formulate recruitment strategies but, in turn, risking the flight of key employees to faster-growing sectors.

Additionally, we gained insight into the types of finance professionals likely to be in the strongest demand as organisations gear up for growth. Among small- and mid-size firms, the emphasis is firmly on day-to-day accounting skills, plus accounting operations responsibilities such as payroll and credit control. These roles are also a consideration for larger organisations, but here more importance is placed on commercial finance areas, such as budgeting, forecasting and business analysis, as well as audit and compliance.

SKILLS AND ATTRIBUTES MOST IN DEMAND TODAY

Technical expertise, teamed with good communication and interpersonal skills, remains the most attractive mix for hiring managers. There is also an ever-growing emphasis on providing meaningful management information to support corporate decision making, giving candidates with a proven track record in financial and business analysis a distinct advantage.

Professional accreditations are highly valued by hiring managers. In particular, a Chartered Institute of Management Accountants (CIMA), Association of Chartered Certified Accountants (ACCA), or an Associate of the Institute of Chartered Accountants in England and Wales (ACA) qualification, especially when gained through one of the ‘big four’ accounting firms, is a significant asset. For senior-level corporate finance positions, a master’s degree in business administration (MBA) can also be an advantage.

Other skills and attributes that are currently in demand include:

Commercial outlook – Organisations seek finance professionals who can understand the bigger picture around the numbers and who have the ability to present this both to an internal audience and when interfacing with external stakeholders such as customers, regulators and banks.

Initiative – The ability to anticipate finance issues before they happen, to contribute to planning for ‘what-if’ scenarios and to identify efficiencies and volunteer recommendations to achieve them.

Sector experience – Previous experience in an employer’s industry or the ability to apply knowledge from a different sector are highly valued, as they enable the candidate to make an immediate contribution.


Keeping your best peopleAn independent survey of more than 3,000 British workers found that 37% are planning to leave their current job as soon as the economy is more stable. Meanwhile, almost half (49%) plan to move within six months of official confirmation that the recession is at an end.

These findings have given a jarring wake-up call to employers and thrown the issue of staff retention even more firmly into the spotlight. The survey also shed light on the priorities of those seeking a change of job, revealing that pay is not the most important consideration. Instead, location (57%) and working hours (56%) were cited as more of a priority than netting a pay rise (51%). This indicates that the desire for a good work–life balance is as strong as ever, making it vital that employers find ways to address these concerns.

MAINTAINING STAFF MORALE

Companies with high levels of employee engagement also boast higher productivity and lower staff turnover, so it’s vital for managers not to overlook the morale of their teams, even when there are numerous other priorities crowding their in-trays.

Managers can make a positive contribution to good morale in a number of ways, of which the following are among the most important:

Set the tone – Employees take their lead from their manager, so it’s vital that you set a positive and enthusiastic tone at all times. Shout about your team’s and organisation’s successes – everyone loves working for a winning team.

Keep communication lines open – Effective communication consistently comes first whenever we ask executives about the best ways to improve the engagement of their workforce. Of course, it’s not always easy, particularly in periods of economic contraction. But people want to know what’s going on, and they appreciate open and honest dialogue. This can be especially effective when allied to a clear articulation of the strategic vision for the department or wider organisation.

Give your team credit, even if you can’t reward themfinancially – In today’s economic climate it’s not always possible to financially reward great performance. This makes it even more vital that managers use non-financial means to recognise their staff for going the extra mile. Even a simple ‘thank-you’ goes a long way; while organising more formal recognition events or giving time off in lieu can also pay off handsomely. On the other hand, it’s just as important not to let poor performance go unchecked. Nothing demotivates a team more than seeing a poor performer ‘get away with it’.


Trust and empowerment breed loyalty – Delegating tasks helps keep you on top of your workload, and done well it can also be an excellent engagement tool. The more ownership and trust an employee is given over a delegated task the more they will be empowered to give their best and, more importantly, the more opportunity they’ll have to learn new skills.

Promote from within – Internal promotions not only motivate staff, they also shorten training time. You can generate more opportunities to do this by identifying career development plans for members of your team, as well as making a commitment to help them achieve their goals.

SIX SURE-FIRE MORALE KILLERS AND HOW TO AVOID THEM

Not standing by your team:1. Managers who fail to support their employees will quickly forfeit their trust. Stand up for your team members, particularly if they’re criticised unfairly. If you’re there for them, they’ll be there for you.

Ignoring the rumour mill:2. It exists in every organisation, and it thrives in the absence of formal communications. In times of change, tell your team all you can as early as you can to cutback on grapevine chatter.

Thinking it’s all about money:3. Without a doubt, money matters when it comes to motivation, but it’s not the only factor. Robert Half’s guide How to keep your best people reveals that when executives were asked: “Which of the following is most likely to cause good employees to quit their jobs?” the top answer was limited opportunities for advancement. Compensation ranked fourth behind unhappiness with management and lack of recognition.

Oiling only the squeaky wheel:4. For every person who approaches you with questions or concerns, there are several others who won’t. By spending time talking face to face with employees, you’ll be able to solicit feedback from your strong, silent types in addition to your more vocal team members.

Catching people off guard:5. Employees should never be surprised by what they hear during a performance review. Consistently let staff members know what they’re doing right and where they need to improve.

Making staff afraid to ask for help:6. Often, your most reliable employees will be the most overloaded and least likely to speak up. While hard work is a valuable commodity, don’t inadvertently promote a culture where workers feel they can’t request assistance with projects when they need it.


Flexible recruitment solutionsOne of the concerns frequently aired at Robert Half’s Executive Round-Table Series this year was that organisations which had cutback staff numbers would struggle to cope with the eventual economic upturn, and that the negative effect of redundancies on employee morale would also feed through to departures of key staff once the employment market picked up.

Many organisations are now looking to avoid the expensive and often painful cycle of hiring and laying off permanent staff according to economic conditions. Instead they’re taking a more pragmatic, flexible approach to recruitment, complementing a core of permanent employees with a carefully chosen mix of temporary, interim or project staff.

This approach offers a number of key benefits, including:

Cost savings – A mix of employee resources enables you to turn some of your fixed staff costs into variable expenses because you pay only for the talent you need when it’s truly needed. In addition, you’ll lower the high costs associated with hiring and training new staff while reining in overtime expenses.

Improved competitive position – Having more control over staff costs gives you an advantage over competitors with less flexible staffing strategies that may be more vulnerable to economic ups and downs.

Higher retention rates – A temporary/permanent employee mix reduces stress for core employees and protects their jobs by decreasing the likelihood of further permanent cutbacks.

Reduced burden on permanent staff – Using project workers to assist with day-to-day responsibilities allows core staff to pursue other high-priority challenges or take time off, as needed, to recharge.

Useful role coverage – Temporary or interim staff are ideal for covering employees who are off sick, taking holidays or on maternity leave. They can also provide cover while you search for the right candidate for a vacant position.

Wider choices – More and more experienced professionals are choosing project work because of the flexibility and variety of assignments it offers, which deepens the talent pool. For initiatives that require specialised, technical knowledge that doesn’t exist in-house, you can find temporary or interim professionals who possess these precise skill sets. In fact, in a Robert Half survey, finance and human resource managers cited the ability to access special skills unavailable internally as the greatest benefit of working with project professionals.


Sector snapshots: piecing together the recruitment story across the UK

The following is a brief overview of each main industry sector within the UK, including any notable trends likely to affect employment patterns in the coming months.

TECHNOLOGY AND TELECOMS

Almost 1 in 20 of the UK workforce is employed within the IT and telecoms sectors, with more than 40% of these jobs located in London and the South East. Globally, the industry has suffered as firms cutback on technology spending during the recession. However, a leading consulting firm believes that software firms will help lead the recovery as current freezes on capital infrastructure investment will drive increased spending on software as companies seek to squeeze more performance from their existing systems.

RETAIL/FMCG

The UK’s retail sector employs around 11% of the total workforce. The sector has suffered a number of high-profile casualties since the onset of the recession and, while other businesses report continued strong sales, recovery for the industry as a whole could be a slower process if there are any further shocks to still-fragile consumer sentiment once the economy picks up.

ENERGY, UTILITIES AND MINING

The UK’s energy and utilities sectors are huge and geographically diverse, covering activities ranging from offshore oil and gas exploration to waste water treatment. While the UK is not expected to remain self-sufficient in oil after 2016, there is a fast-growing renewable energy sector, encouraged by government support for environmentally friendly solutions to the nation’s ever-growing energy needs.

INSURANCE

The insurance industry encompasses general insurance, providing risk cover to individuals, businesses and governments, life insurance, as well as a key element of the pensions and financial services sectors. Like other areas of the financial services sector, the insurance industry has had to cope with considerable downsizing of employment in recent years.

PUBLIC SECTOR/CHARITY

The public sector, including the NHS, is one of the largest employers in the UK, employing 19.5% of the total workforce. Meanwhile the charity or voluntary sectors employ the equivalent of almost half a million full-time staff (many positions within these sectors are part-time). The public sector, in particular, is too vast and diverse to be characterised within a snapshot such as this, although it is fair to say that almost every part of it is expected to come under considerable financial pressure as government spending is cut in order to reduce the UK’s present budget deficit.

ENTERTAINMENT AND MEDIA

The big industries within this sector are terrestrial TV, independent TV production, radio and interactive media. The sector is characterised by a high level of freelance operatives, though this tends to be within the frontline and technical jobs rather than finance and accounting. Just over half of all media jobs are located within London and the South East. Those dependent on advertising revenues may continue to make slow and strategic decisions around recruitment.


RETAIL BANKING

This sector covers the financial services provided by the high-street banks for individual customers and small businesses through their branch network. The travails of the banking sector as a result of the credit crunch are well documented so little needs to be added here. On a more positive note, the government response to the banking crisis was proof that banks are seen as vital cogs within the engine room of UK plc and as such will always have access to high levels of support.

MANUFACTURING

Although often characterised as a declining sector that’s been unable to withstand competition from low-cost rivals within the developing world, British manufacturing has thrived where it can play to its strengths of design, technology, innovation and service. The sector remains both vibrant and diverse, covering everything from aerospace to pharmaceuticals. It is also geographically diversified, with notable ‘hot spots’ for certain industries, including automotive within the Midlands and oil and gas-related manufacturing in the area around Aberdeen in Scotland.

TRAVEL, TOURISM AND HOSPITALITY

Travel, tourism and hospitality have been fast-growing sectors within the UK in recent years, boosted by fluctuating exchange rates and the increasing popularity of holidaying closer to home by environmentally conscious consumers keen to reduce their carbon footprint. The UK tourism sector sustains approximately two million jobs, 1.5 million of which are directly sustained and the rest indirectly.

CONSTRUCTION/PROPERTY

The construction sector is a critical element of the UK economy and is expected to provide 2.8 million jobs by 2011, although this figure is dependent on the sector making a robust recovery from the recession. London (and its surrounding area) is expected to be the most buoyant for future recruitment, thanks to major projects such as the 2012 Olympic Games and Thames Gateway regeneration.


The recruitment climate across the regionsThe Robert Half Executive Round-Table Series is an ideal forum through which to compare and contrast the different regional economic, business and recruitment climates that exist within the UK.

At our annual round tables a majority of participants – varying from 61% to 92% depending on location – felt their organisations would emerge from the recession either slightly or much stronger.

Factors behind this optimism included the fact that the recession had forced many organisations to become much leaner on staff, processes and expenditures, while others saw reduced competition in the marketplace as a key factor in their company’s future prosperity.

While certainly not universally held, there was also a sentiment that one of the after-effects of the credit crunch might be a desire among talented individuals to remain in the regions rather than migrate to London. If these views prove correct, it would appear to be good news for hiring managers located in the regions, particularly when considered alongside the Robert Half survey quoted earlier in this guide, which found ‘location’ and ‘working hours’ uppermost in the minds of those considering a change of job.


LONDON AND SOUTH EASTJob Title Private and PLC

SME Large CompanyAccounts Assistant £19,000 - £25,000 £20,000 - £25,000

Purchase/Sales Ledger Clerk £18,000 - £23,000 £18,000 - £25,000

Ledger Supervisor £25,000 - £30,000 £30,000 - £36,000

Assistant Accountant/Part Qualified £25,000 - £35,000 £25,000 - £36,000

Payroll Administrator/Payroll Clerk £18,000 - £24,000 £20,000 - £25,000

Payroll Manager/Payroll Supervisor £25,000 - £35,000 £35,000 - £55,000

Assistant Accountant £23,000 - £30,000 £25,000 - £34,000

Financial Accountant £38,000 - £45,000 £40,000 - £48,000

Management Accountant – PQE 2 years £40,000 - £50,000 £45,000 - £55,000

ACCA – PQE 2 years £40,000 - £50,000 £45,000 - £55,000

Part Qualified* – Stage 1 £20,000 - £25,000 £20,000 - £25,000




Group Accountant £35,000 - £45,000 £45,000 - £55,000

Finance Manager £35,000 - £45,000 £45,000 - £55,000

Head of Accounting/Financial Controller £55,000 - £65,000 £60,000 - £75,000

Cost Accountant/Financial Analyst £35,000 - £45,000 £40,000 - £50,000

Business Analyst/Financial Analyst £40,000 - £50,000 £45,000 - £55,000

Financial Planning and Analysis Manager £50,000 - £60,000 £60,000 - £75,000

Internal Auditor £40,000 - £55,000 £45,000 - £60,000

Compliance Manager/Risk Manager £50,000 - £60,000 £60,000 - £70,000

Treasurer/Treasury Analyst £40,000 - £55,000 £40,000 - £70,000

Tax Specialist/Manager £50,000 - £70,000 £55,000 - £80,000

Finance Director/Chief Financial Officer £70,000 - £120,000 £90,000 - £200,000

Job Title Public PracticeAuditor £25,000 - £35,000

Audit Senior £35,000 - £50,000

Audit Manager £45,000 - £75,000

Senior Manager £55,000 - £90,000

Partner £75,000 - £200,000

* ACA/CIMA/ACCA or equivalent qualifications.



MIDLANDSJob Title Private and PLC










ACCA – PQE 2 years £32,000 - £38,000 £32,000 - £42,000






Finance Manager £35,000 - £44,000 £44,000 - £54,000











Audit Senior £33,000 - £40,000

Audit Manager £35,000 - £55,000


Partner £60,000 - £100,000



NORTHJob Title Private and PLC










ACCA – PQE 2 years £35,000 - £40,000 £39,000 - £43,000






Finance Manager £35,000 - £40,000 £40,000 - £48,000











Audit Senior £30,000 - £38,000

Audit Manager £40,000 - £50,000


Partner £70,000 - £120,000



SCOTLANDJob Title Private and PLC










ACCA – PQE 2 years £33,000 - £38,000 £35,000 - £42,000






Finance Manager £35,000 - £40,000 £40,000 - £45,000











Audit Senior £30,000 - £35,000

Audit Manager £35,000 - £45,000


Partner £60,000 - £100,000



SOUTH COASTJob Title Private and PLC










ACCA – PQE 2 years £30,000 - £35,000 £35,000 - £45,000






Finance Manager £40,000 - £45,000 £40,000 - £50,000











Audit Senior £25,000 - £30,000

Audit Manager £30,000 - £35,000


Partner £50,000 - £70,000



SOUTH WEST AND WALESJob Title Private and PLC










ACCA – PQE 2 years £30,000 - £40,000 £30,000 - £40,000






Finance Manager £30,000 - £40,000 £32,000 - £45,000











Audit Senior £30,000 - £40,000

Audit Manager £35,000 - £45,000


Partner £60,000 - £100,000


Working with Robert HalfPicking the wrong person for the job can be extremely costly in terms of time and money: our research has found that it can take up to 14 weeks to hire someone for a management-level position. While according to the consulting firm Bliss & Associates, it can cost approximately150% of a person’s salary to replace them if the process is handled internally.

Robert Half has a proven track record in helping clients identify and secure the right candidates to fill temporary, interim or permanent positions across all levels of the financial, technical and operational professions.

Working with Robert Half offers a number of clear advantages, notably:

Access to a global network of more than two million •finance and accounting professionalsA fast and efficient response time – because many •recruitment needs are unanticipated – and we know that prolonged vacancies can disrupt the smooth running of an organisationKnowledgeable and experienced consultants who take the •time to fully understand each brief and precision match candidates using a methodology we’ve refined throughout our 60-year-plus historyExtensive regional coverage through our network of UK •offices

08705 329635roberthalf.co.uk

© 2010 Robert Half. An Equal Opportunity Employer. RH-UK-0108-SG-0110

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

Robert Half Management 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.

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Robert Half - Salary Guide 2010

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