salary survey 2016

Accountancy and Finance Salary Review 2016: Quick reference guide

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Contents

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The RK Salary Survey

About RK

2016 Challenges and opportunities

West Midlands

Yorkshire

Lancashire

Northwest

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Welcome to the 2016 Salary survey

Our clients and candidates tell us two things when it comes to salary surveys: Firstly, they are often inaccurate, and secondly, they are cumbersome documents with too much irrelevant information and unnecessary analysis. What they want is a quick reference guide of accurate salaries. This is what we have sought to supply.

The ranges given are intended to be a guide only. Local factors, such as industry density, demographics and the local economic environment are all important factors.

We are also proud to offer a free bespoke salary benchmark service (without obligation). This will take into considerations the specifics of a vacancy, the size of the organisation and team, the local economy, and a competitor analysis. This is undertaken independently by our in-house research department and specialist consultants.

The figures for this year’s salary survey were derived through a range of research and quantitative based techniques. These include:

• A review of the placements made by RK in the past 6 months

• Current salaries and rates of those candidates registering for our services

• Local published vacancies

• Market knowledge of our consultants

In total, salaries of over 5000 people were included.

Our Awards and Accreditations

About us

RK Group is a leading specialist financial recruitment consultancy operating in the Midlands, Yorkshire & North West geographies from a regional branch network (Birmingham, Leeds, Manchester and Preston). A dedicated recruitment group operating exclusively in the specialism of finance including Accountancy, Tax, Audit, Risk and Treasury across the clerical, part qualified and qualified marketplace. Established in 1996, the average length of service within the business is over 5 years. With a genuine commitment to long term development, we have built close links with many businesses, clients, candidates and professional bodies in local regions. The business was born out of a search and selection recruitment team and as such we have adopted and continue to use a retained search methodology whilst offering a contingency-based pricing strategy (i.e. payment on success). RK Group is part of AIM-listed Kellan Group PLC, so you can be assured of our financial stability, corporate infrastructure and be confident in our reputation. In summary as a business we provide Accountancy and Finance staff across the North of England and have developed an extensive client and candidate network over almost 20 years.

Our core specialism is Accountancy and Finance recruitment on a temporary and permanent basis.

RK Finance Professionals: www.rkfinance.co.ukKey sectors: Part qualified and qualified accountancy and financeTemporary, permanent, interim and contract recruitment.Specialist in Accountancy and Finance mid to senior level appointments. Typical Roles include: Management & Financial Accountants, Commercial and Operational Accountants, Analysts, Finance Managers, Financial Controllers, Finance Directors. Senior Transactional Managers. RK Accountancy: www.RKAccountancy.co.ukKey sectors: Clerical accountancy and financeTemporary, permanent and contract recruitment. Specialist in the recruitment of clerical and managerial accountancy and finance staff.Typical Roles include: Credit Controllers, Purchase & Sales Ledger Clerks, Payroll professionals, Accounts Trainees, Assistant Accountants, Transactional T/L and Managers.

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Being part of a PLC means more than financial strength, it is about being able to leverage our individual and joint accreditations, awards and quality processes:

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It is getting harder to swiftly identify and secure a strong SME Financial Controller.

Through recent years a number of smaller businesses unfortunately ceased trading leading to a spike in their accountants looking for new positions. However, alongside, a range of smaller businesses faced cash-flow issues and therefore took action to recruit from this bank of talented accountants to steer them through the rougher trading waters and keep a tighter handle on cash management.

As we enter stronger economic conditions start-ups and privately held growth businesses are increasingly seeking the need of an Accountant to support the business leaders in facilitating sustained growth by providing a firm infrastructure of financial control and management reporting. MDs recruiting this role almost always seek an individual who has done this role before (i.e. been the head of finance for a smaller business). It is therefore a finite pool and it is only a matter of time before the merry-go-round stops and directors will need to take candidates who are number 2 in finance or stepping from a practice environment and who have small gaps versus the comprehensive job specification.

A spokesperson for the AAT recently published interesting data outlining that two thirds of smaller businesses produce their accounts without the assistance of a qualified accountant (typically the owner completing basic bookkeeping to save the expense of an accounting service / internal Finance Manager). It has been suggested that associated errors and irregularities paradoxically cost UK businesses £2.9bn / year. The result is beginning to generate skill gaps here also – smaller businesses that are now in the hunt for a Finance Manager / FC are finding it more difficult to secure the candidate they need at the budget they have allocated.

As a result of businesses stalling on this hire through the recession it is also the case that the new incumbent is spending their induction unravelling previous errors, implementing basic month end processes and controls and overhauling the management accounts pack to unpick errors and provide a firm, audit-able accounting platform. This prevents them focusing on ‘added-value’ commercial accounting and reporting. They are spending less time on the commercial suite of

Our individual and collective experiences within the accountancy and finance sector undeniably demonstrate that skill gaps are developing and widening within the markets we operate.

2016 Challenges and Opportunities

reports, analysing costs and revenue streams and ultimately driving profitability in the environments they join… potentially exacerbating the problem and this commercial reporting experience may become a skills shortage itself over coming months as this plays out…

It is getting harder to identify and secure Technical Accountant with niche vertical-sector-specific expertise.

Qualified Technical Accounting roles with specific requirements (e.g. Corporate Reporting Accountant, Group Accountant, Technical Reporting Senior Specialist, Internal Audit Manager, Internal Auditor, VAT Accountant, Treasury Reporting Manager) are niche by nature. As businesses look to grow and invest they naturally have requirement for a higher degree of technical expertise surrounding IFRS / UK and International GAAP. Large businesses are looking to diversify in current conditions to capitalise on the economic optimism, some finalising acquisition of businesses outside of their core markets (and expertise) and will create gaps in the experience of their finance function. The need for those able to ensure robust accounting controls exist and that compliance is bulletproof is therefore growing.

As has been widely documented The Top 10 Accounting groups that typically feed businesses this expertise have invested lightly through recession and as is widely headlined they are also finding it tough to recruit the right volume of appropriate “partners of the future”. It has been headlined that EY have relaxed their academic recruitment criteria to remedy their own skill shortages. This is translating to less professionals capable of providing this niche technical accounting advice / audit capability.

There are less strong part qualified accountants with experience in parallel with their studies than there are vacancies for this candidate profile.

Businesses are expanding, Management Accountants are looking to push on in their careers to FC or into commercial areas and the succession planning that is happening is creating need for studying accountants. In many cases businesses have pulled investment through recession times in their studiers and have also shielded them from broader projects etc. through budget / time

constraints. In addition A&F graduates of recession times find it difficult to secure varied accounting roles and some have found themselves in narrower roles across AP and AR creating a skill shortage around the broader month end knowledge / core accounting principles and double entry awareness. The result being a gulf between the number of ACCA and CIMA-part qualified candidates that have gained broad experience versus the number of businesses now seeking this ‘up and comer’.

It is getting harder to identify and secure “all-rounders” across transactional finance.

Through recession many finance directors / financial controllers came under financial pressure to reduce headcount within the finance function. A significant number did this by removing the more experienced (and often higher paid) clerical finance staff, in some cases redistributing portions of the workload to less experienced (and lower paid) staff and picking up the slack themselves. So as an example it may be that the Senior Payroller left the business, a payroll administrator picked up the basic payroll tasks while the Finance Manager then became more hands on in that area.

The tangible result being that we are seeing more payroll professionals who have not had the opportunity to manage the payroll process ‘end to end’ and similarly purchase ledger professionals who may not have taken responsibility for the full payment run for example.

Alongside the overarching gaps in our markets there are smaller pools of shortage in vertical industry sectors.

Property Management and construction sectors are recruiting finance and accounting staff more frequently in our regions. This is a significant and very visible swing in job flow within these sectors versus 2013/2014 when the sectors remained in a phase of caution / consolidation. As an example one of the symptoms is that there is now a real skill shortage of client accounting and service charge accounting experience. Housing Associations are finding difficulty in securing candidates with experience also as post-election caution has dissipated and funding / headcount budget can be mapped. Large scale builds have been less prevalent tin recent years and as they reappear the need for the right level of project accounting in this sector

is sought after and less abundant than many large scale builders would like.

Organisations with Financial Services sectors are certainly finding it more challenging to fill vacancies within their technical accounting functions and are needing to become more flexible around the pre-requisites on their job specifications. Many are realising that they may need to invest more heavily in training around the specifics of their grievance, systems and product-related terminology rather than wait for another candidate from a similar FS group.

Manufacturing groups (both FMCG and Non-FMCG) are finding it tough to secure candidates with a costing profile / background. As boards of directors and businesses owners grow in confidence it translates to more risk and more investment in new facilities, acquisition of new sites and exploration of new products / R&D. The projects and ventures require accounting support and in particular we are being asked to find candidates with knowledge of standard costing and costing model development. Again the fact is we are beginning to see more job specifications than there are perfect candidates with this manufacturing background.

A trend in practices is to adopt the cloud-based ERP technology (commonly Xero for example). Forward-thinking partners have embraced the online format and are developing their own internal experts at senior and even semi-senior level. Others, potentially more traditional practice environments, are not investing in or adopting the new format as readily and as such are creating skill gulfs between those familiar with this expertise and those who are not which again may play out through the rest of this year and into 2016.

Ultimately the evidence of our specialist teams in all locations absolutely demonstrates that there are skill gaps developing within the Accountancy and Finance field from entry level to Director level. Strong consultants can provide a substantiated, insightful and candid view of this and help find a solution for your business if you are experiencing difficulty in identifying and securing the talent you need in your finance team.

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West Midlands

Birmingham West Midlands

Min Max Min Max

Assistant Accountant 19 25 18 23

Accounts Assistant 17 22 16 20

Purchase Ledger Manager 28 37 25 35

Purchase Ledger Supervisor 26 32 20 24

Purchase Ledger Clerk 17 20 17 20

Credit Control Manager 30 45 27 45

Credit Control Supervisor 26 32 23 28

Credit Controller 18 23 18 21

Payroll Manager 27 35 25 30

Payroll Supervisor 25 33 20 26

Payroll Officer 18 23 17 22

Sales Ledger Clerk 18 22 16 20

Administrator 15 22 15 20

Birmingham West Midlands

Min Max Min Max

Finance Director 65 105 60 90

Financial Controller 45 70 45 65

Finance Manager 35 60 30 45

Financial Accountant 37 45 35 45

Financial Analyst 35 50 30 45

Commercial Accountant/Business Partner

38 45 37 55

Commercial Finance Manager 50 65 50 55

Management Accountant 35 45 30 45

Assistant Management Accountant

25 30 23 28

Group Accountant 40 50 35 45

Project Accountant 38 50 38 50

Newly Qualified 32 36 35 40

Part Qualified 24 29 25 32

Percentage who anticipate changing

jobs in 2016

Average salary increase sought to

move job

GROWth SeCtORS – hOuSinG, heAlthCARe And COnStRuCtiOn

transactional accountancy

salary rise over 2015

6.7% 39% 6%-12%

Qualified finance salary

rise over 2015

4.2%

uK Average salary rise

3.5%

FIGURES GIVEN AS ‘000 ANNUAL SALARIES FOR A BESPOKE SALARy BENChMARK, PLEASE CONTACT yOUR LOCAL OFFICEFOR A BESPOKE SALARy BENChMARK, PLEASE CONTACT yOUR LOCAL OFFICE

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Yorkshire

huddersfield, halifax &Wakefield

Leeds &Bradford

Min Max Min Max














huddersfield, halifax &Wakefield

Leeds &Bradford

Min Max Min Max






Commerical Accountant/Business Partner

36 50 37 55




23 28 24 30







6.8%


rise over 2015

3.9%


3.5%


jobs in 2016


move job

GROWth SeCtORS – teleCOMS, COnStRuCtiOn, leiSuRe

36% 8%-15%

FOR A BESPOKE SALARy BENChMARK, PLEASE CONTACT yOUR LOCAL OFFICEFIGURES GIVEN AS ‘000 ANNUAL SALARIES

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lancashire

Preston and North Lancs

Min Max

Assistant Accountant 18 23

Accounts Assistant 17 20

Purchase Ledger Manager 25 30

Purchase Ledger Supervisor 20 24

Purchase Ledger Clerk 17 20

Credit Control Manager 30 35

Credit Control Supervisor 23 28

Credit Controller 19 22

Payroll Manager 25 30

Payroll Supervisor 20 26

Payroll Officer 19 24

Preston and North Lancs

Min Max

Finance Director 60 90

Financial Controller 45 65

Finance Manager 30 45

Financial Accountant 35 45

Financial Analyst 35 50


37 55

Commercial Finance Manager 50 65

Management Accountant 30 45


23 28

Group Accountant 35 45

Project Accountant 38 50

Newly Qualified 35 40

Part Qualified 25 32



6.4%


rise over 2015

3.8%


3.5%


jobs in 2016


move job

GROWth SeCtORS – MAnuFACtuRinG, RetAil, teleCOMS

42% 5%-13%


14 15

northwest

Greater Manchester & Cheshire

Central Manchester

Min Max Min Max














Greater Manchester & Cheshire

Central Manchester

Min Max Min Max







38 45 38 55




25 31 25 40







7%


rise over 2015

4.3%


3.5%


jobs in 2016


move job

GROWth SeCtORS – hOuSinG, COnStRuCtiOn, MAnuFACtuRinG

38% 8%-15%


RK Manchester

Faulkner HouseFaulkner Street

ManchesterM1 4DY

T: 0161 2369666E: [email protected]

RK Leeds

9th Floor, West One114 Wellington Street

LeedsLS1 1BA

T: 0113 2462526E: [email protected]

RK Preston

Unit 5, Albert Edward HouseThe Pavilions

Ashton-On-RibblePrestonPR2 2YB

T: 0121 631 5888E: [email protected]

© Copyright RK Group Ltd. All rights are reserved. Whilst the data within this report is designed to be as informative as possible, it is not conclusive and is not intended to be a replacement for professional advice. RK Group Ltd or its parent company Kellan

Group PLC will not be held liable where the data contained within this report is relied upon for any decision or action taken.

RK Birmingham

5th FloorLatham HouseParadise Street

BirminghamB1 2BJ

T: 0121 631 5888E: [email protected]

w w w . r k g r o u p . c o . u k

salary survey 2016

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