Market Update - Commerce and Industry 2015

Market update 2015 /Commerce & Industry 0f 66

www.badenochandclark.com

Market update

2015

Commerce & Industry

Market update 2015 /Commerce & Industry Page 3 0f 66

Welcome to our Annual Salary Survey & Market Analysis

I am really pleased to provide the introduction to Badenoch & Clark’s annual salary survey and market analysis – which I hope will prove an invaluable tool for you in navigating the choppy waters of people development, staff retention and ultimately hiring and attraction. This report, based on a survey of more than 400 commerce and industry leaders from across the UK, is designed to work in tandem with the proactive relationship that you will have with one of our trusted advisors. As we progress through the year, we’ll be in touch to arrange a tailored 1-2-1 session to discuss the relevance and impact of this report on your organisation.

So what of 2014? Clearly, it has surprised some commentators with its on-going positive economic news. During the course of the year, growth forecasts have increased steadily. We’re now looking at a forecast of approaching 3.5% growth - far and away the best performance of the major European economies. And let’s not forget that this has been achieved against a background of uncertainty in what has been quite a turbulent year. So many questions remain over the UK’s continued participation in Europe; the Financial Services industry is still bearing the brunt of endless bad press; we’re still feeling the fall-out of the referendum on Scotland’s membership of the UK and most recently, of course, we’ve started to come to terms with the global impact of Ebola.

This report will give you an insight into how these, and much more local factors, have affected salaries and prospects for the future across all the specialisms Badenoch & Clark supports recruitment in. We’ve highlighted some of the most important trends and findings and there’s a wealth of richer and deeper insight into each of the areas in which we operate across our regional bases.

So how do we see 2015 shaping up? I believe there are still numerous reasons to be positive about all of our prospects for the coming year. Unemployment is stubbornly low but flexibility in the labour market is increasing with more people indicating they will look for a new role in the coming year. Several core components of UK PLC are demonstrating the capacity to grow - whether that’s a resurgent manufacturing sector, continued strong performance from our services market or still more growth in the commercial property arena where it is often said the number of cranes dominating the skyline is a pretty good indication of our economy. The digital, technology and creative markets are charging ahead with significant investment in Manchester, Bradford and London expected in the near future as companies such as Google develop their UK operations.

Finally, as I sign off, I would just like to pass on my heartfelt thanks to every customer we have worked with in the last 12 months, whether that includes a placement or just the opportunity to build a partnership. 2014 has been a fantastic year for our company with industry leading growth in our commercial markets of 24% and growth of 12% in roles generated in 2014, we’re well positioned to provide support and consultancy advice to our commercial customers now and for the future. Of course, we couldn’t do that without you.

I hope 2015 is a successful year for all of us.

Matt GascoigneExecutive DirectorBadenoch & Clark – Commerce & Industry Division

03 Welcome & Introduction

04 2014 Back on a roll

06 Accountancy & Finance

40 Business

48 HR

56 Procurement

60 Strategy

Contents

0f 66 Market update 2015 /Commerce & Industry

0f 66 Market update 2015 /Commerce & Industry

2014 Back on a roll2014 has been a good year for UK plc and that has been reflected across the jobs market. At the start of the year, the CIPD predicted this year would be the year of the ‘jobs machine’ and with more than 30 million people in work in the UK for the first time ever, it certainly hasn’t disappointed.

Falling unemployment has reflected growing confidence in the market – and the 538,000 fall in those out of work in the 12 months to October 2014 was the 18th consecutive quarter of a decline in the jobless figures.

of our clients expect their businesses (and workforces) to grow in 2015

1/4Improving market conditions is the dominant factor (15% rated it the most important factor,

and 27% put it in their top three)

This largely reflects an upturn in the mood that we’re seeing across the business community. The Recruitment and Employment Confederation (REC) is predicting the UK recruitment market will grow by 7% in 2015, on the back of a stellar set of growth figures for the UK. The IMF predicts 3.2% annual growth – likely to be the best in the G7 industrial nations, while the European Commission is a shade more cautious at 3.1% - but still sets this as the highest growth prediction in the EU.

The strongest intent

20%

43%

16.6%

of clients expect an increase in permanent hires

of clients expect to hire more temporary / interim roles

of clients recruit more fixed interim contracts

As 2014 draws to a close, there’s a growing sense of positivity in the business community that is reflected in what our clients have told us as we’ve conducted our survey.

CandidatesWe’ve noted a change in the mood of candidates too. We’re now seeing many more people interested in changing jobs in the coming year. In fact, a third of all the businesses we spoke to believe they will be able to attract more candidates than last year, with just 13% telling us they expect to attract fewer. That’s a pretty good statistic if you’re likely to be recruiting over the next 12 months – but may also suggest you’ll need to tighten up your own offering if you want to retain your key staff over the same period.

The return of confidence to the marketplace has already translated this year into more vacancies across three quarters of the sectors we recruit into.

So, what can you do to win the next round of talent wars? Employers have told us they’re planning to use two key levers:

• Increaseretentionand/or• Improvetheemploymentpackage

There is potential for this resulting in an increase in salaries. However, nearly a third of employers think that high salary expectations are a barrier to hiring. With that in mind, both savvy employers and smart candidates are looking at wider hiring propositions including career development opportunities and flexible benefits to attract, hire and retain the best people for their organisations.

Battle for talentWith jobs on offer potentially still rising faster than candidates, we confidently predict a ramp-up in the battle for talent – and over 60% of the industry movers and shakers we spoke to believe that too. In fact, more than half expect a lack of quality candidates to be an issue in 2015.

Discipline Perm- YoY% Contract - YoY%Accounting/Finance -5.03 -4.89

Admin/Secretarial/PA 18.9 21.38

Banking/Insurance -1.65 12.59

Director/Management 15.58 19.23

Energy/Utilities 19.31 -23.22

HR 12.16 28.89

IT -0.36 17.78

Legal 13.21 11.56

Marketing/Advert/PR 1.87 37.52

Sales 6.97 34.38

Science/Technology 13.45 35.41

Supply Chain/Logistics 27.49 48.07

Market update 2015 /Commerce & Industry Page 5 0f 66

Market update 2015 / Accountancy & finance Page 7 0f 66

Accountancy & finance

Our accountancy & finance team is recognised as a trusted advisor in the market — offering insight and expertise across

our specialist sectors.

Overall, the positive business climate and improved economic confidence has led to an increase in hiring not just for replacement roles but also for investment heads. According to our survey, improved market confidence was the most cited reason for growth for both the temporary and permanent qualified workforce within the accountancy market.

The main rationale behind this is down to increased confidence in the market affecting both capital expenditure and discretionary spending - and therefore the ability to invest in the workforce.

London Qualified

of employers will grow their finance team in 2015

50%

In terms of the qualified market we have also seen a shift towards a much more candidate-driven market as candidates begin to receive multiple offers of employment. This is especially true for in-demand professionals, highlighting the need for businesses to offer competitive compensation, not only to initially attract top talent, but also to encourage the best people to stay. This in turn also highlights the need for businesses to use tools such as salary benchmarking to remain competitive.

Employers also need to be mindful that in order to attract the best talent in 2015 and beyond, they must ensure that career opportunities and paths are mapped out to secure this talent, as well as the allure of the brand and the industry itself.

One of the biggest shifts in 2014 has been the demand in Fixed Term Contracts (FTC) rather than daily rate accountants. This is primarily due to cost saving initiatives and restrictions on spending - especially within the senior contract market. Although employers do not pay payrolling costs with daily rate contractors, the daily rate equivalent for typical accounting roles in an annualised salary is often inflated. Therefore if employers translate the daily rate into an annualised equivalent it always seems a much more expensive option. Much of the international workforce operating on visas in the UK traditionally work through either their own limited company or umbrella companies due to tax benefits and it is this workforce that dictates the market rates for contractors. Some companies with slightly more flexibility on purse strings are willing to pay the extra to secure this pool of talent. Realistically, employers willing to consider both routes will have access to a much wider candidate population. Indeed, our research shows that they are considered much more attractive to potential employees.

Page 6 0f 66 Market update 2015 / Accountancy & finance

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Hiring & Demand

We have seen the most noticeable increase in demand for finance professionals within Commerce & Industry and specifically the Media, Retail and Property markets. Throughout 2014, we have observed strong growth in both turnover and profit within these sectors. As a result of the economic upturn, employers have begun to invest to ensure they have the best possible finance team heading into 2015.

Due to the hot and prolonged summer, many retailers have seen a bumper year, further boosted by the demand from online/ e-commerce buying. 2014 has also seen a huge shift in the housing market with the highest number of mortgages approved in years and the success of the Government’s Help to Buy scheme getting first time buyers onto the housing ladder. This has also boosted investment in new housing developments which has helped the Housing/Construction sectors.

As companies again turn their attention to growth, the role of the qualified finance professional must continue to evolve. The past few years found finance leaders focused on headcount and spending reductions, having to do more with less. Business growth, new product demand and service expansion now require commercial accountants with strong business acumen and communication skills to deliver their strategies and get ahead of the competition.

The on-going trend of accountants acting as business partners has also been highlighted throughout 2014 as employers are demanding a more rounded skillset from their staff. Rather than solely looking for core technical and statutory accounting skills, employers now want to hire commercial accountants and financial planning and analysis experts who can add value to their business. As in years past, we’re still seeing a demand for technical accounting - especially heading into year-end, where statutory accounts need to be filed with Companies House.

Skill Gaps Following on from previous commentary, we have seen an increase in demand for technical accountants to file year end accounts. There are significant peaks and troughs within this market, simply due to seasonality (Company year ends), but also when international CA qualified accountants enter the UK market, which is typically around February or March. Their availability to relocate on their visas is also dictated by audit cycles, which result in either extended or reduced notice periods. In turn, this has caused skills shortages of qualified technical candidates being available at the end of the year to start roles - creating a huge spike in daily rate expectations of the candidates that are available, as they are in demand and have multiple offers. These areas of demand are further supported by our survey. The main growth for 2015 will be in the newly qualified/part qualified space.

Retention & Development Market analysis has pointed to companies being quite creative with their methods to retain the best talent. Demand from employees for flexible working, benefits and bonuses are still on the increase employees working in companies who are reluctant to listen to their workforce and especially those that have experienced modest or no salary gains in recent years, may be tempted to test the recovering job market. Feedback suggests that employees feel that their salary has not kept pace with the increased value of their contributions to the business.

Evolving Finance Professional Flexibility

On-going trend of accountants acting as business partners

Employers are demanding a wider package

BonusesBenefits

Business growth in 2014 within the hospitality industry has been hampered by corporate re-structuring and high staff turnover. Yet companies in the services industry are confident they will continue to grow and expand. But the confidence and projection of growth for 2015 remains inconsistent. Approximately 65% of organisations are anticipating business growth during 2015 while some are projecting no growth.

London Part-Qualified

The sectors in which most growth is anticipated were media and retail, whereas there’s far less confidence around growth in the oil and gas & the property space. We’ve also noticed that businesses are moving some of the junior positions out of London.

Hiring levels for 2015 reflect this inconsistency with:

Hiring & Demand

Media companies are hopeful that the hiring level in 2015 will be significantly greater than in recent years because of economic optimism and confidence that the market is beginning to stabilise. This trend can also be identified in the services space, however that confidence is not mirrored in the hospitality industry and in some of the smaller property businesses.

Skills Gap Companies we surveyed across all industries told us there are still plenty of candidates available on the market; the skills shortage is the volume of candidates with the right cultural fit and interpersonal skills to work with internal and external stakeholders. No fewer than 44% of the survey respondents stated a lack of quality candidates as their main challenge they are anticipating when recruiting in 2015.

of businesses suggesting that hiring levels will increase

suggesting this will stay the same

40% 47%

Retention & DevelopmentOrganisations that boast strong retention rates will have both an internal strategy for retaining candidates and an external strategy for attracting the best talent. Some companies believe that their brand alone will attract the best candidates and that they therefore don’t need to adopt an attraction strategy or increase the level of salary on offer. Other companies have used additional benefits in order to retain their best talent, such as discounted store cards. This has been reflected in the survey results with

approximately 65% of businesses stating they are anticipating salaries to increase slightly next year and with 35% of the survey suggesting salaries will remain the same.

Surprisingly some companies who do not have a talent management strategy also do not seem to have retention problems. When probed on this further, companies stated this was a result of job satisfaction and was more of a common theme among smaller businesses.

Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)Finance Director 70k 90k 300 pd 450 pd

Financial Controller 60k 75k 275 pd 400 pd

Finance Manager 50k 60k 200 pd 300 pd

Financial Planning & Analysis Manager 50k 80k 200 pd 300 pd

Finance Business Partner 40k 50k 200 pd 250 pd

Financial Accountant (Qual) 35k 60k 180 pd 250 pd

Financial Accountant (Part Qual) 23k 38k 140 pd 180 pd

Management Accountant (Qual) 35k 60k 180 pd 250 pd

Management Accountant (Part Qual) 25k 30k 140 pd 180 pd

Commercial Analyst 35k 45k 180 pd 220 pd

Financial Analyst (Qual) 35k 50k 180 pd 220 pd

Financial Analyst (Part Qual) 25k 35k 140 pd 180 pd

Accounts Assistant 20k 25k 12 ph 16 ph

Credit Controller 18k 25k 10 ph 15 ph

Purchase / Sales Ledger Clerk 18k 25k 9 ph 13 ph

Small to Medium Sized Enterprises

Accountancy & Finance Average salaries in London Qualified and Part Qualified

Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)CFO 120k 180k 500 pd 750 pd

Finance Director 90k 150k 450 pd 650 pd

Group Financial Controller 80k 150k 400 pd 600 pd

Head of Shared Services 80k 120k 400 pd 600 pd

Head of Tax 75k 120k 450 pd 750 pd

Head of Treasury 75k 120k 450 pd 750 pd

Internal Audit Manager 75k 120k 400 pd 500 pd

Head of Financial Planning & Analysis 75k 100k 350 pd 550 pd

Head of Commercial Finance 75k 100k 350 pd 550 pd

Head of Financial Accounting 75k 100k 350 pd 550 pd

Head of Financial Reporting 75k 100k 350 pd 550 pd

IFRS Controller 70k 90k 450 pd 600 pd

Solvency 2 Practitioner N/a N/a 500 pd 1000 pd

Financial Reporting Manager 55k 75k 275 pd 400 pd


Commercial Finance Manager 55k 65k 275 pd 400 pd


Group Accountant 50k 65k 275 pd 460 pd

Internal Auditor 40k 55k 220 pd 400 pd



Project Accountant 40k 50k 250 pd 400 pd



Management Information Analyst 25k 40k 250 pd 350 pd

Financial Modeller 30k 45k 250 pd 450 pd




Business Analyst 35k 45k 200 pd 300 pd




Blue-Chip

Market update 2015 / Accountancy & finance Page 11 0f 66Page 10 0f 66 Market update 2015 / Accountancy & finance


The market has undoubtedly improved over the last 12 months – there has been a definite upturn in demand with new job registrations increasing by between 10% and 15%. Clients are however being very specific in terms of their requirements and still perceive that it is a ‘buyers’ market’ – as the market improves this will inevitably shift.

East Midlands

Ingeneralthereisanairofincreasingmarketand economic confidence and with interest rates likely to remain low for some time, clients are more willing to invest in recruitment and headcount expansion than they have been in the last three to five years.

Hiring & Demand In general, hiring has become a slow and often drawn out process. Clients have demanded to see a wider range of candidates to give themselves the ‘comfort’ that they have seen the best possible cross section in the market. However, this approach has led to candidate frustration with processes failing where clients have not moved quickly enough. As market conditions improve, recruitment processes must become more clearly defined, focused and expedient to engage candidates quickly in order to secure the very best talent.

Clients are now willing to be more flexible regarding their requirements. Rather than looking for the ‘perfect match’ in terms of skillset, they will now compromise to an extent in areas of specific skill but are looking to compensate by seeking candidates with high development potential - i.e. clients are not simply looking to fill a specific role but are also looking for candidates’ ability to move onto a more senior position further down the line.

Salaries have remained relatively stable across the board but with some increases in specific areas of skill

shortage or high demand. Client perception is that salaries are likely to increase in the next 12 months - not to any significant degree however, the general

consensus being around 3%.

of clients surveyed expected to hire at similar or increased levels in 2015 compared to 2014.

80% Retention & Development There is now a challenge for many businesses to retain their best employees. As market conditions and confidence improve, people whose careers have not progressed during the recession are now looking to kick-on consequently, candidates are looking to benchmark their sources internally whilst also looking to validate their expertise externally.

All businesses are now clearly focused on career and professional development and see this as a key part of their retention policy and succession planning strategy. Almost 60% of our surveyed clients expected there to be stronger demand for candidates in 2015 and feared an expected knock-on in salary demands.

Clients offer a number of incentives to attract and retain

candidates:

Skill Gaps There has been high demand for candidates with genuine business partnering skills at all levels and clients are willing to offer a premium for candidates who can demonstrate their experience in this area. Commercial/financial analysts are also in demand as they look to model trends, analyse investment decisions and look to evaluate new business scenarios.

Almost 40% of those surveyed outlined specific skill shortages as the reason that they expected recruitment to prove difficult in the year to come. Additionally, almost 60% of clients found a lack of ‘quality’ candidates on the market with 35% indicating that they felt that salary expectations were too high.

There is also strong demand for risk and compliance professionals (20% of roles filled in 2014) – more stringent compliance and regulatory pressures are leading to a skill shortage in this area with a subsequent premium being offered to the best candidates.

offer flexible working

47%

offer enhanced training and development programmes

47%

offer incentive schemes

30%












IFRS Controller N/a N/a N/a N/a

Solvency 2 Practitioner N/a N/a N/a N/a




































Blue-Chip


Accountancy & Finance Average salaries in East Midlands


0f 66 Market update 2015 / Accountancy & finance

Clients are feeling extremely positive about growth over the next 12 months with over 90% of those surveyed confirming it is highly likely they will be growing their business in 2015.

North East

Hiring & Demand Over the last 12 months, we have seen an increase in job flow mainly within the £30–£40K qualified market; Financial Accountants, Finance Business Partners and Analysts. In addition we have also seen a continued increase in the demand for transactional staff as the confidence in the market continues to filter through the salary brackets.

85% of clients interviewed confirmed they were likely to make significantly more permanent hires in 2015 with less emphasis on interim assistance. But 25% felt that internal bureaucracy held up the recruitment process while 50% believe lack of skills and quality candidates will be the challenge in 2015.

Our clients are seeing an increase in the demand for commercial business partners and analysts. Especially at the part qualified and newly qualified levels. The demand for manufacturing and service sector accountants remains high.

At the junior end of the market, clients have opted to increase their graduate population benefiting from their potential to develop but sacrificing experience in order to manage costs.

ACA Qualified Candidates are in high demand across Teesside with several of the major companies quoting this qualification as one they will always make time to interview.

Skill Gaps Some of our larger business operations have struggled to attract talent within their current salary and package offerings - probably as a result of having not benchmarked their packages since before the recession. As the market continues to recover, the North East SME market appears to be able to offer more for the right candidate. The direct impact of this practice is that companies who have not conducted a review are finding themselves unable to attract talent with the same offering and therefore retention in some businesses has suffered.

An increasing amount of clients say they are having to be more flexible in terms of their ideal candidate when recruiting for a role rather than have essential criteria which is often difficult to find.

In particular, the construction sector is seeing a marked improvement in terms of turnover and forecasts. Growth seems set to remain the main priority by securing new contracts and their place in the current market – as a result, most of our

blue chip clients plan to increase their headcount (permanent staff) in 2015.

expect to be investing in new markets or diversifying their product lines.

54%

Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)CFO 70k 200k 35 ph 900 pd

Finance Director 70k 180k 35 ph 700 pd

Group Financial Controller 40k 110k 20 ph 60 pd

Head of Shared Services 55k 90k 27 ph 45 pd

Head of Tax 50k 80k 25 ph 40 ph

Head of Treasury 45k 80k 22 ph 40 ph

Internal Audit Manager 45k 70k 22 ph 35 ph

Head of Financial Planning & Analysis 50k 70k 25 pd 35 ph

Head of Commercial Finance 50k 70k 25 pd 35 ph

Head of Financial Accounting 45k 70k 22 ph 35 ph

Head of Financial Reporting 45k 70k 22 ph 35 ph

IFRS Controller 45k 80k 22 ph 40 ph

Solvency 2 Practitioner n/a n/a n/a n/a

Financial Reporting Manager 45k 85k 22 ph 43 ph

Financial Planning & Analysis Manager 45k 85k 22 ph 43 ph

Commercial Finance Manager 45k 65k 22 ph 32 ph

Finance Business Partner 45k 65k 22 ph 32 ph

Group Accountant 40k 55k 20 ph 28 ph

Internal Auditor 30k 50k 15 ph 25 ph

Financial Accountant (Qual) 35k 50k 18 ph 25 ph

Financial Accountant (Part Qual) 25k 35k 12 ph 18 ph

Project Accountant 30k 40k 15 ph 20 ph

Management Accountant (Qual) 30k 45k 15 ph 23 ph

Management Accountant (Part Qual) 25k 35k 12 ph 18 ph

Management Information Analyst 20k 45k 10 ph 23 ph

Financial Modeller 20k 40k 10 ph 20 ph

Commercial Analyst 30k 45k 15 ph 23 ph

Financial Analyst (Qual) 30k 45k 15 ph 23 ph

Financial Analyst (Part Qual) 25k 35k 12 ph 18 ph

Business Analyst 30k 45k 15 ph 23 ph




Blue-Chip

Accountancy & Finance Average salaries



Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)Finance Director 50k 120k 25 ph 60ph

Financial Controller 35k 55k 18 ph 28 ph

Finance Manager 30k 45k 15 ph 23 ph

Financial Planning & Analysis Manager 30k 60k 15 ph 30 ph

Finance Business Partner 35k 55k 18 ph 28 ph

Financial Accountant (Qual) 25k 40k 12 ph 20 ph

Financial Accountant (Part Qual) 20k 35k 10 ph 18 ph

Management Accountant (Qual) 25k 40k 12 ph 20 ph

Management Accountant (Part Qual) 20k 35k 10 ph 18 ph

Commercial Analyst 25k 40k 12 ph 20 ph

Financial Analyst (Qual) 25k 40k 12 ph 20 ph

Financial Analyst (Part Qual) 20k 30k 10 ph 15 ph




Retention & Development

Clients have noticed a tangible shift in the last 12 months in terms of candidate availability and calibre. They have realised that to attract and retain exceptional talent, salaries need to increase with over 51% of clients interviewed agreeing with this. 80% also confirmed they would look to hire if market conditions continue to be buoyant over the next 12 months.

Customers are looking at improved internal training and CPD support for non-qualified staff. Reinforcing career pathways and looking to match competitors’ salary packages seems to be increasing as competition for the right talent in the right role becomes ever more fierce.

Clients in the North East generally feel that company branding, benefits, bonuses, flexible hours and career progression are more attractive to potential new employees than basic salary. Indeed, the majority of our clients are investing in more internal training and promoting from within where they can. The sentiment is that in recent years, senior management has not done enough to retain their top talent.

Interview methods are changing too as employer contributory pensions and flexible working hours are often discussed in more detail with hiring managers. Unsurprisingly clients are recognising that people require more flexibility in their working life and are placing more importance on work/life balance.

The economy around the North West is still in a post-recession recovery with good forecasts predicted for 2015. Growth in the construction sector is visible, with a number of large construction projects playing their part in the gradual economic upturn.

North West

The qualified finance market over the last 12 months has definitely seen a change, and the number of roles being registered is on the up. Salaries on the whole are in line with where they need to be. The market has slowly become candidate-driven and prospective employers are starting to realize this.

Hiring & Demand

There have been a number of companies in various industries who have decided to now recruit Finance Directors and CEOs to drive their business forward following the economic downturn. Businesses are now going through a phase where they are looking to expand and have new and exciting projects on the horizon - with 71% of local clients likely and 10% highly likely to expand their teams in 2015.This has brought about an increase in senior finance roles across many industries. The number one in finance now takes a commercial role more than ever before and the traditional perception of the finance professional is ever changing.

We’re seeing the reintroduction of team leaders and supervisors. Companies are growing, teams are expanding and this has resulted in a demand for highly-skilled candidates, especially with managerial experience. In particular we have seen a greater need for credit control and payroll.

of our clients expecting salaries to increase

54%

Salaries are reflecting the change of emphasis with:

Skill GapsThe shortage in the market is in the £35– £45k qualified Management Accountants field. At this level it is very difficult to find strong candidates who are newly qualified or have at least two years post qualified experience. The shortage of part qualified active students has a knock on effect to the newly qualified market with 48% of the areas employers feel that they will recruit within either the part qualified or newly qualified space.


Accountancy & Finance Average salaries in North East



































Payroll 20000 25000 - -

PL/SL/Credit Manager 30000 50000 - -
















Payroll 18k 23k

PL/SL 25k 35k

Bookkeeper 18k 25k

Retention & DevelopmentIn a candidate-driven market, companies need to not only attract but also retain good quality candidates and 41% of businesses in the North West are looking to improve their retention figures. Senior finance professionals want to be a business partner to companies they join where they can add value to an organization and have a tangible commercial impact. When going out to market, companies need to be more empathic with potential candidates. Asking themselves the question: “What do the best candidates want and how can we attract them?”

Critical factors range from culture through to benefits packages and job security. In the senior finance market, candidates want to be involved in a business that can offer them long-term development and opportunity to impact.

To maintain staff retention we have seen candidates receive pay increases and internal promotions, this has resulted in the increase in salaries across the market.

Blue-Chip


Accountancy & Finance Average salaries in North West



The Midlands job market for finance professionals has picked up significantly across all levels during 2014. This has driven permanent and temporary salaries up by around 10% from their 2013 levels. The biggest change has been in the permanent part qualified and the newly qualified area where salaries have increased almost 15%, and interim business partners/management accountants where average day rates have now increased by over 25% in the latter half of 2014 alone.

West Midlands

From an interim perspective, business partnering management accountants, financial analysis and project accounting have been buoyant in 2014, especially in the automotive, manufacturing and infrastructure sectors.

Niche skill sets and learns gained on assignment have proven to be a valuable asset to the senior contract market with companies using the experiences of contractors who have gone through efficiency and process improvement projects, allowing them to bring their knowledge to companies in order to adopt a ‘right first time’ approach.

Unsurprisingly, the SME market has seen considerable activity throughout 2014. As businesses have moved into growth mode, teams run as “lean” in recent years are staffing up to cope with increasing workloads. Recession based staffing levels within many finance teams have needed efficiency and productivity to survive. Now that growth is back on the agenda, there is a lack of organic succession and SME’s have been forced to recruit externally to build their finance teams.

We envisage much the same in 2015 with the market continuing to be candidate-driven. Hiring managers will need to entice candidates to come and work for them, and the candidates most in demand will have multiple opportunities to choose from.

Hiring managers will need to work with their recruitment partners very closely to make sure they are able to make their hiring decisions very quickly, as any delay - even for a few days - could mean their first choice candidate has taken an offer elsewhere.

of clients expect salaries to increase

56%

Client feedback from this survey has shown that 64% of hiring managers in the Midlands expect to grow their team in 2015, citing improving market conditions and a change in their business strategy as the main reasons for growth.

We’ve found that the Accountancy & Finance job market has now fully switched back to one that is candidate-driven, and demand for the best individuals has now far outstripped supply.




Head of Shared Services 50k 90k 300pd 600 pd










Financial Reporting Manager 55k 65k 250pd 400 pd

Financial Planning & Analysis Manager 55k 65k 250pd 400 pd

Commercial Finance Manager 40k 55k 250pd 400 pd

Finance Business Partner 50k 70k 250pd 400 pd

Group Accountant 50k 65k 250pd 460 pd



Financial Accountant (Part Qual) 25k 35k 16 ph 200 pd



Management Accountant (Part Qual) 25k 35k 16 ph 22ph






Business Analyst 35k 45k 20 ph 300 pd




Payroll clerk 18k 25k 10ph 15ph

Blue-Chip







Financial Planning & Analysis Manager 50k 60k 18 ph 300 pd

Finance Business Partner 40k 50k 200 pd 300pd

Financial Accountant (Qual) 35k 45k 200pd 300pd

Financial Accountant (Part Qual) 23k 33k 15 ph 22ph

Management Accountant (Qual) 35k 45k 200pd 300pd

Management Accountant (Part Qual) 23k 33k 15 ph 22ph

Commercial Analyst 35k 45k 180 pd 250pd

Financial Analyst (Qual) 35k 45k 180 pd 250pd


Payroll Clerk 18k 25k 10ph 15ph


Credit Controller 18k 24k 10 ph 15ph


Recruitment is returning to pre-recession levels and companies are expanding their existing teams as well as investing heavily in new initiatives such as technology and business partnering. As confidence grows our clients are again looking to their finance teams to provide valuable insight into the very core of the business in order to aid the decision making process and to help provide direction as part of their growth plans.

The evolution of finance from scorekeeper to strategic finance business partner comes with the desire for finance professionals to demonstrate their commercial understanding of the business. This is driving clients to seek a new skill-set. This prompted the need to seek a ‘stronger presentation’ of financial data in order to improve business process and efficiency as well as to drive corporate strategy.

Increased focus on growth means that confidence among the finance leadership team is high with 9 out of 10 Finance Directors surveyed believing in a positive British economy and the same number being confident in their business prospects as we move into 2015. Clients are investing heavily in systems upgrades with many businesses moving to SAP or Oracle. This in turn has meant an increase in the number of contract roles for finance staff managing implementations and conversion projects. Just under half (42%) of our clients told us it was highly likely there would be an increase in the number of staff hired during 2015.

East of England

of clients foresee a rise in finance team salaries

will consider increasing performance related bonuses to get the most out of their workforce

67%

50%Businesses are divided on their remuneration strategies, with many recognising that they need increased salary levels to attract and retain the best talent. Those slowest to react find themselves exposed to the resulting talent shortage.


Accountancy & Finance Average salaries in West Midlands



Hiring & Demand

As businesses step up hiring efforts, creating new roles to capitalise on growth initiatives as well as adding headcount to stretched teams, demand for specialist occupations far outweighs supply. Companies are recruiting strategically, looking at both current and future requirements and bringing in professionals who add value immediately - but also for many years to come.

More than three quarters (80%) of respondents surveyed are confident in the economic prospects facing the East of England and 84% are confident in their company’s prospects for 2015 and beyond.

This optimism is being felt across East Anglia with the largest companies being the first to ramp up their hiring efforts followed closely by SMEs who are taking the opportunity to hire additional staff as they launch or develop new products and take on expansion plans.

Companies are looking for experienced finance professionals skilled in budgeting, forecasting, analysis and bids as well as commercial exposure (and therefore adept at delivering cost efficiency). The expectation for finance professionals to exhibit the clichéd skill-set of strong communication skills, an analytical mind, good problem solving skills and business savvy does not come at the expense of technical knowledge. Moreover, candidates are expected to ‘have it all’ and devote their lives to learning as well as a mastery of softer skills.

Skill Gaps

Demand for skilled accountancy & finance staff has intensified with most finance leaders indicating that competition for staff has intensified particularly as specialist occupations (created by the shift towards the more commercially astute candidate) outpace generalist roles. Challenges in identifying and recruiting finance professionals continue with 35% of clients citing skills shortages. According to salary respondents, specific areas where demand outstrips supply include business/financial analysis, general/commercial accounting and financial management/control. 69% of businesses feel there will be a greater competition for talent in 2015.

Education is still key with most businesses prioritising the recruitment of qualified accountants (ACA, ACCA, CIMA) over graduates during the downturn which means there is a shortage of newly qualified ACAs. This, in turn, is likely to push salaries up as companies seek to attract the top talent - and 31% of businesses are inclined to agree.

Part qualified accountants are in short supply. This is largely down to retention strategies where employers are offering progression, study and annual leave allowances. There is a precipitous departure of accountants post qualification so retention efforts are being enhanced in an attempt to keep them on board.

Accountancy professionals with less than three years’ experience are also in demand to fill Assistant Accountant, Purchase Ledger, Sales Ledger and Credit Control positions across the region. Clients prefer candidates committed to learning, including commitment to progress through supported study. It is these individuals who are the potential Finance Directors and CFOs of the future.


































Blue-Chip

Accountancy & Finance Average salaries in East of England

of clients show confidence for 2015

80%of clients suffer from skills shortages in their search for finance professionals

35%




Employee retention remains a priority and with 90% of finance directors being concerned with losing their top performers, 56% are making more of an effort to provide opportunities for progression and development as well as 39% reviewing remuneration schemes. Many businesses are taking on temporary support to free up their more experienced staff to take on new projects and initiatives - which keeps roles varied and interesting.

Some employers are being forced to bring remuneration in line with the current market to avoid losing their best people. Of course, we all know the true cost of replacing a valued employee is far greater than outlay. Employers recognise that retaining key staff who have the systems knowledge, the business insight and who are successful in the workplace is an absolute top priority. Just 62% of businesses report retention levels having stayed the same through 2014. 61% stated they hope this to improve in 2015 with the introduction of new strategies.













Accounts Assistant 18k 25k 9 ph 12.50 ph



Across 2014 we have seen an increase in newly-created forward-facing roles such as strategic and commercial finance roles in larger organisations. We have also seen a trend in SME businesses growing, whether it is organic growth or through private equity backing. This has resulted in an increase in more senior FC and FD roles to take businesses forward and increase current growth and momentum. The mood has been positive and this has been reflected in more ambitious recruitment across all areas of finance.

In general, starting salaries have not increased in the South East as companies are still looking to keep a tight rein on budgets during expansion. The challenge for most hiring managers has been to find fresh top talent as so much of the country’s existing top talent is secured within their current organisation. However the feeling is more positive for 2015 with 71% of hiring managers convinced that salaries will increase in 2015.

Candidates are the driving force. Those in high demand are likely to receive a competitive external offer followed closely by a strong counter offer from their employer. We have seen an increase of counter offer acceptances of 20% this year. Offers have been accepted by candidates who have appeared on a reviewed second shortlist due to the fact that clients do not always have a second choice option available from their initial shortlist.

SMEs seem to have had more flexibility on their budgets and a number of roles have been offered at the top of their range and in some cases £5k - £10k above the original salary, in order to secure the right candidate and make them feel wanted.

South East

Growth will continue in to 2015 with

of FDs and FCs declaring their businesses will grow

anticipating a very healthy and positive uplift

78%

40%


Accountancy & Finance Average salaries in East of England



Hiring & Demand

Part qualified roles have been on the increase. With 49% of all finance hires coming in this form as employers are looking to succession-plan top talent for the future and build teams that can sustain the future of finance functions. The other area of succession planning comes in the form of newly qualified roles being recruited. These took up 25% of all finance hires in 2014.

Just over a third (36%) of finance roles recruited have been in the commercial area. These have come at varying levels, but the feeling is that businesses are confident in growing and they want visionary people to assess where there organisations can grow. Only 22% of hires across 2014 were technical reporting roles.

We have also seen smaller companies growing and bringing in more senior level finance heads at FC or FD to focus on process and control and provide a platform to sustain the growth of their business in the future.

A big challenge in securing the right candidate to meet demands has been the speed of the internal decision making process. Those who plan a quick process with organised interview slots for 1st, 2nd and subsequent interviews have had 75% more success in attracting the right candidate than those who have a long decision making process.

Interestingly 60% of respondents felt that hiring levels would remain the same, while 25% believe hiring levels would increase further. With hiring levels already up on 2013, this reflects that there will be even more newly created roles through 2015.

Just over a quarter (26%) of hiring managers believe that they will be hiring due to improving market conditions. 29% foresee uplift in recruitment levels due to investments in new markets. In another suggestion of an uplifting and confident market, 25% believe a change in business strategy will reflect an increase in hiring. 20% see recruitment needs through natural attrition, although the reason for this was the belief that employees will move for other opportunities to develop their career.

Areas of hire will be spread across perm, interim and fixed term contracts next year with 60% forecasting an uplift in perm against 40% in interim and contract appointments.

Skill Gaps Client led demands for roles to be more commercially focused has met the candidate requirement for progression - aspiration to develop into finance director or commercial director roles remains high.

The real challenge has been less appetite to move to more technical roles with a shortage of skills in financial accounting roles and a lack of expertise in such things as IFRS and GAAP. Even ACAs moving from practice (who traditionally move in to group accounting or technical financial accounting roles) are putting themselves in line for financial analyst and commercial/management accounting positions. This has had an impact too on true business partner roles as increasing business partners are coming from a technical background and don’t necessarily have the softer skills required.

Just over a quarter (27%) of hiring managers believe they will attract more candidates in 2015. Interestingly, even though 71% of hiring managers believe salaries will increase in their businesses, 49% believe that one of the biggest challenges in recruiting will be that candidates’ expectations of pay are too high. 47% believe that a lack of quality candidates will have an impact on hiring, so the key decisions will be whether to compromise on quality in order to fill a growing number of new roles. With 42% of hiring managers facing the challenge of skills shortages in recruiting, will organisations become more innovative in reallocating work according to strengths that already lie within the business?


Salaries are still the main driver for people making a move although companies need to focus on attracting people through their wider offering – especially with benefits that will strengthen a candidate’s career or enhance their lifestyle. Progression and development are very important, with a clear path to the next role being an essential factor. If a company cannot offer an increase in salary than flexible hours, performance incentives and work-life balance initiatives are excellent methods to attract great people. Retention still comes down to culture and how people are treated. Employees feel rewarded if they are recognised for their efforts and how they use their strengths to add value to the organisation.

Just over two thirds (70%) of clients believe that there will be much greater competition for talent across 2015. But with only 35% of businesses able to increase their wage budgets, there are three key areas that organisations are focusing on to attract and retain staff.

The really interesting piece here is that 31% of hiring managers said that their company did not have a talent management strategy. Of those who did, only 1.3% have an external talent strategy with 25% of hiring managers agreeing there is a strategy but it is internal only. It is evident in this that confidence is still high in the network management by recruiters for specialist areas.

Hiring managers are still cautious about retention with only 24% believing that retention will improve, meaning they are expecting that recruitment of new talent will never be off the agenda and will always be something that needs to be treated very seriously.

are improving training and development programmes to offer a more inspiring career plan

will be offering flexible working to keep in line with the demand of a healthier work/life balance.

of companies offering more activities for team building

67% 60% 41%

of employers expect to increase permanent hires.

of employers will be able to attract more candidates

60% 1/4 flexible hours Work-life balancePerformance incentives

Salary is not the only way to attract top talent

















































Blue-Chip


Accountancy & Finance Average salaries in South East



The South West market has seen a significant step change in permanent recruitment at all levels up to £50k within 2014 which has driven salaries up by around 10% compared with 2012 & 2013. Levels up to £50k tend to incorporate the future leaders on the “upward curve of their career” who expect to increase their business awareness and build their capability. The biggest noticeable increase in salary has been at the studying part qualified and up to 5 year PQE markets where organisations have been recruiting with growth and development opportunity in mind.

South West

Hiring & demandFrom an interim perspective technical skill sets such as IFRS and treasury along with financial analysis and project accounting skills have been buoyant particularly within financial services, manufacturing and infrastructure sectors. Due to ongoing regulatory changes and companies wanting to constantly improve business performance these skill sets have been in demand. Learns gained through experiences have proven to be a valuable asset to the senior contract market with companies wanting contractors who’ve gone through efficiency and process improvement projects allowing them to bring their knowledge to companies in order to adopt a “right first time” approach.

As businesses have moved into growth mode, teams run as “lean” in recent years are staffing up to cope with increasing workloads. Recession based staffing levels within many finance teams have necessitated efficiency and productivity to survive. Now that growth is back on the agenda, there is a lack of organic succession and SME’s have been forced to recruit externally to build their finance teams.

Retention & DevelopmentOur research shows that 2015 will be similar to 2014 with a growth in permanent hires and the market returning to one that is very much candidate driven. Hiring managers will need to entice candidates to come and work for them and conversations with our clients have shown that benefits such as bonuses and flexible working hours will become more commonplace.

Hiring managers that are used to taking several months to recruit their chosen candidate, will need to improve the speed of their processes as candidates have multiple offers on the table.

Our market research shows that 55% of organisations expect to grow their business due to improving market conditions with an expectation that the lack of quality candidates and candidates with unrealistic salary expectations being the biggest challenge in recruiting the right staff.

Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)CFO 100k 150k 500pd 750pd

Finance Director 90k 130k 450pd 650pd

Group Financial Controller 80k 120k 400pd 600pd

Head of Shared Services 65k 85k 350pd 450pd

Head of Tax 65k 85k 350pd 450pd

Head of Treasury 65k 85k 350pd 450pd

Internal Audit Manager 65k 85k 350pd 450pd

Head of Financial Planning & Analysis 65k 85k 350pd 450pd

Head of Commercial Finance 65k 85k 350pd 450pd

Head of Financial Accounting 65k 85k 350pd 450pd

Head of Financial Reporting 65k 90k 350 pd 450pd

IFRS Controller 70k 90k 350pd 450pd

Solvency 2 Practitioner N/a N/a 500pd 1000pd

Financial Reporting Manager 55k 65k 275pd 350pd

Financial Planning & Analysis Manager 50k 65k 250pd 350pd

Commercial Finance Manager 50k 65k 250pd 400pd

Finance Business Partner 50k 65k 250pd 350pd

Group Accountant 50k 65k 250pd 350pd

Internal Auditor 40k 55k 220pd 300pd


Financial Accountant (Part Qual) 25k 35k 140pd 200pd

Project Accountant 35k 45k 250 pd 350pd

Management Accountant (Qual) 35k 55k 200pd 300 pd

Management Accountant (Part Qual) 25k 35k 140pd 200pd

Management Information Analyst 25k 40k 225pd 300pd

Financial Modeller 30k 45k 250 pd 350pd


Financial Analyst (Qual) 40k 50k 225pd 350pd

Financial Analyst (Part Qual) 27k 35k 140pd 200pd

Business Analyst 30k 40k 150pd 200pd

Accounts Assistant 18k 25k 10ph 14ph

Credit Controller 16k 25k 10 ph 14ph

Purchase / Sales Ledger Clerk 16k 20k 9 ph 12ph

Payroll / Credit Control Manager 28k 45k 18ph 25ph


Blue-Chip




There has also been a significant shift in permanent salaries in the finalist/newly qualified range where newly qualified salaries for ACA’s have increased by approximately 10% and CIMA/ACCA newly qualified salaries have increased by around 5%. The level in highest demand continues to be in the £35-45k space with skill sets focussed around commercial support and business partnering.

Northern Home Counties

Temporary & interim rates have remained relatively flat and the growth has been in slightly more junior positions where large employers are offering existing staff opportunities to get involved in projects and recruiting interim staff to cover their basic duties.

Conversely, there has been an increase in permanent and interim senior roles within the SME market. Organisations have invested in senior hires rather than promoting from within, showing an increased confidence for future growth.

Hiring & demandWhilst most companies expect both permanent and interim recruitment levels to remain similar to 2014, 23% anticipate permanent hires will increase in 2015. There is an expectation of slightly lower levels of interim recruitment in 2015 with 13% of companies expecting to make fewer interim hires compared to 6% expecting to increase interim resource.

Key sectors showing real growth in 2014 have been construction, infrastructure and manufacturing compared to service businesses that have remained relatively steady.

We have also noticed an increase in niche vacancies across controls, risk and compliance with businesses focussing more on these areas to respond to changes in legislation and to increase efficiencies/control.

Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)Finance Director 60k 90k 300pd 450pd

Financial Controller 50k 75k 250pd 350pd

Finance Manager 50k 60k 250pd 300pd

Financial Planning & Analysis Manager 50k 60k 200pd 300pd

Finance Business Partner 40k 50k 200pd 250pd


Financial Accountant (Part Qual) 23k 33k 140pd 180pd

Management Accountant (Qual) 35k 45k 180pd 250pd

Management Accountant (Part Qual) 23k 33k 120pd 160pd

Commercial Analyst 30k 45k 150pd 250pd

Financial Analyst (Qual) 35k 45k 180pd 250pd

Financial Analyst (Part Qual) 24k 32k 130pd 180pd

Accounts Assistant 18k 25k 10ph 14ph

Credit Controller 16k 25k 10ph 14ph

Purchase / Sales Ledger Clerk 16k 20k 9ph 12ph

Payroll / Credit Control Manager 25k 40k 15ph 19ph



Accountancy & Finance Average salaries in South West

of clients predict salaries to increase

68%

are expecting increased competition for candidates

70%

















Retention & developmentAs an overview, the market has reverted back to being one driven by candidates rather than employers and is reminiscent of the pre-recession “war for talent”. We expect the 2015 market will mirror that of 2014 with the top percentile of candidates being in very high demand. Employers need to think more about attraction and employee engagement and will have to embrace faster employment processes so not to lose those in highest demand. Of the companies surveyed, the top 3 things currently being offered to attract new candidates and retain existing staff are; training & development, career progression and flexible working.


Accountancy & Finance Average salaries in Northern Home Counties


































Blue-Chip


Market update 2015 /Business Change & Transformation Page 41 0f 66

Business Change & Transformation

Our team has developed a high value network of senior business change & transformation professionals,

helping to create a competitive edge while working in partnership with our clients

2014 has seen salaries rise for both permanent and contract staff throughout the year. Some businesses have invested more on project-based work designed to gain a competitive advantage. However, such investment is still patchy and other businesses have been reticent to spend the money necessary to gain the top talent. In some sectors, we’ve still seen a lack of confidence with organisations reacting to their competitors rather than taking the plunge and investing in talent first.

Hiring & Demand

A large chunk of the 2014 opportunity within the business change arena has fallen within the actual delivery of a project – hiring within the Project Management Office (PMO) and in both business analysis and project management has been strong. More senior placements, especially in the strategic direction of a programme, have largely been as a result of internal moves and succession as clients look to retain and develop their talent.

Looking forwards into 2015, we expect to see a shift towards strategic hires as clients look to deliver on projects shelved during the recession or look again to invest now that growth is on the agenda.

90% of the demand has been between £250-500 per day and £35-70k for permanents. Those with an e-commerce/retail and digital background have been the most in demand – a change from 2013 where the skills most in demand were more generic. This is an entirely client driven change as businesses begin to place more value on the digital and e-commerce capabilities. We are now seeing more demand around retail and e-commerce skills as corporate businesses place more value on their digital and e-commerce strategies.

London and the South East

of businesses in our survey predicted growth in the next 12 months.

84%

We’ve worked hard to bring our market expertise to clients, helping them to get an insight into what the market outlook is looking like and where rates are currently. It’s fair to say that with salaries finally on the rise again, those companies prepared to invest a little more in talent have been able to secure great people.

From our clients’ perspective, the outlook for next year is for an increase in staff and an increase in business growth.

Page 40 0f 66 Market update 2015 /Business Change & Transformation

0f 66 Market update 2015 /Business Change & Transformation Market update 2015 /Business Change & Transformation Page 43 0f 66

Retention & Development There has been a much greater focus this year in recruitment on career opportunities, both in the contract and permanent spheres. Companies’ retention strategies have focused more around the development of an employee’s career through creating a great working environment, over providing a higher salary. Retention is important due to the lack of candidates. During the recession, clients found it easier to attract candidates as there were fewer opportunities available. Interestingly, 56% of clients spoken to envisaged that retention would improve in 2015. What remains to be seen is how clients are going to make this transition, is this merely a positive outlook or do they have demonstrable action plans in place?

Skill Gaps It may be a truism, but clients have largely struggled to fill gaps when they haven’t been willing to pay the remuneration necessary to secure scarce talent. Clients who have preferred to utilise Fixed Term Contracts (FTCs) have begun to struggle to secure sought after top talent who prefer to contract as interims. However, moving in to 2015 the signs are positive with only 6% of businesses in our survey anticipating a rise in FTCs. The biggest issue here has been speed and commitment. Employers need to show a commitment to their candidates, as increasingly, candidates have more than one option to choose from. By demonstrating an attractive overall package, an employer might be able to tip the balance in their favour and secure the candidate.

In terms of specific skills gaps, our experience in 2014 shows that employers haven’t struggled with specific roles, but more with understanding the market and recruiting effectively in it. The main struggles that our clients envisage in 2015 are finding good quality candidates, and overcoming the fact that their internal decision making process takes too long. Both these factors were raised by almost half the organisations we surveyed.

Hiring & Demand

The positive effects of growth in the economy’s manufacturing powerhouse across the Midlands continued to show in the results of our survey. In fact, over 80% of businesses stated that they expect to grow in 2015.

Over 50% of clients surveyed expected salaries in their business to increase - important given changes to candidates’ motivations and also given how static salaries have remained during the tough economic times of the last few years. Worryingly, over a third stated that they expected salaries to stay the same. If this is the case, it could mean a significant movement in the market as candidates seek to improve their salaries and overall package as market conditions pick up and employers regain hiring confidence.

The Midlands

of clients spoken to envisaged that retention would improve in 2015

56%

of the demand has been between £250-500 per day and £35-70k for permanents

90%

of respondents expect their hiring levels to remain the same in 2015

30%expecting hiring levels to reduce from 2014 figures

10%of the clients we spoke to expected their hiring to increase

50%

0f 66 Market update 2015 /Business Change & Transformation Market update 2015 /Business Change & Transformation Page 45 0f 66

The top three factors affecting hiring demand in 2014 were:

❶ Change in business strategy

❷ Improving market conditions

❸ Changing technology

of clients expected to hire permanently in 2015

expecting this to be a significant increase on recent years

of respondents expected hiring figures to remain focussed on temporary or interim roles

expecting this to significantly increase in 2015 on recent years

90% 40% 70% 40%

This was closely followed by investment in new markets. This is not surprising given that organisations across the region have consolidated during the tough times and more recently have been positioning to springboard for growth. Natural attrition rates were regarded as the factor least likely to affect hiring in 2015.

Regarding fixed term contracts – figures in this area remained low as usual. With over 25% of organisations picking it as a non-applicable option for them; citing they either want to increase permanent bench strength or attract highly experienced interim options for specialist projects and that FTC was not the way to do that. FTC continues to be viewed as an option for maternity cover only.

When it came to candidate attraction over 10% of organisations we surveyed felt positive that they would attract significantly larger amounts of candidates than normal; with 45% saying they felt they would receive slightly more and 27 % saying candidate attraction would remain exactly the same as the last few years.

The biggest challenges to recruitment were viewed as a lack of quality candidates and that it took too long to make internal decisions with almost 50% worrying about these factors. Given how competitive the market has been this year, and is likely to become next year, time taken to make internal decisions can be a key barrier to hiring success – especially when customer (candidate) experience is so important, and multiple offers (and counter-offers) are on the increase.

The second biggest area of challenge was a shortage of technical skills, followed by salary expectations being too high.

Skill GapsOver 50% of organisations we surveyed have a talent management strategy for both internal and external purposes. For just over a quarter, this was internal only. Almost 15% of clients we surveyed were not aware if they had a talent management strategy.

Retention & DevelopmentRegarding retention, nearly 50% of our clients had seen retention remain the same in 2014, whereas 40% had seen it lower. Our clients expected that in 2015 this shift will continue and just over 55% expected retention rates to continue to fall. Just over a third expected or hoped they would stay the same. Only 8% were positive enough to see that retention rates would improve in 2015.

Over three quarters of the clients we surveyed felt there would be a huge increase in the competition for talent in 2015. Nearly 60% of organisations said they were looking to increase pay to make themselves more attractive

to candidates. Training and development and career progression came next on the list with 44% and 40% of organisations saying that these programmes were integral to their hiring strategies for 2015. A third of clients are

improving their ability to offer flexible working to employees as a key way to differentiate themselves in the market. With a quarter improving working conditions and offering team building as a unique way to attract new hires.

of clients we surveyed recruited Business Analysts this year

75%of clients hired programme level roles – highlighting the complexity of business transformation in the current market

45%of clients hired at the project level – the need to deliver is still integral to organisations

54%hired PMO specialists in 2014 – governance & control is still important.

40%

Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)Programme Director 100k 175k 650 pd 1200 pd

Head of Change 90k 175k 600 pd 2000 pd

Programme Manager 75k 100k 550 pd 750 pd

Head of Programmes 100k 175k 900 pd 1500 pd

Head of Transformation 80k 200k 600 pd 2000 pd

Transformation Manager 60k 90k 450 pd 600 pd

Change Manager 50k 90k 400 pd 600 pd

Project Manager 35k 70k 350 pd 550 pd

Head of Projects 50k 90k 500 pd 700 pd

Head of Business Analysis 60k 90k 600 pd 800 pd

Senior Business Analyst 50k 80k 420 pd 550 pd


Product Manager 50k 80k 450 pd 550 pd

PMO Lead 60k 80k 500 pd 700 pd

PMO Analyst 40k 60k 300 pd 450 pd

PMO Coordinator 30k 45k 200 pd 300 pd

PMO Support 20k 30k 120 pd 200 pd

Project Administrator 20k 30k 120 pd 200 pd

Project Planner 30k 70k 300 pd 400 pd

PMO Director 80k 150k 600 pd 1000 pd

Business Change & Transformation Average salaries

Blue-chip

Business Change & Transformation Average salaries

Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)Programme Director 60k 110k 650 pd 1000 pd

Head of Change 60k 110k 600 pd 800pd

Programme Manager 55k 75k 400 pd 700 pd

Head of Programmes 80k 120k 600 pd 900 pd

Head of Transformation 75k 130k 600 pd 850 pd

Transformation Manager 50k 70k 400 pd 550 pd

Change Manager 40k 55k 350 pd 550 pd

Project Manager 30k 50k 300 pd 500 pd

Head of Projects 45k 75k 450 pd 600 pd

Head of Business Analysis 45k 60k 450 pd 600 pd

Senior Business Analyst 40k 55k 350 pd 525 pd


Product Manager n/a n/a n/a n/a

PMO Lead 50k 70k 400 pd 550 pd

PMO Analyst 28k 42k 225 pd 275 pd

PMO Coordinator 18k 38k 150 pd 250 pd

PMO Support 18k 28k 100 pd 150 pd

Project Administrator 18k 28k 100 pd 150 pd

Project Planner 25k 45k 200 pd 300 pd

PMO Director 60k 80k 500 pd 700 pd


Market update 2015 /Business Change & Transformation Page 47 0f 66Page 46 0f 66 Market update 2015 /Business Change & Transformation

Market update 2015 / HR Page 49 0f 66

HR

Our HR recruitment team is all about bringing people together: understanding both the projects and the cultural changes

organisations demand, and supplying professionals that can deliver strategic transformation.

There have been signs of a more positive market in 2014 with businesses more willing to invest in new talent and candidates seeking out and adopting new career opportunities. Many companies now realise that standing still is only a short-term option, and to develop and grow they need to attract and recruit top talent.

London and the South East

The construction and engineering markets in particular have seen a significant increase in recruitment across all levels of HR. Often these reflect specific project wins resulting from the improved economy. Interestingly, the third quarter of 2014 was the most buoyant. When historically the summer period would have seen a dip, we saw an increase in job numbers, new candidate applications and placements. This was across all clients from SMEs to large blue chip organisations.

We saw little change in salaries - although inevitably there was the potential for niche skill sets to command a premium. This may put pressure on clients in the future to increase salaries where there are skill shortages. We are now in a very candidate-driven market again and the speed of the hiring process is slowly improving. Our clients are now more aware than ever that top talent will not be available for long and that good candidates often have several job offers on the table. Clients able to act quickly and decisively are the ones that are attracting and retaining the top quality candidates. Added to this, with candidates often receiving multiple offers and counter offers, clients with the flexibility to offer increased salaries have been the ones who attract and retain the best talent.

Another noticeable trend this year has been the significant increase in Fixed Term Contract (FTC) opportunities due to project work, maternity cover and on-going caution around increasing permanent headcount. Inevitably, a lot of these FTC’s led to or had the potential to lead to permanent opportunities allowing clients the freedom to either end or extend a contract without committing - again demonstrating their caution in the current market.

Hiring & Demand

We have seen a number of newly-created roles as well as replacement roles become available this year as businesses look to grow. High quality generalist HR Managers, Advisors and Business Partners are in continuous high demand especially. We have also seen an increase in demand in the following areas on a permanent and fixed term basis: reward, compensation and benefits, employee engagement, recruitment, HR systems and L&D. This will only increase in the future as companies focus on augmenting their strategies for attracting and retaining the best talent.

Looking ahead into 2015, there is a feeling in the market that hiring levels will continue to grow, with 52% of clients surveyed supporting this sentiment and a further 31% believing that hiring levels will at least remain static. With growth in mind, 62% of the clients we spoke to believe that competition for talent will be greater in 2015, with 67% of those clients seeing increased salaries as inevitable.

Looking into 2015

of clients surveyed believe that their businesses will grow in 2015

of these clients cited improving market conditions, investment into new markets and a change in business strategy as the main catalysts of growth.

69% 65%

Page 48 0f 66 Market update 2015 / HR

0f 66 Market update 2015 / HR

Skill Gaps Increased demand in the following specialist areas have seen clients struggle to attract talent and have seen a slight increase in salaries for candidates with these niche skills set:

HR systems

Reward, compensation and benefits

Employee engagement

Organisational development

L&D

There is a significant lack of quality candidates in these areas - especially on a contract and interim basis. Where clients have acknowledged they need to pay more, they have been the ones to attract the best skills set. In addition, those clients that have been creative enough to upskill their current talent have not only helped to retain them but also help solve a candidate-short area. 60% of clients surveyed believe that these skill shortages, coupled with a lack of quality candidates in certain niche areas, will continue to pose challenges to some less agile organisations in 2015.

In 2014 there has also been a significant increase in in-house recruiter roles as clients seek to adopt a direct sourcing model to help them save costs and improve their recruitment processes. Reward, compensation and benefits roles have seen an increase due to clients trying to remain competitive and ahead of their competition when attracting and retaining top talent. In addition, L&D has become more important, with clients aiming to retain and attract talent through offering the best career development plans and opportunities.

Retention & Development In most cases this year, the catalyst behind candidates considering a move in a more confident market is still salary. However we have also seen their desire for seeking the right training and development opportunities; the potential for an improved work-life balance; flexible working and the culture of an organisation becoming just as important. Hence why the growth recruitment areas this year have been:

L&D

Talent management

Employee engagement

In-house recruitment

Reward

Employers need to be aware that as the economy improves and more opportunities become available to skilled HR professionals, they will need to offer more competitive salaries and packages in addition to career progression, training, flexibility and an excellent working environment in order to secure the best talent.

For 2015, the trends we have seen in 2014 will continue, with 67% of clients surveyed ranking improvements in training and development and a drive to more flexible working being areas they will continue to invest in.

We recently ran a seminar around cultural transformation and becoming a strengths-based organisation. This will continue to be a hot topic in 2015 as companies look to expand further. Those organisations that change and adapt their cultures in response to the improving and candidate-led market will be the ones to attract and retain the best.

of clients see skills shortages as a problem for 2015

of clients will invest in training and development

60% 67% HR Average salaries in London and the South East

Blue-chip

Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)

Director of HR 80k 150k 500 pd 1100 pd

Head of HR 70k 110k 450 pd 800 pd

HR Manager 50k 75k 300 pd 500 pd

Senior HR Advisor 35k 50k 150 pd 300 pd

HR Advisor 30k 45k 120 pd 250 pd

Senior HR Business Partner 60k 85k 350 pd 550 pd

HR Business Partner 55k 70k 325 pd 450 pd

Head of Recruitment 65k 95k 400 pd 600 pd

Recruitment Manager 45k 80k 250 pd 500 pd

Recruitment Advisor 30k 45k 120 pd 250 pd

Director of Reward / Compensation & Benefits

90k 160k 550 pd 1200 pd

Reward / Compensation & Benefits Manager 45k 70k 250 pd 450 pd

Reward Analyst 35k 55k 150 pd 325 pd

Head of L&D 70k 110k 450 pd 700 pd

L&D Manager 45k 70k 250 pd 450 pd

L&D Advisor 35k 50k 150 pd 300 pd

HRIS Manager 50k 65k 300 pd 400 pd

HRIS Analyst 35k 55k 150 pd 325 pd



HR Average salaries in London and the South East

Small to Medium Sized EnterprisesThroughout 2014, the Midlands has seen a marked increase in salaries at all levels by 2.1%, as we have moved into a more candidate-driven market. This has been driven by increased demand, particularly in senior appointments.

The Midlands

High calibre candidates are typically finding themselves in process with three separate opportunities during their search which forces potential clients to offer the very best packages to attract top talent. While demand has increased in all sectors, we have seen a particular spike in the manufacturing/automotive sector, with one well-known automotive client opening up a new plant and bringing out new lines, which has increased opportunity for 1st tier suppliers to grow their businesses and increase market share.

With continuous improvement and lean agendas commonplace, businesses have recognized they need the right calibre of HR professionals in place.

Hiring & Demand

Hiring and demand for the Midlands region has mainly been focused around Senior HR Business Partners/Head of HR and HRDs with 10% of our Midlands clients predicting they will grow in 2015. There has also been a noticeable trend towards internal recruitment throughout the year, as clients seek to cut agency spend and direct source a higher percentage of their own new hires. Again, the demand has been within manufacturing and utilities and we have begun to see this increase in quarters three to four within retail.

Skill Gaps With clients looking at implementing shared service models, we have seen an increase in technical HR systems implementation roles, mainly on a project or programme basis. In the Midlands, there has been a challenge to source compensation and benefits specialists, as this skill set is very niche and has been more commonly found in larger corporate functions in the South East.

of clients in the Midlands stating that improving market conditions will be the main factor for hiring

At just 1%, change in regulatory framework was of low importance

10% 1% Retention & DevelopmentAt the beginning of 2014 most of our clients released their salary survey information. The results indicated employees are looking for further development and clear career paths. In April we noticed an increase for recruitment within L&D and O&D. Candidates are also looking at the benefits package before interviewing as pensions, holiday, flexible working hours are a major influence - not just base salary. From a Midlands perspective, we can see a major increase in fixed term contracts at 15% and a big decrease in permanent hires at 4%. Clients in the Midlands have concerns around the lack of quality candidates (61.8%) - which might be the major factor in hiring FTCs with a view of then progressing to permanent.








HR Business Partner 50k 70k 300 pd 450p pd





65k 90k 400 pd 550 pd

Reward / Compensation & Benefits Manager

35k 55k 150 pd 325 pd







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70k 95k 450 pd 800 pd

Reward / Compensation & Benefits Manager

55k 70k 300 pd 450 pd







HR Average salaries in The Midlands

Blue-Chip

HR Average salaries in The Midlands













60k 75k 350 pd 550 pd

Reward / Compensation & Benefits Manager 40k 60k 200 pd 300 pd

Reward/Compensation & Benefits Analyst 30k 35k 100 pd 250 pd







Market update 2015 / HR Page 55 0f 66Page 54 0f 66 Market update 2015 / HR

Procurement & supply chain

With an in-depth understanding of supply chain and procurement, our team specialises in making intelligent

connections between skills, cultures and roles.

Based on these results, we believe the market will be busy again next year with vacancies coming about due to growth and also movement through the continued appetite for risk and the desire for progression. There is

some evidence that hiring in supply chain eased off during the recession, but with increased demand for consumer goods and retail products, these

two areas are likely to see further growth as the importance of having product available and on the shelf becomes ever more an issue.

of respondents answered that they were likely to grow their business in 2015

55% 55%of clients will face a skill gap in 2015

70%of clients say their organisation will grow in 2015

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0f 66 Market update 2015 / Procurement & supply chain

Skill Gaps Supply Chain has traditionally been an area where there has been a lack of available courses and degrees to cope with the demand for skilled candidates. Awareness of the need for a very specific skillset is increasing now, and most FTSE 100/250 businesses have programs specifically designed to find the supply chain and procurement leaders of tomorrow. Despite this there is still a shortage in available candidates, with 70% stating that they expect to see a lack of quality candidates. When faced with skills shortages, 70% of respondents said this would be a key challenge for them when recruiting in 2015.

Demand planning is an area that is particularly candidate short and clients with urgent requirements in this space often need to relax their criteria and look at hiring a more junior candidate with potential, rather than finding the finished article. As a consequence, starting salaries are often at the lower end of the scale.

Hiring & Demand

60% of clients surveyed expect to increase salary levels in 2015 – which can be seen as a direct response to the challenge of retaining and attracting top talent in a competitive and candidate short market place.

We are already seeing high demand for indirect and specialist procurement managers as well as experienced demand planners and supply chain managers. Clients who have been accustomed to hiring during the downturn now have to work harder to present more of an attractive offer to their top candidates. Overall, there is more of an appetite to hire and more urgency around the hiring process.

of clients surveyed expect to increase salary levels in 2015

60%of respondents said skills shortages would be a key challenge for them when recruiting in 2015

70%

Procurement & Supply chain Average salaries

Blue-Chip


Chief Procurement Manager 90k 250k 800 pd 1500 pd

Procurement Director 75k 130k 600 pd 900 pd

Head of Procurement 75k 130k 600 pd 900 pd

Category Manager 45k 95k 400 pd 650 pd

Supplier Relationship Manager 40k 75k 400 pd 650 pd

Purchasing Manager 40k 75k 350 pd 650 pd

Senior Buyer 30k 55k 350 pd 450 pd

Buyer 25k 40k 200 pd 350 pd

Procurement Analyst 25k 55k 200 pd 500 pd

Supply Chain Director 80k 180k 700 pd 1500 pd

Head of Supply Chain 50k 70k 600 pd 1000 pd

S&OP Director 60k 80k 400 pd 750 pd

Supply Chain Manager 50k 70k 300 pd 600 pd

Demand Planning Manager 50k 60k 250 pd 500 pd

S&OP Manager 50k 60k 300 pd 350 pd

Production Planning Manager 45k 55k 300 pd 450 pd

Supply Planning Manager 50k 60k 300 pd 450 pd

Customer Service Manager 50k 60k 195 pd 450 pd

Demand Planner 30k 40k 195 pd 300 pd

Production Planner 30k 40k 200 pd 300 pd

Supply Planner 30k 40k 200 pd 300 pd

Market update 2015 / Procurement & supply chain Page 59 0f 66

Market update 2015 / Strategy Page 61 0f 66

Strategy

Our strategy division focuses on search and selection across commerce and industry, financial services, and consulting. With an international network of senior strategy consultants, we pride ourselves on offering

balanced advice to professionals and employers alike.

Looking at specific industries, sentiment within retail is very good overall with 70% of retailers expecting a better Christmas in 2014 than last year. The majority of growth is at the discount and luxury poles of the market with a squeeze in the middle. Financial services firms have been consistently hiring strategists, even when reducing headcount in other areas. In 2014, London has been less buoyant than Zurich and New York though our client base believes this will change in the New Year as bonuses are paid out and new talent plans are agreed.

Hiring & Demand

‘Digital’ has been the buzzword this year as companies hurry to capitalise on cheaper, higher-functioning, more accessible technology. Every organisation from banks to retailers, miners to publishers and recruiters to taxi firms have continued to aggressively adopt new technologies to gain competitive advantage. e-commerce is now a central pillar for almost all B2C companies and there is a sustained requirement for professionals who have worked on digital strategy and transformation.

Skill Gaps The greatest shortage of talent, and therefore the most significant demand, is beyond central London. Many blue chip businesses with headquarters outside the capital are seeking to hire top-tier strategy consultants but are finding that there are few people willing to commute or relocate. Where consultants are willing to look beyond London, they can find themselves rewarded with greater seniority or exposure and quicker progression into general management than their peers who stay in London.

Corporates have also found a shortage of talent at the junior levels. With consultancies and front office banking paying £40k+ for top graduates, businesses outside these industries have problems with internal benchmarking and cannot justify such high salaries for inexperienced hires. Strategists get a quicker financial return by rapidly climbing the ladder in consulting and then moving to the client-side at the post-MBA level.

Environment and flexibility are the two key factors in attracting and retaining top calibre staff in the short-term with training and progression the main factors in retaining high potential strategists beyond the two-year mark. This makes it all the more surprising that 31% of survey respondents either don’t have, or are not aware of a talent management process within their business.

The best MBA graduates are in high demand and the number one reason for seeking a new job is ‘progression’ – if your best people don’t find this where they are, they will not hesitate to look elsewhere. The most successful retention schemes are based on carefully-structured and well-executed career planning so that talented and ambitious professionals can see the long-term opportunities that will reward excellent performance.


of respondents cited ‘improving market conditions’ as the most significant driver of hiring activity.

60%

Broadly speaking, the strategy market is in a positive and steady growth phase with most larger firms engaged in some form of selective recruitment.

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Analyst/Consultant 2-4 years

Analyst 2-4 years

Associate/Junior Manager 5-7 years

Senior Associate/Manager 5-7 years

Project Leader/Engagement Manager 7-9 years

Senior Manager 7-9 years

Principle 10+ years

Director 10+ years

55K 70K 75K 100K 115K+ 130K+

55K 70K 75K 100K 115K+ 130K+

55K 70K 75K 100K 115K+ 130K+

55K 70K 75K 100K 115K+ 130K+ 40K 60K 85K 110K 120K+

40K 60K 85K 110K 120K+

40K 60K 85K 110K 120K+

40K 60K 85K 110K 120K+

Strategy Average salaries in strategy consulting

Top Tier Consulting Other Consultancies

Market update 2015 / Strategy Page 63 0f 66Page 62 0f 66 Market update 2015 / Strategy

In-HouseStrategy

Associate Manager Director HOSMin - Max (£) Min - Max (£) Min - Max (£) Min - Max (£)

Fmcg/Retail 40k - 50k 55k - 70k 70k - 100k 100k - 140k

Pharma 50k - 65k 65k - 100k 100k - 140k 140k - 180k

TMT 40k - 55k 55k - 70k 70k - 100k 100k - 140k

FS 45k - 60k 60k - 90k 90k - 130k 130k - 160k

Oil and Gas 45k - 60k 60k- 90k 90k - 130k 130k -160k

Candidates moving from consulting into industry normally achieve a similar basic salary or small uplift

Candidates moving to start ups take a significant cut in basic salary but are remunerated through equity options

It is not unusual for Engagement Manager level candidates to be offered £60-70k base but with significant upside

Bonuses drastically differ dependent on product area and have been anywhere between 10-50% in 2014

Market update 2015 / Strategy Page 65 0f 66Page 64 0f 66 Market update 2015 / Strategy

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© Badenoch & Clark 2014. All right reserved. The information contained in this publication is intended for general purposes or guidance only. It does not purport to constitute professional advice. Badenoch & Clark accepts no liability for the accuracy of the contents or any opinions expressed herein.

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Market Update - Commerce and Industry 2015

Recruiting & HR

Transcript of Market Update - Commerce and Industry 2015