SALARY REVIEW WINTER Sourcing high calibre talent since 1999

Transcription

1 Sourcing high calibre talent since 1999 SALARY REVIEW WINTER SYDNEY Level 10, 28 O Connell Street Sydney NSW MELBOURNE Level 27, Rialto South Tower 525 Collins Street Melbourne VIC

2 GLOBAL EXECUTIVE SEARCH FIRMS SALARIES $100K to $400K PERCEPTOR A focused Search and Selection practice VOLUME RECRUITMENT AGENCIES WELCOME Whilst it may appear that business conditions have changed little over the last twelve months, the reality is that there have been substantial developments, many of them positive. This increases the likelihood of an improvement in business confidence generating greater hiring activity over the next 12 months. The stockmarket is higher, the property sector is booming and there is an endless procession of overseas retailers starting up or growing in Australia. Increasing M&A activity combined with a substantial list of Initial Public Offerings is heralding the good times returning to the investment banking sector. However, the business community is still consumed by uncertainty and concern that activity could slow down again and is therefore adopting a cautious approach for the most part. This mentality is being enhanced by the new Federal Government s negative narrative about Australia s unsustainable budgetary settings and their austere May Budget. In reality, the economy is creating and removing jobs at the same time with the net effect of a stable unemployment rate masking lots of adjustment to corporate structures happening behind the numbers. This means that the efficiency drive of major corporates is continuing and by leveraging technology, outsourcing and top talent, they are driving towards more nimble and profitable business models. Mid to senior level executives, where Perceptor s expertise is focused, are working harder and smarter than ever and learning to operate in fluid structures and teams. For those who are adaptable and innovative, the opportunities are still outstanding and the talented candidates we have placed into key roles over the last year all share those positive traits. As we celebrate Perceptor s 15th birthday, we are reminded of the contrast between the unbridled optimism of the dotcom boom in 1999 and the overwhelming caution of We note that the hiring and retention of top talent is as high a priority for CEOs now as it was back then, and as it has been for every year in between. If that is done well, companies are well-placed to succeed at any stage of the cycle. Please contact us directly if you require further information. Ian McAlpine Director Finance / Accounting / Commercial ian@perceptor.com.au Mark O Connor Director Sales / Marketing / Digital mark@perceptor.com.au 2

3 INTERNAL PROMOTION One of the major trends over the last 18 months across many large corporates has been the proactive decision to fill a higher percentage of roles with internal candidates. This is good news for those professionals inside a company which they like and where they want to spend more time. It can be frustrating for candidates trying to break in to a new company and line managers who ideally want to bring in fresh ideas and use hiring as a major catalyst for change. The impact on salaries is negligible as candidates are not negotiating pay increases to make a move but are typically moving for parity or a very small increase. This is a typical trend in a cautious, risk averse business environment and so it will continue for some time yet. As businesses shift towards growth and an external focus, this trend will change to focus more on external hiring. RECRUITMENT MORE FRAGMENTED THAN EVER Over the last 3 years we have observed the recruitment sector become more fragmented than ever for both candidates seeking a role and clients seeking to hire. Many corporates are now using a multi-sourcing approach to finding the best candidates, as they combine LinkedIn, direct referrals, online ads and boutique recruiters. This fragmentation of the process makes it difficult for clients to manage the process effectively and maintain consistency and quality of hiring. As a result, we have been working to partner more closely with our corporate clients and offer a comprehensive and structured service which includes assessing all direct referrals, internal candidates and Perceptor sourced candidates in one process. This approach enables us to deliver to clients an expert, impartial assessment of all candidates and significantly saves time for our clients whilst ensuring the quality of any shortlist is maximised. SALARY TRENDS With the exception of some specialised areas of skill shortage the trend for salaries over the last 12 months has been for salaries to increase by inflation or up to 5% at most. The skill areas where salary increases are over 5% are in analytics and some digital roles (SEO/SEM specialists and e-commerce experts). One of the major trends we have observed over the last 12 months is the variance in bonus payment according to sector, company and individual. This is a return to the traditional concept of the bonus being something extra in recognition of a very good performance rather than being an automatic part of the package. In general though, our observation is that bonuses have been most generous and consistent in Financial Services and Technology with sectors such as Retail, FMCG, Consumer Goods and Entertainment/Media being much more varied depending on company and individual performance. OUTLOOK Our prediction of a gradual improvement in recruitment market conditions in 2013/14 was too optimistic but our sentiment remains the same although recruitment activity remains at low levels, a slight increase in business confidence will shift the corporate mentality from cost-cutting to revenue growth and create hiring momentum. For now, it is more of a wait and see mindset except for sectors which are growing such as Financial Services and Property and they are the ones showing positive hiring activity at the mid to senior executive level. Looking at particular sectors, Entertainment and Media will continue to restructure as they fine-tune their business models and this will create both job losses and job gains over time. FMCG and Consumer Goods remain a challenging sector with profitable growth difficult to achieve except in some niche areas, therefore there is limited hiring activity. A positive improvement in consumer sentiment would drive growth and hiring activity. Professional Services has been investing in efficiency projects which will lead to profitable growth as business sentiment improves. Mining Services and Industrial sectors are still adjusting to the end of the mining investment boom and the stubbornly high Australian dollar is still making life difficult. The key skills which will continue to be in demand are data analytics and digital skills for Marketing & Sales professionals; commercial astuteness and analytical skills for Finance & Accounting professionals. Despite the perception that it is a buyer s market for talent, the reality is that the top talent always has multiple options and will not accept any role that does not meet their own criteria and objectives. As individuals become more sophisticated and proactive in managing their own careers, they will listen to advice from mentors and trusted advisors to ensure they access a range of opportunities and make an informed career move which correlates with their longer term career plans. At Perceptor, we work proactively with corporates and individuals to ensure the right decision is made for both sides. 3

4 THE SENIOR FINANCE MARKET - SYDNEY AND MELBOURNE CFO MARKET Over the last twelve months we have seen a continuation of tough conditions in the CFO market. The level of CFO churn has improved somewhat on previous years but is still at the low end of the range. This has created a frustrating and challenging environment for CFO candidates who are looking for a new role. We have experienced some consistent demand from mid-sized companies and divisions who are looking for an entrepreneurial mindset in a new CFO and a broad range of technical and commercial skills. This part of the market is where we see the main CFO opportunities emerging over the next year - small to mid-size growing business. Some of these standalone companies have recently listed or are planning to list on the ASX and they need to hire an astute CFO with investor relations experience or capability, and in many cases they are hiring their first experienced CFO having grown to a certain size with only a Financial Controller in place. The other point about the mid cap CFO market is that it is much larger than the ASX Top 100 or multinational CFO market therefore there will always be a flow of opportunities as the successful companies continue to grow and evolve or get bought and sold by larger companies or Private Equity firms. SENIOR MARKET $200K+ This has been another challenging period for the senior finance market and really continues the themes that have emerged over the last three years rationalisation, centralisation and cost reduction. In the absence of growth drivers in the economy it is likely these themes will continue for another year or so which will limit the range of options at this level. However, we have also seen an appetite from many companies to hire top-talent into key roles supporting the CFO individuals who can bring new ideas and perspectives to the business and have potential to progress into other roles in a two or three year timeframe. Roles such as GM Finance, Financial Controller, Head of Planning, Corporate Development Manager and Head of Risk/Internal Audit have generally been replaced with external candidates instead of internal promotions. Still, the majority of senior finance teams have remained stable and the market is only moving slowly so it is unlikely that even the best candidates can accumulate a wide range of suitable roles in a short time period and a patient approach to their search is required by active candidates. Salaries have barely moved at this level over the last year and, with inflation remaining low, that is unlikely to change. LARGE CORPORATE (ASX 100 OR MAJOR MULTINATIONAL) Group CFO Div CFO/ Dep CFO $700 $900K package % STI + LTI $350 $550K package % STI + LTI MEDIUM SIZE CORPORATE (ASX 300, MULTINATIONAL OR PRIVATE/PE) Group CFO Divisional CFO $300 $500Kpackage %STI+ LTI $220 $300Kpackage %STI+ LTI 4

5 CURRENT SALARIES SYDNEY FINANCE / ACCOUNTING / COMMERCIAL CONSUMER / MEDIA / RETAIL TECHNOLOGY / COMMUNICATIONS INDUSTRIAL / LIFE SCIENCES / HEALTHCARE FINANCIAL / PROPERTY $,000 $,000 $,000 $,000 $,000 Finance Director / CFO General Manager Finance Financial Controller / Manager Senior Commercial Manager Commercial Manager Planning Manager Planning / Commercial Analyst Group / Corporate Accountant Corporate Reporting Manager Financial Accounting Manager Senior Financial Accountant Financial Accountant Management Accounting Manager Senior Management Accountant Management Accountant Financial Analyst (5 years +) Tax Manager Senior Tax Accountant (5 years +) Chief Risk Officer / Head of Internal Audit Internal / IT Audit Manager Risk Analyst Compliance & Controls Manager Corporate Development Manager Corporate Finance Analyst Group Treasurer Treasury Manager Group Treasury Accountant Strategy Manager Project Manager MELBOURNE FINANCE / ACCOUNTING / COMMERCIAL CONSUMER / MEDIA / RETAIL TECHNOLOGY / COMMUNICATIONS INDUSTRIAL / LIFE SCIENCES / HEALTHCARE FINANCIAL / PROPERTY $,000 $,000 $,000 $,000 $,000 Finance Director / CFO General Manager Finance Financial Controller / Manager Senior Commercial Manager Commercial Manager Planning Manager Planning / Commercial Analyst Group / Corporate Accountant Corporate Reporting Manager Financial Accounting Manager Senior Financial Accountant Financial Accountant Management Accounting Manager Senior Management Accountant Management Accountant Financial Analyst (5 years +) Tax Manager Senior Tax Accountant (5 years +) Chief Risk Officer / Head of Internal Audit Internal / IT Audit Manager Risk Analyst Compliance & Controls Manager Corporate Development Manager Corporate Finance Analyst Group Treasurer Treasury Manager Group Treasury Accountant Strategy Manager Project Manager The figures stated show Total Package including cash, superannuation and benefits. Discretionary components such as bonus and options are excluded. Bonus components tend to range from 10-40% of Total Package, with senior executives on the higher end. 5

6 MID-SIZE COMPANIES AND DIVISIONS HAVE BEEN LOOKING FOR AN ENTREPRENEURIAL MINDSET IN A NEW CFO AND A BROAD RANGE OF COMMERCIAL AND TECHNICAL SKILLS MID-MARKET $140K - $200K This market has seen a continuous flow of opportunities over the last year as companies have shuffled the decks to ensure they retain their top talent through career development and internal promotions. With leaner finance teams and less hierarchy in most organisations, companies need to move people across the function and into different parts of the business which has a domino effect and results in certain gaps appearing. This results in the need to target specific skillsets or types of experience to fill a specific role. For example, we have seen demand for Group Technical Advisory roles, Performance Reporting roles and Senior Commercial Manager roles. Individuals with proven credentials in these areas are well-positioned, as are those with strong communication, relationship-building skills and the leadership skills to manage and motivate larger teams. That combination of strong technical capability and well-developed soft skills is always in demand for key specialist roles at this level. With inflation between 2-3%, salary increases have been very limited and generally held to the inflation rate. At this level, bonuses have been paid although not at target level for most people. QUALIFIED MARKET $80K - $140K We have noticed an increase in activity at this level of the market which we hope is the start of a positive trend. Good candidates who want to move are being offered a number of interesting opportunities and have the luxury of choice. This applies to both Financial/Management accounting roles and Commercial/Analytical roles but clients are looking for a high degree of capability as well as a strong cultural fit and are prepared to pay above market rate to get what they want. The effect of this is that salaries are gradually increasing and less experienced candidates are being offered more senior roles and collecting decent pay rises in the process. The roles in demand have been Commercial Analysts, Internal Audit/Risk Analysts, Management Accountants and Financial Accountants. We are confident that demand at this level will continue as it is a larger and faster-moving market with average tenure in each role being 1-2 years. Pay increases above inflation (3-10%) are the norm at this level for strong performers. INTERIM/CONTRACTING Although corporates remain cautious about spending money on contract resources, they have demonstrated a consistent requirement for interim placements over the last year and our view is that this will continue. This activity partly reflects the high quality of candidates who are available and open to contract roles at mid to senior level. We have seen an increase in contractors who convert to permanent roles after a few months which can work well in terms of their availability for an immediate start and the flexibility to assess their capability in the first few weeks. At junior levels there is a more limited pool which reflects the stronger permanent market discussed above. Roles in demand are Project Managers, Business Analysts and Management Accountants. 6

7 DIGITAL, MARKETING & SALES SYDNEY AND MELBOURNE OVERVIEW FOR DIGITAL, MARKETING & SALES The dominant trend of the last 12 months has been the investment in digital and analytics capability by most organisations. This has included investment in people and growth in these areas and has outstripped any growth in the more traditional areas of sales, marketing and communications. We have not observed major bidding wars for candidates in these areas yet but expect this trend to rise over the next 12 or 18 months as the different sectors and companies compete for a relatively small pool of talent. Now is the time to be hiring key people in these areas because it will only get more challenging from here. Almost all organisations now have some form of digital team and many are investing in analytics be they hiring or training existing staff. E-commerce has certainly been a segment of digital running hot as demand outstrips supply. Calendar 2013 was a disappointing recruitment market because of the 9 month election campaign. Conditions improved slightly after the election although it was hardly a strong market. The first quarter of 2014 was challenging with many organisations expressing a desire to make key appointments but ultimately were unwilling to commit to headcount approval. Therefore, with the exception of key roles in digital or analytics we are not expecting significant pay increases for most positions in the broad sales and marketing industry. Most companies have been or are planning to offer increases at or around the rate of inflation. Where to from here? In our view the general market will continue its very slow recovery. Without a doubt 2014 is one of the best times to be hiring if you are looking to secure high quality talent. Patience is key, but there are excellent people seeking to take the next step of their career despite the frustrating market conditions. HEAD OF POSITIONS Those corporates who choose to go to market early will be able to source from a strong pool of candidates at this level. Be it marketing, digital or sales there are 3 segments of candidates available: those currently employed seeking the next step, those returning from overseas with some excellent experience and those who have been victims of change and restructure. In all 3 segments there are some excellent people who can add real value and are highly motivated. Opportunities across Financial Services have started to pick up over the last few months and Retail is undergoing change as almost all companies invest heavily in a multi-channel strategy. This is driving demand for senior roles in digital/e-commerce and data analytics too. The FMCG sector is probably at an all-time low in terms of corporate demand for senior level sales and marketing professionals whereas the Entertainment/ Media sector has been relatively active. Salaries have not been increasing above inflation but those executives in high performing sectors such as banking have enjoyed good bonuses. SENIOR OPPORTUNITIES $200K+ The senior market has started to show some improvement for traditional marketing or sales leadership roles but activity levels remain low. Those candidates who can demonstrate strong change management leadership skills are being valued, as are those who have been hands-on from a digital perspective. As 2014 progresses we expect there to be a pick-up in demand in this market as companies seeking to grow early in the general recovery look to make key appointments. The most active sectors have been Financial Services and Entertainment/ Media followed by Technology and Retail with FMCG/ Consumer Goods the least active, and this trend will probably continue over the next 6 months or so. In general, salary levels have not been increasing above inflation and there has been an abundance of candidates pursuing opportunities. LARGE CORPORATE (ASX 100 (EXCLUDING TOP 20) OR MAJOR MULTINATIONAL) Head of Marketing Head of Sales $385 $475K package % STI + LTI $325 $470K package % STI + LTI MEDIUM SIZE CORPORATE (ASX 300 OR MULTINATIONAL) Head of Marketing Head of Sales $270 $370K package % STI + LTI $270 $370K package % STI + LTI 7

8 CURRENT SALARIES 8 DIGITAL ALL SECTORS DATA ANALYTICS ALL SECTORS SYDNEY & MELBOURNE $,000 SYDNEY & MELBOURNE $,000 Head of Digital 220+ Head of Data Analytics 220+ Head of Online / Ecommerce 200+ Insights / Analytics Manager Head of SEO / SEM Data Scientist Head of Product Senior Analyst Head of Content Analyst Social Media Manager Senior Modeller Analytics Web Analyst 100+ Modeller Analytics Head of UX Web Analyst Project Manager Teradata Manager Digital Marketing Manager Content Manager Digital Performance Manager Online Sales Manager Senior Producer MARKETING & COMMUNICATIONS FMCG CONSUMER GOODS / RETAIL ENTERTAINMENT / MEDIA IT & T FINANCIAL PROFESSIONAL SYDNEY $,000 $,000 $,000 $,000 $,000 $,000 Marketing Director Marketing Manager Senior Product / Senior Brand Manager Product / Brand Manager Segmentation / Acquisition / Retention Manager Digital Marketing Manager Public Relations Manager Internal / External Comms Manager Internal / External Comms Advisor Head of Communications MELBOURNE Marketing Director Marketing Manager Senior Product / Senior Brand Manager Product / Brand Manager Segmentation / Acquisition / Retention Manager Digital Marketing Manager Public Relations Manager Internal / External Comms Manager Internal / External Comms Advisor Head of Communications SALES & CATEGORY FMCG CONSUMER GOODS / RETAIL ENTERTAINMENT / MEDIA IT & T FINANCIAL PROFESSIONAL SYDNEY $,000 $,000 $,000 $,000 $,000 Sales Director OTE 300+ OTE 250+ OTE 250 OTE 300+ OTE 300+ OTE 300+ Sales Manager OTE 200+ OTE OTE OTE 200+ OTE 200+ Business Manager OTE 200+ OTE Strategic or National Account Manager OTE OTE Field Sales Manager Channel Sales Manager n/a Business Development Manager OTE Category Director Category Manager Category Analyst MELBOURNE Sales Director OTE 300+ OTE 250 OTE 250 OTE 300+ OTE 300+ OTE 300+ Sales Manager OTE 200+ OTE OTE OTE 200+ OTE 200+ Business Manager OTE 200+ OTE Strategic or National Account Manager OTE OTE Field Sales Manager Channel Sales Manager n/a Business Development Manager OTE Category Director Category Manager Category Analyst The figures stated show total guaranteed package (cash salary, superannuation, vehicle allowance and benefits) Bonus and options are not included. Typically, Bonuses begin from 10% plus depending on individual and company performance. On Target Earnings is used in sales roles where Bonus or Commission is over 30% of total package.

9 2014 IS ONE OF THE BEST TIMES TO BE HIRING IF YOU ARE LOOKING TO SECURE HIGH QUALITY TALENT UPPER MID-MARKET $120K-$200K The mid-market has been driven by investment in digital, analytics and trade/channel oriented roles and many traditional marketing roles evolving to incorporate some of these skill sets. All sectors are hiring at the $100,000 - $150,000 level and this is a definite improvement from the last year or two. Candidates who can demonstrate strong return on investment from their campaigns and have first class stakeholder management skills are highly valued. Salary increases are ranging at the 3-5% level in this sector of the market. Sales professionals in FMCG or Consumer Goods have been disappointed by the lack of demand from corporates. This is a reflection of the lack of emphasis on driving top line growth. We expect this to change over the next 12 months with the effect on supply in this market and subsequent salary increases over time. CONTRACTING/INTERIM ASSIGNMENTS This is an active market with many marketing and digital teams bringing in short-term skills on a project or 6 month basis. The skill level available is high and candidate flexibility is also good. Those companies who need help in the areas of Product Management, Digital or Communications will find they can source some very high calibre people via Perceptor. LOWER MID-MARKET $80K-$120K The lower mid-market remains the least affected by economic conditions and corporate sentiment and so there is a steady turnover of opportunity at this level. Also, many companies investing in digital are making the bulk of their hires at this level as they appoint specialists in social media, SEO/SEM and e-commerce who then report to a senior level Head of Digital. Many marketing roles are incorporating a strong digital element and in home entertainment we are observing the shift to National Account Managers working across traditional retail and specialist digital channels. Salary increases are ranging from 3-5% across most levels although some of the specialist digital roles are seeing increases of 5-10%. 9

10 PARTNER WITH PERCEPTOR EXECUTIVE SEARCH Perceptor s joint Managing Directors, Mark O Connor and Ian McAlpine, each have more than twenty years of experience in senior level recruitment in our respective markets. With our first-class networks, respected reputations and established track-records, we are well placed to advise on the recruitment of senior executive roles for quality organisations. Utilising Executive Search in an efficient and time-sensitive process, we can achieve exceptional outcomes for discerning clients. Please contact Mark or Ian on for further information. RECENT ASSIGNMENTS BY PERCEPTOR FINANCE / ACCOUNTING / COMMERCIAL CFO - PE Backed Industrial Services Group Commercial Director Major Media Group Group Commercial Manager Listed Healthcare Group Head Of Finance International Entertainment Group GM Corporate Services Major Media Organisation CFO Private Hospitality Group Corporate Development Manager Multinational Fmcg Senior Commercial Manager Major Listed Retailer Performance Reporting Manager Listed Energy Group Planning Manager Multinational Consumer Group Group Technical Advisory Manager Listed Energy Group Financial Controller Global Automotive Business DIGITAL / MARKETING / SALES Director of e-commerce Global Technology Vendor Global Digital Director Beauty Sales Manager Digital Head of Insights & Analytics ASX Wealth Management Head of Lifecycle Marketing - Pay TV Head of Consumer Marketing Wealth Management Head of Brand ASX Financial Services Shopper Marketing Lead Global Games Publisher National Sales Manager White Goods Director of Category Management Consumer Goods Director of Insights Global FMCG Senior Manager Online Support & Community 10

11 Sourcing high calibre talent since SYDNEY Level 10, 28 O Connell Street Sydney NSW MELBOURNE Level 27, Rialto South Tower 525 Collins Street Melbourne VIC