UK HR Salary Survey frazerjones.com

Transcription

1 UK HR Salary Survey 2011

2 A Year of Recovery It was just over 12 months ago that we were looking forward to 2010 with a fresh optimism. This was justified as the year began very positively, with a really significant increase in activity in the first quarter. This proved to be a bit of a pressure release after the downturn and the year settled down into what the history books will reflect was a steady recovery. As we came to the end of 2010 all levels of the HR market, from very junior to senior roles across all HR disciplines, were showing more activity. Equally, where the Financial Services sector had been the dominant active force for a good few months, by Q4 we were seeing movement across a wide spread of industry sectors. The pent up demand at the beginning of 2010 drove a shift in market dynamics and this resulted in significant demand in certain areas for key HR talent. Not every skill set nor every industry sector was active but top talent in HR were courted by more than one business resulting in multiple offers and buy backs over the course of the last half of the year. This has continued into Q Hiring organisations are looking at their recruitment strategies and flexing with supply and demand accordingly either speeding up interview processes, offering more competitive salaries & benefits or looking outside of the more traditional markets for new talent. Cross-industry pollination in the HR market has been quite pronounced as a result, in particular in areas of change and transformation, where Financial organisations have been very keen to benefit from the experience gained by candidates from large blue-chip organisations or consultancies. We already have many organisations talking to us about their hiring plans for Q2/Q and based on that there is no sign of a further slow down. The overall atmosphere remains positive. There has been a disproportionate increase in interim and fixed term contracts as companies continue to plug gaps while recruiting permanent head count. these changes may take some time to manifest themselves in packages. Across Commerce and Industry and Financial Services, talent remains key to growth with reward, engagement, talent management and global succession key topics on the HR strategic radar. So, in conclusion, cautious optimism remains. The promise of more opportunities in the private sector, albeit tempered by the expectation of knock on effects from the government spending review, means we expect 2011 to be another year of growth in the UK and Europe. Within Frazer Jones we have recruited some great recruitment talent during the last 12 months which will help us further develop our reputation as a market leader in HR recruitment and who complement the great team we already have in place. We continue to develop our offering internationally and look to strengthen the Frazer Jones offering in Asia along side other brands within the SR Group. Finally can I thank you, our clients, candidates and friends, for continuing to work with us and for your positive messages of support. We wish you all a very successful year. Mark Brewer Partner, Frazer Jones Understandably the media was obsessed with bonus levels throughout last year. FSA regulatory changes have kept Reward specialists in the Financial Services industry on their toes trying to avoid punishing financial penalties or mass resignations. That said, the effects of these changes have not been borne out in our survey results, which suggest that

3 Specialist Focus Generalist Generalist HR remains, unsurprisingly, one of the more commonly sought after areas of HR and represents more than half of all instructions that we receive. As the largest population, external economic influences that have had pronounced effects on some specialist areas were not as apparent within the Generalist market and therefore growth has remained steady. Generalist positions being registered at all levels remains steady into Q We ended 2010 seeing a number of Generalists taking on new roles while managing to increase their financial packages quite substantially. If that trend continues, 2011 should represent the year that salaries, daily rates and overall packages regain the sorts of levels we would have expected before the downturn. Commercial HR Business Partners remain in demand across all sectors, however many organisations look to ensure the balance between commercial HR strategy and client engagement is balanced with a strong operational understanding or background. Learning and Development Based on recent CIPD research the most prominent changes in the Learning and Organisational Development world have been significant increases in the implementation of new programmes aimed at leadership assessment and capability. This coupled closely with the identification and retention of globally mobile talent has been a significant area of focus in particular with the larger blue-chips and financial institutions. Learning and Organisational Development has seen one of the largest increases in opportunities at all levels in all sectors and indeed the respective salaries have mirrored this increase in demand, creeping up higher than many of their other HR counterparts. Competitive advantage for many organisations in an increasingly globalised market has put talent identification\management and development at the top of many the organisations strategic plan and as one of the key deliverables for the Executive team. The global economic situation remains a concern and although it appears that budgets associated with learning have been reinvested in, there remains an air of caution over what the future holds. From our perspective, it feels very much like this will be an area of continued growth in Organisational Design/Change Management 2010 witnessed an increase in confidence and the need for organisations to implement change programmes that reflected the lessons learned from the market down turn. This included wholesale changes in operating models, cultural change and in particular a drive to ensure optimum HR models to deliver cost effective but high quality HR services. Throughout 2010 and into 2011 the demand has increased with a large number of global businesses, leading world-wide HR transformational change, and as a result the demand for high calibre people in this area has often outstripped supply. Both on a permanent and an interim basis this will remain a key area of growth in As we came to the end of 2010 we started to see more senior market moves and this has continued into The effect on earnings levels has seen a steady rise and we expect this to increase if the market remains optimistic and more and more investment in these areas is made. Darren Wentworth Group Manager

4 Specialist Focus Reward It s a fascinating time to be recruiting in reward and the Financial Services industry is not alone in having had their hand forced into dealing with significant changes in their policies. The events in that sector have, of course, led other industries to scrutinise their structures, as the traditional approaches to reward evolve and in some cases become obsolete as the shift towards very transparent pay for performance becomes the dominant theme. This major focus on reward strategy over the course of 2010 has meant that specialists throughout the year have been in high demand and we have had many candidates attracting multiple offers and indeed many specialists seeing their salary levels increase significantly as organisations recognise their value and take steps to avoid losing them. Q has been exceptionally busy and we fully expect demand for strategic and operationally minded reward specialists to continue unabated and the natural knock-on effects to be seen on their respective packages and daily rates. Recruitment The recruitment of in-house recruitment specialists is the most obvious barometer of economic health. Back in late 2008 the demand for recruitment specialists, naturally, disappeared. Even though the economic sentiment in 2010 was very up and down, there was a definite pick up in demand as the year went by. Led initially by the Financial Services sector this has moved across to all areas of commerce and industry as businesses begin to implement significant growth strategies. A number of major European employers have indicated growth plans in the region of 30-40% year on year for the next five years and of course it follows that their headcounts will follow suit. In preparation for this growth in house recruitment teams are being bolstered to cope with increased activity both at a transactional level and strategic level where brand awareness and Employer Value Proposition are increasingly important. they are part of a team that is not simply focussed on getting people in through the door, but who are business curious, and capable of adding value outside of the vital transactional role. After a period of relatively slow increases, salary levels have increased towards the second half of 2010 as the demand from RPO s, In-house recruitment teams and Recruitment Consultancies have stimulated a battle for good recruiters. As with the general theme of this review this has continued into Q and we are starting to see an unprecedented demand for recruiters. Employee/Industrial Relations This remains a key area of focus for our clients as the process of restructuring continues and has been one of the hot spots of the last few years. Demand from clients varied from one end where there was increasing concern that they had no one with any high level practical industrial relations experience through to the other end where clients were dealing with greater volatility in their teams as their good ER/IR people were being poached. Clearly, the focus of the role has shifted towards the more positive business processes relating to growth and M&A activity, replacing those of downsizing and cost management. In terms of the knock-on effects to salary and daily rates there has not been a pronounced change during the year and, based on what we saw in the last quarter of the year, we are not predicting significant alterations. As with organisational development, the skill sets that are most sought after are those around commercial awareness and market intelligence on top of the obligatory interpersonal skills that should be inherent in every recruiter. Organisations are looking for individuals who realise that

5 Methodology & Terminology This survey has been produced using data collected from recruitment assignments handled by Frazer Jones within the last six months and contemporaneous data available on the open market. The data was collected and analysed over a four week period by our specialist consultants. These figures do not necessarily give a direct figure for what people in these locations and roles are being paid at the moment but provide you with the information you would require in order to recruit such specialists in the market at the moment. The terminology, particularly pertaining to job titles used in this document, is purely representative of those that we have come across regularly in the market. They are not indicative of a role s seniority, as the variance in usage by organisations and within industry sectors and locations is significant. The salary ranges shown are a direct representation of what our survey produced, in some cases there are significant variances in the minimum and maximum figures. We had varying levels of response in certain sectors and locations which has led to these ranges. Bonus figures, when shown, represent mean averages where substantial data was received. N/A has been added to our tables where either no responses were collected or the sample was insignificant. To help identify the role types for your purposes, we have put together brief role descriptions in the pages that follow. However, if you have any more specific queries please feel free to put them to us directly; our contact details are found at the back of this document. Roisin Griffin Consultant

6 Role Profiles Administrator Entry level HR roles are also often entitled HR Assistant or HR Co-ordinator. Individuals in these roles are in the main degree qualified and would, in many cases, have gained the CPP qualification and/or commenced CIPD studies. At entry level, where limited work experience is found it is behavioural traits such as, but not limited to: effective communication ability; self-motivation; excellent organisational skills; and outstanding attention-to-detail are the main differentiators. Responsibilities include: First point of contact for basic HR queries Full administration to the HR department, including training and recruitment co-ordination, offer letters and contracts of employment, payroll administration Regular updating of information using HR software such as SAP or Peoplesoft Officer Likely to be part CIPD-qualified. Typically reporting into an HR Manager or similar, these roles may be assigned to a specific client group or geographic area. Individuals need to demonstrate a thorough understanding of relevant legislative frameworks and a greater depth of understanding of their employer than an administrator. Responsibilities include: Advice and guidance to line managers on policies and procedures Managing HR administrators Updating policies in line with current employment law Resolution of basic employee issues Manager With substantial generalist experience, HR Managers are highly likely to be CIPD-qualified. The title HR Manager is more usually given to professionals who have team management responsibilities and who run departments with an operational focus. The HR Manager in turn would report to an HR Director or Managing Director, dependent on the size of the business. Business Partner is often used as the title in organisations where HR professionals are fully integrated into their particular business areas, often with a dotted reporting line to business management. In the majority of cases the level of seniority is comparable to that of Manager. Business Partners are found in organisations where transactional HR accountabilities are handled by shared service centres leaving the Business Partners to focus more on strategy. Typically we have seen Business Partner salaries rising quicker than more traditional HR Management positions. Responsibilities include: HR Team management Being the direct link between the business and the HR team Development of HR strategy Implementation and enforcement of policies and procedures Senior HR Manager/Business Partner As above but with a far greater emphasis on the strategic alignment of HR with the operational objectives of the business.

7 Role Profiles Head of Department The Head of level of role would usually be ascribed to individuals operating at a senior management level, usually overseeing a sizeable generalist HR function for a business division, or a specialist HR function such as Learning & Development, Resourcing, Reward in a larger organisation. In addition to CIPD qualifications, they may also have an MBA or further qualifications in areas such as selection and assessment or reward. HR Director This is a senior management or board-level role, where individuals will typically have a degree and subsequent professional qualifications. The role is responsible for setting, developing and aligning an organisation s HR strategy to its business strategy and will oversee all generalist and specialist HR functions. A significant part of their responsibility is to maintain the profile of the HR agenda within the senior management of the organisation. The remuneration levels for HRD roles are highly diverse and although industry sector has a significant part to play in defining the reward received it is also very often contingent on the size of organisation. Responsibilities would include: Setting and delivering HR strategy Large-scale Change Management Significant input into M&A activity Large scale team management Marcus Cornish Senior Consultant Jennifer Martin Consultant

8 Commerce & Industry - London Administration / Assistant L&D % Recruitment % Reward % Generalist % Pension, small bonus Advisors / Consultants L&D % Recruitment % Reward % Generalist % ER/IR % Pension, bonus, PMI Manager L&D % Recruitment % Reward % Generalist % ER/IR % OD and Talent % Car allowance (travel), pension, bonus, PMI Senior Manager L&D % Recruitment % Reward % Generalist % ER/IR % OD and Talent % Car allowance (travel), pension, bonus, PMI

9 Commerce & Industry - London Head of Department L&D % Recruitment % Reward % Generalist % Car allowance (travel), pension, bonus, PMI ER/IR % OD and Talent % Directors L&D % Recruitment % Reward % Generalist % Car allowance (travel), pension, bonus, PMI, shares, possibily LTIP, stock ER/IR % OD and Talent %

10 Financial & Professional Services - London Administration / Assistant L&D % Recruitment % Reward % Generalist % Pension, small bonus Advisors / Consultants L&D % Recruitment % Reward % Generalist % ER/IR % Pension, bonus, PMI Manager L&D % Recruitment % Reward % Generalist % Car allowance (travel) pension, bonus, PMI ER/IR % OD and Talent % Senior Manager L&D % Recruitment % Reward % Generalist % ER/IR % OD and Talent % Car allowance (travel) pension, bonus, PMI

11 Financial & Professional Services - London Head of Department L&D % Recruitment % Reward % Generalist % ER/IR % OD and Talent % Car allowance (travel), pension, bonus, PMI, shares, possibily LTIP Directors L&D % Recruitment % Reward % Generalist % Car allowance (travel), pension, bonus, PMI, shares, possibily LTIP, stock OD and Talent % Layla Jaff Manager

12 Mark Brewer Partner Established in 1996, Frazer Jones is a specialist recruitment business working exclusively within the Human Resources market, where we are firmly established as a market leader. In the UK we operate out of our head office in London. Globally, we supply HR talent to a complete crosssection of clients, from the world s largest companies to small owner-managed businesses, across all HR specialisms and at all levels. In Australia we are based in Sydney and Melbourne and in the Middle East we are based in Dubai. Frazer Jones is a member of The SR Group. The SR Group is a specialist recruitment consultancy dedicated to raising standards in the business environments that we serve. The sectors we cover include tax, legal, human resources, marketing, professional support and executive search, dealing with a substantial number of the world s leading professional partnerships, multi-national corporations and international banking groups as well as small to medium sized developing organisations. For more information on the UK HR market please contact: Mark Brewer markbrewer@ T: Darren Wentworth darrenwentworth@ T: London 95 Queen Victoria Street London EC4V 4HN T: +44 (0) Singapore Level 15 Prudential Tower 30 Cecil Street Singapore T: Dubai Suite 614, Liberty House DIFC PO Box T: Melbourne Level 2, Rialto North Tower, 525 Collins Street Melbourne, VIC 3000 T: +61 (0) Hong Kong 1918 Hutchinson House 10 Harcourt Road, Central, Hong Kong T: Sydney Level 12, 25 Bligh Street Sydney NSW 2000 T: +61 (0) Frazer Jones is a member of The SR Group