Salary Guide Your business and recruitment handbook

Transcription

1 Salary Guide 2012 Your business and recruitment handbook

2 03 From the Managing Director 03 From the Managing Director 04 Using the 2012 Salary Guide 05 Key trends in financial services recruitment 07 Highly sought-after attributes 10 Sector-specific trends 12 Finance and accounting salaries 14 Banking operations salaries 18 Counter-offers: a potentially counterproductive strategy 21 Flexible recruitment for cost savings 22 Working with Robert Half Financial Services The continuing economic and financial issues both in the UK and worldwide has undoubtedly affected hiring within the financial services industry The ongoing economic uncertainty has provided the backdrop to an environment where extensive regulatory change, organisational efficiency and demand for capital have changed the operating model for many companies. This shift is evidenced by increased capabilities in regulatory, compliance and risk functions at the expense of front office and operations. The looming regulatory and legislative change could see significant incentivising of key employees within these functional areas. Engendering these individuals loyalty to an organisation has therefore never been as critical as it is now. Access to the most current remuneration data allows you to attract top professionals to your organisation and, importantly, to keep them. To this end, I hope you find our 2012 Salary Guide informative, and I welcome you to contact one of our specialised financial services recruitment consultants to discuss trends within financial services and how the market affects your organisation s hiring plans. Phil Sheridan Managing Director United Kingdom Robert Half UK

3 04 05 Using the 2012 Salary Guide Key trends in financial services recruitment The 2012 Salary Guide offers starting salaries for banking and capital markets professionals throughout the UK This resource can help you determine remuneration levels for new employees, plan budgets and navigate today s hiring environment. The salary ranges represent starting remuneration only because factors such as seniority and policies regarding pay reviews vary by company. Bonuses and other forms of remuneration, such as benefits and pension schemes, are also not taken into account. We ve also surveyed chief financial officers within the financial services industry on their remuneration plans for existing employees; we ve highlighted this on page 17. ~ The most authoritative resource ~ We collect information from various sources, including: Temporary, interim and permanent placements made through Robert Half Financial Services Insight from our senior recruitment managers Exclusive research we conduct among UK senior executives Information from the Office for National Statistics and HM Revenue & Customs Our comprehensive analysis of current and future hiring trends Salary Guide 2012 Your business and recruitment handbook While the job market continues to show signs of recovery, the recruitment outlook is one of cautious optimism Organisations now adopt a more targeted approach to hiring as a direct result of attrition or leveraging emerging business opportunities. Business growth, an influx of new regulatory requirements and the resulting upgrading of financial systems have led to rising workloads, with many departments lacking the skills they need to manage key initiatives. In fact, nearly one in five CFOs cites lack of commercial acumen and technical skills as factors that have a negative effect on their businesses. A noticeable trend is the time organisations take to ensure they make the right hire, whether due to budget constraints and/or tighter cost control. Newly created roles typically require multiple approvals from senior management before an offer can be extended. While this has resulted in a lengthier interview process for candidates, once hired, there is less risk of the roles succumbing to redundancy should business conditions change. Companies should take heed, however a smaller talent pool of candidates with specific regulatory and systems knowledge coupled with a lengthier hiring process may result in top talent finding opportunities elsewhere. Looking towards 2012, continuing change and increased regulatory requirements will result in companies seeking candidates with strong regulatory, compliance and risk backgrounds. Financial services organisations faced with this ongoing pressure from new government regulations will continue to focus primarily on infrastructure improvements. To this end, many companies are still looking for candidates with a comprehensive risk background, particularly in capital adequacy. Reasons to increase the number of permanent accounting/finance staff Business growth or expansion... 55% Financial systems upgrade... 39% Rising workloads... 39% Regulatory requirements... 24% Merger or acquisition... 9% Source: Robert Half survey of 100 financial services CFOs

4 06 07 Highly sought-after attributes ~ Trends that will affect hiring in 2012 ~ Basel III While not fully implemented until 2019, banks are starting to build capital ratios in line with Basel II requirements to be better prepared in case of another downturn. Quality candidates with regulatory experience are in high demand, particularly those who have been involved in Basel II projects. These individuals would be well placed to understand and communicate the additional requirements of Basel III. Opportunities in the regulatory field will continue to expand, resulting in exciting career paths going forward. International Capital Adequacy Assessment Process Newly imposed stress testing of financial services companies capital requirements (capital adequacy) will place further pressure on risk management professionals, resulting in firms increasing their capability in those areas. Solvency II Introduced to mitigate the risk of insolvency, insurance providers continue to implement reforms to meet the three pillars of Solvency. Moving into pillar III, professionals with expertise in these areas will be required to ensure a smooth implementation across the business. Government debt markets Also known as sovereign debt, this has received considerable publicity in the latter half of Companies with considerable exposure to countries with troubled economies could find their hiring significantly curtailed. IFRSs IFRS 9, as a replacement to IAS 39, will place additional reporting requirements on organisations providing financial instruments. While it does not come into full effect until 2015, organisations must implement IFRS 10, 11 and 12 before the end of As such, candidates with strong financial reporting and reporting standards conversion work would be well placed to understand and implement the new standard. Employers are looking for candidates with both strong technical capabilities and sound commercial acumen With greater transparency on financial services practices, improved risk management and the influx of government regulations, those with regulatory expertise and compliance experience will find themselves sought after. Software proficiency remains in demand as organisations strive to achieve cost efficiencies. Knowledge of large Enterprise Resource Planning systems and advanced Excel will continue to be an expected attribute for new hires. Database management and business intelligence software know-how is also sought. ~ Positions in demand: finance ~ Product control specialists Recent global financial events have resulted in a heightened sense of caution among financial services organisations. With that caution has emerged a desire to hire individuals with a keen understanding of the particular financial product from back to front and front to back office. Business partners To enable companies to reduce their cost footprints, organisations are hiring accountants specialising in cost-focused management information to help formulate policies and growth initiatives. Individuals who show sound technical skills, coupled with business acumen and commerciality, will be in demand. Regulatory specialists With an increased focus on government regulations and the need for transparency in today s market, those with specific regulatory expertise, particularly around capital adequacy and liquidity are in high demand. Financial reporting analysts As companies prepare for growth, they seek experienced analysts who can help them understand the story behind the financial data and identify further expansion opportunities. The most in-demand candidates have strong financial, technical and communication skills and are comfortable presenting their findings and recommendations to varied audiences.

5 08 09 ~ Positions in demand: banking operations ~ Hedge fund operations With increased investment flow, operations departments continue to grow to support trading and accounting functions while also ensuring that all trades are accounted for and settled correctly. Recent graduates with an internship or individuals with previous operations experience in reconciling the trade positions or managing trade discrepancies across multi-product lines will be in demand. Middle office professionals Advances in the automation of front-end trade booking and the need to feed information into back office systems have brought major systematic change to the middle office function. Removing the manual element has reduced the element of risk and candidates have increased their technical knowledge to process higher volumes of trades as well as manage multiple product lines. Client on-boarding and compliance More stringent FSA regulations have increased demand for candidates knowledgeable in both Know Your Customer and Anti-Money Laundering compliance to help with new account set-up. Front-office professionals with excellent client relationship skills are also sought after to help sales teams attract new business and ensure the on-boarding process meets regulation guidelines. ~ Legacies of the recession newly-qualifieds in demand ~ The quest for newly qualified accountants has resulted in strong competition from vying companies looking to recruit and groom future leaders. At the onset of the downturn, many public practice firms slowed their graduate intake into their training accounting scheme. This has occurred in each of the last three downturns and later results in a shortage of qualified professionals to help companies manage business growth when conditions improve. With demand high and supply low, newly-qualifieds are seeing strong remuneration increases on entry into industry and those with some experience in financial services will see the strongest gains. ~ Migration away from the capital ~ Historically, London has been the centre of the UK financial services industry with The City attracting professionals from across the UK and abroad. With the high cost of London rental space and a lower cost of living in regions outside of the capital, many financial services organisations have near-shored their functions to regional service centres, particularly in Manchester, Birmingham, Bristol, Edinburgh and Glasgow. While London remains the most powerful hub for capital markets and investment banks, Edinburgh and Glasgow, for example, now have a strong asset management, insurance and global custody market. These cities are also starting to make a more significant contribution to the UK s strength in global financial services. With a smaller talent pool, salaries in the regional locations are becoming more competitive to try to attract highly skilled professionals as well as retain talent often lured to London for the higher remuneration and career prospects on offer. This may result in more individuals moving away from the city to try to maintain a greater balance between their professional and personal lives.

6 10 11 Sector-specific trends ~ Investment banking ~ In light of concerns over the Eurozone, the past year proved challenging for investment banks, which were forced to make significant job cuts, particularly within back office operations roles. A focus on cost reduction and expansion into more profitable trading areas has resulted in increased demand for product specialists. With an influx of new regulatory and reporting requirements, there was a noticeable increase in the demand for capital adequacy candidates. It is expected that banks will continue to increase their policy and technical accounting talent base into These individuals can expect to earn higher remuneration packages going forward. ~ Private equity ~ As a result of new regulatory reforms, 2011 saw some banks forced to tighten their lending activities, with many selling their private equity and hedge fund units to boost capital levels. Less market liquidity has allowed some private equity firms to diversify their business strategy towards leveraged lending. This has resulted in further investments in venture capital trusts and enterprise investment schemes. ~ Hedge funds ~ In contrast to other financial services sectors, 2011 was a strong year for hedge funds recruitment. This is largely a result of increased investment flow and the focus on a high-liquidity strategy. Uncertainty during the second half of the year resulted in Global Macro Managers, who help a company navigate market volatility. The job market for professionals with 2 5 years of experience has been active, with the expectation that these individuals can undertake more senior-level responsibilities. This was a cost-cutting measure introduced by senior management and has resulted in significant upskilling within the hedge funds arena. Certain funds have taken the opportunity to lure strong talent away from the investment banks. This coupled with the upskilling of more junior functions has led to an increase in base salary and bonus potential. Hiring is expected to remain buoyant for the year ahead. ~ Fund management ~ The fund management sector has had a stable yet cautious 2011, with hiring primarily focused on new funds and expansion opportunities. There was an increased need to hire professionals with specific fixed income and derivatives product knowledge. Senior-level candidates displaying strong technical acumen will remain in demand in ~ Retail banking ~ Despite the widespread media coverage on retail bank redundancies, an increased focus on product profitability and its associated costs has resulted in a resurgence in recruitment activities. Candidates with strong analytical and IT capabilities, including systems implementations, are in demand. In addition, banks are looking at changes to their product offerings to fund new income streams and are actively hiring candidates who can manage these initiatives. ~ Insurance ~ Global natural disasters coupled with the UK riots earlier this year have inevitably affected the insurance market, with losses prompting insurers to examine the quality of risk insured and their level of liability. During 2011 the industry witnessed a growth in complex claims teams and an increase in front office staff hired in efforts to attract new clients.

7 12 13 Finance and accounting salaries Change London () London () (%) Leadership CFO 100, , , , Finance Director 90, ,000 92, , Group Accountant 65,250 88,500 67,000 91, Financial Controller 64,250 84,000 65,000 90, Technical Manager 79,000 89,750 80,750 94, Accounting Accountant (4 7 years PQE*) 64,000 85,750 66,500 89, Accountant (NQ 3 years PQE) 45,000 67,500 46,250 70, Financial Manager 64,750 74,000 65,750 75, Accounting Accountant (4 7 years PQE) 54,500 65,250 55,250 66, Accountant (NQ 3 years PQE) 40,000 55,250 41,500 55, Assistant 25,250 40,500 25,750 41, Management Manager 74,500 83,750 76,250 85, Accounting Accountant (4 7 years PQE) 64,000 75,250 65,500 76, Accountant (NQ 3 years PQE) 40,750 63,250 42,000 63, Assistant 25,500 40,000 25,500 41, Regulatory Manager 77,500 90,500 78,750 95, Accounting Accountant (4 7 years PQE) 56,750 85,750 58,750 90, Accountant (NQ 3 years PQE) 44,250 70,250 47,250 72, Assistant 33,500 44,000 34,000 47, Change London () London () (%) Product Manager 79, ,500 81, , Control Accountant (4 7 years PQE) 61,750 92,250 63,250 95, Accountant (NQ 3 years PQE) 46,500 64,500 48,250 65, Assistant 34,500 44,000 35,500 45, Fund Manager 75,000 85,500 76,750 87, Accounting Accountant (4 7 years PQE) 60,500 74,500 61,750 75, Accountant (NQ 3 years PQE) 44,250 57,750 45,000 59, Assistant 27,000 39,750 27,500 40, Internal Audit Manager 74,250 88,750 75,750 90, Accountant (4 7 years PQE) 55,000 72,500 56,500 74, Accountant (NQ 3 years PQE) 44,750 57,750 45,500 59, Assistant 29,500 39,500 30,750 40, Accounting AP/AR Manager 25,000 38,500 26,250 38, Operations Credit Manager 25,000 33,750 25,500 34, AP/AR Clerk 22,750 29,750 23,500 30, Credit Control Clerk 22,500 28,500 22,750 29, Accounts Assistant 22,000 30,500 23,000 30, Graduate Trainee 25,000 34,500 25,500 35, Financial Manager 76,750 88,500 78,000 92, Planning Accountant (4 7 years PQE) 58,750 75,750 59,750 77, & Analysis Accountant (NQ 3 years PQE) 44,750 63,250 45,750 65, Assistant 32,000 43,500 33,250 44, * Post Qualified Experience (PQE)

8 14 15 Banking operations salaries Change London () London () (%) Leadership COO 96, , , , Director/Head of Operations 79, ,250 80, , Operations Manager 67,500 98,000 70, , Trade Support Manager 50,250 84,500 52,500 85, (Equity, Fixed Income, FX, 4 7 years experience 43,500 65,000 45,000 66, ETD/OTC, FX Options) >3 years experience 25,250 45,750 25,500 47, Confirmations Manager 45,000 54,250 45,250 55, Analyst 4 7 years experience 40,000 45,000 40,250 46, >3 years experience 24,750 39,500 25,250 40, Settlements Manager 40,500 54,500 41,500 56, (Equity, Fixed Income, 4 7 years experience 39,500 54,500 41,500 55, FX, OTC Derivatives) >3 years experience 26,250 38,500 27,750 38, ISDA Manager 46,750 74,750 48,000 75, Documentation 4 7 years experience 42,000 50,250 42,500 51, >3 years experience 24,750 42,500 25,250 42, Futures Manager 54,750 88,750 55,500 90, Clearing/Broker 4 7 years experience 38,000 51,000 38,250 51, Reconciliations >3 years experience 23,500 37,500 23,750 38, Client Services Manager 54,750 68,500 55,000 70, years experience 36,000 55,750 36,250 56, >3 years experience 22,000 36,500 22,500 37, Collateral Manager 65,000 88,750 65,750 90, Management 4 7 years experience 38,750 58,500 39,500 59, >3 years experience 28,500 37,500 29,000 38, Cash Manager 45,000 54,750 45,250 55, Management 4 7 years experience 37,000 45,250 37,500 45, >3 years experience 20,000 37,750 20,500 37, Change London () London () (%) Controls & Manager 39,500 54,500 40,000 56, Investigations 4 7 years experience 34,000 45,750 34,250 46, >3 years experience 24,750 34,500 25,250 35, Payments Manager 37,750 45,000 38,000 45, years experience 28,000 38,250 28,500 38, >3 years experience 18,000 28,500 18,000 29, Static Data Manager 45,000 59,000 45,250 60, years experience 36,000 44,750 36,500 45, >3 years experience 20,500 35,000 21,000 35, Corporate Manager 44,750 54,500 45,000 55, Actions 4 7 years experience 37,000 45,250 37,500 45, >3 years experience 24,750 37,500 24,750 37, Dividends Manager 44,000 49,500 44,750 50, years experience 36,000 44,250 36,250 44, >3 years experience 25,250 36,750 26,000 36, Loans Manager 45,000 58,750 45,250 60, Administration 4 7 years experience 35,750 46,500 36,000 47, >3 years experience 21,500 36,250 21,500 36, Trade Finance Manager 40,000 50,500 40,000 51, years experience 32,000 39,500 32,000 40, >3 years experience 20,500 32,250 21,000 32, Fund Manager 49,750 58,500 50,000 59, Administration 4 7 years experience 36,000 49,500 36,250 50, >3 years experience 20,500 36,500 20,500 37, Analyst (Valuations, Manager 47,000 60,500 47,750 61, Client Reporting, Pricing, 4 7 years experience 37,500 48,000 38,750 49, Performance) >3 years experience 18,000 38,500 19,000 38, Cash & Stock Manager 45,250 54,500 45,500 55, Reconciliations 4 7 years experience 33,000 44,750 33,750 45, >3 years experience 19,500 32,500 20,000 32,

9 16 17 ~ Customising salaries for local markets ~ The salary ranges listed represent starting salaries within the banking and capital markets sector for London City. They can be customised for each of five financial services centres with the local variances listed below. The index figures are a guide for determining average starting salaries. Factors including company size, employee benefits, candidate skill sets and current market trends may affect actual remuneration. The information is supported by data from HM Revenue & Customs, the Office for National Statistics, our local recruitment consultants, research of UK CFOs and placements across the our UK branch network. The London salary index is 100 and other locations are represented by a percentage of these ranges. In the next six months, I think that salaries for existing staff (excluding bonuses) will... ~ Remuneration for existing employees ~ Increase: 35% Stay the same: 60% Decrease: 5% Follow the steps below to calculate the approximate salary range for a specific position in your area. Example Finance Director in Edinburgh: Find the position and salary range for a Finance Director on page 12. The salary range is 92,000 to 175,000. Find the index number below. The index number for Edinburgh is 73.1%. Multiply the low end of the national salary range by the index number as a percentage. 92,000 x 73.1% = 67,252. Repeat using the high end of the salary range. 175,000 x 73.1% = 127,925. The approximate starting salary range for a Finance Director in Edinburgh is 67,252 to 127,925. In the next six months, on average, I anticipate increasing existing staff salaries by... Source: Robert Half survey of 100 financial services CFOs 1 2%: 10% 3 4%: 26% 5 6%: 37% 7 10%: 27% Index numbers (%) London Birmingham 65.8 Bristol 67.5 Edinburgh 73.1 Manchester 65.6

10 18 19 Counter-offers: a potentially counterproductive strategy As companies grow more concerned about retaining businesscritical staff, they may be tempted to extend counter-offers to employees who plan to leave for another job The most cited issue is a lack of loyalty to the organisation, but other aspects of the situation can be problematic as well. Here are four key drawbacks of counter-offers to consider: Trust may never be the same If the employee was completely satisfied working for the company, the employee s manager wouldn t now have to discuss counter-offers. Even if the requested adjustments are made, the individual may begin to question why it took the threat of departure for the company to recognise his or her value and make improvements to the job. Some things can t be changed Although some employee concerns can be addressed, there may be additional considerations that can t be resolved. For example, old conflicts with other staff members or incompatibility with the corporate culture may cause the person to rethink the decision and leave. Salary adjustments may be complicated A counter-offer may not only affect the department s budget but also the team. Paying someone more than the typical pay scale could disrupt an organisation s remuneration structure. It could also create resentment among other deserving employees. Future advancement may be limited If competent, productive employees feel there is no room for further growth in your firm, it would be unfair to try to convince them to stay. Even with a bump up in salary, they will still likely become unhappy with their stalled career and, as a result, be less productive. Counter-offers may solve a short-term problem, but they rarely lead to long-term satisfaction. While the prospect of losing a valued employee may seem daunting, there is a bright side: managers may uncover new stars on their team or hire someone who brings an even more impressive skill set.

11 20 21 Flexible recruitment for cost savings As companies try to control costs, one of the first places they often look to cut is the size of their workforce In the most recent recession, redundancies left many organisations under-resourced once conditions improved and workloads began to increase. Flexible recruitment models that supplement a core permanent workforce with skilled temporary and interim workers have proved the ideal solution for businesses hoping to avoid the cycle of adding and subtracting headcount that often results from a changing economy. Using this approach, companies can convert a portion of their fixed recruitment costs into a variable expense tied to workload levels. Businesses increasingly recognise that bringing in talented interim professionals can be a key component of their comprehensive recruitment strategy in any economy. Permanent employees form the core of the workforce and, typically, embody the personal and cultural fit of the organisation while interim staff augment their efforts technically as needed. Project professionals also can provide access to skills unavailable in-house or not needed year-round. The bottom line: flexible recruitment gives a company resource and cost control options it wouldn t otherwise have.

12 22 Working with Robert Half Financial Services Robert Half is the world s leading specialised recruitment consultancy. Our Financial Services practice places highcalibre finance and banking operations professionals on a temporary, interim and permanent basis Located in major global financial centres, we have expertise in areas such as retail and investment banking, custody, hedge funds, asset management, broking and private equity. There is no substitute for the human touch when hiring. While any number of online or technology tools can identify potential hires, they can t tell you about the person behind the profile. We take the time to understand the unique needs and cultures of the businesses we serve. Then, we carefully select professionals with skills, work styles and career goals that align with those organisations. How else is Robert Half Financial Services different from other recruitment consultancies and hiring resources? We find the most effective match. We have one of the largest networks of skilled talent in the recruitment industry, as well as access to job candidates that other sources don t. Among other distinctions, our status as the exclusive partner of The Wall Street Journal allows us frequent exposure to highly skilled professionals who are dedicated to their careers. To stay informed of the latest trends affecting the UK employment market, follow us at twitter.com/roberthalfuk We lead you through the process. We guide you through every step of the hiring process. We can help you determine your recruitment needs, set remuneration levels and handle hurdles along the way, such as addressing a potential candidate s counter-offer. Communication is our specialism. We provide immediate assistance. The hiring process can be long and drawn out, and you likely need help right away. We use the recruitment industry s most advanced technology to quickly identify candidates who meet your exact needs. We meet any need. Robert Half can provide you with a choice of skilled candidates with specific expertise and experience to match your unique needs. No matter your budget or requirements, we can find a skilled professional who can assist your business. For more information about Robert Half s financial recruitment divisions and the ways in which we can help meet your specific needs, please call or visit roberthalf.co.uk.

13 Our specialised services Robert Half Finance & Accounting Robert Half Finance & Accounting is the world s first and largest recruitment consultancy specialising in the placement of accounting and finance professionals on a temporary and permanent basis. FSC Robert Half Management Resources Robert Half Management Resources is the largest premier provider of senior-level accounting and finance professionals on a project and interim basis. Robert Half Financial Services Robert Half Financial Services specialises in placing high-calibre banking and capital markets professionals on a temporary and permanent basis. Robert Half Technology Robert Half Technology is a leading provider of IT professionals on a project, interim and permanent basis. Robert Half Human Resources Robert Half Human Resources specialises in the placement of highly skilled HR professionals on a project, interim and permanent basis. OfficeTeam OfficeTeam specialises in the placement of highly skilled administrative and office support professionals on a temporary and permanent basis. roberthalf.co.uk Robert Half. An Equal Opportunities Employer. FSG-UK-0219-SG-1211