GUIDE TO PAY & BONUS EXPECTATIONS FOR ACCOUNTING ...€¦ · accountants being most sought after. As competition in the market increases in 2015 and accountants are in higher demand,

WHAT PAY AND BONUSES ARE YOUR ACCOUNTING AND FINANCE TEAM EXPECTING TO RECEIVE?We surveyed accounting professionals working across the UK on their annual pay, benefits and incentives packages in advance of the upcoming compensation round.

31% did not receive a payrise in 2014, and 44% did not receive a bonus. However almost 80% of accountants expect to receive a salary rise in 2015 and 63% expect to receive a bonus.

The Robert Walters UK Job Index shows that the number of accounting roles advertised throughout 2014 increased, which is forecast to continue into 2015. 22% of accounting and finance professionals surveyed stated that they are planning to move jobs within the next year, with over a third already looking for a new opportunity.

Percentage of accounting professionals expecting a salary increase in 2015

n 79% expect to receive a salary increasen 21% do not expect to receive a salary increase

SAlARY EXPECTATIONS IN 2015

The majority of accounting professionals have indicated that they anticipate a base salary increase in 2014. While 51% are expecting a rise of between 1% and 3%, 22% are hoping for a raise of between 4% and 10%.

“Restored business confidence in 2014 meant that firms began investing in their accounting teams, with newly-qualified accountants being most sought after. As competition in the market increases in 2015 and accountants are in higher demand, it is important for hiring managers to consider the compensation packages they are offering when trying to attract and retain top talent.” Andrew Setchell, Director – London

GUIDE TO PAY & BONUS EXPECTATIONSFOR ACCOUNTING PROFESSIONAlS

of accounting professionals are expecting a highersalary in 2015

79%

Request a salary survey and find out how much your employees think they are worth at www.robertwalters.co.uk/salarysurveyrequest

Size of salary increase expected in 201555

50

40

35

30

25

20

15

10

5

0None 1-3% 4-6% 7-10% 11-15% 16-20% 21-25%

Per

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Expected salary increase (as a % of base salary)

While 44% of accountants stated that they didn’t receive a bonus in 2014, 64% are expecting to receive a bonus in 2015. Over a third are anticipating a bonus of up to 10% of base salary, and 22% are hoping to receive between 11% and 25% of their base salary as a bonus.

Percentage of accounting professionals expecting a bonus in 2015

n 64% expect to receive a bonusn 36% do not expect to receive a bonus

BONUS EXPECTATIONS IN 2015

“In 2015 hiring managers may struggle to attract and retain the best accounting and finance professionals if they do not offer attractive compensation and benefits packages. Those most sought after are likely to be juggling multiple job interviews, so bonuses and benefits packages should be addressed within the interview

process to capture the interest of candidates.” Marcus Blackburn, Associate Director – Manchester

of accountantsare expecting a bonusin 2015

61%

of accounting professionals are expecting to receive a bonus of more than 10%of base salary

20%

Size of bonus expected in 2015 (as a % of base salary)

50

40

30

20

10

0None 1-5% 6-15% 16-25% 26+%

Per

cent

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of re

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Expected bonus (as a % of base salary)

Percentage of accountants expecting a salary increase by region in 2014 (as a % of salary)

Overall Midlands North South East London

None 21% 29% 29% 11% 15%

1-3% 52% 55% 48% 58% 49%

4-6% 11% 10% 13% 4% 16%

7-10% 9% 1% 7% 13% 8%

11-15% 4% 2% 0% 9% 5%

16-20% 4% 2% 3% 5% 5%

21-25% 1% 1% 0% 0% 2%

“The results suggest that an increase in confidence among accountants in 2015, with almost 80% expecting a pay rise. It is possible that organisations in regions north of London have been more cautious about increasing their accountants’ salaries, as almost a third of those surveyed in the Midlands and the North stated that they aren’t expecting an increase in salary in the upcoming compensation round, compared to only 11% in the South East.” Stewart Robertson, Associate Director – South East

of accountantsexpect a pay risebetween 1-3%

52%

It is clear that accountants are considering changing roles soon. Over 20% plan to look for a new opportunity in the next 12 months, with 35% already looking for a new opportunity.

of accountants are currently looking for a new job

35%

When are you next looking to move jobs?

n 35% I’m already looking for a new opportunityn 5% The next 3 monthsn 6% The next 3-6 monthsn 7% The next 6-9 monthsn 4% The next 9-12 monthsn 17% The next 1-2 years n 26% I am not looking to change jobs in the near future

CHANGING JOBS IN 2015

Almost half of accountants surveyed stated that they feel confident in the current jobs market and are sure that they could find a new job easily if they were to look for a new opportunity.

of accountants feelthat they could easilyfind a new job

45%

How confident are you in the current jobs market?

n 45% I feel confident in the jobs market and I feel sure that I could find a new job easilyn 40% I’m neither confident in nor worried about the current jobs marketn 15% I’m concerned about the jobs market and wouldn’t feel confident about finding a new opportunity

CONFIDENCE IN THE JOBS MARKET

Percentage of accountants expecting a bonus in 2014, by region (as a % of salary)

Overall Midlands North South East London

None 39% 60% 46% 25% 25%

1-5% 21% 10% 16% 38% 19%

6-10% 20% 14% 22% 29% 19%

11-15% 8% 5% 8% 4% 16%

16-20% 5% 5% 6% 0% 10%

21-25% 2% 2% 1% 0% 3%

26-30% 2% 2% 1% 0% 3%

31+% 3% 2% 0% 4% 4%

“Accounting professionals’ bonus expectations vary regionally, but with over 60% of accountants across the UK expecting a bonus in 2015 it appears that those surveyed are feeling optimistic on the whole. We expect the demand for the best accounting professionals to grow throughout 2015, it will be vitally important for line managers to recognise the importance of offering benefits and reward packages in order to retain their best staff.”

Habiba Khatoon, Associate Director – Birmingham

of accountants are expecting up to 10%of their base salaryas a bonus

41%

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of those who accepted a counter offer returned to the job market within a year

25% We asked accounting professionals if they had ever received a counter offer from their current firm during their resignation process. Of those who had received a counter offer, 88% stated that the offer encompassed a pay rise, and over a quarter of those were additionally promoted. However, over 25% of those who accepted the offer began looking for another opportunity within one year. This suggests that a number of those who have considered eaving a firm will not be persuaded to stay long term, even with the offer of a pay rise or increased responsibility.

COUNTER OFFERS TO RETAIN STAFF

If you were to change jobs, which of the following would be your primary motivation for thinking about moving?

At 50%, career progression is the most commonly cited reason for accounting professionals to want to change jobs. 24% state that an opportunity that offered a higher salary would tempt them to leave their current role.

n 24% A pay rise/change in compensation packagen 50% Career progressionn 13% Improved work/life balancen 13% Improved stability or job security

MOTIVATION FOR MOVING JOBS

“Heading into 2015, it is apparent that accountants have more confidence in the jobs market than they had last year, with only 15% stating that they are worried about the jobs market and wouldn’t feel confident about finding a new opportunity. With career progression being the main motivation for accounting professionals to change jobs, it is crucial for line managers to offer

career development to their accounting teams.” Charles Ford, Associate Director – Milton Keynes

Andrew Setchell (London)020 7379 [email protected]

Marcus Blackburn (North)0161 214 [email protected]

Habiba Khatoon (Midlands)0121 281 [email protected]

Charles Ford (Milton Keynes)01908 933 [email protected]

Stewart Robertson (Guildford)01483 510 [email protected]

Luke Higgs (St Albans)01727 617 [email protected]

For all your accounting & finance recruitment needs, please contact: