MARKET INSIGHT SALARY & MARKET TREND REPORT

Transcription

1 2017 MARKET INSIGHT SALARY & MARKET TREND REPORT

2 EIGHTH EDITION

3 CONTENTS Introduction 01 Key Findings 03 LONDON CHANGE MANAGEMENT THAMES VALLEY Key Findings 103 YORKSHIRE Key Findings 141 LONDON FINANCIAL SERVICES Key Findings 67 Commerce & Industry 71 Financial Services 73 Overview 107 Commerce & Industry 108 Professional Services 111 Commerce & Industry 145 Internal Audit 149 Professional Services 151 Key Findings 19 Banking & Financial Markets 23 Corporate Finance & Transactional Services 27 Insurance 29 Investment Management 31 Compliance 33 Real Estate 35 Part Qualified & Transactional 37 Executive & Interim 39 Insight: How healthy is 41 your finance function? LONDON COMMERCE & INDUSTRY LONDON PROFESSIONAL SERVICES Key Findings 77 Audit & Assurance 81 Key Findings 83 Taxation 87 LONDON TECHNOLOGY Key Findings 93 Technology 96 Insight: Women in Finance report 97 Taxation 113 NORTH WEST Key Findings 117 Executive & Interim 122 Commerce & Industry 123 Professional Services 125 MIDLANDS Key Findings 129 Commerce & Industry 133 Professional Services 135 Executive & Interim 137 Executive & Interim 153 IRELAND Key Findings 157 Insight: Ireland - The Celtic Phoenix 162 Commerce & Industry 163 Fund Services 165 IMI & Banking 167 Professional Services 169 Key Findings 45 Part Qualified & Transactional 49 Newly Qualified 51 Key Findings 53 Qualified 57 Key Findings 59 Executive & Interim 63

4 INTRODUCTION Welcome to the Marks Sattin 2017 Market Report. What candidates want Our aim, as always, is to provide you with not only detailed salary information across our specialist markets, but insightful analysis and trends focusing on economic prospects, lifestyle, bonuses and changes in the workplace. I hope that you enjoy reading the various sections and find it useful when evaluating your team or personal situation. The year that was 2016 was certainly a year full of surprises, with Brexit and American political affairs keeping us on the edge of our seats. In terms of the recruitment landscape, Q began on a positive note, with hiring levels as high as they had been before the financial crisis. Following the vote however, we felt the aftershock across all of our core markets as businesses in the UK and Ireland waited to see what Brexit meant for them. This resulted in a complete slowdown in hiring processes from April to August Some regions were less affected though, with our Leeds office reaching new heights in terms of headcount and fees last year. Towards the end of the summer, hiring activity sprung back into life as business confidence returned. Thankfully this busy trend has continued into this year. As you will see throughout our report, market confidence is reflected in the large proportion of businesses across Ireland and the UK who are growing their headcount in line with expansion plans. However, financial services, particularly the larger financial institutions, are showing the lowest levels of hiring expectations. Interestingly, whilst we see a lot of emphasis on the importance of flexible working in the modern workplace, it is 25 days holiday, a good pension and annual bonus scheme which still rank highest in terms of benefits considered most important when moving roles. Although financial services remains the place to be for top end bonuses (albeit for a small percentage of people), we are seeing our commerce and industry clients paying a higher percentage (10-30%) in bonuses. Looking ahead Based on our trading for Q1 of this year, 2017 will be a prosperous one with plenty of opportunities. This will, of course, mean increased competition for the best talent and employers must be prepared to streamline and improve their hiring processes. Lastly, I would like to thank the 1,700+ respondents who took part in the survey this year. I m sure you agree you have enabled us to provide an insightful look into key areas for the year ahead. We have made a contribution to our charity partner Solving Kids Cancer for each response we received. Further details on how you can support this great charity are provided at the end of this report. Best wishes, KEY FINDINGS From the CFOs we surveyed, it s clear that they are shifting away from defence and cost control to progrowth strategies. Brexit and the Eurozone are still topping their list of uncertainties with a feeling that Brexit will have a somewhat adverse effect on businesses in the long term. Matt Wilcox Managing Director 1 2

5 KEY FINDINGS DEMOGRAPHIC / RESPONDENTS PROFILE Gender CURRENT EMPLOYMENT How are you currently employed? 8% Key Findings Would you recommend your current employer to a friend? 92% 74% 26% Yes No Interim/Contractor Permanent/Fixed Term Contract 63% 37% Current level of experience Satisfaction with current role 78% Age Work location Newly Qualified 2-5 years PQE 9% 19% Less than 25 years 6% London 51% 6-9 years PQE 18% years 16% Midlands 4% years PQE 17% years years years years 61 and over 20% 17% 25% 14% 2% North West Republic of Ireland Thames Valley Yorkshire & Humberside 6% 11% 6% 11% years PQE 20 or more years PQE 16% 21% Yes 22% No Other UK Regions 11% Qualification Status 9% 10% 61% 20% Non qualified/qualified by experience (QBE) accountant Part qualified accountant Qualified accountant Not applicable 3 4

6 SECTOR REPRESENTATION Professional Services Key Findings Which of the following best describes the area/sector you currently work in? Audit & Assurance Corporate Finance 32% 11% 43% Forensics 3% 30% Insolvency 3% 15% Taxation 22% 2% 3% 7% Transaction Services 7% Banking & Financial Services Commerce & Industry Public Sector Public Practice/ Not-For-Profit Other Professional Services Consulting Advisory 6% 2% Banking & Financial Services Commerce & Industry Other 14% Capital Markets Change Management Fund Administration Insurance Banking Investment Management Private Equity/ Asset Management Other 6% 3% 7% 14% 27% 11% 10% 22% 3% 7% 7% 11% 11% 4% 6% 10% 10% 14% 5% Advertising & PR Business Services Energy & Natural Resources Engineering & Manufacturing FMCG & Pharmaceuticals Leisure & Travel Media & Publishing Property & Construction Retail & Clothing Telecoms & Technology Transport & Logistics Change Management* Finance Transformation HR Consulting Technology Business Process Improvement Project/Programme Management Strategy Change Management Risk Management Outsourcing 33% 2% 5% 28% 16% 14% 16% 16% 2% 12% Other 5 6

7 Key Findings MARKET PERSPECTIVE Expectations for personal salary and job security in the next 12 months* ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? Salary increase Salary freeze Redundancy Shorter working week Salary reduction None of the above 66% 23% 5% 3% 1% 9% 54% HEADCOUNT 21% 25% Size of department More confident As confident Less confident 1-5 employees 28% Top 5 expectations for your business in the next 12 months* 44% 42% 31% 27% 25% 6-10 employees employees employees More than 20 employees 21% 11% 5% 35% Business process/ policy changes Profitability of business Budget cuts Greater focus on regulatory issues Salary increases How has the number of staff in your team changed in the past 12 months? JOB SECURITY 4% How would you rate your current job security? 36% 39% 80% 20% 21% Secure Insecure Increased Decreased Remained the same Not sure 7 8

8 Key Findings What was the main reason for an increase in staff? CAREER INSIGHT Business growth or expansion Rising workloads Fill a skills gap Regulatory requirements 58% 22% 5% 5% EXPERIENCE Length of time in the accountancy, finance or advisory profession Financial systems upgrades 2% Less than 1 year 2% Merger or acquisition 3% 1-3 years 6% Other 5% 4-6 years 13% What was the main reason for a decrease in staff? 49% 23% 15% 2% 11% 7-10 years years years years More than 25 years 18% 17% 16% 10% 18% Headcount reductions Voluntary departures Natural attrition Not aware Other Length in current role What is your employer s recruitment strategy? 37% 23% 29% 29% 20% 8% 4% 3% 7% 19% Less than 1 year 1-2 years 3-4 years 5-6 years 7-8 years 9-10 years More than 10 years 10% 11% Short term (3-6 months ahead) Medium term (6-12 months ahead) Long term (1-2 years) Non-existent Not sure 9 10

9 Key Findings HOURS WORKED Places respondents would consider relocating to within the UK* On average, how many hours a week do you work? Less than 30 hours hours 2% 7% How has the number of hours changed in the last 12 months? 58% 6% Scotland hours hours hours More than 60 hours 59% 20% 8% 4% 28% 14% Increased Decreased Remained the same 3% Northern Ireland 7% North East 9% North West 47% of respondents chose taking on more responsibility/more pressure as the main reason for the increase in working hours RELOCATION Top 10 places respondents would consider relocating to in the next two years (outside the UK)* 6% West Midlands 5% Wales 10% South West 6% East Midlands 21% London 6% East of England 12% South East Over a third of respondents would not consider relocating. Top 5 reasons for respondents wanting to relocate* Australia 29% USA 23% Canada 18% New Zealand 13% Singapore 12% 1 59% Improved quality of life/better work-life balance/standard of living 2 49% Experience a different culture 3 45% New career opportunity UAE 12% Hong Kong 11% Switzerland 11% Cayman Islands 9% Republic of Ireland 9% 4 39% Improved salary 5 36% Better employment opportunities 11 12

10 Key Findings MOVING ON Top 5 reasons for leaving last role* SALARIES & BENEFITS REMUNERATION 1 28% Career development When was your last pay review? What was the outcome of your last pay review? 2 27% New challenge/more interesting work 16% 3 26% Higher salary 13% 33% 70% Pay increase 4 16% Better work/life balance 5 12% Lack of career progression due to limited promotional opportunities 38% 29% Pay remained the same Over one third of respondents anticipate changing roles in the next 12 months Less than 6 months 6-12 months 1% Asked to take a pay cut How did you find your current position? More than 12 months Not applicable Advertising (online) 9% Advertising (print) Direct approach/headhunted by a company 2% 12% Satisfaction with current remuneration Internal promotion LinkedIn 6% 3% Permanent Contract Personal contact 10% Professional network 5% Recruitment consultancy/headhunter 41% Not currently employed 2% Direct (online) Direct (print) 5% 1% 69% 31% 71% 29% Indeed Other 1% 3% Satisfied Dissatisfied Satisfied Dissatisfied 13 14

11 Key Findings BENEFITS BONUS Top 5 benefits currently received* Did you receive a bonus in 2016? 78% 71% 66% 52% 46% 25 days holiday or more Company pension scheme Annual bonus scheme Private healthcare/dental care Insurance (PMI/death in service/life insurance) 68% of respondents were satisfied with their bonus 62% 18% 20% Yes No, not awarded one No, not entitled to receive one 43% of respondents received a higher bonus in 2016 than in 2015 Benefits considered most and least important when considering a new role As a percentage of your basic salary, what was your bonus in 2016? MOST IMPORTANT LEAST IMPORTANT 33% 31% 25 days holiday or more Daily subsided/free meals Good company pension scheme Mortgage relief 16% Annual bonus scheme Flexible working (homeworking/flexitime) Sabbatical Leisure facilities 10% 8% 2% Insurance (PMI/death in service/life insurance) Season ticket loan 1-9% of salary 10-19% of salary 20-29% of salary 30-49% of salary % of salary More than 100% of salary A comparison of bonuses received across sectors 3% of eligible respondents opted to take shared parental leave in the last 12 months Banking & Finance Commerce & Industry Public Practice/ Professional Services 1-9% 20% 34% 64% 10-19% 31% 34% 21% 20-29% 16% 19% 7% 30-39% 10% 6% 1% 40-49% 6% 3% 2% 50-79% 11% 3% 4% 80% or more 6% 1% 1% 15 16

12 LONDON FINANCIAL SERVICES Key Findings 19 Banking & Financial Markets 23 Corporate Finance & Transactional Services 27 Insurance 29 Investment Management 31 Compliance 33 Real Estate 35 Part Qualified & Transactional 37 Executive & Interim

13 KEY FINDINGS MARKET PERSPECTIVE HEADCOUNT How has the number of staff in your team changed in the past 12 months? Increased 35% London - Financial Services ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? Decreased Remained the same Unsure 25% 35% 5% 18% 53% 29% More confident As confident Less confident Top 5 expectations for your business in the next 12 months* CAREER INSIGHT HOURS WORKED How has the number of hours changed in the last 12 months? 49% 43% 42% 56% Average hours worked per week is % 31% 30% 14% Increased Decreased Remained the same Greater focus on regulatory issues Business process/ policy changes Budget cuts Salary freezes Profitability of business RELOCATION JOB SECURITY How would you rate your current job security? Top 3 places respondents would consider relocating to in the next two years (outside the UK)* Top 3 reasons for respondents wanting to relocate* 1 63% Improved quality of life/better work-life balance/standard of living 29% Australia 27% USA 20% Canada 2 50% New career opportunity 77% 23% 75% of respondents were satisfied in their current role 3 46% Experience a different culture Secure Insecure 57% of respondents expect a salary increase in the next 12 months 30% of respondents would not relocate 19 20

14 London - Financial Services MOVING ON Top 5 reasons for leaving last role* BENEFITS Benefits considered most and least important when considering a new role 1 33% Higher salary 4 16% Better bonus potential MOST IMPORTANT LEAST IMPORTANT 25 days holiday or more Mortgage relief 2 30% Career development 5 14% Better work/life balance Annual bonus scheme Not applicable, I don t receive any benefits Company pension scheme Travel benefits/allowances 3 29% New challenge/more interesting work 34% of respondents anticipate change in the next 12 months SALARIES & BENEFITS BONUS Did you receive a bonus in 2016? 75% REMUNERATION When was your last pay review? Less than 6 months 32% Satisfaction with current remuneration Yes 10% No, not awarded one 15% No, not entitled to receive one 6-12 months More than 12 months 44% 12% 63% of respondents were satisfied with their bonus Not applicable 12% 65% 46% of respondents received a higher bonus in 2016 than in % As a percentage of your basic salary, what level was your bonus in 2016? Satisfied Dissatisfied 16% 24% 16% 13% 8% 7% 5% 11% 1-9% of salary 10-19% of salary 20-29% of salary 30-39% of salary 40-49% of salary 50-59% of salary 60-69% of salary %+ of salary 59% of respondents received a salary increase in their last pay review 43% of respondents perceive an 11-20% salary increase as acceptable if they were to move roles 21 22

15 London - Financial Services LONDON FINANCIAL SERVICES BANKING & FINANCIAL MARKETS The Brexit effect BANKING & FINANCIAL MARKETS TOP TIER BANKS 2016 started off on an extremely positive note, although the decision in June to leave the EU led to a definite slow down in recruitment. This was only to be expected, as the city was holding out to see when Article 50 would be triggered and what impact this was likely to have on its support functions. There has been much speculation around the possibility of key employers moving parts of their operations overseas. Some major banks have indicated this to be their intention, while others have reinforced their commitment to the UK. One positive sign is the continued growth in applications for banking licenses, a trend which shows faith in the economy and indicates that London is likely to remain a hub for the banking community for some time to come. The regulation market had a busy year last year with a slight dip in quarter four. Product control at a premium Demand remains high for candidates with a strong product control background. As the 2018 ring fencing deadline approaches, candidates with product and process expertise will continue to be extremely sought after. In terms of regulation, demand is consistent for strong capital and liquidity production candidates and also for candidates who can interpret new policy changes. Throughout H1 last year, there was a spike for professionals with liquidity experience focusing on LCR and NSFR reporting, however this shifted in H2 towards the need for talent with capital experience. We are also seeing increasing demand for candidates with experience in digital banking. This trend has been driven by the Open Bank platform and is only likely to increase as digitisation marches on. There have been no significant changes in salary levels overall, with day rates staying flat across the board. Rates and salaries within regulation are higher than that of core finance, however they too have reached a plateau with the current cost constraints within banking. Rates in this area can spike if banks leave their hiring for specific regulatory needs to the last minute or too close to the regulatory deadline. A healthy outlook Despite the uncertainty caused by Brexit, we predict that the recruitment market for this sector will remain healthy. As the exit negotiations begin to unfold, many of the banks have adopted a wait and see position. Contract recruitment is likely to remain busy, however, regardless of final decisions about whether or not to move certain operations out of the UK. If finance is moved away from the UK, it will result in huge demand for contractors with offshoring and migration experience. On the flip side, if employers decide to stay, this will also result in increased hiring from clients who were holding back since the end of last year. The regulatory market will continue to be busy, predominately with new regulations impacting the market, such as the fundamental review of the trading book. The nature of deadlines and timeframes from the regulator will ensure that activity will not taper off. Job title Salary range Day rate Financial Controller Newly Qualified to 2 years Financial Controller 2 years to 5 years Financial Controller 5 years to 10 years Financial Accountant Newly Qualified to 2 years Financial Accountant 2 years to 5 years Financial Accountant 5 years to 10 years Finance Business Partner Newly Qualified to 2 years Finance Business Partner 2 years to 5 years Finance Business Partner 5 years to 10 years Management Accountant Newly Qualified to 2 years Management Accountant 2 years to 5 years Management Accountant 5 years to 10 years Product Controller 55,000-65,000 65,000-90,000 90, ,000-60,000 60,000-85,000 85, ,000-65,000 65,000-90,000 90, ,000-60,000 60,000-80,000 80, ,000-80,

16 London - Financial Services BANKING & FINANCIAL MARKETS MID TIER BANKS BANKING & FINANCIAL MARKETS SME/FS GENERAL Job title Salary range Day rate Job title Salary range Day rate Head of Finance 90, , Head of Finance 75,000-90, Finance Director 110, , Finance Director 90, , Chief Financial Officer 140, , ,200 Chief Financial Officer 100, , ,000 Financial Controller Newly Qualified to 2 years 55,000-65, Financial Controller Newly Qualified to 2 years 50,000-60, Financial Controller 2 years to 5 years 60,000-85, Financial Controller 2 years to 5 years 60,000-75, Financial Controller 5 years to 10 years 85, Financial Controller 5 years to 10 years 75, Financial Accountant Newly Qualified to 2 years 50,000-60, Financial Accountant Newly Qualified to 2 years 45,000-55, Financial Accountant 2 years to 5 years 60,000-80, Financial Accountant 2 years to 5 years 55,000-65, Financial Accountant 5 years to 10 years 75, Financial Accountant 5 years to 10 years 65, Finance Business Partner Newly Qualified to 2 years 50,000-65, Finance Business Partner Newly Qualified to 2 years 45,000-60, Finance Business Partner 2 years to 5 years 65,000-80, Finance Business Partner 2 years to 5 years 55,000-70, Finance Business Partner 5 years to 10 years 80, Finance Business Partner 5 years to 10 years 70, Management Accountant Newly Qualified to 2 years 50,000-60, Management Accountant Newly Qualified to 2 years 45,000-55, Management Accountant 2 years to 5 years 60,000-75, Management Accountant 2 years to 5 years 55,000-65, Management Accountant 5 years to 10 years 75, Management Accountant 5 years to 10 years 65, Product Controller 60,000-80, REGULATORY Job title Salary range Day rate Newly Qualified 55,000-60, Assistant Vice President or Equivalent 65,000-85, Vice President or Equivalent 85, , Head of Regulatory 120,

17 London - Financial Services LONDON FINANCIAL SERVICES CORPORATE FINANCE & TRANSACTIONAL SERVICES A healthy year In terms of compensation, most of the market has now adjusted analyst and associate packages in line with what larger investment banks are paying in an effort to keep hold of key employees. A highly rated associate with around five to six years experience could now earn well in excess of 120k. Lack of work life balance continues to be a key factor in the analyst and associate space, with many banks still merely paying lip service to implementing any improvement plans was a reasonably healthy year for corporate finance and transactional services, despite widespread economic and political uncertainty. M&A deal activity was tighter and slower although it still reached in excess of 3 trillion, making it the second busiest year since the financial crisis. This was mainly driven by mega mergers in the US and Europe. Closer to home, the UK remained the third most targeted country globally, behind the US and China. While the number of deals involving UK companies fell only marginally, their total value nearly halved causing a stagnant domestic M&A climate. of practice. Auditors and tax professionals looking to make a move have often struggled given their lack of deal exposure. The last 18 months has seen a growing trend towards smaller firms looking for rain makers to join their business. Almost a third of SME owner managed houses in 2016 were looking to hire managing directors with demonstrable origination experience in sectors they were looking to expand in. This in turn fuelled a number of moves and growth in the SME corporate finance space and is expected to lead to an increase in analyst and associate hiring throughout CORPORATE FINANCE & TRANSACTIONAL SERVICES MID MARKET/BOUTIQUES Job title Salary range Average bonus range Experienced Analyst/Executive Associate/Manager VP/Associate Director Director 40,000-60,000 60,000-80,000 80, , , % - 75% 60% - 100% 60%+ 80%+ A mixed recruitment picture Increased uncertainty among boutique and owner managed businesses led to less hiring at the analyst and associate level. Deals were being completed, but with fewer resources at the junior end compared with the previous year. Larger investment banks either grew or struggled, with a number of high profile firms making front office redundancies. Director level roles remain the most susceptible to downscaling, from senior vice president to executive director level. Restructuring, cost cutting and redundancies led to a surplus of senior level corporate finance candidates. Over the last 12 months, it has become increasingly hard for newly qualified ACAs to move directly into corporate finance roles. Experience within transactional services, business modelling, M&A, valuations or restructuring has become almost a prerequisite for a recently qualified accountant looking to move out In professional services firms, manager level candidates remain sought after, especially in areas like transaction services. Despite a reasonably flat year for M&A markets, most professional services firms were inundated with work and struggled to keep on top of headcount. Base salaries and overall compensation remain well above market rate, with a number of bigger firms and boutique consultancies embarking on prolonged recruitment campaigns throughout the year in an effort to fill critical talent shortages. An unpredictable year ahead 2017 will be difficult to predict with any degree of accuracy, but most banks point to the likelihood of the M&A market beginning to improve, driven in part by the relatively weak position of Sterling. There is likely to be a shortage of experienced talent at third year analyst and junior associate levels, as well as those with more difficult to find sector experience in areas such as pharma, insurance and real estate. LARGER INVESTMENT BANKS Job title Analyst Associate VP/Associate Director Director/Executive Director PROFESSIONAL SERVICES Job title Assistant Manager Manager Senior Manager Associate Director Director Salary range 55,000-80,000 90, , , , , ,000+ Salary range 45,000-55,000 55,000-70,000 70,000-90,000 80, , ,000+ Average bonus range 50% - 80% 60%+ 70%+ 80%+ Average bonus range 0% - 10% 10% - 20% 20% - 25% 20% - 30% 30%

18 London - Financial Services LONDON FINANCIAL SERVICES INSURANCE Mixed fortunes It was a tale of mixed fortunes for the insurance sector in The uncertainty of Brexit added some jitters to the market and our clients refrained from hiring non critical roles while they waited to see what impact the referendum would have on their firms. Increased merger and acquisition activity had a short term impact on the number of permanent vacancies in London, but also led to a short term surge for contractors has seen a change in the market, with all signs leading to the requirement for skilled accountants to join insurance businesses both on a contract and permanent basis, and we expect this trend to continue. Lloyds syndicate accountants and controllers were in demand throughout last year while the sharp rise in demand for Solvency II reporting accountants, which we experienced at the beginning of last year, tapered off in H In contrast, the newly qualified market picked up in the latter half of the year as confidence started to return, with the exception of the senior end of the market; this remained sluggish as the CFO level was reluctant to make a move. Equally there are fewer CFO roles available due to ongoing consolidation in the insurance space. A premium candidate Big 4 ACA qualified accountants with insurance sector external audit experience are at a premium, especially if they have experience working in London, and firms are prepared to pay well to secure them. Finance business partners who have the skills to analyse and understand how the business operates and also communicate effectively with non financial leaders are also sought after and this profile may see increases in salaries going forward. A shortage of skilled Lloyds syndicate controllers has led to an increase in both salaries and day rates for these professionals. The insurance sector is still navigating through tricky waters, however the mood is relatively positive for the sector in London. In addition to this, we will likely see firms engaging in offshoring and nearshoring projects to reduce their operating cost base and we will likely see further M&A activity, particularly in the Lloyds space. This will lead to some movement on the permanent side as well as a greater need for resources on the contractor side. INSURANCE Job title Salary range Day rate Newly Qualified Accountant Non Big 4 Newly Qualified Accountant Big 4 Senior Accountant 1-4 years PQE Solvency II 3-5 years PQE Finance Manager/Reporting or FP&A Financial Controller/Senior Finance Manager Syndicate Accountant Syndicate Finance Manager Syndicate Financial Controller Head of Finance Chief Financial Officer/Finance Director 45,000-50,000 50,000-60,000 55,000-70,000 65,000-80,000 60,000-85,000 80, ,000 45,000-60,000 65,000-85,000 85, ,000 90, , , ,000-1,

19 London - Financial Services LONDON FINANCIAL SERVICES INVESTMENT MANAGEMENT Private equity flourishes A return in confidence 2016 started buoyantly off the back of record levels of investment management recruitment in However, in the four months leading up to Brexit, levels dropped to those seen in 2009/2010 as firms delayed investment decisions. Immediately after the referendum, new jobs and candidate applications soared, producing a strong finish to the year. The private investment market has always been the core of the investment management division and last year was no different, with success at all levels from the lower mid market up to the bulge bracket investment houses. It was a record year for fund raising and this resulted in a huge demand for asset class specific fund accountants. The three to five year post qualified experience mark was a real sweet spot, although processes took longer than in previous years. Worthy of note is the continued growth of the London venture capital market. The record funds raised in 2014 and 2015 have resulted in a real appetite for the asset class with the consequence being a lot of work with new, start-up ventures and growth funds. Healthy outlook for debt space Ongoing changes within the wider financial services sector continued to create opportunities in niche areas with the debt space emerging as a major market. Core credit and direct lending firms are benefitting from perpetual growth, with more and more businesses seeking alternative sources of finance in the absence of bank lending. The distressed and special situations space continues to see more US capital (among other sources) poured in and deployed into assets throughout Europe, with a number of banks still keen to reduce exposure and risk in the form of non-performing loans and illiquid assets. The effect on the candidate market has been significant. Debt firms require more accountants than other private equity and alternative managers and their focus has been on attracting core private equity and hedge fund accountants. This has put pressure on supply in an already candidate short area, sustaining the above average pay rises professionals are receiving, which is often 15-20% versus 10-15% in corporate accounting. As in the previous year, many candidates achieved sign on bonuses at the 75,000 plus level as firms became more proactive about easing the process of moving by overcoming the issue of candidates forgoing annual bonuses. A riskier candidate base emerged, with more and more recruits leaving long term incentive plans on the table in order to make a progressive career move. Ongoing focus on cost control The biggest worries in the sector revolved around the traditional asset management space, with post referendum rumours about passport issues potentially having a profound impact on a client s ability to do business. However, despite initial speculation, most clients have not outwardly expressed a desire to uproot and move outside of the UK. Cost control remains an ongoing focus for most large fund managers, although many have other areas in the cost base that they can look at, as opposed to reducing the wage bill. Redundancies were not at the level that most predicted, although more candidates at the senior end were wary of moving to pastures new due to uncertainty. Moving into 2017, the trends of last year look set to continue as a degree of normality returns to the market. The first quarter of the year has been promising, as candidates who have received their bonuses start to look for new opportunities. Confidence is certainly returning from a client perspective, with a strong pipeline for the coming months. INVESTMENT MANAGEMENT Job title Salary range Day rate Fund Accountant Fund Controller/Fund Accounting Manager Head of Fund Accounting Newly Qualified Accountant ACCA/CIMA/ ACA/Non Big 4 Newly Qualified Accountant ACA Big 4 Senior Accountant 1-4 Years PQE Finance Manager Reporting or Financial Planning & Analysis 3-6 Years PQE Financial Controller/Senior Finance Manager Transactional Support 5+ years PQE Head of Finance Finance Director/Chief Financial Officer An increased number of soft meetings with decision makers last year suggest that the senior market will pick up. Green shoots have already emerged at this level, with several clients opting to add senior management through growth, a pro-active approach that is set to continue. 50,000-60,000 60,000-80,000 80, ,000 48,000-55,000 50,000-60,000 55,000-65,000 65,000-80,000 75,000-90,000 80, ,000 90, , , , ,

20 London - Financial Services LONDON FINANCIAL SERVICES COMPLIANCE Compliance at the forefront Demand for compliance professionals grew steadily in 2016, with opportunities at all levels continuing to increase in the first half of this year. The market was particularly active within smaller banks and insurance firms, where many clients were establishing dedicated compliance management functions. Alternative investment firms, who traditionally outsource their compliance function, also appeared to be increasingly building in-house teams. There has been a shift in approach among larger financial institutions too, where compliance professionals are being brought in to assist with remediation programmes, particularly in the financial crime and sanctions area. New regulation New regulation is driving the contract market. Clients are increasingly running programmes to ensure they are prepared for the wide-ranging implications of MiFID II/ MiFIR, which goes live in January Government efforts to improve global tax compliance with the introduction of regulations such as FATCA (Foreign Account Compliance Act) and CRS (Common Reporting Standard) are also resulting in huge volumes of work and heightened demand for professional support. Salary levels and day rates for compliance professionals remain strong and we expect small inflation led increases in salaries for Overall, the outlook for professional compliance is bright for 2017, with an even stronger demand predicted than in the previous year. COMPLIANCE Job title Salary range Day rate Compliance Analyst 2-5 years Compliance Monitoring Officer AML & Financial Crime Analyst Senior Compliance Officer Compliance Manager Compliance Advisory CASS Analyst CASS Manager Senior Compliance Manager Head of Compliance/MLRO 45,000-65,000 55,000-70,000 55,000-70,000 65,000-80,000 70,000-85,000 75,000-90,000 50,000-70,000 75, ,000 85, , , , ,

21 London - Financial Services LONDON FINANCIAL SERVICES REAL ESTATE Exciting times for real estate The political upheaval caused by Brexit led to an unpredictable year in the real estate sector. The yes vote stunned the market, resulting in an immediate dip in the volume of transactions, although prime values decreased only by low single-digit percentages. The main impact of the vote was a run on the country s open ended funds, which temporarily placed more than 20 billion of property under lock and key. Despite the climate of uncertainty, some opportunities did emerge in the European real estate industry, with the favourable exchange rate attracting overseas investors to premium quality assets in and around the UK. In this risk-off climate, in which many real estate investors are clearly willing to sacrifice some yield for lower risk, Germany is regarded as the new haven for capital. Student housing and logistics, once niche sectors, dominated the headlines with new entries into the market, backed by overseas investors. The market also saw large 1 billion global portfolios of real estate assets snapped up, along with major corporate acquisitions. Newly qualified ACAs with two years post qualified experience were particularly sought after, while fund accountants and senior fund accountants working for competitor funds were also at a premium, given their ability to hit the ground running. Demand for fund controllers with deal support and transaction experience continued to grow; a trend which is likely to be sustained in the year ahead. Clients are prepared to pay a premium for good all-rounder candidates who can do everything from deal execution through to a deal exit. Senior level recruitment has been at its most buoyant since the financial crisis, due to a combination of newly created roles and replacement positions. Start-up firms with successful fund closes were also increasingly hiring chief financial officers and financial directors. Salaries have continued to increase, although mainly for accountants with funds based experience. Candidates looking to move can expect anywhere between a 12-15% pay rise. REAL ESTATE Job title Salary range Day rate Fund Accountant Fund Controller/Fund Accounting Manager Head of Fund Accounting Newly Qualified Accountant ACCA/CIMA/ACA Non Big 4 Newly Qualified Accountant ACA Big 4 Senior Accountant 1-4 years PQE Finance Manager Reporting or FP&A, 3-6 years PQE Financial Controller/Senior Finance Manager Transactional Support 5+ years PQE Head of Finance Finance Director/Chief Financial Officer 50,000-65,000 68,000-95, , ,000 48,000-55,000 50,000-60,000 55,000-70,000 65,000-80,000 75, ,000 80, , , , , , N/A The war for talent Fund based roles dominate Hiring levels remained healthy during the year, with new launches prompting clients to bolster their finance teams by recruiting fund accountants and controllers. Hiring is set to remain healthy during 2017, with fund based roles, from fund accountant through to fund controllers, likely to dominate. Significant hiring demand, coupled with a limited supply of quality candidates, resulted in a war for talent. Many firms were prepared to out price their competitors in a bid to lure the best people. Clients had to work hard to retain experienced staff, resulting in an increased number of counter offers. The last five years have seen considerable movement in the market and in an attempt to improve retention and establish stability, clients have been prepared to reward existing staff highly. This has resulted in a dearth of candidates, as many are not currently prepared to leave their employer for a sideways move and will only consider pastures new for a step-up

22 London - Financial Services LONDON FINANCIAL SERVICES PART QUALIFIED & TRANSACTIONAL PART QUALIFIED & TRANSACTIONAL Despite Brexit fears, 2016 was a positive year for part qualified recruitment with firms hiring aspiring accountants, particularly transactional accountants, across both permanent and interim functions. Job flow at the junior to mid level stayed consistent, however it faltered slightly at the higher level as higher level firms tried to promote from within in a bid to control costs. Accountants with months experience were the most sought after segment, clients value the early experience they have gained while also having the opportunity to train and develop them over the longer term. While there are a lot of part qualified accountants on the market, it is a challenge to find candidates with the right soft skills and experience to succeed in financial services. This results in candidates with a strong academic background and relevant experience receiving multiple offers. In terms of salaries, daily or hourly rates are on the rise. Due to a skills shortage, those with the right backgrounds are able to command higher rates and clients are willing to pay. The permanent market has also been edging upwards; for similar reasons, the top tier candidates are receiving more interviews and job offers so graduates are commanding upwards of 25k- 27k minimum, compared to 23k- 24k last year. The best part qualified accountants are being offered a minimum of 33k- 40k. The minimum pay increase expectation for candidates moving positions is 10%, however clients should expect to pay a higher salary if the candidate is currently being paid below the market rate. Study support and progression will continue to be a high priority for candidates moving roles. Clients who do not offer study support often experience high turnover at part qualified level, so they may need to counter balance this by offering higher salaries. Job title Salary range Day rate Graduate/Entry Level Up to 12 months experience Accounts Assistant More than 12 months experience AP/AR/Transactional Assistant Accountant Assistant Financial Accountant Assistant Management Accountant Finance Analyst Part Qualified Regulatory Accountant Junior Fund Administrator/Accountant Senior Fund Administrator/Accountant 25,000-27,000 27,000-30,000 25,000-30,000 30,000-35,000 35,000-40,000 35,000-40,000 32,000-40,000 40,000-55,000 30,000-35,000 35,000-40, On the temporary side, candidates with the right systems knowledge who can hit the ground running are in favour. We are also seeing a demand for junior or graduate candidates with strong academic requirements from our financial services clients. Those recruiting from June to September will have the best choice of talent with good academics and university degrees; outside of this time it is more challenging to find the right people as high calibre candidates will have already secured jobs. We expect the part qualified market to remain strong throughout this year. It continues to be a candidate led market and clients able to turn around a robust recruitment process in one or two weeks will more often than not attract and secure the best candidates. Similarly, part qualified accountants within 12 months of qualifying are in a strong position and can afford to be selective in their next move. Their main motivation is to progress into a more all round financial and management accounting role, with access to regulatory reporting, management, or fund accounting. They will also be mindful of the salaries available once they qualify

23 London - Financial Services LONDON FINANCIAL SERVICES EXECUTIVE & INTERIM EXECUTIVE & INTERIM A buyer s market EXECUTIVE Hiring at the executive finance level started slowly but picked up towards the end of the year. There was a slight increase in roles available at the 80k to 150k range within business as usual finance and areas like financial planning and analysis, while business partnering saw a welcome return to centre stage. Whilst employers were more decisive and swift in their senior recruitment than in previous years, it is still very much a buyer s market with firms able to hold out for the very best talent available. Once again the banking sector was challenging for most with little senior finance movement. Areas like traditional asset management began to resurge and newer growth markets like fintech, payment and peer to peer lending witnessed a number of new entrants into the market, all looking for their first senior finance hire. We witnessed modest growth in the insurance sector and a marginal upward trend across FTSE 250 firms for finance director and chief financial officer positions. Private equity, property funds management and debt funds firms invested the most in new senior finance talent, which has been a continuing trend over the last few years. Growth in SMEs The growth in 2016 was led by small to medium sized banks, private equity and real estate firms, with a mixture of established, challenger and start-up firms all looking to replace or increase their senior finance firepower. There was reasonable demand for financial controllers or head of function finance interims, but a limited supply of finance director opportunities until later in the year. The raft of remediation projects spanning anti money laundering, financial crime, alternative investment and transaction reporting resulted in a very busy interim compliance market. There were also a number of new senior compliance appointments in the alternative investments space, where companies traditionally rely on outsourced providers. Shift to business as usual Companies have continued to move away from purely commercial or strategically orientated finance directors and chief financial officers, and are now looking towards individuals who are able to focus on core reporting and business as usual. There was a gradual increase in vacancies where firms of all sizes and structures were looking to replace their top finance person with someone more involved in the numbers and day to day detail. There is also a surplus of interim finance director candidates and this space remains very competitive when roles come out to the market. From a candidate perspective, there are fewer senior regulatory controllers, technical accounting heads of finance and experienced fund controllers in private equity and real estate on the market. There has also been a noticeable increase in the number of interim or contract heavy senior finance professionals now seeking a permanent role. Job title Financial Controller SME Financial Controller MNC or Divisional Role Finance Director/Chief Financial Officer SME Head of Finance Group Financial Controller Finance Director/Chief Financial Officer MNC or Divisional Role Group Finance Director/Group Chief Financial Officer INTERIM Job title Financial Controller Financial Planning & Analysis Head of Financial Reporting Head of Regulatory Reporting Head of Finance Finance Director/Chief Financial Officer Group Finance Director/Chief Financial Officer Large Listed Company Compliance Manager Head of Compliance Salary range 80, , , , , , , , , , , , , ,000+ Day rate ,500 1,500-2, ,

24 Insight INSIGHT HOW HEALTHY IS YOUR FINANCE FUNCTION? The finance function is at the heart of every business and its role is vital to the success of the organisation. However, the increasing demands and complexity being placed upon it are a source of risk, value and opportunity. The role of finance has traditionally been to keep score and inform the business of its performance. In today s world of increased scrutiny and justification, the finance function is as much accountable for proving its worth and demonstrating its value as the front-line business it serves. Our unique integrated finance solution capability works with you to improve the effectiveness of your finance function, creating capacity and re-balancing priorities towards value protection and creation. Our finance health check is the initial step towards ensuring the health and well-being of your finance function and progression towards a centre of excellence/world class finance function. The highlights from our health checks show the following: 1 Increasing demands from internal and external stakeholders are resulting in pressure to maintain a balance between effective controls, value delivery and process efficiency 2 The cost of the finance function, as a percentage of the organisation s revenue, has more than doubled over the last seven years and the 1% rule is now no longer applicable 4 Capital investment spend in finance systems is minimal, with a high dependency on Excel to perform critical activities Customer satisfaction scores are at satisfied levels 5 7 Governance and controls related activities represent 49% of key activities, with 36% of key activities being performed on a continuous basis If you want to find out more about our consultancy services and specifically the finance function health check, then please contact your local Marks Sattin representative or ifs@markssattin.com We have gathered insights into the current health of finance functions across a number of sectors. 3 6 The overall performance score, assessing 180 key activities, is 52% The level of finance staff effectiveness (measuring engagement and enablement) shows over 30% falling into the frustrated category and 20% detached 41 42

25 LONDON COMMERCE & INDUSTRY Key Findings 45 Part Qualified & Transactional 49 Newly Qualified 51 Key Findings 53 Qualified 57 Key Findings 59 Executive & Interim

26 KEY FINDINGS MARKET PERSPECTIVE PART QUALIFIED & TRANSACTIONAL HEADCOUNT How has the number of staff in your team changed in the past 12 months? Increased 20% London - Commerce & Industry ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? Decreased Remained the same Unsure 16% 56% 8% 40% 40% 20% More confident As confident Less confident Top 5 expectations for your business in the next 12 months* CAREER INSIGHT HOURS WORKED How has the number of hours changed in the last 12 months? 44% 44% 40% 28% 28% 36% 12% 52% Average hours worked per week is Business process/ policy changes Increase in staff recruitment Profitability of business Budget cuts Salary freezes RELOCATION Increased Decreased Remained the same JOB SECURITY How would you rate your current job security? Top 3 places respondents would consider relocating to in the next two years (outside the UK)* Top 3 reasons for respondents wanting to relocate* 1 74% Improved quality of life/better work-life balance/standard of living 88% 44% Australia 36% Singapore 28% UAE 2 61% Better employment opportunities 12% 72% of respondents were satisfied in their current role 3 58% Improved salary 80% of respondents expect a salary increase in the next 12 months 16% of respondents would not relocate Secure Insecure 45 46

27 London - Commerce & Industry MOVING ON Top 5 reasons for leaving last role* BENEFITS Benefits considered most and least important when considering a new role Higher salary 52% MOST IMPORTANT LEAST IMPORTANT Better work/life balance 28% 25 days holiday or more Company car or car allowance Career development 27% Company pension scheme Private healthcare/dental care Mortgage relief Sabbatical New challenge/more interesting work 24% Lack of career progression due to limited promotional opportunities 20% BONUS Did you receive a bonus in 2016? 40% of respondents anticipate change in the next 12 months 36% 32% 32% SALARIES & BENEFITS REMUNERATION When was your last pay review? Less than 6 months 26% Satisfaction with current remuneration Yes 67% of respondents were satisfied with their bonus No, not awarded one No, not entitled to receive one 6-12 months 35% 44% of respondents received a higher bonus in 2016 than in 2015 More than 12 months 22% Not applicable 17% 52% 48% As a percentage of your basic salary, what level was your bonus in 2016? Satisfied Dissatisfied 83% of respondents received a salary increase in their last pay review 43% of respondents perceive an 11-20% salary increase as acceptable if they were to move roles 56% 44% 1-9% of salary 10-19% of salary 47 48

28 London - Commerce & Industry LONDON COMMERCE & INDUSTRY PART QUALIFIED & TRANSACTIONAL PART QUALIFIED & TRANSACTIONAL A focus on junior level recruitment The part qualified and transactional market enjoyed a steady year in A climate of economic uncertainty and political upheaval meant candidates were perhaps less likely to move roles than previously, but the sector remained buoyant nonetheless. There was a definite push on recruiting at junior level, with clients keen to hire at entry level and grow their own talent. Study packages became the norm, as companies are increasingly looking to tie candidates into contracts to ensure they achieve a return on the investment made in employee s professional development was an incredibly tough year for the oil and gas industry, with many regular clients in this space finding they lacked the capacity to recruit. Property services and development, however, continued to thrive and there was an increase in the number of roles becoming available in this sector. Growth at transactional level There is likely to be a continued increase in transactional level recruitment this year, as companies look to nurture and develop talent internally. Roles are of course still available at part qualified finalist level, but less so than in previous years as companies focus on retaining existing staff rather than bringing people in externally. There has been a good spread of roles within the temporary and contract market, although the emphasis here has also been on transactional jobs. Salaries holding steady Salaries and bonuses within the part qualified and transactional space have generally held steady. There have, however, been a few exceptions. CIMA and ACCA finalist salaries, for example, are pushing further towards 45k, while experienced transactional clerks have been able to demand an additional 2k to 4k. Bonuses at this level are the exception rather than the rule and if offered, rarely exceed 20%. The best packages are to be found within property and technology sectors, all of which have been particularly buoyant. Future prospects The outlook for the year ahead is healthy, with little change expected in either demand or salary levels. Best prospects for growth are the start-up, technology, fintech and media sectors, where both temporary and permanent support will be needed at junior level. There may also be an increase in demand at part qualified level, where the market has been experiencing a shortage of good candidates. Job flow is likely to remain steady, with a big focus on the early summer months, after year ends have been completed. Job title Salary range Day rate Graduate/Trainee Accountant Accounts Assistant Accounts Payable/Accounts Receivable Assistant Revenue/Billings Manager Accounts Payable/Accounts Receivable Manager Credit Controller Credit Control Senior/Supervisor Credit Control Manager Assistant Accountant Financial Accountant Management Accountant Finance Analyst Finance Manager 22,000-26,000 23,000-28,000 22,000-27,000 28,000-50,000 30,000-50,000 22,000-28,000 28,000-36,000 35,000-60,000 28,000-32,000 30,000-45,000 30,000-45,000 30,000-45,000 32,000-45, The most sought after candidates are the 28k to 35k part qualified assistant accountant or accountant. Applicants for roles at this level are in short supply, as candidates are generally part way through their studies and reluctant to move employers

29 London - Commerce & Industry LONDON COMMERCE & INDUSTRY NEWLY QUALIFIED A tale of two halves There was an unsettled start to the year in the newly qualified recruitment market, due to the uncertainty caused by the looming referendum. The first half of 2016 saw candidates reluctant to make moves and clients either stalling on decisions or putting hiring on hold. Once the initial shock of the Brexit result had subsided, however, the market returned to normal with the back end of the year being extremely busy. Demand for newly qualified candidates with up to two years experience remained strong, with counter offers continuing to rise, particularly for jobseekers with industry experience. Candidates leaving accountancy practices and seeking to enter industry for the first time were typically not tempted by these counter offers, preferring to take on new challenges and expand their experience. Qualified ACAs were particularly sought after for technical and financial accounting type roles, with these jobs representing just under half of candidates placed in Recruitment freezes in the oil and gas industry did affect the newly qualified space, although given that oil prices were on the up at the end of last year, there could be more movement in the sector throughout A changing role There is an increasing emphasis within the industry on developing accountants who can add communication and relationship building skills to their financial and technical capability. With finance departments now seen as key influencers of business performance, companies are looking for candidates who can business partner with senior stakeholders. For commercial roles, clients are generally looking for candidates with an industry background and with hands on commercial experience. For technical roles, ACA qualified candidates who have come from a practice background are preferred. Salaries have increased slightly. Newly qualified candidates with up to one year s PQE can earn anything from 45k to 55k, while those with a two year track record can command between 55k to 60k. Bonuses have remained the same. The best packages are to be found in the property, energy, professional services and commodities sectors. ACA salaries are more structured compared to salaries for candidates who may have the same level of experience, but have come from an industry background. Cautious optimism With the future of the economy still uncertain, it is difficult to predict what lies ahead. However, now that Article 50 has been triggered, there is a growing sense of optimism across commerce and industry which will hopefully be reflected in the recruitment market for the rest of this year. NEWLY QUALIFIED Job title Salary range Day rate Newly Qualified ACA/ACCA/CIMA Qualified 1 year Qualified 2 years 45,000-55,000 50,000-55,000 55,000-60,

30 KEY FINDINGS MARKET PERSPECTIVE QUALIFIED HEADCOUNT How has the number of staff in your team changed in the past 12 months? London - Commerce & Industry ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? Increased Decreased Remained the same 36% 19% 41% Unsure 4% 20% 53% 27% More confident As confident Top 5 expectations for your business in the next 12 months* Less confident CAREER INSIGHT HOURS WORKED How has the number of hours changed in the last 12 months? Increased 22% 50% 47% 34% 26% 23% Business process/ policy changes Profitability of business Budget cuts Salary increases Salary freezes Decreased Remained the same Average hours worked per week is % 64% JOB SECURITY How would you rate your current job security? RELOCATION Top 3 places respondents would consider relocating to in the next two years (outside the UK)* 77% 23% 68% of respondents were satisfied in their current role 65% of respondents expect a salary increase in the next 12 months 35% Australia 29% USA 21% Canada Secure Insecure 53 54

31 London - Commerce & Industry Top 3 reasons for respondents wanting to relocate* 72% of respondents received a salary increase in their last pay review 1 57% Improved quality of life/better work-life balance/standard of living 59% of respondents perceive a 5-15% salary increase as acceptable if they were to move roles 2 50% Experience a different culture BENEFITS Benefits considered most and least important when considering a new role 3 46% New career opportunity 29% of respondents would not relocate MOST IMPORTANT 25 days holiday or more Mortgage relief LEAST IMPORTANT MOVING ON Annual bonus scheme Sabbatical Top 5 reasons for leaving last role* Company pension scheme Travel benefits/allowances New challenge/more interesting work Career development Higher salary Better work/life balance 38% 37% 25% 17% BONUS Did you receive a bonus in 2016? 67% 14% 19% Lack of career progression due to limited promotional opportunities 15% Yes No, not awarded one No, not entitled to receive one 42% of respondents anticipate change in the next 12 months 73% of respondents were satisfied with their bonus SALARIES & BENEFITS REMUNERATION 44% of respondents received a higher bonus in 2016 than in 2015 As a percentage of your basic salary, what level was your bonus in 2016? When was your last pay review? Less than 6 months 31% Satisfaction with current remuneration 28% 35% 19% 18% 6 12 months More than 12 months Not applicable 35% 16% 18% 73% 27% Satisfied Dissatisfied 1-9% of salary 10-19% of salary 20-29% of salary % of salary 55 56

32 London - Commerce & Industry LONDON COMMERCE & INDUSTRY QUALIFIED Business as usual The qualified level job market was positive for both temporary and permanent roles during Despite the uncertainty created by Brexit, clients adopted a business as usual approach, with companies creating new positions and seeking replacement hires in equal measure. The two to six years post-qualified experience space was a real hot spot, particularly for CIMA and ACA candidates with a few years commercial experience. This trend is expected to continue as companies invest in additional headcount to support growth. Multiple offers and counter offers from existing employers have become common, with fast moving recruitment processes and significant salary offers now the norm. An extremely competitive space Salary increases have been steady and in line with inflation, standing at 2.5% across the board. The average salary increment for moving roles stands at 10-15% for those with two to six years post qualified experience. A similar picture is expected in 2017 as this space continues to be one of the most competitive across all markets, with job postings in the first quarter of the year up by 30% when compared to Technology firms flourish In the battleground for talent, technology firms continue to lead the field in attracting the best people. Although there are signs that investment in this market may be more prudent than last year, it is likely to remain a healthy and fast moving sector, with exciting start-ups announcing IPOs each year. QUALIFIED Job title Salary range Day rate Newly Qualified ACA/ACMA/ACCA Qualified 1 year Qualified 2 years Qualified 3 years Group Accountant Finance Manager FP&A Manager Commercial Finance Manager Financial Controller Finance Director Chief Financial Officer 48,000-55,000 50,000-58,000 60,000-68,000 62,000-70,000 55,000-65,000 55,000-70,000 60,000-85,000 65,000-90,000 70, ,000 90, , With employment levels at an all-time high, there has been a shortage of top tier candidates available on the market. Recruiters have to work hard to attract a passive target audience and have been drawing on a combination of new and traditional candidate attraction techniques. The most sought after candidates are those who can combine strong technical understanding with hands on stakeholder management and business partnering experience

33 KEY FINDINGS MARKET PERSPECTIVE EXECUTIVE & INTERIM HEADCOUNT How has the number of staff in your team changed in the past 12 months? Increased 37% London - Commerce & Industry ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? Decreased Remained the same Unsure 20% 41% 2% 21% 51% 28% More confident As confident Less confident Top 5 expectations for your business in the next 12 months* CAREER INSIGHT HOURS WORKED How has the number of hours changed in the last 12 months? 57% 53% 32% 27% 22% 21% 11% 68% Average hours worked per week is Increased Decreased Remained the same Business process/ policy changes Profitability of business Salary increases Budget cuts Greater focus on regulatory issues RELOCATION JOB SECURITY How would you rate your current job security? Top 3 places respondents would consider relocating to in the next two years (outside the UK)* Top 3 reasons for respondents wanting to relocate* 1 62% Improved quality of life/better work-life balance/standard of living 32% Australia 32% USA 20% Canada 2 46% Experience a different culture 78% 22% 80% of respondents were satisfied in their current role 3 45% New career opportunity Insecure 69% of respondents expect a salary increase in the next 12 months 26% of respondents would not relocate Secure 59 60

34 London - Commerce & Industry MOVING ON Top 5 reasons for leaving last role* BENEFITS Benefits considered most and least important when considering a new role Career development 39% MOST IMPORTANT LEAST IMPORTANT New challenge/more interesting work 38% 25 days holiday or more Mortgage relief Higher salary 25% Annual bonus scheme Company pension scheme Sabbatical Travel benefits/allowances Better work/life balance 16% Lack of career progression due to limited promotional opportunities 14% BONUS Did you receive a bonus in 2016? 35% of respondents anticipate change in the next 12 months 69% SALARIES & BENEFITS REMUNERATION 18% 13% When was your last pay review? Less than 6 months 30% Satisfaction with current remuneration Yes 77% of respondents were satisfied with their bonus No, not awarded one No, not entitled to receive one 6-12 months More than 12 months 37% 18% 80% 54% of respondents received a higher bonus in 2016 than in 2015 Not applicable 15% As a percentage of your basic salary, what level was your bonus in 2016? 20% Satisfied Dissatisfied 22% 32% 23% 19% 4% 74% of respondents received a salary increase in their last pay review 55% of respondents perceive a 11-20% salary increase as acceptable if they were to move roles 1-9% of salary 10-19% of salary 20-29% of salary 30-59% of salary 60% - Over 100% of salary 61 62

35 London - Commerce & Industry LONDON COMMERCE & INDUSTRY EXECUTIVE & INTERIM A steady market 2016 was a steady year for executive and interim recruitment across the spectrum of commerce and industry. There was some inevitable stagnation during the summer months due to the uncertainty created by Brexit, although towards the end of the year confidence improved and we saw an uplift in demand for interim finance director and chief finance officer roles. The triggering of Article 50 this year has resulted in an increased demand for interim resources as businesses are reluctant to commit to long term hiring strategies. Equally, businesses will also look to carry on with projects they have already committed to, undertake acquisitions, and so the need for highly commercial finance directors and chief finance officers should remain. High demand in SME and media The SME market has been particularly strong. The capital has seen a sharp rise in the number of startups, which has led to increased demand for candidates experienced in raising finance and setting up processes. CFO/FD and head of financial planning & analysis candidates have been particularly sought after. Recruitment for finance roles within the media sector has also been vibrant, thanks to the accelerating pace of change in this market overall. An increasing number of company mergers, coupled with the continuing shift towards digital products and services, has led to growing demand for candidates with experience in this field. Across the board, we have seen a decline in demand for group financial controller and statutory reporting roles, as companies place a stronger emphasis on increasing revenues. Strategic and commercial senior finance professionals who can support this shift in focus are becoming more and more sought-after. Salaries and day rates have remained flat across all sectors and specialisms. Whilst the rates have stayed around the same level we have noticed an increase in length of contracts, with the average length of a contract now being 9-12 months. This gives some stability for contractors and also enables them to have a greater impact on the business. Looking ahead The interim market is set to remain steady in 2017, despite a continued air of caution around Brexit. Technology and media sectors will continue to thrive, with the hospitality market also likely to be a hot spot. There has been an increase in tourists visiting the city post Brexit, making the most of the exchange rate, and this has led to more activity in the hospitality and tourism sectors. The next 12 months may be turbulent, leading to senior finance executives not wanting to make a move out of permanent roles; this could increase demand for quality interim professionals to cover while lengthy permanent hiring processes are undertaken. EXECUTIVE & INTERIM Job title Salary range Day rate Group Financial Controller SME Head of Financial Planning & Analysis Head of Group Reporting PLC Divisional Finance Director Chief Financial Officer/Finance Director Group Financial Controller PLC Finance Director PLC Chief Financial Officer PLC 80, ,000 90, ,000 90, , , , , , , , , , , , ,000 1,000-2,

36 LONDON CHANGE MANAGEMENT Key Findings 67 Commerce & Industry 71 Financial Services

37 KEY FINDINGS MARKET PERSPECTIVE HEADCOUNT How has the number of staff in your team changed in the past 12 months? Increased 53% London - Change Management ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? Decreased Remained the same Unsure 20% 20% 7% 40% 47% CAREER INSIGHT HOURS WORKED 13% How has the number of hours changed in the last 12 months? More confident As confident Less confident Top 5 expectations for your business in the next 12 months* 80% Average hours worked per week is % 67% 53% 53% 50% Budget cuts Job cuts Salary freezes JOB SECURITY How would you rate your current job security? Business process/ policy changes Greater focus on regulatory issues 13% 7% Increased Decreased RELOCATION Remained the same Top 3 places respondents would consider relocating to in the next two years (outside the UK)* Top 3 reasons for respondents wanting to relocate* 1 64% New career opportunity 80% 20% Secure Insecure 60% of respondents were satisfied in their current role 47% of respondents expect a salary increase in the next 12 months 34% France 33% Germany 33% Singapore 20% of respondents would not relocate % 50% Improved quality of life/better work-life balance/standard of living Better employment opportunities 67 68

38 London - Change Management MOVING ON Top 5 reasons for leaving last role* BENEFITS Benefits considered most and least important when considering a new role 1 47% Career development 4 13% Better work/life balance MOST IMPORTANT LEAST IMPORTANT 25 days holiday or more Mortgage relief 2 33% Higher salary 5 13% Lack of career progression due to limited promotional opportunities Company pension scheme Sabbatical Annual bonus scheme Daily subsidised/free meals 3 27% End of contract 47% of respondents anticipate change in the next 12 months BONUS SALARIES & BENEFITS Did you receive a bonus in 2016? Yes 47% REMUNERATION No, not awarded one 13% When was your last pay review? No, not entitled to receive one 40% Less than 6 months 23% 6 12 months More than 12 months 46% 23% 57% of respondents were satisfied with their bonus Not applicable 8% 43% of respondents received a higher bonus in 2016 than in 2015 Satisfaction with current remuneration As a percentage of your basic salary, what level was your bonus in 2016? 54% 46% Satisfied Dissatisfied 43% 14% 43% 20-29% of salary 54% of respondents received a salary increase in their last pay review 39% of respondents perceive an 11-20% salary increase as acceptable if they were to move roles 10-19% of salary 40-59% of salary 69 70

39 London - Change Management LONDON CHANGE MANAGEMENT COMMERCE & INDUSTRY Buoyant market for change professionals Demand for change management professionals and consultants continued to rise during There was a notable increase in the number of permanent positions, as larger organisations attempted to reduce spend on interims and external consultancies and bring expertise in house. The consultancy space was also buoyant, with firms looking to develop niche areas and skill sets to give them competitive edge. This trend has been driven by the need for firms to develop new service lines and bolster their existing offering against a backdrop of economic uncertainty and a changing regulatory landscape. The requirement for change management professionals remained steady across industry, regardless of whether sectors were experiencing growth or facing challenging times. Struggling industries were looking for change professionals to help them improve processes, control costs and make efficiencies. On the flip side, industries on the up were looking to recruit internal or interim expertise to help them develop their back office infrastructure and gear up for growth. Rates and salaries have been driven down across the board thanks to a growing candidate base and more competition for jobs. Very senior roles at 1,000 plus per day have been fewer due to uncertainty in the market, while there has also been some regression at mid to senior level contractor rates. Consistent growth ahead The shadow of Brexit is still looming but it seems that the majority of organisations have moved beyond their initial knee-jerk reaction and are now committed to hiring. While no one can guarantee what the landscape will look like in six months time, most clients are reporting that their short to middle term hiring plans will not be greatly affected. Salaries should remain steady and the market looks set for consistent growth throughout the year. COMMERCE & INDUSTRY Job title Salary range Day rate Business Analyst Senior Business Analyst Project Manager Programme Manager Programme Director Change Analyst Change Manager Management Consultant Senior Consultant Managing Consultant PMO PMO Lead 25,000-45,000 60,000-70,000 60,000-80,000 75, , ,000 40,000-60,000 50,000-85,000 50,000-70,000 65,000-85,000 85, ,000 50,000-75,000 60,000-80, Business transformation consultants are in demand There has been an uplift in demand for business transformation consultants as well as for finance systems analysts and managers. Candidates with five to ten years consultancy or business change and transformation experience are particularly sought after, with the strongest demand coming from the top consultancy firms

40 London - Change Management LONDON CHANGE MANAGEMENT FINANCIAL SERVICES A challenging year 2016 was a challenging year for change management recruitment due to the ongoing political uncertainty. Most organisations were very measured in their approaches, with project hiring and non-critical or long dated projects the first to have their budgets slashed. Progress of mission critical programmes, such as implementation of MiFID II, were restrained in the first three quarters due to hiring freezes, but as sentiment improved, there was a return of hiring into regulatory and compliance projects, a trend that is expected to continue throughout this year. There has been a marked increase in the engagement of boutique management consultancies by financial institutions, in lieu of using change management contractors. Organisations often experience less resistance to using consulting firms than to taking on headcount directly, as it falls under a different cost centre. It also has the advantage of allowing the client to transfer or delegate accountability for the success of the project. Rise in permanent roles Organisations usually hire contract resources to help them execute projects, as they value the external expertise and the flexibility to remove the headcount at the end of the project. However, over the last 12 months there has been a rise in the number of permanent vacancies in the change management space, as organisations try and retain more knowledge and become more cost conscious. sector there has been a lot of integration work as the market continues to consolidate. There has been a shift away from use of hybrid project manager/business analysts to save on costs. Firms are now seeing the value of hiring candidates with specialised skill sets to maximise success. As organisations are keen to extend their nearshoring activities again to save costs, candidates who are flexible on location across the UK have a wider choice of roles. Regulatory deadline looming MiFID II is the regulation to watch, as it has far reaching implications on trading firms and the deadline is looming. While MiFID II programmes at a limited number of organisations are advanced, some firms are feeling the pinch due to letting skilled personnel leave in 2016, while many smaller organisations are still setting out their stalls. It is absolutely critical that key hires are made to deal with such a significant regulation. The candidates that will be most in demand are not necessarily those who understand MiFID II, but those who understand the front to back operations of the business and who can help put forward and implement commercially viable changes to satisfy the regulators come January. Finance change professionals will also be in demand from organisations looking at cost cutting programmes or well overdue upgrades to finance systems. FINANCIAL SERVICES Job title Salary range Day rate PMO Senior PMO Business Analyst Senior or Niche Business Analyst Project Manager Senior Project Manager Programme Manager Programme Director 45,000-55,000 50,000-70,000 50,000-80,000 65,000-85,000 70,000-90,000 80, , , , , , ,100 1,000-1,500 The market has also seen the return of accounting and finance related projects, including both system implementations and process streamlining. Ring fencing is a driver in the banking sector, while in the insurance With regard to salaries, we are already seeing some increase in day rates for regulatory driven programmes, although there is still a lot of pressure on rates for noncritical projects

41 LONDON PROFESSIONAL SERVICES Key Findings 77 Audit & Assurance 81 Key Findings 83 Taxation

42 KEY FINDINGS MARKET PERSPECTIVE AUDIT & ASSURANCE HEADCOUNT How has the number of staff in your team changed in the past 12 months? Increased 53% London - Professional Services ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? Decreased Remained the same Unsure 12% 29% 6% CAREER INSIGHT How has the number of hours changed in the last 12 months? 53% 18% 29% More confident As confident Less confident 28% 6% 66% Top 5 expectations for your business in the next 12 months* Increased Decreased 41% 35% 35% 35% 29% Remained the same Increase in staff recruitment Salary freezes Greater focus on regulatory issues Profitability of business Budget cuts RELOCATION Average hours worked per week is JOB SECURITY How would you rate your current job security? Secure 100% Top 3 places respondents would consider relocating to in the next two years (outside the UK)* Top 3 reasons for respondents wanting to relocate* 1 67% Experience a different culture 35% USA 29% Australia 24% Hong Kong 2 65% New career opportunity 50% of respondents were satisfied in their current role 67% of respondents expect a salary increase in the next 12 months 3 50% Improved salary 41% of respondents would not relocate 77 78

43 London - Professional Services MOVING ON Top 5 reasons for leaving last role* BENEFITS Benefits considered most and least important when considering a new role Not applicable 28% MOST IMPORTANT LEAST IMPORTANT New challenge/more interesting work 22% Company pension scheme Share incentive/emi scheme/option scheme Better work/life balance 17% 25 days holiday or more Flexible benefits Mortgage relief Daily subsidised/free meals Career development 17% Higher salary 15% BONUS Did you receive a bonus in 2016? 56% of respondents anticipate change in the next 12 months 47% SALARIES & BENEFITS 35% REMUNERATION 18% When was your last pay review? Satisfaction with current remuneration Yes No, not awarded one No, not entitled to receive one 63% of respondents were satisfied with their bonus 6% 44% 13% of respondents received a higher bonus in 2016 than in % 61% 39% As a percentage of your basic salary, what level was your bonus in 2016? 44% Dissatisfied Satisfied Less than 6 months 6-12 months More than 12 months Not applicable 79% of respondents received a salary increase in their last pay review 88% 12% 55% of respondents perceive an 11-20% salary increase as acceptable if they were to move roles 1-9% of salary 10-19% of salary 79 80

44 London - Professional Services LONDON PROFESSIONAL SERVICES AUDIT & ASSURANCE AUDIT & ASSURANCE Less demand from the Big 4 Job title Salary range 2016 was a positive year for practice recruitment with continuing demand across external audit and assurance. Despite the economic uncertainty, the professional services market remained consistent with a strong demand for all levels of hiring. The Big 4 were reasonably quiet in terms of external hiring except at the assistant manager and manager level. The greatest demand came from firms in the Top 50 which saw a number of new entrants and enlarged businesses all embarking on recruitment campaigns to bolster their audit and accounts teams. Newly qualified candidates who have trained in medium to smaller sized firms still understand the advantages of moving to a bigger firm in order to develop their technical knowledge on larger and more complex clients. In comparison with previous years, there has been a notable increase in Big 4 and Top 10 accountants moving to smaller boutique practices due to factors such as work/life balance, flexi working and a more varied list of responsibilities. This has been more prevalent at the senior manager to junior director level, where candidates have increasingly become frustrated with the hurdles required to attain promotion and progression in the larger global accounting firms. Something that has remained consistent is the candidate driven nature of the market. Good quality candidates looking to move can expect to receive multiple offers across a variety of firms, putting them in a strong bargaining position. This is especially true in more niche sectors, such as not-for-profit or pension where the demand for experienced external auditors is constantly high. The minimum statutory audit threshold rose considerably in 2016, this created a large an ongoing demand for accounts and outsourcing candidates as more and more accounting firms vied for this new lucrative market. For candidates this has meant even more choice of role and employer. Audit seniors are by far the rarest of candidates in the current market and there is little sign that this drought will change anytime soon. Good candidates are in short supply and we ve seen a number of firms hire people from mixed audit and accounts backgrounds to fill vacancies that are entirely audit focused, given the lack of quality talent in the market. Salaries across the Big 4 and Top 20 have remained reasonably consistent and many are starting to embrace a more flexible working culture. Salaries in smaller firms within the Top 100 have changed somewhat with many firms significantly increasing what they re prepared to offer candidates at audit senior, manager and senior manager level. Bonuses are not everything Bonuses in public practice are often not the main incentive behind a candidate moving, so the provision of additional attractants such as overtime or flexible working is more important than ever. In a market where it is increasingly difficult to set yourself apart from the competition, these smaller perks are often the difference between securing a new hire and not. As confidence returns to the market it is likely that the natural attrition level in the bigger firms will rise, resulting in an increased need to hire. Demand for candidates at the newly-qualified level is likely to increase, and demand for senior hires will remain consistent. Audit/Accounts Junior Audit/Accounts Semi Senior Accounts/Outsourcing Senior Audit Senior Supervisor Assistant Manager Manager Senior Manager/Associate Director Director Salaried Partner - Mid to Smaller Firm 22,000-25,000 26,000-33,000 35,000-43,000 44,000-48,000 47,000-50,000 50,000-53,000 55,000-62,000 62,000-85,000 85, , , ,

45 KEY FINDINGS MARKET PERSPECTIVE TAXATION HEADCOUNT How has the number of staff in your team changed in the past 12 months? London - Professional Services ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? 27% 55% 18% CAREER INSIGHT HOURS WORKED 36% 9% 37% Increased Decreased Remained the same 18% Unsure More confident As confident Less confident How has the number of hours changed in the last 12 months? Top 5 expectations for your business in the next 12 months* 64% 64% 55% 46% 27% Increased Decreased Remained the same 43% 21% 36% Salary increases Increase in staff recruitment Business process/ policy changes Increased budget Increased spend on staff training Average hours worked per week is JOB SECURITY How would you rate your current job security? RELOCATION Top 3 places respondents would consider relocating to in the next two years (outside the UK)* 46% USA 36% Australia 18% Canada 94% 6% Insecure 82% of respondents were satisfied in their current role 81% of respondents expect a salary increase in the next 12 months Secure 83 84

46 London - Professional Services Top 3 reasons for respondents wanting to relocate* 85% of respondents received a salary increase in their last pay review 1 89% Experience a different culture 62% of respondents perceive an 11-20% salary increase as acceptable if they were to move roles 2 56% New career opportunity BENEFITS Benefits considered most and least important when considering a new role 44% Improved quality of life/better 3 work-life balance/standard of living 18% of respondents would not relocate MOST IMPORTANT 25 days holiday or more LEAST IMPORTANT Company car or car allowance MOVING ON Company pension scheme Mortgage relief Top 5 reasons for leaving last role* Annual bonus scheme Leisure facilities Higher salary New challenge/more interesting work Better training Not applicable 35% 29% 18% 18% BONUS Did you receive a bonus in 2016? 50% 50% Better location/easier commute 12% Yes No, not entitled to receive one 29% of respondents anticipate change in the next 12 months 80% of respondents were satisfied with their bonus SALARIES & BENEFITS REMUNERATION 60% of respondents received a higher bonus in 2016 than in 2015 As a percentage of your basic salary, what level was your bonus in 2016? When was your last pay review? Less than 6 months 6 12 months Not applicable 46% 39% 15% Satisfaction with current remuneration 57% 43% Satisfied Dissatisfied % 1-9% of salary 20% 20% 20% 20-29% of salary 30-39% of salary 40-49% of salary

47 London - Professional Services LONDON PROFESSIONAL SERVICES TAXATION A candidate short market 2016 was a tumultuous year for all tax professionals with Brexit and European/US socio-political issues causing plenty of uncertainty, speculation and technical challenges. The practice market remained busier than ever, seeing larger firms investing and rapidly growing their transfer pricing and international tax teams, whilst plenty of mid-tier and smaller firms bolstered their capabilities in areas like private clients. The in-house market remained fairly stagnant and the vast majority of hiring was at the newly qualified to manager level. More lucrative head of tax roles were few and far between due to a lack of movement at the senior level with most large corporates and listed businesses preferring to manage tax risk via external advisors. Our predications for 2017 are that many of these trends will continue in what is very quickly becoming one of the most candidate short markets in years, especially at the newly qualified, assistant manager and manager level. Firms within the practice and in-house market across the greater London area have begun the year with a renewed energy, and demand for new talent is already encouragingly high. Indications point to a similar pattern for practice roles, with the greatest demand for candidates at manager and senior manager level who have broad expertise across compliance and advisory. The in-house market looks to follow on from 2016 with a huge demand for newly qualified to manager level candidates who have broad corporate tax expertise. TAXATION IN-HOUSE - COMMERCE & INDUSTRY Job title Salary range Day rate Tax Part Qualified Tax Accountant 0-2 years PQE Senior Tax Accountant Tax Manager International Tax Manager Group Tax Manager Senior Tax Manager 2iC Head of Tax SME Head of Tax Listed/MNC 30,000-40,000 45,000-55,000 55,000-60,000 60,000-75,000 65,000-85,000 70,000-90,000 80, , , , , , ,000 Director of Tax VAT Assistant VAT Accountant VAT Manager Head of VAT Transfer Pricing Analyst Transfer Pricing Manager Head of Transfer Pricing 150, , ,000-40,000 45,000-55,000 55,000-75, , ,000 35,000-50,000 55,000-75, , , ,

48 London - Professional Services TAXATION IN-HOUSE - FINANCIAL SERVICES TAXATION PRACTICE TAX MID TO SMALLER FIRMS Job title Salary range Day rate Job title Corporate/Mixed tax Indirect tax Private clients Part Qualified 30,000-40, Senior Part Qualified 32,000-42,000 32,000-40,000 32,000-42,000 Tax Accountant 0-2 years PQE 45,000-60, Assistant Manager Newly Qualified 43,000-50,000 41,000-48,000 43,000-50,000 Senior Tax Accountant 55,000-65, Manager 52,000-65,000 50,000-65,000 52,000-65,000 Tax Manager AVP 65,000-80, Senior Manager 62,000-85,000 62,000-85,000 62,000-85,000 Senior Tax Manager VP 80, , Director 85, ,000 85, ,000 85, ,000 Head of Tax SME 120, , Partner 120, , , , , ,000 Head of Tax Listed/MNC 150, , ,200+ VAT Assistant 30,000-45, VAT Accountant 45,000-60, VAT Manager 60,000-80, Head of VAT 100, , Transfer Pricing Analyst 35,000-50, Transfer Pricing Manager 60,000-80, Head of Transfer Pricing 100, , PRACTICE TAX BIG 4 Job title Corporate tax Indirect, M&A, financial services, private clients, human capital Senior Part Qualified 33,000-43,000 35,000-45,000 Assistant Manager Newly Qualified 40,000-48,000 42,000-50,000 Manager 50,000-63,000 52,000-65,000 Senior Manager 63,000-80,000 63,000-85,000 Director 85, ,000 85, ,000 ED/Salaried Partner 130, , , ,

49 LONDON TECHNOLOGY Key Findings 93 Technology

50 KEY FINDINGS We have analysed our placement data over the past 12 months. Below are our key findings: DEMOGRAPHICS Gender ROLE Job Level Executive Level Project / Programme Management 4% 27% London - Technology 94% 6% This shows the lack of female representation within the UK IT sector. The majority of the women placed were either project managers or business analysts with only 1% being placed into a technical role. Clients are aware of this and are crying out for women technologists! The fact remains, however, that IT, at the more hands-on technical side of the spectrum, remains male dominated. Business Analysis Technical / Solutions Architecture Infrastructure Support Development 24% 22% 16% 7% Location 63% Over the past 12 months we have seen increased investment in new technology initiatives (despite initial concerns over Brexit). This is evident because the majority of placements made are for roles at the beginning of the project lifecycle, namely architects, business analysts and project managers. Role type Central London 23% Greater London 14% South East (outside London) Whilst the majority of our clients are based within the M25, our ability to source candidates for clients outside our core market is shown here in the number of placements made outside London. 56% 44% Interestingly, 91% of these placements were made within the manufacturing industry. Nationality Perm Contract The split of permanent and contract is usual as clients try to balance interim costs with headcount. 73% 18% 9% British national European national Rest of the world Whilst the numbers of British nationals placed is not surprising, it is encouraging to see that there continues to be a healthy number of foreign nationals. This shows that IT is a truly multinational discipline. An interesting trend to watch for will be how figures are affected by Brexit

51 London - Technology RATE/SALARY Permanent Salary 0-19,000 9% Temporary rates % LONDON TECHNOLOGY 20,000-39,000 22% % Regulation drives hiring Hybrid skills are a plus 40,000-59,000 60,000-79,000 80,000 + Extensions 24% 19% 26% The rates and salary data is in line with the types of roles that have been placed over the past 12 months. Architects, business analysts and project managers tend to sit above the 40,000 base and 400 day rate mark. 94% of contractors placed in the past 12 months had their contracts extended 33% 42% 17% 4% We are seeing growing hiring activity in the financial services, retail and technology sectors due to stricter regulations and a need for more enhanced IT, finance and sales systems. SME tech businesses are capitalising on this trend, providing information security and B2B tech services to larger companies. Our clients are adjusting to decreases in in-house IT support levels as companies look to outsource their IT support and infrastructure functions to specialist businesses. Programme directors, IT architects and change managers are all highly sought after as tech companies drive new initiatives. Many of these businesses are in competition to lead the market with innovative and cost effective solutions and to drive efficiency savings across their supply chain. There is a demand for mid to senior level candidates with hybrid skills that can bridge the gap between technology, business strategy and change management. In terms of job opportunities, data analysis roles are on the rise and there has been a notable increase in salaries for business analysts and project managers. Over the past 12 months, there has been renewed optimism in the UK economy and this is fuelling companies to invest in their ailing IT systems. I believe this will drive increased activity across all skill sets throughout 2017, especially those at the front end of the project life-cycle, namely: architects, business analysts and project managers. We would expect to see salaries across these professions to rise in the latter half of the year for both permanent and temporary roles. 6% of contracts were not extended, due to project coming to an end TECHNOLOGY The majority of the contractors placed in the past 12 months have been brought on to scope and deliver long-term programmes and initiatives. Job title Salary range Day rate Industry IT Administrator Security Analyst 30,000-55,000 35,000-55, Professional Services 16% Developer IT Manager 35,000-60,000 45,000-60, Hospitality 11% Development Manager 45,000-65, Leisure 13% Test/QA Manager 45,000-65, Financial Services 31% Business Analyst Project Manager 40,000-70,000 40,000-70, Property Services 8% Architect 50,000-90, Oil & Gas 6% Information Security Manager 50,000-90, Manufacturing/Engineering 15% Programme Manager Head of IT/IT Director/CTO 60, ,000 90, , ,

52 Insight INSIGHT WOMEN IN FINANCE REPORT International Women s Day (IWD) celebrates the social, economic, cultural and political achievement of women. It is a day to raise awareness of the inequality that still exists between genders. The increasing traction of IWD globally prompted us to truly reflect on what we, as a business, can do to progress the debate. As a recruitment firm, we have a unique insight and, more importantly, data supply on the careers of finance professionals across the UK including: salary details, benefits, candidate s priorities (flexible working etc), gender, age and more. We are not a management consultancy, however we can draw on what the data tells us and the experience of our consultants. In short this report is a broad and brief exploration into the difference in pay between men and women within finance. Methodology It is important to understand the data and terminology that we use throughout the report. We took a sample of 30 consultants placements from the last 12 months; this gave us a data set of 354 candidates. We looked at a number of independent variables including: gender, years of experience, qualification (ACA, ACCA, CIMA), salaries before someone moved roles, salaries after roles are secured (not internal salary changes) and who negotiated offers (this will become important later). The language we use is incredibly important in a report of this nature. When we refer to women or men, we are referring to the average within our data set. We are not making generalisations across the industry. 54.3% of all accountants in the UK are female Participation The UK has the lowest number of female accountants of the 10 biggest European nations. The first step in our investigation was to examine gender participation within our data set. Incredibly of our 354 candidates, exactly 177 were male and 177 were female. We were initially surprised at how evenly split the data was, however on further study we have found that the accounting profession is very balanced in terms of gender ratios. A study by Catalyst, a leading non-profit research organisation, states that within the UK 54.3% of all accountants are female and globally the number is believed to be exactly 50%. The UK has the lowest number of female accountants of the 10 biggest European nations. The accountancy labour market is incredibly homogeneous when compared with other professions and this is not just considering gender. When looking at ACAs for instance, most have come from a similar academic background where everyone has studied the same material and achieved the same qualification, all within the same amount of time. With each year after qualification, the scope to develop in terms of skill-set and experience broadens, but only within a certain range. Within finance there are a number of duties that need to be completed every month and every quarter which leaves limited time for other, ad-hoc experience to be gained. A finance role is an incredibly important cog in the wheel of a business but it is one of the more tangible parts of a business to quantify in terms of value provided. More important than the fair test that the gender ratio provides, the participation figures show that there is equality of opportunity for any aspiring accountant; being male or female certainly is not a barrier to the industry. The Big 4 are the largest employers of accountants and deserve credit for this in particular. All four of them have continued to take progressive stances when it comes to gender equality. For example, EY is the official campaign sponsor for International Women s Day. There is still some startling evidence of it being difficult to progress within these firms however. Deloitte USA, for instance, became the first of any country s Big 4 firms to appoint a female CEO... in 2015! Qualifying men receive an average salary increase of 13.5% when they move after their training contract. Women however, receive an increase of only 11.9%. Now, let s look at salaries When a candidate qualifies, they usually begin to assess their options, whether out of practice and into industry or from one firm to another for a pay rise (ACCA/CIMA candidates). The newly qualified market is always buoyant and relatively resilient from economic turbulence. Over the past 15 months for instance, our job flow for newly qualified positions was relatively stable and in line with years gone by. With steady demand in the form of jobs and a stable supply of candidates, you would expect salaries to be relatively similar for men and women. For both genders, moving at the newly qualified level is, on average, the most lucrative move in terms of percentage increase in salary about 2% more than any other later move. However, for one gender it is more lucrative than the other. Qualifying men receive an average salary increase of 13.5% when they move after their training contract. Women however receive an increase of only 11.9%. Why is this? Candidates would have received the same amount of training and opportunities to study, they would have experienced the same number of year ends (a period of pressure for any accountant), and the same academic background (if Big 4), and yet male candidates secure a percentage increase in salary 13.4% higher than that of women. There is a clear gap between salaries secured as a woman vs salaries secured as a man at this level, yet there are not many explanations for it. There is one theory that has gathered momentum in recent years regarding pay discrepancies - that of bargaining and negotiation. For the five years following qualification, the trend continues with men receiving pay increases of between 13% and 13.6% upon moving jobs and women between 11.5% and 12%. Our data shows that for every move after qualification, men receive a percentage increase in salary, on average, 10% higher than women. The gap, once again, cannot be explained by experience or an otherwise tangible technical difference in skill set, however, the most alarming fact is yet to come

53 Insight Why does this gap exist? After five years, between the average age of 29 and 38, women s salary increases reduce significantly compared to men. With an average salary increase of 11.7% before they reach this age range, women see an average increase of only 8.3% during this range. For the male counterpart the average also decelerates, receiving an average of 13.3% before and 11.8% between 29 and 38. Women s percentage change in salary goes down by 29% during these years compared with the male decrease of 13%. An evaluative point to consider is that of years experience. There is a correlation co-efficient of 0.9 between total years experience and pay. For example, if a female accountant was to go on maternity leave at 30 and take near to a full year, upon her return she would have around 15% less experience in the accounting field than a counterpart who did not take time off. Therefore, the correlation co-efficient suggests, this should be reflected by a 15% difference in salary (our data points to a difference of 16%). Of course, this only holds true when a year out of work reflects 15% of a candidate s career (up to early 30s) and there is still a margin of discrimination against those who do not take time off. The trend also holds true when compared with other industries. Emolument, a crowd sourced data platform, found that within the banking sector there is a gender pay gap of between 10%-16% depending on level, but this gap widens to a staggering 27% when women reach the ages of Harvard economist and Professor Claudia Golden conducted a study into the existence of the gender pay gap and she found bargaining and negotiation to be the biggest contributor. We wanted to test this theory. From a smaller pool of 36 placements, we found that of women offered roles, 33% attempted (successfully and unsuccessfully) to negotiate the base salary of their offers, compared with 85% of men. This of course is not conclusive evidence, however it did give us fuel to take the study further. We found that of 60 successful salary re-negotiations (increases from initial offer to accepted offer), 70% were men and 30% were women. These statistics are in line with the findings of Professor Golden and although it does go some way in answering the why, it poses some big questions in terms of remedy. How do you take responsibility for salary negotiations in a free market? There continues to be an ever growing push for salaries to become more transparent, with start-ups such as Slips for instance receiving a lot of press coverage. The idea here is that if you know what others earn, you yourself can either bargain for more or be satisfied with what you are paid. The issue with this, however, is that it assumes a perfect market where every candidate is as productive as the other and every firm s need is the same as the other. There is a greater argument for it at the newly qualified level where, as mentioned earlier, the supply in labour is homogeneous however, as skillsets broaden it is harder to determine a candidate s value. Further to this, there is not infinite demand and supply, particularly when specialist skill-sets within the profession are required, such as exposure to specific tax structures, asset classes (within fund management) or financial planning experience. Sometimes there are two roles and only one candidate and the needs of one firm outweigh the needs of another, causing a greater salary to be offered; a candidate s value depends on the need of the employer. However, if regulation is not the answer, then the other alternative points to an education of how to bargain. Neither is ideal. 70% 30% We found that of 60 successful salary re-negotiations (increases from initial offer to accepted offer), 70% were men and 30% were women Our data shows that there is a clear disparity between the salaries secured by men compared to that of women. Unfortunately data analysis is retrospective and does not provide any obvious answers. However, knowing the facts and understanding the landscape that surrounds gender economics is a step in the right direction. It is important that employers, employees and recruiters are at least aware of the problems that exist as, without a problem, it is incredibly difficult to provide a solution. Marks Sattin has a wealth of data and is constantly seeking new ways to build on our already close relationships with clients. If you as a business are interested in finding out how our data and research can help you, then please do not hesitate to get in touch

54 THAMES VALLEY Key Findings 103 Overview 107 Commerce & Industry 108 Professional Services 111 Taxation

55 KEY FINDINGS MARKET PERSPECTIVE HEADCOUNT How has the number of staff in your team changed in the past 12 months? Increased 32% Thames Valley ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? Decreased Remained the same Unsure 20% 46% 2% 18% 59% 23% More confident As confident Less confident Top 5 expectations for your business in the next 12 months* CAREER INSIGHT HOURS WORKED How has the number of hours changed in the last 12 months? 48% 46% 31% 30% 27% 31% 12% 57% Average hours worked per week is Increased Decreased Remained the same Business process/ policy changes Profitability of business Salary freezes Budget cuts Salary increases RELOCATION JOB SECURITY How would you rate your current job security? Top 3 places respondents would consider relocating to in the next two years (outside the UK)* Top 3 reasons for respondents wanting to relocate* 1 58% Improved quality of life/better work-life balance/standard of living 23% Australia 20% Canada 14% USA 2 42% Experience a different culture 83% 17% Insecure 79% of respondents were satisfied in their current role 3 40% New career opportunity 63% of respondents expect a salary increase in the next 12 months 48% of respondents would not relocate Secure

56 Thames Valley MOVING ON Top 5 reasons for leaving last role* BENEFITS Benefits considered most and least important when considering a new role Career development 25% MOST IMPORTANT LEAST IMPORTANT New challenge/more interesting work 25% 25 days holiday or more Mortgage relief Higher salary 23% Company pension scheme Annual bonus scheme Sabbatical Travel benefits/allowances Redundancy 16% Lack of career progression due to limited promotional opportunities 15% BONUS Did you receive a bonus in 2016? 33% of respondents anticipate change in the next 12 months 69% SALARIES & BENEFITS REMUNERATION 13% 18% When was your last pay review? Less than 6 months 36% Satisfaction with current remuneration Yes 75% of respondents were satisfied with their bonus No, not awarded one No, not entitled to receive one 6-12 months More than 12 months 38% 12% 31% of respondents received a higher bonus in 2016 than in 2015 Not applicable 14% 83% 17% As a percentage of your basic salary, what level was your bonus in 2016? 42% 33% 18% 5% 2% Satisfied Dissatisfied 78% of respondents received a salary increase in their last pay review 1-9% of salary 10-19% of salary 20-29% of salary 30-39% of salary More than 100% of salary 66% of respondents perceive a 5-15% salary increase as acceptable if they were to move roles

57 Thames Valley THAMES VALLEY THAMES VALLEY OVERVIEW COMMERCE & INDUSTRY There were clear winners in terms of industry alignment, which was well documented in the British media. The falling pound had a profound effect on many, however British focused businesses who had little or no impact on this demise found themselves in a stronger position than those reliant on international markets. Financial services continued to grow in the Thames Valley, with retail banking, asset finance and mortgage lenders setting up shop outside of the city. Candidates often felt that banking was synonymous with the city and whilst this is true for investment related activities, there are now more than 20 separate businesses within the aforementioned areas that offer more vanilla products in the Thames Valley. Natural resources, utilities and infrastructure battled hard with the low oil prices and despite OPEC intervention in the back end of 2016, it was clearly a tough year for companies within these sectors. Volumes of roles were low within the pharmaceutical industry. Pharmaceutical companies usually have a very long term, strategic focus and therefore would rarely need a high volume of accountancy professionals; most of the demand would fall under R&D or scientific, product marketing and sales. There is a global concern regarding drug pricing and this has affected share prices for a number of firms. With plenty of life changing and life saving products under development, we anticipate more M&A activity this year which often leads to job losses rather than mass hiring. The Thames Valley manufacturing and consumer businesses were still producing at a high rate and the CBI stated that price rises in 2017 are inevitable and will help to ease the rising costs of raw materials and production. Seeing as this sector has always been at the forefront of revenue for the region, we anticipate that the government will also need to help by subsidising business rates as well to ensure continued growth. Retailers have been surprised by consumer reaction, with many CFOs stating that growth is overshadowing cost cutting in the current environment. Revenues generated from the services industry remained bullish in the last year. Long term contracts negated many short term concerns and demand for skills didn t suffer. Without doubt, recruiting into the accountancy practices (to replace industry leavers) was at an all time high again in Whilst not extraordinary, it was interesting to see that corporate finance and advisory hiring was back on the cards after a quiet 2015 will 2017 be a big year for transactions and disposals? The bizarre case of 2016 The recruitment market in 2016 was bizarre, not too dissimilar to the wider political landscape. Q1 Q2 Q3 Q4 Q1 was strong, with businesses throughout the region recruiting at an above average rate (27% increase in vacancies registered vs Q1 2015) Q2 was less so, with Brexit gathering momentum and plans being put on hold (32% drop in vacancies registered vs Q2 2015) Q3 was like a wedding and a funeral on the same day, with jubilation and despair in equal amounts (18% drop in vacancies registered vs Q3 2015) Q4 was busy, with clients accepting the public s decision and moving forward (38% increase in vacancies registered vs Q3 2015) Larger companies found that their heavy cost base of full time staff meant that they were forced to look at redeploying internal resources rather than seeking external help. Processes were arduous and decision making was protracted, causing frustrations for both clients and candidates. Headcount approval processes mirrored the scrutiny shown in 2011 amidst fears of a double dip recession ; clearly larger businesses were taking a cautious view. Year on year revenue from our larger clients ( 100m+ turnover) was down 32% and the average salary was 42,000 per annum. Agile SMEs were on the front foot, knowing full well that extended deliberation and procrastination were traits that can be easily overcome by reducing decision makers and red tape. As larger companies slowed output and cut sales projections, the message from SMEs was loud and clear it is business as usual! We assisted 62 SMEs in 2016; this figure was up from 43% in It was clear that SMEs had a more confident view on Brexit in the main and they required agency help to sell their opportunities to candidates who may not know their brand or business. Due to the shift in hiring for the future and backfill hiring across many firms, there wasn t a key focus for the office. In terms of skill sets, there was a large emphasis in Q1 on commercial finance and business partnering which was replaced by financial controlling in Q2 and Q3. Clients took a more holistic view in Q4 and focused on mid-level hires ( 40,000 salary maximum). Interestingly, the following four terms were mentioned most in job specs in 2016: Process improvement Cost reduction Strong communication Project experience Clients did not wish to see qualified by experience (QBE) candidates in 2016 and instead sought fully qualified candidates in 94% of roles above 45,000 per annum. Out of the successfully placed candidates in 2016, the following qualifications were held: ACA ACMA ACCA/CPA Other 46% 33% 19% 2%

58 Thames Valley COMMERCE & INDUSTRY Salaries have remained stagnant within the accountancy market across This is not uncommon in an uncertain market, where candidates are in less demand. Clients had a huge selection of candidates and were in the driving seat from a negotiation stand point. One thing for certain is that life goes on and businesses need to tackle the challenges of their markets head on. Innovation is key for growth, however sometimes it doesn t need to be ground breaking. Many firms realise that their business is only as good as their workforce. LARGE BUSINESSES Job title Graduate Salary range 22,000-27,000 Day rate N/A The average salary increase we obtained for successful candidates was 9.8%, down from the 11.2% seen in the previous year. The biggest increase in salary (as always) was at the recently or soon to be qualified level where candidates leave the accountancy practices to transfer into industry. This rise averaged at 22%, with one happy candidate getting a 73% pay rise! Candidates want different things; flexible working, a better work life balance and remote access are key drivers in the decision making process and clients need to have a clear policy on the above to attract the best talent. Trust needs to be earned, however with the advances of technology, an engaged workforce is worth its weight in gold. Assistant Accountant Accountant Part Qualified Newly Qualified Finance Manager Finance Business Partner Senior Finance Manager 23,000-27,000 27,000-35,000 45,000-50,000 50,000-60,000 50,000-60,000 60,000-70, It is impossible to predict the uncertainty which still shrouds the economic environment. What does Brexit mean for business? Will the pound gain traction? Will the government cut business rates? Will OPEC continue to cut output? And don t forget interest rates. Clearly there is plenty to keep the economists busy. Senior Finance Business Partner Financial/Business Controller Head of Finance Head of FP&A Divisional Finance Director 60,000-70,000 70,000-90,000 80, ,000 80, ,000 90, , SMEs Job title Salary range Day rate Graduate 20,000-25,000 N/A Assistant Accountant 22,000-27, Accountant Part Qualified 27,000-32, Newly Qualified 40,000-45, Finance Manager 45,000-55, Finance Business Partner 45,000-55, Senior Finance Manager 55,000-70, Senior Finance Business Partner 55,000-70, Financial/Business Controller 60,000-80, Head of Finance 70,000-80, Finance Director/Chief Financial Officer 90, ,

59 Thames Valley THAMES VALLEY PROFESSIONAL SERVICES PROFESSIONAL SERVICES The outlook is promising AUDIT Last year got off to a healthy start with the usual busy tax and audit seasons, however the Brexit decision slowed the pace of the jobs market considerably for the second half of the year, especially when compared with previous years. Demand stalled across the board with the exception of qualified auditors being in very short supply and equally the need for newly qualified candidates remained consistent. There has been an increase in managerial positions; a plausible reason for this is that companies are hiring at a graduate, part qualified and newly qualified level, thus creating a need for more supervisory level employees. Insolvency administrator roles have also increased in the Thames Valley. As insolvency teams are limited in the area, there is a small pool to source from making these tough roles to fill quickly. There has been little change in salaries over the past 12 months, possibly because the salary brackets remain quite wide at each level so change is less noticeable. The outlook for 2017 and 2018 is promising. Firms that were not hiring in H are interviewing and creating roles again. Industry and commerce is active meaning candidates looking for their first move out of practice will have lots of choice. The counter offer has become a regular occurrence when candidates resign, with the current employer matching or increasing the salary offering. This, combined with companies in industry looking for the same talent, could mean we see increases in basic salaries for practice throughout this year. Job title Junior Part Qualified Senior Qualified Assistant Manager Manager Senior Manager Associate Director Director TRANSACTIONAL Job title Junior Part Qualified Senior Qualified Salary range 22,000-36,000 34,000-46,000 40,000-50,000 45,000-60,000 60,000-75,000 72, ,000 Salary range 25,000-35,000 34,000-42,000 Roles for accountants with general practice experience or with no audit exposure are scarce, and personal tax professionals are less sought after. In contrast, qualified auditors at the senior and manager level are in short supply. There is also demand for candidates with FRS 102 exposure due to the changes in reporting standards that were introduced last year. Candidates with international accounting experience are desirable to the medium and large practices while corporate tax seniors and managers are desirable across the region, regardless of what size firm they are coming from. Assistant Manager Manager Senior Manager Associate Director Director CORPORATE FINANCE Job title Analyst 40,000-46,000 45,000-60,000 60,000-75,000 75, ,000 Salary range 28,000-35,000 Executive 33,000-44,000 Manager 45,000-55,000 Senior Manager Associate Director 55,000-80,000 Director 70, ,

60 Thames Valley THAMES VALLEY TAXATION Digital profiles The most prominent candidate trend in 2016 was the upsurge in the use of LinkedIn and the role of the internal talent acquisition (TA) team. Many new tax professionals created LinkedIn profiles and the vast majority of tax roles were advertised on the platform by internal TA teams. While these roles gave the impression of increased activity in the jobs market, it became evident that many jobseekers failed to gain traction and even strong candidates found themselves not progressing past the CV submission stage. Blame could be placed on inexperienced eyes sifting through applications, outdated recruitment systems or poor processes as to why these roles couldn t be filled or even why candidates weren t securing an interview. However the use of LinkedIn is here to stay, at least for the foreseeable future, understanding how to manage your job search in conjunction with an external recruitment consultant remains imperative for the most active candidates. Striking the balance or legislation With the revolution of new tax laws coming in and so much still in the public eye, having an experienced in-house tax team is essential. Trying to navigate the traps, understanding the tax and VAT implications of Brexit and what it means for your business is extremely difficult. Senior management will forever need to strike the balance between what should be handled internally and what can be outsourced. Outsourcing some routine compliance processes can be beneficial and makes sense so as not to bog down the team with automation, but every medium/large corporate should have an inhouse tax resource - SAO and risk need to be managed effectively and the implementation of tax advice simply wouldn t happen properly without it. Complete outsourcing can be dangerous; rarely is it cost effective and the CFO can miss the tax impact of transactions. We have seen the optimum structure (an in-house team with strong advisors on tap) work extremely well and we anticipate 2017 being a year of growth within the in-house tax market, with more teams growing to facilitate these legislative changes and increase in complexity. TAXATION Job title Salary range Day rate Indirect Tax Analyst/Senior Analyst Tax Accountant Transfer Pricing Manager Tax Manager Indirect Tax Manager International Tax Accountant Employment Expat Tax Manager Standalone Tax Manager Senior Tax Reporting Manager Group Tax Manager Head of Indirect Tax UK Head of Tax International/Regional Tax Manager Group Head of Tax & Treasury Head of Tax PE Backed/Private Head of Tax FTSE 250/100 28,000-40,000 45,000-55,000 52,000-70,000 55,000-70,000 58,000-75,000 60,000-75,000 60,000-80,000 60,000-80,000 70,000-90,000 80, ,000 80, ,000 85, ,000 80, ,000 95, , , , , , ,000 Clients are realising that staying relevant and keeping up with trends is imperative to ensure compliance and cost savings and this can only be done when your advisor is as close as possible to the business

61 NORTH WEST Key Findings 117 Executive & Interim 122 Commerce & Industry 123 Professional Services

62 KEY FINDINGS MARKET PERSPECTIVE HEADCOUNT How has the number of staff in your team changed in the past 12 months? North West ECONOMIC PROSPECTS 38% 38% Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? 18% 20% 60% 20% 6% Increased Decreased Remained the same Unsure More confident As confident Less confident Top 5 expectations for your business in the next 12 months* CAREER INSIGHT HOURS WORKED How has the number of hours changed in the last 12 months? 49% 35% 33% 26% 23% Profitability of business JOB SECURITY Increase in staff recruitment Business process/ policy changes How would you rate your current job security? Secure Insecure 76% 24% Budget cuts Salary increases 83% of respondents were satisfied in their current role Average hours worked per week is RELOCATION 40% 10% 50% Increased Decreased Remained the same Top 3 places respondents would consider relocating to in the next two years (outside the UK)* 67% of respondents expect a salary increase in the next 12 months 21% Australia 18% USA 14% Canada

63 North West Top 3 reasons for respondents wanting to relocate* 71% of respondents received a salary increase in their last pay review 1 57% Improved quality of life/better work-life balance/standard of living 61% of respondents perceive a 5-15% salary increase as acceptable if they were to move roles 2 49% Experience a different culture Satisfaction with current remuneration 3 47% New career opportunity 47% of respondents would not relocate MOVING ON 73% 27% Top 5 reasons for leaving last role* Satisfied Dissatisfied Career development Higher salary Better location/easier commute 26% 25% 19% BENEFITS Benefits considered most and least important when considering a new role New challenge/more interesting work 18% MOST IMPORTANT LEAST IMPORTANT Better work/life balance 15% 25 days holiday or more Mortgage relief Company pension scheme Daily subsidised/free meals 37% of respondents anticipate change in the next 12 months Annual bonus scheme Sabbatical SALARIES & BENEFITS REMUNERATION When was your last pay review? 33% 41% 7% 19% BONUS Did you receive a bonus in 2016? Yes No, not awarded one No, not entitled to receive one 52% 23% 25% Less than 6 months 6-12 months More than 12 months Not applicable 73% of respondents were satisfied with their bonus

64 As a percentage of your basic salary, what level was your bonus in 2016? 1-9% of salary 53% 10-19% of salary 34% 20-29% of salary 9% 30-39% of salary 2% 40-49% of salary 2% 45% of respondents received a higher bonus in 2016 than in 2015 NORTH WEST EXECUTIVE & INTERIM Confidence is high The trends of 2016 have continued this year and the market remains buoyant for senior appointments and interim alike. The private equity market is very active with all of the main players looking to expand their teams in the North West, which means there s a broad range of opportunities across the region for driven candidates. Growing sectors include construction, retail, service and leisure, and the manufacturing industry also looks promising. The continued confidence and activity has a knock on effect on the availability of strong candidates, particularly interims. Clients naturally demand high calibre people and with this increased activity, candidates are sometimes reluctant to move because they are holding out for opportunities internally. High quality professionals are finding that they often have multiple offers to consider. Fundamentally, this is a good problem to have as it indicates success and high confidence in the region. The political landscape is still, to a large degree, unknown in terms of its future impact on the region but for now the initial waves of uncertainty we saw for a couple of months last year seem to have passed and strong trading continues. With huge improvement ongoing on our transport links and further regeneration of the North West, things are looking and feeling very positive. North West EXECUTIVE & INTERIM Job title Salary range Day rate Car allowance Head of Financial Planning & Analysis 50,000-80, ,000 Financial Controller 60,000-90, ,000 Head of Finance 80, , ,000 Head of Change/Transformation 90, ,000 Finance Director 90, , ,000-10,000 Chief Financial Officer 100, , ,000 8,000-10,

65 North West NORTH WEST COMMERCE & INDUSTRY PART QUALIFIED Commercial planning professionals are sought after Job title Finance Assistant Salary range 18,000-22,000 Day rate 100 There has been a steady flow of job opportunities in the market throughout 2016, with spikes in demand at certain times. Overall 2016 was positive for both candidates and clients, with heightened availability of elite newly qualified accounting professionals and an increase in the number of vacant jobs. In the North West, the oil and gas sector has been particularly challenged due to the wider economic climate and the rising price of crude and local exploration. However, on the other hand, a lot of innovation businesses from start-ups to SMEs have been performing well across various industries. Assistant Accountant Finance Analyst Financial Accountant Management Accountant 22,000-28,000 28,000-35,000 28,000-35,000 28,000-35, We have seen a shift in hiring in recent months towards more commercial and business partnering roles, with an emphasis on the creation of financial planning and analysis roles within finance functions. Companies are putting a strategic focus on analysing their data to give them a competitive advantage in their market. There is a demand for versatile professionals who possess good accounting and interpersonal skills because they can influence and communicate with stakeholders across key areas within the business. Salaries for newly qualified accountants are rising, particularly for ACA candidates, due to the limited availability of these profiles and the abundance of roles on the market. ACAs are always desirable because they have technical accounting experience and a reputation for being qualified accountants of high calibre. In the wake of new legislation and to keep up with their competitors, businesses are reinforcing their finance departments by building teams with technical and commercial accounting skills. Therefore we expect a steady appetite for quality candidates across the board from newly qualified to senior appointments. TRANSACTIONAL Job title Accounts Payable/Accounts Receivable Credit Controller Payroll Payroll/Credit Control Manager CHANGE AND PROJECTS Salary range 16,000-22,000 18,000-25,000 18,000-30,000 30,000-45,000 Day rate Job title Salary range Day rate COMMERCE & INDUSTRY Business Analyst Project Manager 45,000-65,000 65,000-80, QUALIFIED Programme Manager 75,000-90, Job title Finance Analyst Financial Accountant Management Accountant Finance Business Partner Finance Manager Senior Finance Manager Financial Controller Salary range 35,000-45,000 40,000-45,000 40,000-45,000 45,000-55,000 45,000-55,000 55,000-65,000 65,000-90,000 Day rate

66 North West NORTH WEST PROFESSIONAL SERVICES PROFESSIONAL SERVICES A competitive landscape for clients TAX In early 2016, many of the larger practices deprioritised hiring and this allowed for smaller firms to attract and retain talent. Later in the year however, big practices became more active, increasing the competitive landscape across all of the North West. Similar to the previous year, once again, we were in a candidate shy market. Newly qualified auditors were in high demand throughout all of last year, and those from smaller boutique firms were spoilt for choice with opportunities to move into the Top 10. Conversely, the number of tax positions has certainly grown and the demand for ACA/ CTA qualified tax individuals has risen significantly in recent months. We headed into 2017 slightly cautious and expecting a slow start to the finance and accountancy job market, however we have found quite the opposite. High calibre professionals are very much in demand and the Northern Powerhouse looks set to enjoy sizeable growth with new and existing employers hiring in the North West this year. A large number of firms across the Top 50 and many boutique firms are continuing to hire in their audit and tax departments at semi senior, senior, manager and senior manager level. Salaries and wider benefit packages have also stayed consistent or grown, with firms remaining increasingly competitive with each other in order to attract experienced individuals. Job title Junior Part Qualified Senior Qualified Assistant Manager Manager Senior Manager Director Partner CORPORATE FINANCE Job title Salary range 18,000-24,000 28,000-35,000 35,000-45,000 45,000-55,000 55,000-65,000 70,000-90, , ,000 Salary range Due to this demand for audit and tax specialists, we are seeing salaries and bonus incentives increase in these areas. There have been examples of smaller firms in Manchester significantly increasing their offer packages to compete with the Big 4. In general, this tactic is working and the smaller practices that have not increased their remuneration offers have struggled to attract quality people. Analyst Executive Manager Senior Manager Director 25,000-35,000 35,000-42,000 45,000-55,000 55,000-80,000 80, ,000 AUDIT Job title Salary range Junior Part Qualified 18,000-27,000 Senior Qualified 28,000-36,000 Assistant Manager 36,000-45,000 Manager 45,000-55,000 Senior Manager 55,000-75,000 Director 70,000-90,000 Partner 100, ,

67 MIDLANDS Key Findings 129 Commerce & Industry 133 Professional Services 135 Executive & Interim

68 KEY FINDINGS MARKET PERSPECTIVE HEADCOUNT How has the number of staff in your team changed in the past 12 months? Midlands ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? Increased Decreased Remained the same 49% 16% 30% Unsure 5% 14% 63% 23% More confident As confident Less confident Top 5 expectations for your business in the next 12 months* CAREER INSIGHT HOURS WORKED How has the number of hours changed in the last 12 months? Increased 40% 42% 42% 30% 28% 23% Business process/ policy changes Profitability of business Salary increases Budget cuts Salary freezes Decreased Remained the same Average hours worked per week is % 50% JOB SECURITY How would you rate your current job security? RELOCATION Top 3 places respondents would consider relocating to in the next two years (outside the UK)* 79% 21% 82% of respondents were satisfied in their current role 71% of respondents expect a salary increase in the next 12 months 31% Australia 20% New Zealand 18% USA Secure Insecure

69 Midlands Top 3 reasons for respondents wanting to relocate* 75% of respondents received a salary increase in their last pay review 1 73% Improved quality of life/better work-life balance/standard of living 59% of respondents perceive a 5-15% salary increase as acceptable if they were to move roles 2 65% Experience a different culture BENEFITS Benefits considered most and least important when considering a new role 3 58% Improved salary 42% of respondents would not relocate MOST IMPORTANT 25 days holiday or more LEAST IMPORTANT Mortgage relief MOVING ON Company pension scheme Sabbatical Top 5 reasons for leaving last role* Annual bonus scheme Daily subsidised/free meals Higher salary Career development Better work/life balance New challenge/more interesting work 29% 25% 23% 18% BONUS Did you receive a bonus in 2016? 52% 23% 25% Better location/easier commute 16% Yes No, not awarded one No, not entitled to receive one 31% of respondents anticipate change in the next 12 months 69% of respondents were satisfied with their bonus SALARIES & BENEFITS REMUNERATION 46% of respondents received a higher bonus in 2016 than in 2015 As a percentage of your basic salary, what level was your bonus in 2016? When was your last pay review? Less than 6 months 45% Satisfaction with current remuneration 36% 32% 6 12 months 30% 74% 26% More than 12 months Not applicable 9% 16% Satisfied Dissatisfied 1-9% of salary 10-19% of salary 18% 9% 20-29% of salary 40-49% of salary 5% % of salary

70 Midlands MIDLANDS COMMERCE & INDUSTRY COMMERCE & INDUSTRY 2016 s trends continue Job title Salary range Hourly rate 2016 was a buoyant year where we saw an increase in recruitment across all sectors. Our commerce and industry clients are following suit from last year and echoing some of the same trends, such as concentrating their resources on building direct sourcing teams. Having internal recruitment teams is helping to cut down on hiring costs and it means that when our clients approach us, it is for niche roles where our specialist knowledge can add real value. A further trend that remains strong from last year is the need for analytical professionals such as business and finance analysts to support with overall growth and strategy. In terms of opportunities, we saw increased hiring activity within the FMCG and logistics sectors last year. This was a result of companies either merging or acquiring smaller companies and needing senior professionals with M&A experience. There has been a slight drop in hiring at the newly qualified level; one possible reason for this is that many companies are offering study support to attract and retain part qualified employees instead. Employers are often emphasising the study support offering over the salary offering and therefore they are looking for talent that wants long-term career progression with the company. Salaries continued to steadily rise in 2017, due to companies counter offering in order to retain top talent at the newly qualified, part qualified and finalist level. Newly qualified are still in short supply and as such businesses are paying more at this level to attract them. As job flow increases and stronger candidates come on to the market, it is fair to say that salary averages should increase with bonuses and additional benefits being incorporated into packages. The first quarter of 2017 was the busiest quarter that we have seen in some time, with companies looking to add to headcount early in the year; some big companies have moved to the Midlands from London and this has caused increased activity in the market looks to be a promising year across the Midlands with hiring managers feeling a little more at ease about increasing their teams. Graduate AP/AR Assistant Credit Control Accounts Assistant ACCA/ACMA Professional ACCA/ACMA Managerial Finance Analyst AP/AR Manager Credit Control Manager Finance Manager QUALIFIED Job title Newly Qualified ACA/ACCA/CIMA Financial Reporting 2 years PQE Commercial Finance 2 years PQE Finance Business Partner 2-4 years PQE 19,000-24,000 20,000-24,000 22,000-25,000 23,000-27,000 25,000-30,000 30,000-35,000 28,000-38,000 30,000-40,000 35,000-45,000 40,000-50,000 Salary range 38,000-45,000 50,000-55,000 50,000-55,000 55,000-60, Day rate Senior Finance Business Partner 5 years QBE 65,000-80, Finance Manager 55,000-65, FP & A Manager 60,000-70, Financial Controller 70,000-80, Head Of FP & A 80, , Head Of Finance 80, , Finance Director 90, , Chief Financial Officer 100,

71 Midlands MIDLANDS PROFESSIONAL SERVICES PROFESSIONAL SERVICES A candidate driven market AUDIT The professional services market remains fiercely competitive. Top talent across all practices is scarce and jobseekers can weigh up multiple offers - the hiring manager is almost at their mercy! There has been an increase in recruitment for senior level professionals across all service lines. There is a limited pool of practice candidates at this level to draw upon, reasons for this shortage are below. Firstly, the economic crash nearly ten years ago is having a big impact on today s market. At the time practice firms dramatically reduced the number of training contracts on offer, especially in the Top 10 and the Big 4, and most independent firms were not in a position to offer any. These cut backs meant that there was a lack of candidates progressing through their studies and becoming qualified, therefore creating a shortage of experienced candidates. audit and accounts or mixed tax. Having teams with mixed skill sets helps them to spread the risk if they lose an individual. Salaries are steadily rising as hiring managers try to remain competitive, knowing that the candidate they are seeking probably has multiple offers to consider. For the next 12 months, the market is going to remain extremely candidate driven; this in turn will drive up average salaries as firms engage in bidding wars to attract the right candidate. TAX Job title Junior Part Qualified Senior Qualified Assistant Manager Manager Senior Manager Director Partner Job title Junior Part Qualified Senior Qualified Salary range 18,000-27,000 28,000-35,000 38,000-45,000 48,000-55,000 58,000-65,000 70,000-90, , ,000 Salary range 18,000-25,000 26,000-33,000 Secondly, senior level practice professionals are being attracted into industry purely because they are being offered considerably higher salaries than practice firms can compete with. Last year also saw a demand for accounts professionals. Nearing the end of 2015, KPMG opened a new Small Business Accounting function in the region and hired employees that were working in independent firms across the Midlands. This created a lot of backfill vacancies across semi senior, senior, and managerial levels. In general firms are showing signs of growth and therefore there is a growing demand for talent across accounts, audit, tax and corporate finance. Even if they are not looking to hire right now, clients are still open to meeting new candidates and often they will make adjustments to accommodate the individual rather than losing out on the talent. Mid market firms are seeking professionals with mixed experience such as Assistant Manager Manager Senior Manager Director Partner CORPORATE FINANCE Job title Analyst Executive Manager Senior Manager Director 35,000-45,000 48,000-55,000 58,000-65,000 70,000-90, , ,000 Salary range 30,000-38,000 35,000-42,000 45,000-55,000 58,000-80,000 85, ,

72 Midlands MIDLANDS EXECUTIVE & INTERIM Companies are changing their game plan EXECUTIVE & INTERIM Job title Salary range Day rate 2016 was a fairly positive year for the Midlands. The Brexit referendum certainly put a few processes on hold for both candidates and clients, however the floodgates re-opened towards the end of last year as professionals became more confident about making a move and equally firms regained confidence to add to their teams. The market has become more competitive and employers are prioritising cultural fit and sector experience over things like experience to date and qualifications. We are seeing an increase in counter offers in the market. Businesses seem more eager than ever to retain good employees by offering them what they want, whether that is a pay rise, wider responsibility, a more senior job title or giving them a better work-life balance. FDs, CFOs and HR managers are listening more to why the employee wants to leave and working with them on a plan to retain them. There is a shortage of senior candidates on the market and this is forcing companies to change their game plan and act more strategically when it comes to attracting talent. It s one thing to find the right people but it s another to convince them to join your business, which is why more and more companies are analysing their entire onboarding programme. Last year was certainly a buyer s market, with candidates having multiple job offers to chose from; the better the on-boarding process, the better the chance the client has of securing the right person for the role. Even little things such as a team dinner after the final interview stage have helped companies to entice the candidate. Commercial leadership roles like commercial financial controller and head of commercial finance are more prevalent now; organisations need finance professionals with a commercial acumen who will drive performance by working closely with key internal functions and external stakeholders. Over the past 12 months we have worked with a number of businesses who have created such roles to really get embedded in commercial operations and understand how and where they are profiting. Financial controller positions within statutory reporting are scarce, mainly because a company will pay slightly more for this profile and if an individual resigns from this post, an aggressive counter offer usually ensues. Big 4 or Top 10 trained candidates that have more than five years industry experience across financial accounting and commercial finance are sought after. This seems to be the client s desired recipe for future leaders. Salaries are remaining consistent however jobseekers are looking for better pension and bonus schemes from companies. We expect there will be a small hike in packages over the course of this year because many companies have lost potential hires due to aggressive counter offers. Hiring strategies will grow more aggressive in general as companies try to ensure that the right talent is being secured. We foresee the next 12 months to be very active with more senior roles coming to market, more M&A activity and perhaps more businesses relocating or opening new offices in Birmingham - it is the UK s second largest city after all! Financial Controller Head of Finance/Divisional Finance Director Head of Change/Transformation Finance Director Chief Financial Officer 65,000-80,000 80, ,000 90, , , ,

73 YORKSHIRE Key Findings 141 Commerce & Industry 145 Internal Audit 149 Professional Services 151 Executive & Interim

74 KEY FINDINGS MARKET PERSPECTIVE HEADCOUNT How has the number of staff in your team changed in the past 12 months? Increased 29% Yorkshire ECONOMIC PROSPECTS Compared to the last 12 months, how confident do you feel about the economic prospects facing your company? 57% Decreased Remained the same Unsure CAREER INSIGHT 19% 48% 4% HOURS WORKED Average hours worked per week is % 23% How has the number of hours changed in the last 12 months? More confident As confident Less confident Increased 29% Top 5 expectations for your business in the next 12 months* Decreased 15% 48% 47% 32% 29% 25% Remained the same 56% Profitability of business JOB SECURITY Business process/ policy changes Salary increases How would you rate your current job security? Budget cuts Greater focus on regulatory issues RELOCATION Top 3 places respondents would consider relocating to in the next two years (outside the UK)* 26% Australia Top 3 reasons for respondents wanting to relocate* 1 58% Improved quality of life/better work-life balance/standard of living 2 54% Experience a different culture 21% Canada 83% 17% 83% of respondents were satisfied in their current role 70% of respondents expect a salary increase in the next 12 months 17% USA 3 43% New career opportunity Secure Insecure 53% of respondents would not relocate

75 Yorkshire MOVING ON Top 5 reasons for leaving last role* BENEFITS Benefits considered most and least important when considering a new role 33% 29% 29% 19% 14% MOST IMPORTANT 25 days holiday or more Company pension scheme Annual bonus scheme LEAST IMPORTANT Mortgage relief Sabbatical Leisure facilities Career development Higher salary New challenge/more interesting work Better work/ life balance Better location/ easier commute BONUS 26% of respondents anticipate change in the next 12 months Did you receive a bonus in 2016? SALARIES & BENEFITS 55% 23% 22% REMUNERATION Yes No, not awarded one No, not entitled to receive one When was your last pay review? Satisfaction with current remuneration As a percentage of your basic salary, what level was your bonus in 2016? Less than 6 months 34% 1-9% of salary 49% 6-12 months 39% 10-19% of salary 39% More than 12 months Not applicable 12% 15% 72% 28% 20-29% of salary 30-39% of salary 9% 1% Dissatisfied 50-59% of salary 2% Satisfied 76% of respondents received a salary increase in their last pay review 65% of respondents perceive a 5-15% salary increase as acceptable if they were to move roles

76 Yorkshire YORKSHIRE COMMERCE & INDUSTRY A focus on commercial rather than public sector Out of the blocks vs slow and steady The major recruitment trends of 2016 have remained dominant this year. While other regional locations in the UK have felt the pinch after Brexit, the opposite is true for Yorkshire, with our office here producing a record performance last year. Dictated by market trends, the Yorkshire focus has been more on commercial exposure rather than public sector recruitment. Public sector recruitment was restricted by tightened budgets and head count freezes in light of the economic uncertainty surrounding the Brexit referendum. Within PLCs, we have witnessed larger corporate organisations only replacing or recruiting business critical roles. Where possible, higher level positions have been filled internally to retain and progress top talent and then subsequently back-filled externally with either part or qualified mid level accounting professionals. There has been a distinct need for talent in controllership areas like financial reporting, statutory accounting and monthly reporting, whereas there has been less demand in areas such as commercial and financial analysis. This echoes the point that PLCs are focussing on the business critical roles rather than the long term future proof roles, again maybe as a result of the market uncertainty and the evolving landscape. The SME market has been very active, largely because it does not have the luxury of other departments being able to cover workloads and bridge the gaps. In a potentially turbulent post-brexit market, SMEs are able to react faster. For example, if there are any reservations about high level incumbents or doubts in the current finance department, SMEs are more likely to accelerate any restructure or replacement plans to avoid having to make them further down the line when markets could be unstable. Private equity houses are equally experiencing the fruits of what could become a turbulent market, with a lot of private equity houses either spinning or moving investments with a view to keeping a minimal investment portfolio. Examples of such activity in Yorkshire include GHD, Zenith and Steeper, to mention a few, and our prediction is that more are likely to follow suit. Sectors that have tried to counter any tough times ahead include: manufacturing, technology, leisure, health, telecoms, energy/utility and construction/ facilities services. Sectors that have felt the pinch a little more include: oil, engineering, retail and banking. Many health and fitness, retail and construction organisations have a large presence and operation in Yorkshire so recruitment activity amongst these clients is likely to be more noticeable. During the first three quarters of 2017, we are likely to see an increase in senior appointments as boards accelerate any replacement plans. However we would expect hiring at senior levels to taper towards the end of this year when our European Union exit negotiations begin. With this in mind, we anticipate more financial analysis roles coming to market, such as financial planning and analysis or forecasting, as firms embrace changing times and try to model the outcome of Brexit. Changes in legislation and governance will, in turn, lead to a further demand for reporting and controllership candidates. Due to the shifting business landscape, an increase in interim senior roles is likely because companies may not know exactly what skills they require and therefore might be reluctant to commit to permanent positions in the immediate term. This could also impact the number of training contracts (part qualified) being offered as companies could be hesitant to offer these until they have a clearer indication of future demand. Organisations operating in a sector that is less affected such as export or manufacturing are likely to capitalise on this market trend and snap up the talent. For the rest of this year, we predict a high demand for part qualified level professionals; these are cost-effective hires with evolving skill sets. Newly qualified through to finance manager level professionals will continue to be sought after as companies bridge the gap between day to day accounting and senior accounting activities. Appointments at controllership level, particularly in SMEs, are likely to remain consistent. The traditional FD and FC roles will remain consistent in terms of level of demand, however we expect to see an increase in commercial FC roles in H2 of this year as organisations look to break the mould of the conventional FD or FC and hire skills that can deal with more unpredictable economic circumstances

77 Yorkshire Salaries remain static Satisfaction with bonus COMMERCE & INDUSTRY Salaries overall have not shifted dramatically since last year, with the exception of salaries for technically strong ACA/ACCAs. Corporate giants such as Morrisons, Jet2, The Big 4 and Skybet are paving the way for other companies to follow suit by offering very good fringe benefits. The uncertainty of Brexit may accelerate the need for clients to offer more benefits like pensions, health care, death in service, share save schemes. These packages will not only help to attract but also retain the best talent. Large corporate PLCs will feel the pressure and the need to remain competitive. SMEs will have to offset a limited fringe package offering with better base salaries, similar to how SMEs managed the pensions reform; paying near to the minimum contribution to comply and balancing this out with slightly better base salary offerings. There is also the possibility of better bonuses being offered by cautious employers based upon company performance. This is a way for them to manage their level of risk and reward in unpredictable times. 68% Satisfied 32% Dissatisfied Job title Salary range Day rate Accounts Receivable Clerk Accounts Payable Clerk Accounts Assistant Assistant Accountant Part Qualified Credit Controller Transactional Team Leader Management Accountant Part Qualified Accounts Payable Manager Management Accountant Qualified Financial Analyst Commercial Accountant Qualified Assistant Manager Financial Accountant Qualified 16,000-20,000 17,000-21,000 17,000-22,000 22,000-24,000 18,000-25,000 25,000-30,000 24,000-34,000 30,000-40,000 34,000-42,000 25,000-45,000 35,000-45,000 40,000-45,000 38,000-48,000 N/A N/A N/A N/A N/A N/A N/A N/A Brexit has certainly created an interesting market for businesses and a level of uncertainty around a variety of strategies, including when to cash out, MBO s, whether to convert private equity ownership to private, organic verses acquisitive growth, or simply replace or not replace within the accounting team. One thing that will remain certain is that finance will stay at the heart of business in Yorkshire, be that PLC or SME over the coming 12 months. For this reason we think it will be relatively business as usual for most. There will be an element of riding the storm for the year ahead. If you are considering a move, take on board all of the information available through third parties and publicly listed sources. It may also pay to use an experienced consultant who can at least provide a consultative overview and food for thought when embarking on your next career move or changes within your organisational structure. 37% of respondents received a higher bonus in 2016 than in 2015 Payroll Manager Credit Controller Manager Finance Manager Financial Controller SME 30,000-50,000 30,000-50,000 45,000-55,000 45,000-55,000 N/A N/A

78 Yorkshire YORKSHIRE INTERNAL AUDIT Internal audit is relatively stable Last year provided a period of reflection while the economy tried to work out the wider impact of Brexit. Whilst financial services led the recruitment drive across 2016, we have experienced periods of limbo across the sectors as businesses are mindful of the potential impact and structural changes Brexit might bring. Considering the initial outlook was that we were heading towards a weaker economy, the investment in internal audit was relatively stable. With pressures on internal budgets, businesses have found recruiting to be a prolonged process, sometimes taking months to source a candidate at the right level of experience that matches expectations and internal budgets. Relocation of financial services functions to the North has provided pockets of recruitment driven by business demands and tight recruiting timescales which has continued to create exciting opportunities within the sector. Whilst Big 4 and Top 10 candidates are always desired recruits, the budget challenges as well as a lack of overall commercial experience they are able to bring to a role can sometimes make for an expensive hire. Couple this with the underlying fear that progression out of internal audit into the wider business would be sooner then ideally anticipated, through and through industry experience is preferred. Over the year we have seen a continued growth across commerce & industry, with businesses backfilling internal moves and structural changes to ensure the functions are fully resourced and able to continue to deliver audit plans. There is still a strong requirement for auditors with two to four years experience who can undertake the more generalist reviews. It is difficult to entice these candidates to move because, despite the fact that there s limited investment in graduate or home grown talent in their departments, they are still relatively new on their career path and maintain a strong sense of loyalty. Competition is extremely fierce with candidates receiving multiple offers and good packages, mainly in financial services. Similarly, at the senior level, internal auditors are in short supply as many progress into management roles or move into core accounting. This has led to hiring managers being more flexible in terms of desired experience as well as internally sourcing for talent to join the internal audit function. Sensitivity over job titles continues to be a barrier to recruiting key talent at the right level. Businesses need to be conscious of aligning job titles to reflect the talent that they want to recruit. For instance, if recruiting a Big 4 manager, the position should be called Audit Manager. Whilst there is constant investment from organisations around improving infrastructure and the increased threat of cyber risks, there has not yet been a noticeable investment in the IT audit market; there has been limited demand for IT auditors compared to the past couple of years across Yorkshire. Organisations are opting for a hybrid approach, providing the core audit function with high level reviews along with executing IT general controls. Salaries remain competitive Salaries remain competitive across the industry, however head of audit professionals are finding it challenging as expectations are either excessive or beyond allocated budgets. Salaries across the auditor and senior internal auditor vacancies will continue to be competitive due to the high demand. However with limited movement at the senior end of the market, salary increases will be restricted. INTERNAL AUDIT Job title Auditor Part Qualified Internal Auditor Qualified Senior Internal Auditor Internal Audit Manager Senior Internal Audit Manager Head of Audit IT AUDIT Job title IT Auditor Part Qualified IT Auditor Auditor Senior IT Auditor IT Audit Manager Senior IT Audit Manager Head of IT Audit Salary range 18,000-27,000 33,000-38,000 38,000-45,000 45,000-55,000 65,000-85,000 90, ,000 Salary range 20,000-30,000 35,000-38,000 42,000-48,000 50,000-65,000 65,000-80,000 90, ,000 Heading into 2017, the need for investment in audit talent remains high and demand for internal auditors and senior internal auditors shows no sign of slowing down. With regulatory changes and loss of talent to the wider business, maintaining numbers in the audit function rather than growing will be the focus. Day rate N/A N/A N/A Day rate N/A N/A N/A N/A Car allowance N/A N/A N/A 4,000-6,000 5,000-7,000 6,000-8,000 Car allowance N/A N/A 4,000-5,000 4,000-5,000 5,000-7,000 6,000-8,

79 Yorkshire YORKSHIRE PROFESSIONAL SERVICES PROFESSIONAL SERVICES A candidate led market AUDIT The professional services market in Yorkshire continued along the same vein as Good quality candidates were regularly able to secure interviews with numerous firms at all levels from Big 4 through to independent companies. Candidates need to be aware at the beginning of the process that they will more than likely face a counter offer from their current firm who will fight even harder to retain talent. The market has continued to remain competitive across all levels, however the greatest demand has been at the senior end where professionals from a smaller candidate pool are being courted by numerous firms for their expertise. The effects of the recession are still being felt from when fewer training contracts were offered and numbers are being further reduced through service line changes and industry moves, resulting in fewer candidates reaching the senior management and director level. There has been a lot of activity within corporate finance. M&A and transaction services have commanded some of the best candidates and it s these roles that the newly qualified generation really want to get their teeth into. Demand has also increased for qualified tax professionals across corporate tax and private client tax. Continuing on from last year, strong audit candidates, particularly with financial services experience, are still sought after. Audit sometimes has a bad reputation as a service line however there are real career prospects there from large independents through to the Big 4 at semi senior levels and above. The candidate shortage for auditors is felt the most in mid tier firms where managers or senior managers are lured away by other opportunities and the firm struggles to replace their position. The professional services market in Yorkshire is candidate led with exceptional candidates not being available for long. Candidates with forensic and insolvency backgrounds have been seeking opportunities; these professionals would normally thrive in a volatile economy and this may be the case as Brexit comes to fruition. Due to competition for talent, salaries remain competitive especially for semi senior and above levels. Top 50 and large independents have moved their salary offerings closer to the Big 4 and all firms are consistently enhancing their benefits to offer a more rounded package. The slowdown following the referendum last year is finally being shrugged off and firms are beginning to hire again. Hopefully the outcome of the snap general election will not impact on market confidence this year and we will continue to see a healthy job flow. TAX Job title Senior Qualified Assistant Manager Manager Senior Manager Job title Senior Qualified Assistant Manager Manager CORPORATE FINANCE Job title Executive Manager Senior Manager Director Salary range 29,000-36,000 34,000-45,000 39,000-55,000 50,000-75,000 Salary range 30,000-40,000 36,000-45,000 48,000-75,000 Salary range 34,000-45,000 42,000-55,000 52,000-80,000 72, ,

80 Yorkshire YORKSHIRE EXECUTIVE & INTERIM A surge in M&A activity 2016 was a very interesting year as the word Brexit became a household name and Donald Trump became the Leader of the Free World. Whilst nobody anticipated either of those occurrences, the after effects were certainly felt, but only for a short period of time. Once the initial fear of change subsided, people went back to their daily lives and business as usual resumed. Although currency was hit in the aftermath of Brexit, confidence picked up again after the summer and this led to a surge in M&A activity, specifically from overseas investors & private equity houses. Experienced finance directors had confidence once again to move as wealth creation opportunities arose. Similar to previous years, candidates with a proven track record in M&A are sought after. Also, commercial experience is a must - candidates need not only the technical know how but also a deep understanding of the commercial drivers that will improve financial performance. Demand for professionals within financial planning & analysis and commercial finance remain high. These roles are integral to helping companies stay financially efficient and therefore, as businesses continue to grow, this becomes more and more essential. Due to the uncertainty of Brexit, there was a particular focus on technical accountants. Ensuring finances are in good hands is paramount to every business, as who knows what is round the corner? Therefore the need for professionals with experience in treasury, hedging & FX currency, and financial controls has increased. Salaries rose slightly year on year, however the focus remains on long term incentive plans and equity opportunities for employees. Companies want to retain top talent for a number of years and offering shares is proving a successful way of achieving this. Counter offers are still prevalent and this, in turn, pushes salaries up as employers struggle to hold onto their most prized assets. For the next 12 months, we expect the senior finance recruitment landscape to remain relatively stable. There will always be market movement at FD level. Although there is an air of economic uncertainty at this time, we are unlikely to see an impact of this on Yorkshire businesses in the short-term. EXECUTIVE & INTERIM Job title Salary range Day rate Financial Controller Head of Financial Planning & Analysis Finance Director Chief Financial Officer 60,000-75,000 70,000-80,000 80, , , , ,

81 IRELAND Key Findings 157 Insight: Ireland - The Celtic Phoenix 162 Commerce & Industry 163 Fund Services 165 IMI & Banking 167 Professional Services