Pressure has increased on firms to boost employee salaries as the 1.4% salary rise in accountancy falls below the UK average and 60% of finance employees plan to leave their job this year with the main reasons being lack of opportunity (30%) and pay (27%)
According to Hays Salary and Recruiting Trends guide, which surveyed 3,780 finance employers and employees in the UK, before the EU referendum vote more than half (57%) of finance employees said there was no scope for career progression within their organisation, this rose to 67% in September after the referendum result.
Accountants’ salaries increased on average by just 1.4% in 2016, below the 1.7% increase in 2015 and below the UK average of 1.8%. Although three quarters (74%) of employers expect to increase salaries this year, only 21% plan to raise it by more than 2.5%.
On average, over the past year 13% of accountants’ salaries have increased above 5%, 26% increased by 2-5-5%, 35% grew to 2.5%, 25% remained the same and 1% decreased.
A trainee accountant in London working towards their ACA on average earns £27,000 which increases to £38,000 when they have qualified. A newly qualified accountant in London earns on average £47,000 with a CFO or financial director earning £300,000.
In Wales a CFO typically earns £200,000, it jumps to £250,000 in Scotland and in Northern Ireland CFO’s earn less at £150,000.
Karen Young, director of Hays Accountancy & Finance, said:’ Despite uncertainty following the EU referendum, the overall outlook is positive for the finance jobs market with recruitment continuing and indeed on the rise across a range of organisation sizes and sectors from what we have seen in early 2017 even versus the close of 2016. However, this confidence has not been conveyed to staff, with many believing the result has affected opportunities for career progression and pay rises in 2017.
‘Those professionals with knowledge of big data, data analysis and the ability to interpret this for business operations, whilst still delivering robust general financial controls will be sought after this year. Technology is becoming more prevalent within businesses across all sectors. Skills shortages will continue to cause concern regardless of the economic conditions, so employers will need to review the speed and agility of their hiring process so as not to lose out on the talented individuals they need.
‘Employers are also expected to come under more pressure to increase pay and provide clearer career paths this year. They will need to review their reward and benefit packages and look at other ways, aside from salary, to attract the talented individuals they are looking for, moving away from any “one size fits all” approaches.’
Membership of accounting bodies is growing steadily, Mark Farrar, CEO at AAT said: ‘there has been an increase in both new students and membership growth overall. Finance and accounting skills are always in demand, which is one reason AAT qualifications attract older individuals changing their career, as well as younger students and school leavers keen to gain practical vocational qualifications.
‘A 2015 salary survey of AAT members showed average full time salaries increasing since 2013. 34% of AAT members also received a bonus within the past two years, recognising both growth in the profession and strong individual performance.’
Hays UK Salary & Recruiting Trends 2017 is available to download here.
