Market Update - Commerce and Industry 2015

Market update 2015 /Commerce & Industry Page 1 0f 66
www.badenochandclark.com
Market update
2015
Commerce & Industry

Welcome to our Annual
Salary Survey & Market Analysis
I am really pleased to provide the introduction to Badenoch & Clark’s annual salary survey and market analysis – which
I hope will prove an invaluable tool for you in navigating the choppy waters of people development, staff retention and
ultimately hiring and attraction. This report, based on a survey of more than 400 commerce and industry leaders from
across the UK, is designed to work in tandem with the proactive relationship that you will have with one of our trusted
advisors. As we progress through the year, we’ll be in touch to arrange a tailored 1-2-1 session to discuss the relevance
and impact of this report on your organisation.
So what of 2014? Clearly, it has surprised some commentators with its on-going positive economic news. During the
course of the year, growth forecasts have increased steadily. We’re now looking at a forecast of approaching 3.5% growth
- far and away the best performance of the major European economies. And let’s not forget that this has been achieved
against a background of uncertainty in what has been quite a turbulent year. So many questions remain over the UK’s
continued participation in Europe; the Financial Services industry is still bearing the brunt of endless bad press; we’re
still feeling the fall-out of the referendum on Scotland’s membership of the UK and most recently, of course, we’ve started
to come to terms with the global impact of Ebola.
This report will give you an insight into how these, and much more local factors, have affected salaries and prospects
for the future across all the specialisms Badenoch & Clark supports recruitment in. We’ve highlighted some of the most
important trends and findings and there’s a wealth of richer and deeper insight into each of the areas in which we operate
across our regional bases.
So how do we see 2015 shaping up? I believe there are still numerous reasons to be positive about all of our prospects
for the coming year. Unemployment is stubbornly low but flexibility in the labour market is increasing with more people
indicating they will look for a new role in the coming year. Several core components of UK PLC are demonstrating the
capacity to grow - whether that’s a resurgent manufacturing sector, continued strong performance from our services
market or still more growth in the commercial property arena where it is often said the number of cranes dominating the
skyline is a pretty good indication of our economy. The digital, technology and creative markets are charging ahead with
significant investment in Manchester, Bradford and London expected in the near future as companies such as Google
develop their UK operations.
Finally, as I sign off, I would just like to pass on my heartfelt thanks to every customer we have worked with in the last 12
months, whether that includes a placement or just the opportunity to build a partnership. 2014 has been a fantastic year
for our company with industry leading growth in our commercial markets of 24% and growth of 12% in roles generated
in 2014, we’re well positioned to provide support and consultancy advice to our commercial customers now and for the
future. Of course, we couldn’t do that without you.
I hope 2015 is a successful year for all of us.
Matt Gascoigne
Executive Director
Badenoch & Clark – Commerce & Industry Division
03 Welcome & Introduction
04 2014 Back on a roll
06 Accountancy & Finance
40 Business
48 HR
56 Procurement
60 Strategy
Contents
Page 2 0f 66 Market update 2015 /Commerce & Industry

0f 66 Market update 2015 /Commerce & Industry
2014 Back on a roll
2014 has been a good year for UK plc and that has been reflected across the
jobs market. At the start of the year, the CIPD predicted this year would be
the year of the ‘jobs machine’ and with more than 30 million people in work
in the UK for the first time ever, it certainly hasn’t disappointed.
Falling unemployment has reflected growing confidence in the market – and the 538,000 fall in those out of work in the 12
months to October 2014 was the 18th consecutive quarter of a decline in the jobless figures.
of our clients expect their businesses
(and workforces) to grow in 2015
1/4
Improving market conditions is the dominant
factor (15% rated it the most important factor,
and 27% put it in their top three)
This largely reflects an upturn in the mood that we’re seeing across the business
community.
The Recruitment and Employment Confederation (REC) is predicting the UK recruitment market will grow by 7% in 2015, on the
back of a stellar set of growth figures for the UK. The IMF predicts 3.2% annual growth – likely to be the best in the G7 industrial
nations, while the European Commission is a shade more cautious at 3.1% - but still sets this as the highest growth prediction
in the EU.
The strongest intent
20%
43%
16.6%
of clients expect an increase
in permanent hires
of clients expect to hire more
temporary / interim roles
of clients recruit more fixed
interim contracts
As 2014 draws to a close, there’s a growing sense of positivity in the business community that is reflected in what our clients
have told us as we’ve conducted our survey.
Candidates
We’ve noted a change in the mood of candidates too. We’re
now seeing many more people interested in changing jobs
in the coming year. In fact, a third of all the businesses we
spoke to believe they will be able to attract more candidates
than last year, with just 13% telling us they expect to attract
fewer. That’s a pretty good statistic if you’re likely to be
recruiting over the next 12 months – but may also suggest
you’ll need to tighten up your own offering if you want to
retain your key staff over the same period.
The return of confidence to the marketplace has already translated this year into
more vacancies across three quarters of the sectors we recruit into.
So, what can you do to win the next round of talent wars?
Employers have told us they’re planning to use two key levers:
• Increase retention and/or
• Improve the employment package
There is potential for this resulting in an increase in salaries. However, nearly a third of employers think that
high salary expectations are a barrier to hiring. With that in mind, both savvy employers and smart candidates
are looking at wider hiring propositions including career development opportunities and flexible benefits to
attract, hire and retain the best people for their organisations.
Battle for talent
With jobs on offer potentially still rising faster
than candidates, we confidently predict a ramp-
up in the battle for talent – and over 60% of the
industry movers and shakers we spoke to believe
that too. In fact, more than half expect a lack of
quality candidates to be an issue in 2015.
Discipline Perm- YoY% Contract - YoY%
Accounting/Finance -5.03 -4.89
Admin/Secretarial/PA 18.9 21.38
Banking/Insurance -1.65 12.59
Director/Management 15.58 19.23
Energy/Utilities 19.31 -23.22
HR 12.16 28.89
IT -0.36 17.78
Legal 13.21 11.56
Marketing/Advert/PR 1.87 37.52
Sales 6.97 34.38
Science/Technology 13.45 35.41
Supply Chain/Logistics 27.49 48.07

Market update 2015 / Accountancy & finance Page 7 0f 66
Accountancy & finance
Our accountancy & finance team is recognised as a trusted
advisor in the market — offering insight and expertise across
our specialist sectors.
Overall, the positive business climate and improved economic confidence
has led to an increase in hiring not just for replacement roles but also for
investment heads. According to our survey, improved market confidence
was the most cited reason for growth for both the temporary and permanent
qualified workforce within the accountancy market.
The main rationale behind this is down to increased confidence in the
market affecting both capital expenditure and discretionary spending - and
therefore the ability to invest in the workforce.
London Qualified
of employers will grow
their finance team in 2015
50%
In terms of the qualified market we have also seen a shift towards a much
more candidate-driven market as candidates begin to receive multiple offers of
employment. This is especially true for in-demand professionals, highlighting
the need for businesses to offer competitive compensation, not only to initially
attract top talent, but also to encourage the best people to stay. This in turn also
highlights the need for businesses to use tools such as salary benchmarking to
remain competitive.
Employers also need to be mindful that in order to
attract the best talent in 2015 and beyond, they must
ensure that career opportunities and paths are mapped
out to secure this talent, as well as the allure of the
brand and the industry itself.
One of the biggest shifts in 2014 has been the demand in Fixed Term Contracts (FTC) rather than daily rate accountants. This
is primarily due to cost saving initiatives and restrictions on spending - especially within the senior contract market. Although
employers do not pay payrolling costs with daily rate contractors, the daily rate equivalent for typical accounting roles in an
annualised salary is often inflated. Therefore if employers translate the daily rate into an annualised equivalent it always seems a
much more expensive option. Much of the international workforce operating on visas in the UK traditionally work through either their
own limited company or umbrella companies due to tax benefits and it is this workforce that dictates the market rates for contractors.
Some companies with slightly more flexibility on purse strings are willing to pay the extra to secure this pool of talent. Realistically,
employers willing to consider both routes will have access to a much wider candidate population. Indeed, our research shows that
they are considered much more attractive to potential employees.
Page 6 0f 66 Market update 2015 / Accountancy & finance

0f 66 Market update 2015 / Accountancy & finance Market update 2015 / Accountancy & finance Page 9 0f 66
Hiring & Demand
We have seen the most noticeable increase in demand for finance
professionals within Commerce & Industry and specifically the
Media, Retail and Property markets. Throughout 2014, we have
observed strong growth in both turnover and profit within these
sectors. As a result of the economic upturn, employers have begun
to invest to ensure they have the best possible finance team
heading into 2015.
Due to the hot and prolonged summer, many retailers have seen a
bumper year, further boosted by the demand from online/
e-commerce buying. 2014 has also seen a huge shift in the housing
market with the highest number of mortgages approved in years
and the success of the Government’s Help to Buy scheme getting
first time buyers onto the housing ladder. This has also boosted
investment in new housing developments which has helped the
Housing/Construction sectors.
As companies again turn their attention to growth, the role of the
qualified finance professional must continue to evolve. The past few
years found finance leaders focused on headcount and spending
reductions, having to do more with less. Business growth, new
product demand and service expansion now require commercial
accountants with strong business acumen and communication skills
to deliver their strategies and get ahead of the competition.
The on-going trend of accountants acting as business partners
has also been highlighted throughout 2014 as employers are
demanding a more rounded skillset from their staff. Rather
than solely looking for core technical and statutory accounting
skills, employers now want to hire commercial accountants and
financial planning and analysis experts who can add value to their
business. As in years past, we’re still seeing a demand for technical
accounting - especially heading into year-end, where statutory
accounts need to be filed with Companies House.
Skill Gaps
Following on from previous commentary, we have seen an
increase in demand for technical accountants to file year
end accounts. There are significant peaks and troughs
within this market, simply due to seasonality (Company
year ends), but also when international CA qualified
accountants enter the UK market, which is typically
around February or March. Their availability to relocate
on their visas is also dictated by audit cycles, which
result in either extended or reduced notice periods.
In turn, this has caused skills shortages of qualified
technical candidates being available at the end of the
year to start roles - creating a huge spike in daily rate
expectations of the candidates that are available, as they
are in demand and have multiple offers. These areas
of demand are further supported by our survey. The
main growth for 2015 will be in the newly qualified/part
qualified space.
Retention & Development
Market analysis has pointed to companies being quite
creative with their methods to retain the best talent.
Demand from employees for flexible working, benefits
and bonuses are still on the increase employees
working in companies who are reluctant to listen to their
workforce and especially those that have experienced
modest or no salary gains in recent years, may be
tempted to test the recovering job market. Feedback
suggests that employees feel that their salary has not
kept pace with the increased value of their contributions
to the business.
Evolving Finance
Professional Flexibility
On-going trend of accountants acting
as business partners
Employers are demanding
a wider package
BonusesBenefits
Business growth in 2014 within the hospitality industry has been hampered
by corporate re-structuring and high staff turnover. Yet companies in the
services industry are confident they will continue to grow and expand.
But the confidence and projection of growth for 2015 remains inconsistent.
Approximately 65% of organisations are anticipating business growth during
2015 while some are projecting no growth.
London Part-Qualified
The sectors in which most growth is anticipated were media and retail, whereas there’s
far less confidence around growth in the oil and gas & the property space. We’ve also
noticed that businesses are moving some of the junior positions out of London.
Hiring levels for 2015 reflect this inconsistency with:
Hiring & Demand
Media companies are hopeful
that the hiring level in 2015 will
be significantly greater than in
recent years because of economic
optimism and confidence that the
market is beginning to stabilise.
This trend can also be identified
in the services space, however
that confidence is not mirrored
in the hospitality industry and
in some of the smaller property
businesses.
Skills Gap
Companies we surveyed across all
industries told us there are still
plenty of candidates available on
the market; the skills shortage is
the volume of candidates with the
right cultural fit and interpersonal
skills to work with internal
and external stakeholders. No
fewer than 44% of the survey
respondents stated a lack of
quality candidates as their main
challenge they are anticipating
when recruiting in 2015.
of businesses suggesting
that hiring levels will
increase
suggesting this will
stay the same
40% 47%
Organisations that boast strong retention
rates will have both an internal strategy
for retaining candidates and an external
strategy for attracting the best talent.
Some companies believe that their brand
alone will attract the best candidates and
that they therefore don’t need to adopt
an attraction strategy or increase the
level of salary on offer. Other companies
have used additional benefits in order
to retain their best talent, such as
discounted store cards. This has been
reflected in the survey results with
approximately 65% of businesses stating
they are anticipating salaries to increase
slightly next year and with 35% of the
survey suggesting salaries will remain
the same.
Surprisingly some companies who do not
have a talent management strategy also
do not seem to have retention problems.
When probed on this further, companies
stated this was a result of job satisfaction
and was more of a common theme among
smaller businesses.

Min - Perm (£) Max - Perm (£) Min - Temp (£) Max - Temp (£)
Finance Director 70k 90k 300 pd 450 pd
Financial Controller 60k 75k 275 pd 400 pd
Finance Manager 50k 60k 200 pd 300 pd
Financial Planning & Analysis Manager 50k 80k 200 pd 300 pd
Finance Business Partner 40k 50k 200 pd 250 pd
Financial Accountant (Qual) 35k 60k 180 pd 250 pd
Financial Accountant (Part Qual) 23k 38k 140 pd 180 pd
Management Accountant (Qual) 35k 60k 180 pd 250 pd
Management Accountant (Part Qual) 25k 30k 140 pd 180 pd
Commercial Analyst 35k 45k 180 pd 220 pd
Financial Analyst (Qual) 35k 50k 180 pd 220 pd
Financial Analyst (Part Qual) 25k 35k 140 pd 180 pd
Accounts Assistant 20k 25k 12 ph 16 ph
Credit Controller 18k 25k 10 ph 15 ph
Purchase / Sales Ledger Clerk 18k 25k 9 ph 13 ph
Small to Medium Sized Enterprises
Accountancy & Finance
Average salaries in London Qualified and Part Qualified
CFO 120k 180k 500 pd 750 pd
Group Financial Controller 80k 150k 400 pd 600 pd
Head of Shared Services 80k 120k 400 pd 600 pd
Head of Tax 75k 120k 450 pd 750 pd
Head of Treasury 75k 120k 450 pd 750 pd
Internal Audit Manager 75k 120k 400 pd 500 pd
Head of Financial Planning & Analysis 75k 100k 350 pd 550 pd
Head of Commercial Finance 75k 100k 350 pd 550 pd
Head of Financial Accounting 75k 100k 350 pd 550 pd
Head of Financial Reporting 75k 100k 350 pd 550 pd
IFRS Controller 70k 90k 450 pd 600 pd
Solvency 2 Practitioner N/a N/a 500 pd 1000 pd
Financial Reporting Manager 55k 75k 275 pd 400 pd
Commercial Finance Manager 55k 65k 275 pd 400 pd
Group Accountant 50k 65k 275 pd 460 pd
Internal Auditor 40k 55k 220 pd 400 pd
Project Accountant 40k 50k 250 pd 400 pd
Management Information Analyst 25k 40k 250 pd 350 pd
Financial Modeller 30k 45k 250 pd 450 pd
Business Analyst 35k 45k 200 pd 300 pd
Blue-Chip
Market update 2015 / Accountancy & finance Page 11 0f 66Page 10 0f 66 Market update 2015 / Accountancy & finance

The market has undoubtedly improved over the last 12 months
– there has been a definite upturn in demand with new job
registrations increasing by between 10% and 15%. Clients are
however being very specific in terms of their requirements and still
perceive that it is a ‘buyers’ market’ – as the market improves this
will inevitably shift.
East Midlands
In general there is an air of increasing market
and economic confidence and with interest
rates likely to remain low for some time, clients
are more willing to invest in recruitment and
headcount expansion than they have been in the
last three to five years.
Hiring & Demand
In general, hiring has become a slow and often
drawn out process. Clients have demanded to see
a wider range of candidates to give themselves
the ‘comfort’ that they have seen the best
possible cross section in the market. However,
this approach has led to candidate frustration
with processes failing where clients have not
moved quickly enough. As market conditions
improve, recruitment processes must become more
clearly defined, focused and expedient to engage
candidates quickly in order to secure the very best
talent.
Clients are now willing to be more flexible
regarding their requirements. Rather than looking
for the ‘perfect match’ in terms of skillset, they will
now compromise to an extent in areas of specific
skill but are looking to compensate by seeking
candidates with high development potential - i.e.
clients are not simply looking to fill a specific role
but are also looking for candidates’ ability to move
onto a more senior position further down the line.
Salaries have remained relatively stable across the
board but with some increases in specific areas of skill
shortage or high demand. Client perception is that
salaries are likely to increase in the next 12 months
- not to any significant degree however, the general
consensus being around 3%.
of clients surveyed expected to
hire at similar or increased levels
in 2015 compared to 2014.
80% Retention & Development
There is now a challenge for many businesses to retain
their best employees. As market conditions and confidence
improve, people whose careers have not progressed during
the recession are now looking to kick-on consequently,
candidates are looking to benchmark their sources internally
whilst also looking to validate their expertise externally.
All businesses are now clearly focused on career and
professional development and see this as a key part of their
retention policy and succession planning strategy. Almost
60% of our surveyed clients expected there to be stronger
demand for candidates in 2015 and feared an expected
knock-on in salary demands.
Clients offer a number of
incentives to attract and retain
candidates:
Skill Gaps
There has been high demand for candidates with genuine
business partnering skills at all levels and clients are willing
to offer a premium for candidates who can demonstrate
their experience in this area. Commercial/financial analysts
are also in demand as they look to model trends, analyse
investment decisions and look to evaluate new business
scenarios.
Almost 40% of those surveyed outlined specific skill
shortages as the reason that they expected recruitment to
prove difficult in the year to come. Additionally, almost 60%
of clients found a lack of ‘quality’ candidates on the market
with 35% indicating that they felt that salary expectations
were too high.
There is also strong demand for risk and compliance
professionals (20% of roles filled in 2014) – more stringent
compliance and regulatory pressures are leading to a skill
shortage in this area with a subsequent premium being
offered to the best candidates.
offer flexible working
47%
offer enhanced training
and development
programmes
47%
offer incentive schemes
30%

CFO 90k 150k 500 pd 750 pd
IFRS Controller N/a N/a N/a N/a
Solvency 2 Practitioner N/a N/a N/a N/a
Blue-Chip
Average salaries in East Midlands

0f 66 Market update 2015 / Accountancy & finance
Clients are feeling extremely positive about growth over the next 12 months with
over 90% of those surveyed confirming it is highly likely they will be growing
their business in 2015.
North East
Hiring & Demand
Over the last 12 months, we have seen an increase in job
flow mainly within the £30–£40K qualified market; Financial
Accountants, Finance Business Partners and Analysts. In
addition we have also seen a continued increase in the demand
for transactional staff as the confidence in the market continues
to filter through the salary brackets.
85% of clients interviewed confirmed they were likely to make
significantly more permanent hires in 2015 with less emphasis
on interim assistance. But 25% felt that internal bureaucracy
held up the recruitment process while 50% believe lack of skills
and quality candidates will be the challenge in 2015.
Our clients are seeing an increase in the demand for commercial
business partners and analysts. Especially at the part qualified
and newly qualified levels. The demand for manufacturing and
service sector accountants remains high.
At the junior end of the market, clients have opted to increase
their graduate population benefiting from their potential to
develop but sacrificing experience in order to manage costs.
ACA Qualified Candidates are in high demand across Teesside
with several of the major companies quoting this qualification as
one they will always make time to interview.
Skill Gaps
Some of our larger business operations have
struggled to attract talent within their current salary
and package offerings - probably as a result of having
not benchmarked their packages since before the
recession. As the market continues to recover, the
North East SME market appears to be able to offer
more for the right candidate. The direct impact of this
practice is that companies who have not conducted a
review are finding themselves unable to attract talent
with the same offering and therefore retention in
some businesses has suffered.
An increasing amount of clients say they are having
to be more flexible in terms of their ideal candidate
when recruiting for a role rather than have essential
criteria which is often difficult to find.
In particular, the construction sector is seeing a marked improvement in terms of turnover and forecasts. Growth seems
set to remain the main priority by securing new contracts and their place in the current market – as a result, most of our
blue chip clients plan to increase their headcount (permanent staff) in 2015.
expect to be investing in new
markets or diversifying their
product lines.
54%
CFO 70k 200k 35 ph 900 pd
Finance Director 70k 180k 35 ph 700 pd
Group Financial Controller 40k 110k 20 ph 60 pd
Head of Shared Services 55k 90k 27 ph 45 pd
Head of Tax 50k 80k 25 ph 40 ph
Head of Treasury 45k 80k 22 ph 40 ph
Internal Audit Manager 45k 70k 22 ph 35 ph
Head of Financial Planning & Analysis 50k 70k 25 pd 35 ph
Head of Commercial Finance 50k 70k 25 pd 35 ph
Head of Financial Accounting 45k 70k 22 ph 35 ph
Head of Financial Reporting 45k 70k 22 ph 35 ph
IFRS Controller 45k 80k 22 ph 40 ph
Solvency 2 Practitioner n/a n/a n/a n/a
Financial Reporting Manager 45k 85k 22 ph 43 ph
Financial Planning & Analysis Manager 45k 85k 22 ph 43 ph
Commercial Finance Manager 45k 65k 22 ph 32 ph
Finance Business Partner 45k 65k 22 ph 32 ph
Group Accountant 40k 55k 20 ph 28 ph
Internal Auditor 30k 50k 15 ph 25 ph
Financial Accountant (Qual) 35k 50k 18 ph 25 ph
Financial Accountant (Part Qual) 25k 35k 12 ph 18 ph
Project Accountant 30k 40k 15 ph 20 ph
Management Accountant (Qual) 30k 45k 15 ph 23 ph
Management Accountant (Part Qual) 25k 35k 12 ph 18 ph
Management Information Analyst 20k 45k 10 ph 23 ph
Financial Modeller 20k 40k 10 ph 20 ph
Commercial Analyst 30k 45k 15 ph 23 ph
Financial Analyst (Qual) 30k 45k 15 ph 23 ph
Financial Analyst (Part Qual) 25k 35k 12 ph 18 ph
Business Analyst 30k 45k 15 ph 23 ph
Blue-Chip
Average salaries

Finance Director 50k 120k 25 ph 60ph
Financial Controller 35k 55k 18 ph 28 ph
Finance Manager 30k 45k 15 ph 23 ph
Financial Planning & Analysis Manager 30k 60k 15 ph 30 ph
Finance Business Partner 35k 55k 18 ph 28 ph
Financial Accountant (Qual) 25k 40k 12 ph 20 ph
Financial Accountant (Part Qual) 20k 35k 10 ph 18 ph
Management Accountant (Qual) 25k 40k 12 ph 20 ph
Management Accountant (Part Qual) 20k 35k 10 ph 18 ph
Commercial Analyst 25k 40k 12 ph 20 ph
Financial Analyst (Qual) 25k 40k 12 ph 20 ph
Financial Analyst (Part Qual) 20k 30k 10 ph 15 ph
Clients have noticed a tangible shift in the last 12 months in
terms of candidate availability and calibre. They have realised
that to attract and retain exceptional talent, salaries need to
increase with over 51% of clients interviewed agreeing with
this. 80% also confirmed they would look to hire if market
conditions continue to be buoyant over the next 12 months.
Customers are looking at improved internal training and CPD
support for non-qualified staff. Reinforcing career pathways
and looking to match competitors’ salary packages seems to
be increasing as competition for the right talent in the right
role becomes ever more fierce.
Clients in the North East generally feel that company
branding, benefits, bonuses, flexible hours and career
progression are more attractive to potential new employees
than basic salary. Indeed, the majority of our clients are
investing in more internal training and promoting from within
where they can. The sentiment is that in recent years, senior
management has not done enough to retain their top talent.
Interview methods are changing too as employer contributory
pensions and flexible working hours are often discussed
in more detail with hiring managers. Unsurprisingly clients
are recognising that people require more flexibility in their
working life and are placing more importance on work/life
balance.
The economy around the North West is still in a post-recession recovery
with good forecasts predicted for 2015. Growth in the construction sector is
visible, with a number of large construction projects playing their part in
the gradual economic upturn.
North West
The qualified finance market over the last 12 months has definitely seen a change, and the number of roles being registered is on the
up. Salaries on the whole are in line with where they need to be. The market has slowly become candidate-driven and prospective
employers are starting to realize this.
Hiring & Demand
There have been a number of companies in various industries who
have decided to now recruit Finance Directors and CEOs to drive their
business forward following the economic downturn. Businesses are
now going through a phase where they are looking to expand and
have new and exciting projects on the horizon - with 71% of local
clients likely and 10% highly likely to expand their teams in 2015.
This has brought about an increase in senior finance roles across
many industries. The number one in finance now takes a commercial
role more than ever before and the traditional perception of the
finance professional is ever changing.
We’re seeing the reintroduction of team leaders and supervisors.
Companies are growing, teams are expanding and this has
resulted in a demand for highly-skilled candidates, especially with
managerial experience. In particular we have seen a greater need for
credit control and payroll.
of our clients expecting
salaries to increase
54%
Salaries are reflecting the
change of emphasis with:
Skill Gaps
The shortage in the market is in the £35– £45k qualified Management Accountants field. At this level it is very difficult to find
strong candidates who are newly qualified or have at least two years post qualified experience. The shortage of part qualified
active students has a knock on effect to the newly qualified market with 48% of the areas employers feel that they will recruit
within either the part qualified or newly qualified space.
Average salaries in North East

CFO 120k 180k 500 pd 750 pd
Payroll 20000 25000 - -
PL/SL/Credit Manager 30000 50000 - -
Payroll 18k 23k
PL/SL 25k 35k
Bookkeeper 18k 25k
In a candidate-driven market, companies need to not only
attract but also retain good quality candidates and 41% of
businesses in the North West are looking to improve their
retention figures. Senior finance professionals want to be
a business partner to companies they join where they can
add value to an organization and have a tangible commercial
impact. When going out to market, companies need to be
more empathic with potential candidates. Asking themselves
the question: “What do the best candidates want and how can
we attract them?”
Critical factors range from culture through to benefits
packages and job security. In the senior finance market,
candidates want to be involved in a business that can offer
them long-term development and opportunity to impact.
To maintain staff retention we have seen candidates receive
pay increases and internal promotions, this has resulted in
the increase in salaries across the market.
Blue-Chip
Average salaries in North West

The Midlands job market for finance professionals has picked up significantly
across all levels during 2014. This has driven permanent and temporary salaries
up by around 10% from their 2013 levels. The biggest change has been in the
permanent part qualified and the newly qualified area where salaries have
increased almost 15%, and interim business partners/management accountants
where average day rates have now increased by over 25% in the latter half of
2014 alone.
West Midlands
From an interim perspective, business partnering management
accountants, financial analysis and project accounting
have been buoyant in 2014, especially in the automotive,
manufacturing and infrastructure sectors.
Niche skill sets and learns gained on assignment have proven
to be a valuable asset to the senior contract market with
companies using the experiences of contractors who have gone
through efficiency and process improvement projects, allowing
them to bring their knowledge to companies in order to adopt a
‘right first time’ approach.
Unsurprisingly, the SME market has seen considerable activity
throughout 2014. As businesses have moved into growth mode,
teams run as “lean” in recent years are staffing up to cope with
increasing workloads. Recession based staffing levels within
many finance teams have needed efficiency and productivity to
survive. Now that growth is back on the agenda, there is a lack
of organic succession and SME’s have been forced to recruit
externally to build their finance teams.
We envisage much the same in 2015 with the market continuing
to be candidate-driven. Hiring managers will need to entice
candidates to come and work for them, and the candidates most
in demand will have multiple opportunities to choose from.
Hiring managers will need to work with their recruitment
partners very closely to make sure they are able to make their
hiring decisions very quickly, as any delay - even for a few days
- could mean their first choice candidate has taken an offer
elsewhere.
of clients expect salaries
to increase
56%
Client feedback from this survey has shown
that 64% of hiring managers in the Midlands
expect to grow their team in 2015, citing
improving market conditions and a change in
their business strategy as the main reasons
for growth.
We’ve found that the Accountancy & Finance job market has
now fully switched back to one that is candidate-driven, and
demand for the best individuals has now far outstripped
supply.
CFO 100k 150k 500 pd 750 pd
Head of Shared Services 50k 90k 300pd 600 pd
Financial Reporting Manager 55k 65k 250pd 400 pd
Financial Planning & Analysis Manager 55k 65k 250pd 400 pd
Commercial Finance Manager 40k 55k 250pd 400 pd
Finance Business Partner 50k 70k 250pd 400 pd
Group Accountant 50k 65k 250pd 460 pd
Financial Accountant (Part Qual) 25k 35k 16 ph 200 pd
Management Accountant (Part Qual) 25k 35k 16 ph 22ph
Business Analyst 35k 45k 20 ph 300 pd
Payroll clerk 18k 25k 10ph 15ph
Blue-Chip
Average salaries

Financial Planning & Analysis Manager 50k 60k 18 ph 300 pd
Finance Business Partner 40k 50k 200 pd 300pd
Financial Accountant (Qual) 35k 45k 200pd 300pd
Financial Accountant (Part Qual) 23k 33k 15 ph 22ph
Management Accountant (Qual) 35k 45k 200pd 300pd
Management Accountant (Part Qual) 23k 33k 15 ph 22ph
Commercial Analyst 35k 45k 180 pd 250pd
Financial Analyst (Qual) 35k 45k 180 pd 250pd
Payroll Clerk 18k 25k 10ph 15ph
Credit Controller 18k 24k 10 ph 15ph
Recruitment is returning to pre-recession levels and companies are expanding
their existing teams as well as investing heavily in new initiatives such as
technology and business partnering. As confidence grows our clients are again
looking to their finance teams to provide valuable insight into the very core of
the business in order to aid the decision making process and to help provide
direction as part of their growth plans.
The evolution of finance from scorekeeper to strategic finance business
partner comes with the desire for finance professionals to demonstrate
their commercial understanding of the business. This is driving clients
to seek a new skill-set. This prompted the need to seek a ‘stronger
presentation’ of financial data in order to improve business process and
efficiency as well as to drive corporate strategy.
Increased focus on growth means that confidence among the finance
leadership team is high with 9 out of 10 Finance Directors surveyed
believing in a positive British economy and the same number being
confident in their business prospects as we move into 2015. Clients are
investing heavily in systems upgrades with many businesses moving to
SAP or Oracle. This in turn has meant an increase in the number of contract
roles for finance staff managing implementations and conversion projects.
Just under half (42%) of our clients told us it was highly likely there would
be an increase in the number of staff hired during 2015.
East of England
of clients foresee a rise in
finance team salaries
will consider increasing performance
related bonuses to get the most out of
their workforce
67%
50%Businesses are divided on their remuneration strategies, with many
recognising that they need increased salary levels to attract and retain the
best talent. Those slowest to react find themselves exposed to the resulting
talent shortage.
Average salaries in West Midlands

Hiring & Demand
As businesses step up hiring efforts, creating new
roles to capitalise on growth initiatives as well as
adding headcount to stretched teams, demand
for specialist occupations far outweighs supply.
Companies are recruiting strategically, looking at
both current and future requirements and bringing in
professionals who add value immediately - but also for
many years to come.
More than three quarters (80%) of respondents
surveyed are confident in the economic prospects
facing the East of England and 84% are confident in
their company’s prospects for 2015 and beyond.
This optimism is being felt across East Anglia with
the largest companies being the first to ramp up their
hiring efforts followed closely by SMEs who are taking
the opportunity to hire additional staff as they launch
or develop new products and take on expansion plans.
Companies are looking for experienced finance
professionals skilled in budgeting, forecasting,
analysis and bids as well as commercial exposure
(and therefore adept at delivering cost efficiency).
The expectation for finance professionals to exhibit
the clichéd skill-set of strong communication skills,
an analytical mind, good problem solving skills
and business savvy does not come at the expense
of technical knowledge. Moreover, candidates are
expected to ‘have it all’ and devote their lives to
learning as well as a mastery of softer skills.
Skill Gaps
Demand for skilled accountancy & finance staff has intensified
with most finance leaders indicating that competition for staff has
intensified particularly as specialist occupations (created by the
shift towards the more commercially astute candidate) outpace
generalist roles. Challenges in identifying and recruiting finance
professionals continue with 35% of clients citing skills shortages.
According to salary respondents, specific areas where demand
outstrips supply include business/financial analysis, general/
commercial accounting and financial management/control. 69%
of businesses feel there will be a greater competition for talent in
2015.
Education is still key with most businesses prioritising the
recruitment of qualified accountants (ACA, ACCA, CIMA) over
graduates during the downturn which means there is a shortage of
newly qualified ACAs. This, in turn, is likely to push salaries up as
companies seek to attract the top talent - and 31% of businesses
are inclined to agree.
Part qualified accountants are in short supply. This is largely down
to retention strategies where employers are offering progression,
study and annual leave allowances. There is a precipitous
departure of accountants post qualification so retention efforts are
being enhanced in an attempt to keep them on board.
Accountancy professionals with less than three years’ experience
are also in demand to fill Assistant Accountant, Purchase Ledger,
Sales Ledger and Credit Control positions across the region. Clients
prefer candidates committed to learning, including commitment to
progress through supported study. It is these individuals who are
the potential Finance Directors and CFOs of the future.
CFO 130k 160k 600 pd 750 pd
Blue-Chip
Average salaries in East of England
of clients show
confidence for 2015
80%
of clients suffer from skills
shortages in their search for
finance professionals
35%

Employee retention remains a priority and with 90% of finance
directors being concerned with losing their top performers,
56% are making more of an effort to provide opportunities
for progression and development as well as 39% reviewing
remuneration schemes. Many businesses are taking on
temporary support to free up their more experienced staff to take
on new projects and initiatives - which keeps roles varied and
interesting.
Some employers are being forced to bring remuneration in line
with the current market to avoid losing their best people. Of
course, we all know the true cost of replacing a valued employee
is far greater than outlay. Employers recognise that retaining key
staff who have the systems knowledge, the business insight and
who are successful in the workplace is an absolute top priority.
Just 62% of businesses report retention levels having stayed
the same through 2014. 61% stated they hope this to improve in
2015 with the introduction of new strategies.
Accounts Assistant 18k 25k 9 ph 12.50 ph
Across 2014 we have seen an increase in newly-created forward-facing roles
such as strategic and commercial finance roles in larger organisations. We have
also seen a trend in SME businesses growing, whether it is organic growth or
through private equity backing. This has resulted in an increase in more senior
FC and FD roles to take businesses forward and increase current growth and
momentum. The mood has been positive and this has been reflected in more
ambitious recruitment across all areas of finance.
In general, starting salaries have not
increased in the South East as companies
are still looking to keep a tight rein on
budgets during expansion. The challenge
for most hiring managers has been to find
fresh top talent as so much of the country’s
existing top talent is secured within their
current organisation. However the feeling
is more positive for 2015 with 71% of hiring
managers convinced that salaries will
increase in 2015.
Candidates are the driving force. Those
in high demand are likely to receive
a competitive external offer followed
closely by a strong counter offer from their
employer. We have seen an increase of
counter offer acceptances of 20% this year.
Offers have been accepted by candidates
who have appeared on a reviewed second
shortlist due to the fact that clients do
not always have a second choice option
available from their initial shortlist.
SMEs seem to have had more flexibility
on their budgets and a number of roles
have been offered at the top of their range
and in some cases £5k - £10k above the
original salary, in order to secure the right
candidate and make them feel wanted.
South East
Growth will continue in to 2015 with
of FDs and FCs declaring their
businesses will grow
anticipating a very healthy
and positive uplift
78%
40%
Average salaries in East of England

Hiring & Demand
Part qualified roles have been on the increase. With 49% of all finance
hires coming in this form as employers are looking to succession-plan top
talent for the future and build teams that can sustain the future of finance
functions. The other area of succession planning comes in the form of
newly qualified roles being recruited. These took up 25% of all finance
hires in 2014.
Just over a third (36%) of finance roles recruited have been in the
commercial area. These have come at varying levels, but the feeling is that
businesses are confident in growing and they want visionary people to
assess where there organisations can grow. Only 22% of hires across 2014
were technical reporting roles.
We have also seen smaller companies growing and bringing in more senior
level finance heads at FC or FD to focus on process and control and provide
a platform to sustain the growth of their business in the future.
A big challenge in securing the right candidate to meet demands has
been the speed of the internal decision making process. Those who plan
a quick process with organised interview slots for 1st, 2nd and subsequent
interviews have had 75% more success in attracting the right candidate
than those who have a long decision making process.
Interestingly 60% of respondents felt that hiring levels would remain the
same, while 25% believe hiring levels would increase further. With hiring
levels already up on 2013, this reflects that there will be even more newly
created roles through 2015.
Just over a quarter (26%) of hiring managers believe that they will be hiring
due to improving market conditions. 29% foresee uplift in recruitment
levels due to investments in new markets. In another suggestion of an
uplifting and confident market, 25% believe a change in business strategy
will reflect an increase in hiring. 20% see recruitment needs through
natural attrition, although the reason for this was the belief that employees
will move for other opportunities to develop their career.
Areas of hire will be spread across perm, interim and fixed term contracts
next year with 60% forecasting an uplift in perm against 40% in interim
and contract appointments.
Skill Gaps
Client led demands for roles to be more
commercially focused has met the candidate
requirement for progression - aspiration to
develop into finance director or commercial
director roles remains high.
The real challenge has been less appetite to
move to more technical roles with a shortage
of skills in financial accounting roles and a
lack of expertise in such things as IFRS and
GAAP. Even ACAs moving from practice (who
traditionally move in to group accounting
or technical financial accounting roles)
are putting themselves in line for financial
analyst and commercial/management
accounting positions. This has had an
impact too on true business partner roles
as increasing business partners are coming
from a technical background and don’t
necessarily have the softer skills required.
Just over a quarter (27%) of hiring managers
believe they will attract more candidates
in 2015. Interestingly, even though 71% of
hiring managers believe salaries will increase
in their businesses, 49% believe that one
of the biggest challenges in recruiting will
be that candidates’ expectations of pay
are too high. 47% believe that a lack of
quality candidates will have an impact on
hiring, so the key decisions will be whether
to compromise on quality in order to fill a
growing number of new roles. With 42% of
hiring managers facing the challenge of skills
shortages in recruiting, will organisations
become more innovative in reallocating work
according to strengths that already lie within
the business?
Salaries are still the main driver for people making a move although companies need to focus on attracting
people through their wider offering – especially with benefits that will strengthen a candidate’s career or
enhance their lifestyle. Progression and development are very important, with a clear path to the next role
being an essential factor. If a company cannot offer an increase in salary than flexible hours, performance
incentives and work-life balance initiatives are excellent methods to attract great people. Retention still comes
down to culture and how people are treated. Employees feel rewarded if they are recognised for their efforts
and how they use their strengths to add value to the organisation.
Just over two thirds (70%) of clients believe that there will be much greater competition for talent across
2015. But with only 35% of businesses able to increase their wage budgets, there are three key areas that
organisations are focusing on to attract and retain staff.
The really interesting piece here is that 31% of hiring managers said that their company did not have a
talent management strategy. Of those who did, only 1.3% have an external talent strategy with 25% of hiring
managers agreeing there is a strategy but it is internal only. It is evident in this that confidence is still high in
the network management by recruiters for specialist areas.
Hiring managers are still cautious about retention with only 24% believing that retention will improve,
meaning they are expecting that recruitment of new talent will never be off the agenda and will always be
something that needs to be treated very seriously.
are improving training and
development programmes to offer
a more inspiring career plan
will be offering flexible working
to keep in line with the demand
of a healthier work/life balance.
of companies offering
more activities for
team building
67% 60% 41%
of employers expect to increase
permanent hires.
of employers will be able to attract
more candidates
60% 1/4 flexible hours Work-life balancePerformance incentives
Salary is not the only way to attract top talent

CFO 120k 180k 500 pd 750 pd
Blue-Chip
Average salaries in South East

The South West market has seen a significant step change in permanent
recruitment at all levels up to £50k within 2014 which has driven salaries up by
around 10% compared with 2012 & 2013. Levels up to £50k tend to incorporate
the future leaders on the “upward curve of their career” who expect to increase
their business awareness and build their capability. The biggest noticeable
increase in salary has been at the studying part qualified and up to 5 year PQE
markets where organisations have been recruiting with growth and development
opportunity in mind.
South West
Hiring & demand
From an interim perspective technical skill sets such as
IFRS and treasury along with financial analysis and project
accounting skills have been buoyant particularly within
financial services, manufacturing and infrastructure sectors.
Due to ongoing regulatory changes and companies wanting
to constantly improve business performance these skill sets
have been in demand. Learns gained through experiences
have proven to be a valuable asset to the senior contract
market with companies wanting contractors who’ve gone
through efficiency and process improvement projects
allowing them to bring their knowledge to companies in
order to adopt a “right first time” approach.
As businesses have moved into growth mode, teams run as
“lean” in recent years are staffing up to cope with increasing
workloads. Recession based staffing levels within many
finance teams have necessitated efficiency and productivity
to survive. Now that growth is back on the agenda, there is
a lack of organic succession and SME’s have been forced to
recruit externally to build their finance teams.
Our research shows that 2015 will be similar to 2014 with a
growth in permanent hires and the market returning to one
that is very much candidate driven. Hiring managers will
need to entice candidates to come and work for them and
conversations with our clients have shown that benefits
such as bonuses and flexible working hours will become
more commonplace.
Hiring managers that are used to taking several months
to recruit their chosen candidate, will need to improve the
speed of their processes as candidates have multiple offers
on the table.
Our market research shows that 55% of organisations expect
to grow their business due to improving market conditions
with an expectation that the lack of quality candidates and
candidates with unrealistic salary expectations being the
biggest challenge in recruiting the right staff.
CFO 100k 150k 500pd 750pd
Finance Director 90k 130k 450pd 650pd
Group Financial Controller 80k 120k 400pd 600pd
Head of Shared Services 65k 85k 350pd 450pd
Head of Tax 65k 85k 350pd 450pd
Head of Treasury 65k 85k 350pd 450pd
Internal Audit Manager 65k 85k 350pd 450pd
Head of Financial Planning & Analysis 65k 85k 350pd 450pd
Head of Commercial Finance 65k 85k 350pd 450pd
Head of Financial Accounting 65k 85k 350pd 450pd
Head of Financial Reporting 65k 90k 350 pd 450pd
IFRS Controller 70k 90k 350pd 450pd
Solvency 2 Practitioner N/a N/a 500pd 1000pd
Financial Reporting Manager 55k 65k 275pd 350pd
Financial Planning & Analysis Manager 50k 65k 250pd 350pd
Commercial Finance Manager 50k 65k 250pd 400pd
Finance Business Partner 50k 65k 250pd 350pd
Group Accountant 50k 65k 250pd 350pd
Internal Auditor 40k 55k 220pd 300pd
Financial Accountant (Part Qual) 25k 35k 140pd 200pd
Project Accountant 35k 45k 250 pd 350pd
Management Accountant (Qual) 35k 55k 200pd 300 pd
Management Accountant (Part Qual) 25k 35k 140pd 200pd
Management Information Analyst 25k 40k 225pd 300pd
Financial Modeller 30k 45k 250 pd 350pd
Financial Analyst (Qual) 40k 50k 225pd 350pd
Financial Analyst (Part Qual) 27k 35k 140pd 200pd
Business Analyst 30k 40k 150pd 200pd
Accounts Assistant 18k 25k 10ph 14ph
Credit Controller 16k 25k 10 ph 14ph
Purchase / Sales Ledger Clerk 16k 20k 9 ph 12ph
Payroll / Credit Control Manager 28k 45k 18ph 25ph
Blue-Chip
Average salaries

There has also been a significant shift in permanent salaries in the finalist/
newly qualified range where newly qualified salaries for ACA’s have increased
by approximately 10% and CIMA/ACCA newly qualified salaries have increased
by around 5%. The level in highest demand continues to be in the £35-45k space
with skill sets focussed around commercial support and business partnering.
Northern Home Counties
Temporary & interim rates have remained relatively flat and
the growth has been in slightly more junior positions where
large employers are offering existing staff opportunities to
get involved in projects and recruiting interim staff to cover
their basic duties.
Conversely, there has been an increase in permanent and
interim senior roles within the SME market. Organisations
have invested in senior hires rather than promoting from
within, showing an increased confidence for future growth.
Hiring & demand
Whilst most companies expect both permanent and
interim recruitment levels to remain similar to 2014, 23%
anticipate permanent hires will increase in 2015. There is an
expectation of slightly lower levels of interim recruitment
in 2015 with 13% of companies expecting to make fewer
interim hires compared to 6% expecting to increase interim
resource.
Key sectors showing real growth in 2014 have been
construction, infrastructure and manufacturing compared to
service businesses that have remained relatively steady.
We have also noticed an increase in niche vacancies across
controls, risk and compliance with businesses focussing
more on these areas to respond to changes in legislation
and to increase efficiencies/control.
Finance Director 60k 90k 300pd 450pd
Financial Controller 50k 75k 250pd 350pd
Finance Manager 50k 60k 250pd 300pd
Financial Planning & Analysis Manager 50k 60k 200pd 300pd
Finance Business Partner 40k 50k 200pd 250pd
Financial Accountant (Part Qual) 23k 33k 140pd 180pd
Management Accountant (Qual) 35k 45k 180pd 250pd
Management Accountant (Part Qual) 23k 33k 120pd 160pd
Commercial Analyst 30k 45k 150pd 250pd
Financial Analyst (Qual) 35k 45k 180pd 250pd
Financial Analyst (Part Qual) 24k 32k 130pd 180pd
Accounts Assistant 18k 25k 10ph 14ph
Credit Controller 16k 25k 10ph 14ph
Purchase / Sales Ledger Clerk 16k 20k 9ph 12ph
Payroll / Credit Control Manager 25k 40k 15ph 19ph
Average salaries in South West
of clients predict
salaries to increase
68%
are expecting increased
competition for candidates
70%

Retention & development
As an overview, the market has reverted back to being one driven by candidates rather than employers and is reminiscent of the
pre-recession “war for talent”. We expect the 2015 market will mirror that of 2014 with the top percentile of candidates being in
very high demand. Employers need to think more about attraction and employee engagement and will have to embrace faster
employment processes so not to lose those in highest demand. Of the companies surveyed, the top 3 things currently being
offered to attract new candidates and retain existing staff are; training & development, career progression and flexible working.
Average salaries in Northern Home Counties
CFO 120k 180k 500 pd 750 pd
Blue-Chip

Market update 2015 /Business Change & Transformation Page 41 0f 66
Business Change & Transformation
Our team has developed a high value network of senior
business change & transformation professionals,
helping to create a competitive edge while working
in partnership with our clients
2014 has seen salaries rise for both permanent and contract staff throughout
the year. Some businesses have invested more on project-based work designed
to gain a competitive advantage. However, such investment is still patchy
and other businesses have been reticent to spend the money necessary to
gain the top talent. In some sectors, we’ve still seen a lack of confidence with
organisations reacting to their competitors rather than taking the plunge and
investing in talent first.
Hiring & Demand
A large chunk of the 2014 opportunity within the business change arena
has fallen within the actual delivery of a project – hiring within the Project
Management Office (PMO) and in both business analysis and project
management has been strong. More senior placements, especially in
the strategic direction of a programme, have largely been as a result of
internal moves and succession as clients look to retain and develop their
talent.
Looking forwards into 2015, we expect to see a shift towards strategic
hires as clients look to deliver on projects shelved during the recession or
look again to invest now that growth is on the agenda.
90% of the demand has been between £250-500 per day and
£35-70k for permanents. Those with an e-commerce/retail and digital
background have been the most in demand – a change from 2013 where
the skills most in demand were more generic. This is an entirely client
driven change as businesses begin to place more value on the digital and
e-commerce capabilities. We are now seeing more demand around retail
and e-commerce skills as corporate businesses place more value on their
digital and e-commerce strategies.
London and the South East
of businesses in our survey
predicted growth in the
next 12 months.
84%
We’ve worked hard to bring our market expertise to clients, helping them to
get an insight into what the market outlook is looking like and where rates
are currently. It’s fair to say that with salaries finally on the rise again, those
companies prepared to invest a little more in talent have been able to secure
great people.
From our clients’ perspective, the outlook
for next year is for an increase in staff and an
increase in business growth.
Page 40 0f 66 Market update 2015 /Business Change & Transformation

0f 66 Market update 2015 /Business Change & Transformation Market update 2015 /Business Change & Transformation Page 43 0f 66
There has been a much greater focus this year in recruitment on career
opportunities, both in the contract and permanent spheres. Companies’
retention strategies have focused more around the development of
an employee’s career through creating a great working environment,
over providing a higher salary. Retention is important due to the lack of
candidates. During the recession, clients found it easier to attract candidates
as there were fewer opportunities available. Interestingly, 56% of clients
spoken to envisaged that retention would improve in 2015. What remains
to be seen is how clients are going to make this transition, is this merely a
positive outlook or do they have demonstrable action plans in place?
Skill Gaps
It may be a truism, but clients have largely struggled to fill gaps when they
haven’t been willing to pay the remuneration necessary to secure scarce
talent. Clients who have preferred to utilise Fixed Term Contracts (FTCs)
have begun to struggle to secure sought after top talent who prefer to
contract as interims. However, moving in to 2015 the signs are positive with
only 6% of businesses in our survey anticipating a rise in FTCs. The biggest
issue here has been speed and commitment. Employers need to show a
commitment to their candidates, as increasingly, candidates have more
than one option to choose from. By demonstrating an attractive overall
package, an employer might be able to tip the balance in their favour and
secure the candidate.
In terms of specific skills gaps, our experience in 2014 shows that
employers haven’t struggled with specific roles, but more with
understanding the market and recruiting effectively in it. The main
struggles that our clients envisage in 2015 are finding good quality
candidates, and overcoming the fact that their internal decision making
process takes too long. Both these factors were raised by almost half the
organisations we surveyed.
Hiring & Demand
The positive effects of growth in the economy’s manufacturing powerhouse
across the Midlands continued to show in the results of our survey.
In fact, over 80% of businesses stated that they expect to grow in 2015.
Over 50% of clients surveyed expected salaries in their business to increase
- important given changes to candidates’ motivations and also given how
static salaries have remained during the tough economic times of the last few
years. Worryingly, over a third stated that they expected salaries to stay the
same. If this is the case, it could mean a significant movement in the market
as candidates seek to improve their salaries and overall package as market
conditions pick up and employers regain hiring confidence.
The Midlands
of clients spoken to
envisaged that retention
would improve in 2015
56%
of the demand has been
between £250-500 per day
and £35-70k for permanents
90%
of respondents expect their
hiring levels to remain the
same in 2015
30% expecting hiring levels
to reduce from 2014 figures
10% of the clients we spoke to
expected their hiring to
increase
50%

0f 66 Market update 2015 /Business Change & Transformation Market update 2015 /Business Change & Transformation Page 45 0f 66
The top three factors affecting hiring demand in 2014 were:
❶ Change in business strategy
❷ Improving market conditions
❸ Changing technology
of clients expected
to hire permanently
in 2015
expecting this to be a
significant increase on
recent years
of respondents expected hiring
figures to remain focussed on
temporary or interim roles
expecting this to
significantly increase in
2015 on recent years
90% 40% 70% 40%
This was closely followed by investment in
new markets. This is not surprising given
that organisations across the region have
consolidated during the tough times and
more recently have been positioning to
springboard for growth. Natural attrition
rates were regarded as the factor least likely
to affect hiring in 2015.
Regarding fixed term contracts – figures in this area remained
low as usual. With over 25% of organisations picking it as
a non-applicable option for them; citing they either want
to increase permanent bench strength or attract highly
experienced interim options for specialist projects and that FTC
was not the way to do that. FTC continues to be viewed as an
option for maternity cover only.
When it came to candidate attraction over 10% of organisations
we surveyed felt positive that they would attract significantly
larger amounts of candidates than normal; with 45% saying they
felt they would receive slightly more and 27 % saying candidate
attraction would remain exactly the same as the last few years.
The biggest challenges to recruitment were viewed as a lack of
quality candidates and that it took too long to make internal
decisions with almost 50% worrying about these factors. Given
how competitive the market has been this year, and is likely to
become next year, time taken to make internal decisions can
be a key barrier to hiring success – especially when customer
(candidate) experience is so important, and multiple offers (and
counter-offers) are on the increase.
The second biggest area of challenge was a shortage of technical skills, followed
by salary expectations being too high.
Skill Gaps
Over 50% of organisations we surveyed
have a talent management strategy for both
internal and external purposes. For just over
a quarter, this was internal only. Almost 15%
of clients we surveyed were not aware if they
had a talent management strategy.
Regarding retention, nearly 50% of our clients had seen retention
remain the same in 2014, whereas 40% had seen it lower. Our
clients expected that in 2015 this shift will continue and just over
55% expected retention rates to continue to fall. Just over a third
expected or hoped they would stay the same. Only 8% were
positive enough to see that retention rates would improve in 2015.
Over three quarters of the clients we surveyed felt there would be a huge increase in the competition for talent
in 2015. Nearly 60% of organisations said they were looking to increase pay to make themselves more attractive
to candidates. Training and development and career progression came next on the list with 44% and 40% of
organisations saying that these programmes were integral to their hiring strategies for 2015. A third of clients are
improving their ability to offer flexible working to employees as a key way to differentiate themselves in the market.
With a quarter improving working conditions and offering team building as a unique way to attract new hires.
of clients we surveyed
recruited Business
Analysts this year
75%
of clients hired programme
level roles – highlighting
the complexity of business
transformation in the current
market
45%
of clients hired at the project
level – the need to deliver is
still integral to organisations
54%
hired PMO specialists in 2014
– governance & control is still
important.
40%

Programme Director 100k 175k 650 pd 1200 pd
Head of Change 90k 175k 600 pd 2000 pd
Programme Manager 75k 100k 550 pd 750 pd
Head of Programmes 100k 175k 900 pd 1500 pd
Head of Transformation 80k 200k 600 pd 2000 pd
Transformation Manager 60k 90k 450 pd 600 pd
Change Manager 50k 90k 400 pd 600 pd
Project Manager 35k 70k 350 pd 550 pd
Head of Projects 50k 90k 500 pd 700 pd
Head of Business Analysis 60k 90k 600 pd 800 pd
Senior Business Analyst 50k 80k 420 pd 550 pd
Product Manager 50k 80k 450 pd 550 pd
PMO Lead 60k 80k 500 pd 700 pd
PMO Analyst 40k 60k 300 pd 450 pd
PMO Coordinator 30k 45k 200 pd 300 pd
PMO Support 20k 30k 120 pd 200 pd
Project Administrator 20k 30k 120 pd 200 pd
Project Planner 30k 70k 300 pd 400 pd
PMO Director 80k 150k 600 pd 1000 pd
Average salaries
Blue-chip
Average salaries
Programme Director 60k 110k 650 pd 1000 pd
Head of Change 60k 110k 600 pd 800pd
Programme Manager 55k 75k 400 pd 700 pd
Head of Programmes 80k 120k 600 pd 900 pd
Head of Transformation 75k 130k 600 pd 850 pd
Transformation Manager 50k 70k 400 pd 550 pd
Change Manager 40k 55k 350 pd 550 pd
Project Manager 30k 50k 300 pd 500 pd
Head of Projects 45k 75k 450 pd 600 pd
Head of Business Analysis 45k 60k 450 pd 600 pd
Senior Business Analyst 40k 55k 350 pd 525 pd
Product Manager n/a n/a n/a n/a
PMO Lead 50k 70k 400 pd 550 pd
PMO Analyst 28k 42k 225 pd 275 pd
PMO Coordinator 18k 38k 150 pd 250 pd
PMO Support 18k 28k 100 pd 150 pd
Project Administrator 18k 28k 100 pd 150 pd
Project Planner 25k 45k 200 pd 300 pd
PMO Director 60k 80k 500 pd 700 pd
Market update 2015 /Business Change & Transformation Page 47 0f 66Page 46 0f 66 Market update 2015 /Business Change & Transformation

Market update 2015 / HR Page 49 0f 66
HR
Our HR recruitment team is all about bringing people together:
understanding both the projects and the cultural changes
organisations demand, and supplying professionals that can
deliver strategic transformation.
There have been signs of a more positive market in 2014 with businesses
more willing to invest in new talent and candidates seeking out and
adopting new career opportunities. Many companies now realise that
standing still is only a short-term option, and to develop and grow they need
to attract and recruit top talent.
London and the South East
The construction and engineering markets in
particular have seen a significant increase in
recruitment across all levels of HR. Often these
reflect specific project wins resulting from the
improved economy. Interestingly, the third quarter
of 2014 was the most buoyant. When historically the
summer period would have seen a dip, we saw an
increase in job numbers, new candidate applications
and placements. This was across all clients from
SMEs to large blue chip organisations.
We saw little change in salaries - although inevitably
there was the potential for niche skill sets to
command a premium. This may put pressure on
clients in the future to increase salaries where there
are skill shortages. We are now in a very candidate-
driven market again and the speed of the hiring
process is slowly improving. Our clients are now
more aware than ever that top talent will not be
available for long and that good candidates often
have several job offers on the table. Clients able
to act quickly and decisively are the ones that are
attracting and retaining the top quality candidates.
Added to this, with candidates often receiving
multiple offers and counter offers, clients with the
flexibility to offer increased salaries have been the
ones who attract and retain the best talent.
Another noticeable trend this year has been the
significant increase in Fixed Term Contract (FTC)
opportunities due to project work, maternity cover
and on-going caution around increasing permanent
headcount. Inevitably, a lot of these FTC’s led to or
had the potential to lead to permanent opportunities
allowing clients the freedom to either end or extend
a contract without committing - again demonstrating
their caution in the current market.
Hiring & Demand
We have seen a number of newly-created roles as well as
replacement roles become available this year as businesses look to
grow. High quality generalist HR Managers, Advisors and Business
Partners are in continuous high demand especially. We have also
seen an increase in demand in the following areas on a permanent
and fixed term basis: reward, compensation and benefits, employee
engagement, recruitment, HR systems and L&D. This will only
increase in the future as companies focus on augmenting their
strategies for attracting and retaining the best talent.
Looking ahead into 2015, there is a feeling in the market that hiring
levels will continue to grow, with 52% of clients surveyed supporting
this sentiment and a further 31% believing that hiring levels will
at least remain static. With growth in mind, 62% of the clients we
spoke to believe that competition for talent will be greater in 2015,
with 67% of those clients seeing increased salaries as inevitable.
Looking into 2015
of clients surveyed believe
that their businesses will
grow in 2015
of these clients cited improving market
conditions, investment into new markets
and a change in business strategy as the
main catalysts of growth.
69% 65%
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0f 66 Market update 2015 / HR
Skill Gaps
Increased demand in the following specialist areas have
seen clients struggle to attract talent and have seen a slight
increase in salaries for candidates with these niche skills
set:
HR systems
Reward, compensation and benefits
Employee engagement
Organisational development
L&D
There is a significant lack of quality candidates in these
areas - especially on a contract and interim basis. Where
clients have acknowledged they need to pay more, they
have been the ones to attract the best skills set. In addition,
those clients that have been creative enough to upskill their
current talent have not only helped to retain them but also
help solve a candidate-short area. 60% of clients surveyed
believe that these skill shortages, coupled with a lack of
quality candidates in certain niche areas, will continue to
pose challenges to some less agile organisations in 2015.
In 2014 there has also been a significant increase in
in-house recruiter roles as clients seek to adopt a direct
sourcing model to help them save costs and improve their
recruitment processes. Reward, compensation and benefits
roles have seen an increase due to clients trying to remain
competitive and ahead of their competition when attracting
and retaining top talent. In addition, L&D has become more
important, with clients aiming to retain and attract talent
through offering the best career development plans and
opportunities.
In most cases this year, the catalyst behind candidates
considering a move in a more confident market is still
salary. However we have also seen their desire for seeking
the right training and development opportunities; the
potential for an improved work-life balance; flexible
working and the culture of an organisation becoming just
as important. Hence why the growth recruitment areas this
year have been:
L&D
Talent management
Employee engagement
In-house recruitment
Reward
Employers need to be aware that as the economy improves
and more opportunities become available to skilled HR
professionals, they will need to offer more competitive
salaries and packages in addition to career progression,
training, flexibility and an excellent working environment in
order to secure the best talent.
For 2015, the trends we have seen in 2014 will continue,
with 67% of clients surveyed ranking improvements in
training and development and a drive to more flexible
working being areas they will continue to invest in.
We recently ran a seminar around cultural transformation
and becoming a strengths-based organisation. This will
continue to be a hot topic in 2015 as companies look to
expand further. Those organisations that change and adapt
their cultures in response to the improving and candidate-
led market will be the ones to attract and retain the best.
of clients see skills shortages
as a problem for 2015
of clients will invest in training
and development
60% 67% HR
Average salaries in London and the South East
Blue-chip
Director of HR 80k 150k 500 pd 1100 pd
Head of HR 70k 110k 450 pd 800 pd
HR Manager 50k 75k 300 pd 500 pd
Senior HR Advisor 35k 50k 150 pd 300 pd
HR Advisor 30k 45k 120 pd 250 pd
Senior HR Business Partner 60k 85k 350 pd 550 pd
HR Business Partner 55k 70k 325 pd 450 pd
Head of Recruitment 65k 95k 400 pd 600 pd
Recruitment Manager 45k 80k 250 pd 500 pd
Recruitment Advisor 30k 45k 120 pd 250 pd
Director of Reward /
Compensation & Benefits
90k 160k 550 pd 1200 pd
Reward / Compensation & Benefits Manager 45k 70k 250 pd 450 pd
Reward Analyst 35k 55k 150 pd 325 pd
Head of L&D 70k 110k 450 pd 700 pd
L&D Manager 45k 70k 250 pd 450 pd
L&D Advisor 35k 50k 150 pd 300 pd
HRIS Manager 50k 65k 300 pd 400 pd
HRIS Analyst 35k 55k 150 pd 325 pd

HR
Average salaries in London and the South East
Throughout 2014, the Midlands has seen a marked increase in salaries at all
levels by 2.1%, as we have moved into a more candidate-driven market.
This has been driven by increased demand, particularly in senior
appointments.
The Midlands
High calibre candidates are typically finding themselves in process with
three separate opportunities during their search which forces potential
clients to offer the very best packages to attract top talent. While demand
has increased in all sectors, we have seen a particular spike in the
manufacturing/automotive sector, with one well-known automotive client
opening up a new plant and bringing out new lines, which has increased
opportunity for 1st tier suppliers to grow their businesses and increase
market share.
With continuous improvement and lean agendas commonplace, businesses
have recognized they need the right calibre of HR professionals in place.
Hiring & Demand
Hiring and demand for the Midlands region
has mainly been focused around Senior HR
Business Partners/Head of HR and HRDs with
10% of our Midlands clients predicting they will
grow in 2015. There has also been a noticeable
trend towards internal recruitment throughout
the year, as clients seek to cut agency spend
and direct source a higher percentage of their
own new hires. Again, the demand has been
within manufacturing and utilities and we have
begun to see this increase in quarters three to
four within retail.
Skill Gaps
With clients looking at implementing shared service models, we have
seen an increase in technical HR systems implementation roles, mainly
on a project or programme basis. In the Midlands, there has been a
challenge to source compensation and benefits specialists, as this skill
set is very niche and has been more commonly found in larger corporate
functions in the South East.
of clients in the Midlands
stating that improving
market conditions will be the
main factor for hiring
At just 1%, change in
regulatory framework
was of low importance
10% 1% Retention & Development
At the beginning of 2014 most of our clients
released their salary survey information.
The results indicated employees are looking
for further development and clear career
paths. In April we noticed an increase for
recruitment within L&D and O&D. Candidates
are also looking at the benefits package before
interviewing as pensions, holiday, flexible
working hours are a major influence - not just
base salary. From a Midlands perspective, we
can see a major increase in fixed term contracts
at 15% and a big decrease in permanent hires
at 4%. Clients in the Midlands have concerns
around the lack of quality candidates (61.8%) -
which might be the major factor in hiring FTCs
with a view of then progressing to permanent.
HR Business Partner 50k 70k 300 pd 450p pd
Director of Reward / Compensation &
Benefits
65k 90k 400 pd 550 pd
Reward / Compensation & Benefits
Manager
35k 55k 150 pd 325 pd
Page 52 0f 66 Market update 2015 / HR

70k 95k 450 pd 800 pd
Reward /
Compensation & Benefits Manager
55k 70k 300 pd 450 pd
HR
Average salaries in The Midlands
Blue-Chip
HR
Average salaries in The Midlands
60k 75k 350 pd 550 pd
Reward / Compensation & Benefits Manager 40k 60k 200 pd 300 pd
Reward/Compensation & Benefits Analyst 30k 35k 100 pd 250 pd
Market update 2015 / HR Page 55 0f 66Page 54 0f 66 Market update 2015 / HR

Procurement & supply chain
With an in-depth understanding of supply chain and
procurement, our team specialises in making intelligent
connections between skills, cultures and roles.
Based on these results, we believe the market will be busy again next year
with vacancies coming about due to growth and also movement through
the continued appetite for risk and the desire for progression. There is
some evidence that hiring in supply chain eased off during the recession,
but with increased demand for consumer goods and retail products, these
two areas are likely to see further growth as the importance of having
product available and on the shelf becomes ever more an issue.
of respondents answered
that they were likely to grow
their business in 2015
55% 55%
of clients will face
a skill gap in 2015
70%
of clients say their
organisation will
grow in 2015
Page 56 0f 66 Market update 2015 / Procurement & supply chain Market update 2015 / Procurement & supply chain Page 57 0f 66

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