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The salary premium accountancy and finance professionals typically receive for moving jobs has reduced during the recession by, on average, 2.1 percentage points, say professionals in Accountancy Recruitment
Whilst most existing employees have found their pay reviews frozen, new research by accountancy & finance recruiters Martin Ward Anderson, shows how salaries offered to new joiners have also fluctuated year on year – depending on the sector or geographical region.
The Northern Home Counties witnessed the biggest premium reductions at 4.3 percentage points, followed by the North West at 3.8 percentage points, the Southern Home Counties at 3.2 percentage points, Thames Valley at 1.2 percentage points and a 1 percentage point reduction in North Bucks, Beds, Northants. The Midlands and Middlesex remain broadly similar to 2008 levels.
However on the South Coast, within London’s public sector/not for profit sectors and London’s commerce & industry arena, the average permanent premium for moving jobs has actually increased by a further 4%, 2.3% and 0.5% percentage points respectively – fuelled by high demand in these areas.
The average pay increase that can now be expected across the UK when moving finance jobs is 8%. – although some regional candidates and those at the newly qualified level are still finding the market and thus salary premiums depressed. As Paul Robinson, Director for Martin Ward Anderson explains:
“It’s notoriously difficult, even in more normal market conditions, to give job seekers guidance as to their market worth when moving from a competitor. The recession has obvioulsy complicated things even further. Depending on factors such as timing, lifestyle choices, area of specialism and employment status some candidates are moving for as much as 20% more, others are taking a cut. Long term career decisions around future earnings potential can mean playing a short term game of snakes and ladders, moving across or even down to reach the top.”
Robinson also warns, “Whilst some applicants appreciate the economic forces currently at work, others are trying to over compensate for their stagnating salary in their current employment by trying to recoup these perceived losses in their next role. For example if, pre-recession, a candidate was typically receiving a £3,000 pay rise per annual review, some candidates expect to find a position that pays this ‘lost’ £6,000 more plus the usual 5-10% premium for changing jobs on top. This is completely unrealistic.”
