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AIA

Salary hike fails to satisfy accountants

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8th May 2012
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Accountants received an average salary increase of 10.3% in the last 12 months but this fell below expectations, according to recruiter Marks Sattin.

Most had hoped for a 13.5% increase but had to settle for an increase seven times larger than the national average.

Despite receiving less than expected, Marks Sattin reports that accountants’ optimism is on the up, as they expect their pay to increase by 14.2% next year.

Basic pay for accountants rose to an average £59,900, up from £54,300 last year. If the 14.2% prediction is correct, accountants will receive an average salary of £68,400 in 2013.

Bonuses in 2011 were 17% of basic pay - pushing the average total remuneration package to £70,300.

Dave Way, managing director of Marks Sattin, said: “It shows how good the prospects currently are for accountants that a raise far in excess of the national average is less than had they had hoped for.

“Accounting professionals are currently benefitting from not only growth in their sector – evidenced by the growing turnover of all the Big 4. They are also enjoying a redistribution of wealth by firms. During the credit crisis, firms sought to protect their bottom lines with tough cuts to remuneration and headcount. The reverse is now the case as, despite the UK slipping marginally into recession, firms are returning to growth. The top employers are competing for a finite supply of talent to build-up growing teams and this means salaries are being pushed upward at a very healthy rate”.

More than half of accountants also plan to change their role in the next 12 months, feeling that the best way to enhance their earning potential is to move firms.

As a consequence, more than a third of resigning accountants are being made counter-offers of an average 15% of salary to stay where they are.

Way continued: “While counter-offers are rarely more than a sticking plaster for employees who are prepared to leave their jobs, they are a good indicator of increasing competition for talent among employers. The fact that that more than half of accountants expect to be in a new role this time next year is evidence of employee’s confidence they can get better deals elsewhere. There’s a tangible sense of optimism among professionals about their ability to boost their earnings by making a move”.

The other key piece of data from the research concerned job security, with 70% of accountants feeling secure, compared to just over half last year.

Way added: “GDP has been pretty well stagnant over the last year, but economic stability has brought its reward. Accountants no longer fear the prospect of another recession. They have been encouraged by the growing sales of the top employers in the sector and the fact their pay has begun to reflect this progress has led to a big rise in perceived job security. In fact, most accountants now feel secure enough to start looking at ways of moving their career forward elsewhere, rather than just trying to survive in their current role. It has been a strong year for the industry and accountants are striving to make the most of it”. 

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Replies (12)

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Quack
By Constantly Confused
08th May 2012 16:59

Clearly

I work at the wrong place, not had a pay rise in... 3 years?

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By nogammonsinanundoubledgame
08th May 2012 17:23

I also

don't believe these statistics.  Where is the raw data published?

With kind regards

Clint Westwood

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By Cloudcounter
09th May 2012 07:31

Surprise surprise
A recruitment agency claims that salaries are rising. Presumably for the people that THEY place in jobs?

Where can I find a large pinch of salt?

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By justsotax
09th May 2012 10:40

love the stats....

just shows what you can do with numbers if you want it to show something in a particular light. 

 

I am reasonably confident that the basic salary and respective pay increase for the average accountant in a small to medium size firm is worlds away from the headline details reported above...

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By nmprobinson
09th May 2012 15:11

Unqualified

One of my members of staff quoted a recruitment agency who has stated that they are placing part qualified staff in £26-£30k positions!!

Yeah right..??!

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By Archon
09th May 2012 15:30

Mode rather than mean

Sheer ambiguity of the term 'Accountant' aside, like others have said. Stating the mean salary is meaningless (har har)

7 Figure big four partners and FTSE FD's skewering the stats again :)

Be interesting to see an report using mode averaging, to see what salary range the majority of Accountants of various types were on.

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Replying to Accountant A:
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By Discountants
09th May 2012 15:42

Actually for income distributions the median is usually the most informative average

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By justsotax
09th May 2012 15:42

@nmprobinson.....what chance that once the job

has been secured the part qualified person is then told that the salary is actually £20k (or less) due to the experience etc of the individual......

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Replying to Marion Hayes:
By nmprobinson
09th May 2012 15:51

Exactly...

It doesn't help us as employers keep staff happy though.  These kind of reports simply make their eyes wander!!

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By Craigie_Bhoy
09th May 2012 15:49

did have a wee chuckle to myself reading the article........

whilst frantically trying to find the Marks Sattin vacancies page.

As you guys have already said, meaningless without far far more detail.

nice thought though :)

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By Mature Student
11th May 2012 11:05

Re Unqualified

Or the £26k to £30k quoted is the total package including a (non-contractual) bonus (which doesn't materialise), study package (including the cost of extra study leave which then can't be taken due to workloads), pension contribution (only payable if the employee makes the same contribution) ...

So the gross salary is only circa £20k or less!

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By Bob Long
15th May 2012 14:44

I'm guessing this article was "sponsored" by the recruitment agencies who are now looking forward to a huge increase in applicants keen to get their share of the pie?

Personally I cannot see most small firms being able to compete with these salaries as it would mean the partners going without their share, and that is the most unlikely event! ;)

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