‘Seller’s jobs market’ forces up London accountant salaries
In 2019, accountants working in London should expect their salaries to be, on average, 29% higher than the rest of the country, argues Robert Half’s Chris Lawton.
With the fourth industrial revolution on the horizon, the London talent market is set to evolve as new skills are needed to help businesses adapt to digitalisation, AI and automation. Combined with other macroeconomic factors like Brexit, 2019 is set to be a ‘seller’s market’, as companies compete to attract, secure and retain the right talent.
CFOs have predicted that team dynamics will need to change, shifting more towards a collaborative and communicative approach, and in demand skills will trend towards adaptability and data analysis.
In London, almost 900,000 SMEs, the equivalent to more than four out of five (83%) small and medium-sized businesses, are struggling to hire candidates with the necessary skills. As a result, businesses in the capital are being forced to offer salary packages higher than originally expected to recruit the right talent, especially in the accounting sector.
Almost half (48%) of companies in London say increased remuneration levels have been necessary in the last three years to secure the best quality candidates. By contrast, this figure is 40% for all UK companies. Six in 10 also say they are paying more than they initially planned to secure their favoured candidate, as the fast-paced market drives increasingly competitive salary negotiation.
In 2019, accounting professionals working in London should expect their salaries to be, on average, 29% higher than the rest of the country. The majority of CFOs believe that salaries will increase by 2% for permanent staff in the New Year. Over one in 10 (11%) hoped to offer a rise to 20% of their accounting and finance team.
Looking across the accounting sector, a finance director in the first quartile salary band could expect to earn an average of £80,000 nationally, rising to £103,500 in London. A tax accountant based in London in the first salary quartile could expect to earn nearly £52,000, more than £10,000 than the national average of £40,000.
Overall, London accountants, and their salaries, look set to benefit from the intensifying war for talent leading into 2019.
Chris Lawton is Director at Robert Half UK
In demand accounting and finance roles in London
|Qualified Management/Financial Accountant||51,755||58,224||71,163||97,040|
|Financial Business Partner||58,224||71,163||84,101||103,509|
|Part-Qualified Management/Financial Accountant||32,347||38,816||45,285||51,755|
Source: Robert Half 2019 Salary Guide
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