ATTRACTION, REWARD & RETENTION SURVEY 2018

INTRODUCTION & BACKGROUND

As the South East’s leading independent consultancy with a vast amount of local and industry knowledge, Walker Dendle’s Attraction, Reward & Retention Survey is seen by finance and human resource managers as an authoritative overview of recruitment and reward practices in Surrey & the South East, including South West & West London. This report presents informative yet concise information on staffing trends and remuneration packages available to finance professionals and we are confident that employers and employees alike will find the content both enlightening and useful.

REMUNERATION RANGES

 SENIOR INTERIM & CONTRACT
 Level  Interim rate range per day (£)
 Transitional /Change Manager  500 - 1,000+
 Finance Director   650 - 950+
 Financial Controller   450 - 600+
 Financial Planning & Analysis  450 - 550
 Finance Manager  350 - 450 
 Senior Accountant  300 - 400
 Part Qualified  200 - 300 
   
 SENIOR FINANCE ROLES
 Level Permanent basic salary range per annum (£)
 Finance Director (including Group & Divisional Levels & Internal Audit)  90,000 - 150,000+
 Financial Controller (including Group & Divisional Levels & Head of Finance)  75,000 - 90,000
 Financial Planning & Analysis Manager (including head of FP&A, Commercial Manager/Controller & Business Controller)  70,000 - 90,000+
 Finance Manager  60,000 - 75,000
 Senior Accountant (including Group role & Internal Audit)  65,000 - 75,000
   
 QUALIFIED FINANCE ROLES
 Level  Permanent basic salary range per annum (£)
 ACA/CIMA/ACCA Qualified with 3 - 5 years PQE  65,000 - 75,000 +
 ACA/CIMA/ACCA Qualified with 1 - 3 years PQE  65,000 - 75,000 
 ACA/CIMA/ACCA Newly Qualified/Passed Finalist
 45,000 - 60,000
   
 PART QUALIFIED ACCA
 Level  Permanent basic salary range per annum (£)
 Professional Level  35,000 - 45,000+
 Fundamentals Level  25,000 - 35,000
   
 PART QUALIFIED CIMA
 Level  Permanent basic salary range per annum (£)
 Top CIMA  40,000 - 45,000+
 Strategic Level/Managerial Level  35,000 - 35,000
 Operational Level/ Certificate Level  25,000 - 35,000

PAY & REWARD MANAGEMENT

There is no doubt that now, more than ever, reward and pay are both important factors in the attraction, retention and engagement of employees.

The marketplace witnessed little or no fluctuation in the range of benefits tendered to employees although the ‘bundle’ on offer may vary from organisation to organisation, from small to large firms and across assorted sectors. Regardless of this there is no doubt that now, more than ever, reward and pay are both important factors in the attraction, retention and engagement of employees and that the most effective reward packages will be aligned with business needs whilst also serving as a reflection of an organisation’s values.

There are several elements to reward and it is important to choose the appropriate mix of base to variable pay, fixed to flexible benefits and pay to non-pay rewards and to acknowledge the various ways that individual employees view pay and benefits. An organisation’s pay policy reflects its values so it is vitally important that an appropriate communications strategy is adopted to explain which staff behaviours and performances are being rewarded, how and why. The term ‘reward’ generally covers total earnings made to employees, including basic salary or ‘cash pay’ and the broader benefits package and may also include wide ranging provisions of non-pay benefits otherwise referred to as ‘total reward’.

Historically basic salaries were the tool to attract employees to join an organisation; benefits helped retention whilst incentive schemes motivated and increased productivity. Research also points to the fact that individuals are attracted, retained and engaged by a whole range of financial and non-financial rewards which will change over time depending on personal circumstances. Reward elements should complement each other and enlightened employers seek to establish how best they can meet employee needs – as well as meeting the requirements of the business within the appropriate legal and regulatory environment.

These days, organisations employ a range of methods to set pay levels, including job evaluation and market pricing and, where market rates are used, employers should determine where to set their rates; at the median or upper quartile. When agreeing the annual pay review budget employers generally include performance-based pay increases as well as general pay structure and apply one or more of the following considerations: ability to pay, inflation and market rate changes. On the topic of pay progression, employers take a hybrid approach and look at individual performance and market rates as well as competency.

Bonus and incentive schemes are commonly linked to an individual’s performance, followed by approaches based on organisational performance – of which the most popular are those driven by business results, such as profit or revenue targets. Combination schemes use both measures of organisational and individual performance. The advantage of variable pay schemes is that they can link pay closely to desired performance and, in theory, only pay out when there is reason to do so. Variable elements of pay do not generally feed through into other elements, such as overtime or pension contributions, and so create no additional on-costs for the employer.

 The range of traditional and tangible benefits offered to employees and executives includes:
  • Paid Bereavement Leave (80%)
  • Study Support/Training & Career Development (73%)
  • Pensions Benefits – contributory/non-contributory (71%)
  • Increased Holiday Entitlement/25 Days’ (and over)
  • Annual Leave (66%)
  • Subsidised Restaurant/Café and/or Free
  • Refreshments(65%)
  • Social/Team Building Events/Christmas Party/Lunch (62%)
  • Health Benefits – Private Dental/Eye Care/Private Medical Insurance/Life Assurance/Medical Screening/Death in Service (60%)
  • Childcare Vouchers (56%)
  • Allow Internet Purchase Delivery (55%)
  • On Site/Subsidised Parking (54%)
  • Bonus Scheme – based on personal and/or company performance
  • Company Car/Car Allowance
  • Share Options – Executive or Employee
  • Financial Benefits – Occupational Pension/Discounted
  • Household & Holiday Insurance
  • Coaching & Mentoring Programmes
  • Enhanced Maternity/Paternity Leave
  • Flexible Working Hours
  • Leisure/Lifestyle Benefits – Gym Membership/On site
  • Crèche/Discounted Shopping
  • Season Ticket Loan
  • Cycle2Work Scheme
  • Give As You Earn/Save As You Earn
  • Sabbaticals

 (Source: CIPD Annual Survey Report Reward Management)