The Pay Increase You Can Expect Post Recession
The recession didn't just affect salaries of existing employees when companies initiated pay freezes.
The premium, new joiners received for moving from a competitor, has also reduced.
This doesn't mean that accountants won't secure a pay rise for moving on - companies are keen to hire the best talent and understand that this carries a price - however, it does mean you need to be realistic about what will be offered.
Many accountants interviewed recently feel almost bereaved about their lack of pay movement over the last few years and are trying to over compensate for this and recuperate their perceived losses in their next role.
For example if, pre-recession, they were typically receiving a £3,000 pay rise per annual review, the goal now is to find a position that pays £6,000 more plus the usual premium for changing jobs on top.
This is very unlikely.
There are some occasions where base salaries rocket and recruitment agencies have placed a part qualified accountancy candidate who was previously earning £30,000 on £40,000.
However, the higher base reflected the fact that there was no additional bonus potential.
This is becoming a common theme in the insurance world following the recent furore over bonuses in the media.
Many firms are restructuring pay packets to lift the base to compensate for a lack of bonus.
Those companies that have maintained bonus schemes are naturally cautious of over-promising, so at offer stage don't be surprised if the company spends a great deal of time re-iterating that any bonus is discretionary.
Of course, throughout all the recent turmoil, one thing hasn't changed and that's the fact that the more niche your skills, the less the usual rules will apply to you.
If you are at the top of your game in an area of extreme skill shortages, you will always command a higher market value than most.
The premium, new joiners received for moving from a competitor, has also reduced.
This doesn't mean that accountants won't secure a pay rise for moving on - companies are keen to hire the best talent and understand that this carries a price - however, it does mean you need to be realistic about what will be offered.
Many accountants interviewed recently feel almost bereaved about their lack of pay movement over the last few years and are trying to over compensate for this and recuperate their perceived losses in their next role.
For example if, pre-recession, they were typically receiving a £3,000 pay rise per annual review, the goal now is to find a position that pays £6,000 more plus the usual premium for changing jobs on top.
This is very unlikely.
There are some occasions where base salaries rocket and recruitment agencies have placed a part qualified accountancy candidate who was previously earning £30,000 on £40,000.
However, the higher base reflected the fact that there was no additional bonus potential.
This is becoming a common theme in the insurance world following the recent furore over bonuses in the media.
Many firms are restructuring pay packets to lift the base to compensate for a lack of bonus.
Those companies that have maintained bonus schemes are naturally cautious of over-promising, so at offer stage don't be surprised if the company spends a great deal of time re-iterating that any bonus is discretionary.
Of course, throughout all the recent turmoil, one thing hasn't changed and that's the fact that the more niche your skills, the less the usual rules will apply to you.
If you are at the top of your game in an area of extreme skill shortages, you will always command a higher market value than most.
