Show me the money

11 April 2011

London, 14 March 2011 – Financial remuneration may be coming up the agenda for executives looking to attract and retain key performers during the upswing, suggests a new survey from Robert Half UK. Nearly three in 10 (29 per cent) UK CFOs plan to increase base salaries within the next six months and more than half (54 per cent) anticipate maintain current levels. Four in 10 financial executives in London forecast increased base salaries in the first half of the year.

The survey was developed by Robert Half, the worldwide leader in specialised recruitment. It was conducted by an independent research firm and includes responses from 280 Chief Financial Officers across the United Kingdom. 

CFOs were asked, “Thinking about compensation within your finance and accounting department, in the next 6 months do you think salaries for existing staff (excluding bonuses) will”:
 

 

UK

Scotland/ Northern England

Midlands

Southern England

London

Increase

29%

24%

23%

30%

40%

Stay the same

54%

58%

50%

52%

55%

Decrease

17%

18%

27%

18%

5%

“Financial constraints during the downturn prevented many companies from offering salary increases, forcing them to look at non-monetary recognition programmes”, said Phil Sheridan, managing director of Robert Half UK. “As the job market continues to gain momentum, companies are looking at further ways to reward and retain their top performers, including increasing salary and bonus offerings.”

Despite general optimism, salary increases will not be experienced evenly throughout the business community. While six in 10 (61 per cent) CFOs within publicly-listed companies and 57 per cent in large organisations plan to increase base salaries for their teams, only one in 10 (11 per cent) small company financial leaders anticipate doing so. Amidst ongoing spending reform, no one in the public sector planned to increase remuneration.

 

 

Private

Publicly-listed

Public sector

Increase

27%

61%

0%

Stay the same

63%

34%

64%

Decrease

10%

5%

36%

 

 

Small

Medium

Large

Increase

11%

26%

57%

Stay the same

63%

59%

33%

Decrease

10%

15%

10%

 

For those planning on increasing existing salaries, the large majority (68 per cent) plan to do so by 5-6%. For the 21 per cent who plan to increase bonuses, half plan to do so by 5-6% and one in three (32 per cent) plan to do so by 3-4%, roughly matching UK inflation rates.

UK CFOs were asked, "How much, on average, do you anticipate increasing the following by in the next 6 months” Their responses:              

 

1-2%

3-4%

5-6%

7-10%

More than 10%

Existing salaries

0%

13%

68%

19%

0%

Bonuses

3%

32%

50%

8%

8%

 

Sheridan adds, “Managers should ensure they remain current with the latest hiring and salary trends by consulting workplace resources, including salary surveys and guides as well as industry experts. Working with a specialised recruitment consultant who understands the market can help businesses create remuneration programmes that are competitive and in line with industry standards.”

The Robert Half Professional Hiring Index includes additional information on anticipated permanent and temporary hiring, remuneration trends and confidence levels amongst UK CFOs.