Large regional disparities remain in salaries across the UK, but in general, wages are on the rise. The cost of living is the greatest concern for those whose salary has not kept pace with inflation.
New research from Reed has revealed that salaries in the accountancy and finance sector continue to show signs of resilience due to the stable year-on-year salary increase.
Over the past year, the sector has seen an average of 4.2% increase in salaries throughout the industry. In comparison, the sector saw an increase of 4.7% in 2022.
From an analysis of six million jobs posted on Reed.co.uk, as part of Reed’s suite of annual salary guides, it’s clear that the accountancy and finance sector remains to show some signs of resilience and growth due to the slight year-on-year salary increase.
The data also reveals how the accountancy and finance sector is doing against other industries. The hospitality sector has seen the biggest pay increase in the past year (7.3%) and has bounced back from its previous year’s salary decrease. The IT and cyber security sector has had the least growth, with an average of 2.4% increase in 2023.
“The accountancy sector finds itself at a crossroads after a period of talent shortages,” says Alan Myers, Accountancy Expert at Reed.
“Within a rapidly changing business landscape, advancements in technology are reshaping the industry, with both employers and professionals navigating the new landscape. The pandemic accelerated the adoption of digital tools, remote working and the importance of financial advisory services. These trends are here to stay and have profound implications for accountants.
Myers noted that for employers in the sector, navigating the jobs market will require strategic planning and adaptation. “Employers must recognise the current state of the labour market, with the much-reported shortage of skilled accountants becoming increasingly visible in financial statements,” he said.
“To stay competitive, encouraging a culture of continuous learning is essential, as businesses will need to upskill their teams in areas such as data analytics, automation and sustainability reporting to stay ahead.”
Reed’s accountancy and finance salary guide also gives insight into the regions that are most competitive within this industry. Areas such as Wales (6.8%) and the North West (6.7%) have seen the biggest increase in wages in the sector. The South East (3.3%) and the West Midlands (4.4%) saw the least growth.
“The North West has witnessed a move towards technology and digitalisation in the finance sector, while the initial public offering market and world of mergers and acquisitions continues to provide attractive options for skilled professionals from across the region and beyond,” said Douglas Turkington, regional director at Reed.
In it’s analysis, Reed noted that in the South East there had been dynamic shifts in accountancy and finance roles as we head further into 2024. This region has long been a financial hub, but recent developments have reshaped the industry landscape, affecting the jobs market at the same time.
Grant Rigler, executive regional director at Reed, noted that companies across the region are embracing technology within their finance teams more than ever. Automation and artificial intelligence are being integrated into day-to-day operations to enhance efficiency and help make strategic decisions. He says businesses need assurance from finance departments that all liabilities are reported, that key figures are accurate, that their prospects are adequately
presented, and that all of this is available timeously to all stakeholders.
“To attract and retain talent in this competitive environment, employers need to offer competitive salaries – close to what you see in the capital – while also projecting a strong emphasis on work-life balance, professional development opportunities, and a supportive company culture. Companies that continue to provide flexibility are most appealing to professionals, reinforcing the notion that employee retention is at the forefront of business strategy.”
With ongoing cost-of-living challenges, salaries will continue to be a huge area of discussion in the employment market, for both professionals and businesses. As many are feeling the pinch, more talent is likely to move around to secure higher paid roles, with businesses analysing how much they can stretch to get the people they need.
Interestingly, Reed’s data has also revealed a gulf between men and women when it comes to attitudes to salary. Currently, over half (56%) of workers are happy with the pay they receive, a slight incline from the previous year (53%). Although, around one-in-four (24%) professionals feel unhappy with their current salary.
Of those who are happy with their pay, 38% say it’s because it’s enough for them to live comfortably on, 38% feel satisfied that the work they do is right for the salary they receive, and 33% believe it goes well with their role.
Unsurprisingly, continued increases in inflation and bills have put many under greater financial pressure. Over half (57%) of those who aren’t satisfied with their salary shared that this is because it hasn’t risen with the cost of living, over a third (39%) say it’s not enough for them to live the lifestyle they want, and 38% feel they are unable to save enough money to meet their financial goals.
Read the full report here: Salary guide 2024 – Accountancy & finance _ Reed
