We’ve just released our Internal Audit Salary Survey and Market Report for Autumn 2012 aimed specifically at the financial services sector. With the changes going on in the Audit recruitment market this report makes interesting reading.
[For a the full survey follow: Internal Audit Salary Survey and Market Report for Autumn 2012, otherwise the basic content can be found below.]
“Significant increase in Audit vacancies”
Within the London Financial Services Internal Audit market the first half of 2012 has been reasonably buoyant, although the volume of vacancies decreased compared to the first half of 2011. Whilst corporate governance remains a relative safe haven, the uncertainty of the economic climate and increase in regulatory demands on banks and investment firms, still impinged on this market as the sector tried to control costs.
Overall the number of organisations making posts redundant decreased. However, we saw a number of houses implement a recruitment freeze early in the first half of the year. This was mainly due to changes in Audit leadership and department restructures associated with the change in management.
The second half of 2012 has already seen a significant increase in Audit vacancies compared to the same period in 2011 (although there was a noticeable slow down during the Olympic Games), with a particular requirement for more senior technically driven individuals with strong capital markets, regulatory and risk knowledge.
“Markets Groups… seeing strong competition”
As always, Sales and Trading Audit Groups are where we see the greatest competition for strong candidates. An interesting development has been with the number of banks bolstering or establishing Market Risk Audit functions. Compliance and Regulatory Audit continues to be buoyant while Commodities Audit has grown, which is not unexpected given the current state of global financial markets.
After seeing little activity in the first half of the year IT Audit has made a welcome return at the junior to mid level.
Asset Management & Private Wealth Management
Despite well publicised Funds going into administration, fraud cases concluding and a number of fund consolidations over the last few months, the number of Audit vacancies has remained steady since last year with a number of senior moves occurring during 2012.
The challenge within general, life and Lloyd’s insurers continues to be regulatory change. The market has seen a number of senior moves, but key hires for auditors with strong operational knowledge have kept vacancies buoyant.
Retail and Corporate
The market continues to require strong junior level hires. Corporate banking has seen a recent increase in demand compared to last year. One of the bigger challenges for large retail groups has been the sell off and acquisition of branch offices while managing change programs as retail banks restructure assets and operations.
“Contract market… easing”
The ratio of contract versus perm roles has changed over the course of the year. Initially we saw a tightening of the Contractor market; however this appears to be easing as of this quarter.
We have spoken to a number of individuals regarding motivations in relation to their career moves, and the results make for interesting reading.
The past year has seen some banks restrict promotions, salary increases and bonus pay outs while others have frozen these completely. The individuals we have spoken to expect this trend to continue into 2013. Perhaps unsurprisingly, we are seeing an increase in the number of candidates coming to market for the time of year.
“Salary uplifts of 15-20%”
Typically, compensation packages with hiring companies are reflecting this policy change. There is an increase in the core cash component either to base salary or base plus cash benefits. Traditionally uplifts of base cash compensation (including cash benefits) were around 10% and offers beyond 15% were considered to be a good uplift. In the current market we are seeing an increase in salaries of 15-20% as banks look to attract the best talent
From our discussions with those looking to make a career move, 58% cited lack of career progression as the top reason for making a change. Instability or concerns regarding role content or the company direction was cited by 28% as the reason for wanting a change and, finally, 14% were motivated chiefly by salary increase
Figures 2 & 3 show the results from our candidate surveys. We’ve included the original data sets under each graph as they include equivalent years of experience for each job title.
|Job Title: Years Post Qualification Experience (PQE)*||Salary Range (£)|
|Analyst / Auditor: 0-1 years PQE||35 – 50000|
|Senior Auditor: 1-3 years PQE||50 – 65000|
|Assistant Vice President (AVP): 3-6 years PQE||65 – 80000|
|Vice President (VP): 6-8 years PQE||80 – 110000|
|Senior VP/Director (SVP): 8+ years PQE||100 – 135000|
|Executive Director (ED): 10+ years PQE||110 – 150000|
|Managing Director (MD): 15+ years PQE||130 – 170000|
|Job Title: Years Total Experience*||Salary Range (£)|
|IT Auditor: 0-6 years||35 – 50000|
|Senior IT Auditor/AVP: 6-9 years||50 – 75000|
|VP: 9-11 years||75 – 95000|
|SVP: 11+ years||95 – 110000|
|ED: 13+ years||110 – 140000|
|Head of IT Audit: 16+ years||120 – 160000|
* Business Audit years are quoted in Post (Accountancy) Qualification Experience. IT Audit years quoted in Total Industry Experience.
**Please note that these surveys are based on mean values as there are instances where some salaries fall outside of the ranges. Please also bear in mind that different organisations have different compensation structures which were taken into account in gathering the data.
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