Finance salaries are growing – here’s how that affects you

In 2022, wage inflation is continuing to take place across all levels of employment in the UK finance sector, as it enjoys a resurgence following the economic instability caused by the Covid-19 pandemic.

As has been the case for so many other sectors and industries in the UK, another factor driving up salaries has been the shrinking talent pool. With many professionals working in finance reassessing their careers and seeking more flexible roles in part of what the media has dubbed ‘The Great Resignation’, salaries have nudged up as employers attempt to stand out in increasingly competitive hiring landscapes.

Here, we take a look through the key reasons for salary inflation in finance, and how it is impacting candidates and employers right now.

Big Four-driven competition 

Like so many employment issues in the UK’s finance industry, arguably the most important factor in the wage increases that have been seen has been the huge influence of the Big Four accounting networks: Deloitte, Ernst & Young, KPMG and PwC.

Due to salaries set by the Big Four, newly-ACA qualified accountants moving into their first full professional roles could expect to command salaries of around or above £55,000: a figure that has risen faster than inflation over the past couple of years. 

An increase in the number of foreign companies entering the UK finance industry has also contributed to wage increases. James Fowler, Business Director at Michael Page Finance, said he had worked with prominent US firms entering the UK market with great spending power. He commented:

They want to build a really strong team - money is not really an obstruction, and they're prepared to pay to get the right people into the business. That feeds into the wage increases we’ve seen, too.

All of this means that candidates are at a significant advantage in today’s market, and in a great position to request top tier employment packages. Companies looking to hire top finance talent will need to make sure they are offering salaries and benefits which are truly competitive in the current market. 

Flexibility is key to hiring in finance

Successful professional accountants tend to be intelligent, pragmatic, and are often risk-averse in terms of life planning. As a result, it can often be tough for employers to tempt accountants to move firms.

Salary has always been a large factor in decision-making around jobs for accountants, as well as other obvious elements like pension and holiday allowance. But, over the past two years flexible working has become a far more important factor for professionals in the industry than it was previously – perhaps becoming even more important than salary.

With the popularisation of remote working, it is now common for accountants and other finance workers to demand such flexibility when offered a new role. Employers who fail to offer this risk cutting off a large section of their potential talent pool for recruitment. Fowler said:

When flexible working is not offered, candidates are immediately suspicious as to why. What does that say about the company’s culture and how they view their staff? Is there a trust issue? It opens a whole can of worms, just because they're not offering flexible working.

This is another factor heavily influenced by the Big Four accountancy firms, which have offered many staff members flexible working options with regard to hours and location. We would strongly advise smaller firms to follow suit, to be able to remain competitive when hiring top talent.

Companies who can keep pace with the salary rises, as well as the rise in demand for flexible working, immediately put themselves at the forefront of this competitive hiring field.

At Michael Page Finance, we work closely with a range of companies to place top professionals into well-remunerated, exciting roles. For an introductory conversation with one of our expert consultants, please get in touch.