Earlier this year, research conducted by Reed found that workers in the Midlands are battling the cost-of-living crisis, with the average worker wanting £12,700 more per year in order to live comfortably.
But what does this mean for those in finance? How can they support employees while on tighter budgets themselves? In this article, Chris Willsher, Senior Regional Director for the Midlands at Reed, explores how businesses can meet the demands of employees, while still staying strong in a tough economic market.
The UK’s ongoing financial pressures mean employers and employees are at a stalemate: employers need to tighten their purse strings, while employees are in need of better wages.
This was reflected in the research we conducted for our 2024 salary guides. On top of needing an average of £12,700 more per year to live comfortably, we found that a third (33%) of workers in the Midlands felt that their financial outgoings were negatively impacting their mental health. The same amount also don’t feel confident that they will achieve their financial saving goals as planned.
As such, it was also unveiled that 56% are actively looking for or considering new job opportunities, with 32% believing they could get paid more elsewhere. At a time when businesses need to hold onto talent, many may feel at a loss on what to do to keep employees happy.
How about the finance and accounting sector?
For those in the finance sector, however, things aren’t quite as glum. Over the past year, the sector has seen an average of a 4.2% increase in salaries.
If we pit this against other sectors, we can gauge how well the finance sector is performing. The IT and cyber security sector, for example, only saw a 2.4% increase, resulting in it being the sector that witnessed the least growth over the year. This can be down to a number of factors: from the demands of the employment market to the shifts in trends with consumers and businesses, impacting the talent needed to meet demand.
As the finance sector continues to navigate obstacles on the back of economic issues, we’ve seen a lot of those in the industry embracing technological changes – in particular the use of AI and automation. Some businesses have done this well, demonstrating strong operational resilience, allowing for skilled financial professionals to continue to be sought after to ensure companies are getting the best service on offer.
Those in the finance and accountancy industry are well aware of how the sector is subject to frequent regulatory adjustments, and staying abreast of these changes is essential for both businesses and practice professionals. Businesses, therefore, need to prioritise talent acquisition and invest in ongoing professional development to ensure their teams are able to navigate challenges and remain up to date with industry changes.
These changes also mean that salaries will fluctuate for different roles. For instance, in the East Midlands, we’ve seen payroll manager salaries dip in the past year – 5.3% less than what it was in 2023. On the other hand, financial analyst roles have risen by 19%. This shows that the trend in adopting technology is boosting demand for more analytical, ‘human thinking’ roles. What businesses in the Midlands need to consider, therefore, is how competitive they need to be against particular roles. The industry may show signs of growth, but certain job roles are changing, which may cause a need for assessing overall business strategies. All in all, salaries for finance professionals are expected to continue their upward trajectory, as the demand for skilled accountants continues to be high, especially with the growing complexities of financial regulations.
The power of benefits
Of course, one size does not fit all, and where raising salaries isn’t an option, the benefits businesses offer can potentially tip the balance when people are considering changing jobs. Surprisingly, however, over a third of workers in the Midlands (34%) say they don’t receive any workplace benefits at all.
There also seems to be some disconnect when it comes to offering workplace benefits. It’s especially important for businesses to make sure they are offering the right benefit for the right team. When looking at the most commonly received benefits for those across the Midlands, we find that the three most common are: flexi-time (18%), annual salary increments (17%) and company pension higher than the required amount (16%).
In comparison, the top-three desired benefits for finance professionals are: an annual salary increment (40%), a performance bonus
(39%) and a four-day working week (36%). There’s a disparity between what is being offered and what is desired, especially as only 5% of workers in the Midlands currently receive an in-demand benefit – a four-day working week.
This information shows that there are some areas where businesses could better align their benefits packages to the wishes of candidates. There are also some areas where companies could save money by removing less popular benefits from their offering. Cycle-to-work schemes, for example, fall into one of the least desired benefits for employees, with only 5% finding it an attractive add-on.
When businesses align the benefits they offer to their employees, they will be in a better position to keep talent within the company – this will save costs in the long run, while also helping employees in other ways.
In general, those working in accountancy, finance and banking tend to receive a higher number of benefits than professionals in other industries. For example, over a quarter receive private healthcare (28%), health insurance (25%) and life insurance (23%), whereas across the nation, just over one in ten receive those benefits. Businesses hiring such professionals, therefore, need to bear in mind that to help retain their recruits, they may need to think about the type of benefit packages they are offering – especially if they are trying to entice them out of industry and into their company.
Reed has produced a suite of 16 sector-specific salary guides, which include an in-depth analysis of a survey with 5,000 UK workers, assessing their current and preferred salaries and benefits, their organisation’s performance and priorities, how they rated their job security and the future of their sector, and the key recruitment and skills trends they’re witnessing.
