Challenging was the word for central and local government finance professionals. In contrast the NHS, education and charity sectors held up well with finance managers, controllers and head of finance roles the most popular in the more buoyant areas within the public sector. Despite a backdrop of more cuts to public sector funding, the outlook for opportunities for finance professionals looks improved.

How does this influence what type of financial leaders charities and public sector bodies are looking for in 2014 and what are the potential challenges facing them?

Charities & Membership Bodies

Charities that relied on local council funding and those that provide disability assistance were squeezed, with some charities merging and 1600 organisations closing down altogether. 

Large charities which relied heavily on donations have struggled over previous years. However, more recently, they have seen an increase in charitable donations in the past 12 months reflecting a more positive mood in the private sector. The result is a more commercial sector increasing headcount in all areas of support staff, in particular, an increase in demand for financial professionals.

Education and training providers

The education sector continues to become more commercial.  As a result, more organisations were dedicating time to finding finance business partners, management accountants and commercial VP’s of finance.  However, attracting candidates from the commercial sector to education remains a challenge from a salary perspective.

We expect the sector will see continued budgetary changes as public sector funding is reduced and replaced by private tuition fees. The rise in student tuition fees and increased competition with international institutions means next year we will see more higher education institutions having to cut cost and merge roles.

Government

Finance professionals in local and central government faced a tough year as the demand for senior part-qualified and newly-qualified accountants decreased substantially. This trend looks set to continue, with only a few areas recruiting finance staff.

Increased public scrutiny in large corporate affairs after the GFC has resulted in regulatory bodies increasing hiring of finance professionals.

Housing

We anticipate a drive in the housing sector to get more value for money. Finance candidates will need to clearly demonstrate this to potential employers. Management accountants will continue to be in constant demand as housing associations aim to keep tight control on budgets and forecasts. Seasonal fluctuations will predictably occur around half and full year-end.

With many housing associations not having extra staffing capacity, this will probably lead to high interim demand.  The G15 and other larger national associations will continue to recruit finance staff at transactional and middle-management level.

NHS

We saw an increase in interim and temporary recruitment within the NHS.  We found that the primary reason for the increase was due to the cuts at management level – an unsurprising development in light of ‘an aim for £15 billion in efficiency savings’.

The subsequent knowledge gaps across NHS Trusts and hospitals have in turn increased demand for interim cover to bridge these gaps. Financial skill sets that were particularly sought after during the last year include financial planning and analysis and financial modelling to accurately monitor long-term costing and expenditure of a ‘moving feast’ in many situations. Candidates with these skills were able to command significant increases in their rates as they were in constant demand and still are today.

Management accountants with pricing and costing experience were also highly sought after as budget management was of particular importance within the NHS. Technical financial accountants were also very much in demand. Furthermore, as the NHS sought to improve efficiencies through improving financial systems, finance professionals with ERP systems experience were also sought after – Oracle the most frequently requested by hiring managers.

As the Clinical Commissioning Groups (CCG’s) and Commissioning Support Units (CSU’s) continue to evolve, finance professionals with specific experience in these areas will be in demand.

2014 looks set to be a busy year for interim and contract recruitment in the NHS.  Cuts to permanent staffing budgets set to continue until at least 2015, will increase the competition for specialist temporary staff with NHS Trust, CSU or CCG experience.

Finally...

Public sector saw some tough times in 2013, with further cuts and a further decline in jobs.  In contrast to this, the NHS, education and the charity sectors have held up better and have seen a demand for finance professionals. however, with these cuts we can expect to see a demand in finance professionals with the capabilities to ensure organisations see ‘bang for buck’ across the board.

A look at the range of jobs in social housing may give some insight into exactly the type of services now provided by social housing.

Non-core activity is fundamental to how housing associations serve their communities. This may not come with full support from all quarters as debates continue around limiting what is provided with affordable housing such as; housing with care and support, community investment, student and key worker housing.  

The country is in the grip of a housing shortage and the lack of affordable homes is affecting many families on low income a situation for some that is long term and will never change. Many housing associations are concerned that any limiting of what they can offer as part of their housing provision could affect their ability to meet government demands and also demands of a whole community of people.

Diversification from non-core activity in the housing association sector is not new, it has been the raison d’etre for some Registered Providers from their inception; working as charitable trusts to house the homeless alongside providing other services that complement their missions, but the question being raised is where do you draw the line.

Setting aside the affordable housing debate and what might or might not be provided within that bundle for one moment; a core part of running a housing association is that of managing very large portfolios of housing stock, for want of another word, property assets. As with all asset classes these carry risk, the values go up and they go down; there are many ways to structure finance which carries a fair degree of risk especially if they’re derivatives based, maintenance, and disposal of assets for asset swapping are all part of the rich commercial picture core to being a social housing provider. A reason for mentioning risk is that the government and regulators want a risk free affordable housing solution to protect the most vulnerable in society. Not possible, life itself carries risk.

Alongside this core activity comes job creation in finance; asset management, property management, care, business improvement, income recovery, project management, in fact a full administration of core and allied functions; not entirely publicly funded or directly funded by the tax payer. Typically for every pound of public subsidy housing associations are raising six pounds of private finance. This is wealth creation in itself but reinvested in a social cause.

Low cost rent or ‘affordable rent’ is rent that is offered at below market rate for those whose needs cannot be met adequately in the private rented sector. This group of people are more likely to have other social needs like care, or key worker support and any other commercial activity engaged in by the housing association helps to fund the core housing service to meet those needs. Also rents are not entirely covered by income support. How much diversification to meet such needs is at the heart of the debate but one cannot argue that many other families’ incomes are also dependent on housing associations through the myriad of jobs created which provide to these groups of workers far more job satisfaction than their commercial equivalents.

Let’s hope the regulators come to some sensible conclusion and don’t throw the baby out with the bathwater.

For more information on social housing jobs email

Morgan Hunt provides 8 point plan to gain more recognition and better pay

The not for profit sector brings many rewards to those working in it. Sadly money is not one of them. But you should not be downtrodden even if you love what you do. The perception in the third sector is often that your role is about the cause and not the money, but this doesn't mean that you shouldn't earn what you're worth.  If you have the skills and experience in the role that you do and you deliver excellence in this regard then you are worth a market rate.

Clearly charities are always looking to reduce their cost base and increasing the percent of charitable pound to their beneficiaries but this does not mean that you should not earn what you believe that you are worth.  
 

If you want to negotiate your pay, here are a few key tactics to help:

1. Be sure what your skills are worth and be prepared to support with evidence
   It is important to have a clear understanding of the value of your skills in comparison to the market and sector average. So do your homework and research sector salary surveys. This can also help you plan your career or chose an alternative path that you may not have considered before.
    
2. Be prepared to demonstrate your value to the organization.
   It’s important to quantifiably show how you are delivering value and the benefits you bring to the organisation. Highlight your successes and your achievements.
    
3. Be clear about your position in your organisation's future.
   If you can show how you are part of your organsation’s strategic plan and goals it not only demonstrates your understanding of where they want to be but also the part you play in this. If you can show how integral you are to your employers, your worth will increase. Demonstrating your understanding of their long term vision also shows commitment and dedication to the cause.
    
4. Be confident of your total worth.
   Think about your total worth in terms of how much it would cost the organization to replace you and the learning curve that another would need to go through to get to where you are. Your research will have shown you; what the sector is paying and what you bring to the organization, now tot it all up with the additional hiring costs and the value that you bring to the role through having done it for some time.
    
5. Be creative about what non-monetary benefits could add value?
   This may sound a little hard-nosed so remember to keep conversations as negotiations and not demands. We are simply trying to evaluate all benefits that other employers provide that sometimes add up to a better package overall. For example you may finally settle on something that does not include a direct salary increase but as enhanced benefits instead.
   
   Some additional things to consider might be:
   -   Is your role expanding or could you develop it
   -   Can you build on your experience by getting involved in new projects
   -   Is there a learning opportunity in which you can train or take extra qualifications
    
6. Be rehearsed and role play.
   This is not easy to do. Many tough nuts find it difficult too. So practice with a friend or relative. Go over the salient points in your pitch and work on tone and delivery.  Brief your confidante to ask questions and test you.
    
7. Be proactive and request a review.
   Sometimes negotiations go over an extended period of time and it may mean that the increase that you want cannot be provided in the short term so there is an alternative approach which is to make sure you work towards your expectations through a series of performance reviews, setting out clear targets and SMART objectives. This will demonstrate your flexibility and it will be clear that you are not holding the organization to ransom but that you have needs too.
    
8.  Finally …
   The aim is for a win, win situation. The exercise should not be just about what you think you are worth but a more holistic approach to what value you bring to the organization and what the market is paying others with a similar type of skill. Your expectations should be in line with market value.

 
Sector aside, a good employer will want to reward those who add value. If not, it could be time to re-consider your options. For more information on non profit jobs call us on 0207 419 8900 or email us on info@morganhunt.com.