Finance Recruitment Team

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.

Morgan Hunt explores what this means to employers and candidates

After five years of deep recession it’s official - the UK economy is growing. No matter how small the economic growth is at present, firms will need to take a closer look at how they are hiring because without planning for talent when employment conditions change they risk being left behind in the skills chase. 

One of the problems in relying on economic growth numbers to come out is that they are always after the event has happened. Delayed reaction could see the company’s growth plans stifled simply because the skills are not in place. 

So how will this play out in recruitment supply and demand for finance jobs. 

An Office of National Statistics report reveals that real wages have been dropping consistently since 2010. In general the economics of this means that the supply side of finance candidates has been stronger than the demand side from employers.  

However there currently appears to be an exception to the economics rule because despite the optimism of employers, accountancy candidate confidence and their attitude to risk is stalling the flow of finance talent coming onto the market. In other words candidates are staying put. 

With stagnant salaries (real wages have been dropping consistently since 2010) and the “last in, first out, myth”, there continues to be little incentive for candidates to dip their collective toes into the market unless a burning platform forces them to jump. Candidates are being risk adverse with their primary need, of the time, being security. 

Employers are now facing a skills shortage across many accountancy divisions. They are also retaining their exacting standards when hiring - unfortunately this bottle neck will grow until good old fashion supply and demand moves towards equilibrium.

A return to a candidate led market will mean rising pressure on salaries, golden hellos, generous share options and improved benefits to attract the best finance candidates.

What does this mean for recruitment?

Contractor rates are rising and permanent salary ranges are edging up which is the first indication of a tightening skills market. Accountancy candidates will not move from current positions unless there is a firm career benefit to do so. Salary packages will need to rise to attract new talent and employers would benefit from keeping a more holistic outlook on their selection criteria. 

Often the right person is not necessarily the one who has the best ‘on paper’ match in terms of industry and job experience. The recent appointment of Sir Stuart Rose, former Marks & Spencer’s boss to advise the NHS on how to improve management is a case in point. 

What does Sir Stuart have in common with reviving a ‘failing’ NHS. The answer is probably quite a lot. Stuart’s skills have been proven to be able to spot the issues in large complex organisations – a precise match for the problem at hand.

The art of recruiting often lies in identifying the underlying skills of a finance candidate. Being too focused on trying to find an exact match in keywords, phrases and sound bites does not necessarily yield the best person.

A change in recruitment methods will be required when finance candidates are in short supply. 

London in particular is an improving market and any recessionary loyalty will be firmly tested when competitors realise that improved benefits and packages tempt staff away.  

For more than five years employers have called the shots with the most exacting criteria and often with the added recruitment ‘cherry’ of industry sector relevance. It is now just a matter of time, but the move to a candidate led market is returning.  

Excellence needs to be rewarded and employers need to plan and factor in; that the recruitment boot is moving to the other foot and ultimately if employers persist with continuing to work as if the UK is still in recession, then it may come as a shock when highly skilled accountancy candidates pass them by. 

Morgan Hunt offer a consultative service to help you and your organisation find the kind of finance skills that will ensure the continuity of your mission. For more information email info@morganhunt.com.

Why finance has gone from being the number crunchers to partners in strategy

A number of key events over the last 5 years have led financial professionals to re-examine their roles. What is different now?

Since the global financial crisis the importance of the CFO has risen dramatically, but it’s not just this event that has propelled them and their functional department into the limelight – finance professionals have gone from being the principle number crunchers to partners in strategy.

The finance function makes two essential contributions to the business; understanding costs and how these translate into outputs that turn profits. This isn’t just about doing the maths, the soul of the challenge lies along a continuum of thinking from; quantifying the value of using alternative delivery models and understanding the dynamics of the business through to ensuring that the organisation has the right structure and skills in place, and that the truth on how to report value is balanced and rigorously upheld in one place. The finance function not only plays a critical role in supporting the business but asks the right questions armed with the right information in order to create it.

In recent months we’ve seen a major retailer wipe billions off their share price following the discovery that its profits had been artificially inflated by some £250m due to a discrepancy between when profits were accounted for from deals with suppliers and when costs were paid. Yet it wasn’t just the accounting errors that raised eyebrows but the sheer way in which eventually the story unfolded. It’s hard to understand why a whistle blower accountant should have to go through a protracted route and through many actors that eventually involved in-house counsel to report concerns; a true indication that all was not well with the culture and structure of the business.

This event, although being a high profile is just one of a number of other types of events that have changed the face of finance for good, not necessarily as a result of misdemeanours, but global incidents, structural change, tax and regulation that conspire together to make the finance function a strategic pin that not only holds everything in place but takes decisions from having better information in a wider context. Commercial deals may not be that commercial if they are not structured in the right way, operational success only comes from efficient and effective delivery of service and products and leadership rewarded from having the right contextual information…the banks may learn a lesson or two from here.

In many businesses today finance has a leading role in innovation that can be financed from tax credits with business strategy that uses finance to create additional and increased value from new business models and playing a critical part in the structures that will deliver this. All this and more finance managers are embracing a more strategic role. They are no longer the number crunchers but delivering the right balance of stability for a sustainable future.  This new dawn has an impact on skills where the qualification is just the foundation. Finance professionals are destined for a very creative and commercial career where nurturing the right attributes can lead to one of the most important roles in the organisation.

Morgan Hunt is a specialist recruiter in the finance sector and offer a consultative service to help you and your organisation find the kind of finance skills that will ensure the continuity of your mission. For more information call 020 7419 8900 or email us.

Never has Corporal Jones catchphrase been more relevant.

In the past 12 months, the ramifications of both domestic and international politics have created a tsunami of uncertainty, anger, fear and division.

Is there any wonder why? We have been hit with a barrage of headlines about the dire predictions for the UK economy including;


“Pretty grim reading” 
“Two decades of lost earnings growth”
“Declining living standards”
“The endless living squeeze”

Throwing in the mix about Brexit threatening to move your jobs to mainland Europe, the rise of Artificial Intelligence, plastic pollution and the all the other horror stories. The idea of hiding under the bed with Moz, the John Lewis monster seems most appealing.
 
However, there are grounds for optimism especially if you are fledgling accounts trainee, newly qualified or an established and seasoned accountant.

Singularly the biggest issue facing Professional Service clients who are recruiting is not the competition.  It is not unrealistic salary demands but it is the ongoing skills shortage amongst candidates particularly around Audit / Assurance / Tax / Advisory / Risk and Insolvency.

Demand for accounting staff has remained consistent throughout the year and will continue into 2018. We do not hear from our clients about the imminent collapse of the UK economy.  Far from it.  The expectation is a push on hiring next year.

The question to ask job seekers should be, what are you doing to make your profile stand out? what skills do you need to develop? where can you focus your efforts to secure your next role?  How are you approaching your job search?

For those employers out there, the message from the UK working population is very clear.  The drip feed for improved flexibility and work life balance driven by the millennials is now matched by all generation types.

It is by far the biggest motivator for job change.  Money, reward and career development is following closely behind. The thinking is; if purchasing a house is a distant dream and materialism and the requirement for “things” less important, life experiences and time to enjoy them is the compensation.

A business with innovative ideas, working flexibly with clear objectives whilst operating as an achievement focused meritocracy is an easy and compelling sell.

So, accepting change, embracing it and leading change for candidates and clients alike is the optimistic message as Christmas and a New Year approaches.  Time for calm and hold of nerves, panic is no use to anyone.