Scotland’s professionals to see pay grow by 3 per cent in 2016
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Starting salaries for professional roles in Scotland including finance and accounting, financial services, information technology and administration will grow by an average 3 per cent over the next 12 months, according to the Robert Half 2016 Salary Guide.
The hike would mean a higher increase than that predicted in last year’s guide, which identified a 2.6 per cent rise.
It is also slightly higher than the average annual salary rise of 2.9 per cent announced by the Office of National Statistics (ONS) in September 2015 and well ahead of the current inflation rate of 0 per cent.
The Robert Half 2016 Salary Guide is the most comprehensive and authoritative resource on starting salaries and recruitment trends in finance and accounting, financial services, information technology and administration. The Salary Guide enables employers and employees to benchmark salaries for 275 different permanent professional roles on a national and regional basis.
The roles that are the most difficult to fill are predicted to see salaries rising the most quickly in 2016, including those in the risk and compliance function within financial services firms (4.9 per cent) and information technology roles (4.0 per cent on average), particularly digital and IT security roles.
Kris Flanagan, associate director, Scotland, Robert Half UK, said: “Scottish firms looking to expand their employee base are driving up wages while the war for talent continues. There are steady increases predicted across the board throughout 2016, with hard-to-fill roles attracting the higher salaries. With the growing supply and demand imbalance, there is a growing need for Scottish employers to offer a comprehensive remuneration package with benefits beyond salary as candidates seek more flexible work arrangements and a better work-life balance.”
Starting salaries for accountancy and finance roles are predicted to rise on average by 2.2 per cent across 100+ positions in SME and large businesses. Overall, there are higher rises on offer for more senior-level roles, reflecting the ongoing need for finance professionals who can add value through business partnering and providing strategic insight for the business, not just fiscal control. The highest average rises for finance and accounting roles are around 4.0 per cent, so hard-to-source senior and specialist professionals can expect a steady climb in remuneration prospects.
Compliance remains top of the agenda for financial services firms as the sector balances revenue-generating activities and the need to remain compliant with heavy regulation. As such, nearly all (98 per cent) finance directors reported that they are challenged in finding skilled financial services professionals. Salary raises for risk and compliance roles are predicted to increase by 4.9 per cent, the highest average rise for any category within financial services in this year’s Salary Guide.
Starting salary increases for finance and accounting roles in the financial services sector are slightly outpacing finance and accounting within commerce and industry at 2.7 per cent (compared to 2.3 per cent). Salaries for banking operations functions (including trade support and middle office roles) are predicted to grow more slowly than the average for the category at 1.8 per cent.
Mr Flanagan added: “As the Scottish economy continues to rely on specialist professionals who are able to add-value from day one, there is a growing need for businesses to offer candidates competitive market salaries. In the lead up to 2016, proactively benchmarking salaries would provide businesses clarity in meeting their retention and hiring needs. Ensuring star performers are receiving competitive remuneration helps businesses keep hold of them as salaries increase. Also, as hiring requirements become clearer, benchmarking salaries will ensure budgets accurately reflect needs.”
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