Data collected by the Chartered Institute of Management Accountants (CIMA) and a recruitment agency has revealed that salary increases are being surpassed by increases in bonuses.
Accountant salary growth
Annual salaries for CIMA members have increased nationally: overall, there was a 1.9 per cent increase in 2016, rising from £62,791 to £63,991.
Despite the national rise, there remains notable differences in regions. London remains the highest paying area in the UK for accountants. An increase of 3.5 per cent over the past year saw accountancy professionals receive an average salary of £77,174. The largest increase in terms of percentage was Wales; an 8.7 per cent rise this year grew the average to £52,572.
The variation in annual salaries across regions is unsurprising. The concentration of global organisations in the capital means that salaries in London are generally higher. With a pay close to £15,000 higher than the average in the UK, London is a popular choice for accountants.
Shortage of accountants
A shortage of qualified management accountants has meant that retaining current talent is a top priority for many organisations. Demand for the best talent is set to increase in 2017 with 90 per cent of UK CFOs admitting challenges in finding skilled professionals.
In a bid to retain talent, average bonuses increased from 8 per cent of annual salary to 12 per cent in 2016.
A move to London may appeal to someone who feels that their employer is undervaluing their skills or to someone who would like to take advantage of the higher salaries.
Touchstone Recruitment has a specialist team that oversee the accountancy and finance sector. Browse the current jobs or contact us on 020 3143 4600 to let us know what accountancy role you are looking for.