Credit Management January February 2024

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SALARY & RECRUITMENT TRENDS SHOULD I STAY, OR SHOULD I GO? Salary and recruitment trends for the year ahead. BY NATASCHA WHITEHEAD AS the new year begins, it’s the perfect time to reflect on the last 12 months and explore the factors that have had a significant impact on the ever-evolving world of work, from the rising cost of living to an uptake of skills-based hiring. Our 2024 UK Salary and Recruiting Trends guide reveals what the year entailed for accountancy and finance employers and credit professionals, as well as their outlook for the year ahead. Most credit professionals are satisfied in their current role Despite the lingering sense of economic uncertainty, optimism towards the economic climate is steadily on the rise. More accountancy and finance employers are optimistic about the wider economy and the employment opportunities it may create within the next two to five years, increasing from 33 percent in last year’s survey to over a third (38 percent) in our latest research. The same number of credit professionals (38 percent) are hopeful about the impact the wider economic landscape might have on future employment opportunities. Positively, two thirds (66 percent) of credit professionals are satisfied in their current job and over half (56 percent) are confident there is scope for career progression within their organisation. There are many exciting opportunities for professionals embarking on, or well on their way with, a career in credit control and management. Skills shortages persist across accountancy Finding the right talent in a skills short market continues to be a challenge many hiring managers must overcome; the majority (88 percent) of accountancy employers experienced skills shortages in the past year, only a slight decrease from the year before (90 percent). Whilst employers have faced skills shortages across the finance sector, our research shows that the skills gap has been most noticeable within credit management (92 percent) and part-qualified accountancy (90 percent). Soft skills remain highly sought after by accountancy employers, particularly communication and interpersonal skills and an ability to problem-solve, adopt change and learn and upskill. In order to take their career to the next level, credit professionals are especially eager to build on their ability to learn and upskill and their people management skills. With the ever-growing role technology plays in our everyday lives and workplaces, digital skills continue to be of upmost importance. However, Artificial Intelligence (AI) is yet to take off amongst credit professionals, as 95 percent have not used an AI tool in their current role and 76 percent say their employer is not helping to prepare them for the use of AI. If employers want to utilise the opportunities AI could bring, upskilling their staff will be essential for keeping up with the pace of change. Skills and potential could overtake degrees On the topic of skills, our research shows that employers are increasingly turning to skills-based hiring to switch up their recruitment process. More than half (54 percent) of accountancy employers believe it’s not important for a job applicant to have a degree, followed by 38 percent who say a degree is quite important, but not an essential requirement, when assessing a candidate’s suitability. Although achieving a degree will undoubtedly equip credit professionals with an invaluable skillset to utilise throughout their career, degrees are no longer the be-all and end-all for employability within the accountancy sector. Brave | Curious | Resilient / www.cicm.com / January & February 2024 / PAGE 24
CREDIT MANAGEMENT With that being said, the cost-of-living crisis is inevitably taking its toll on professionals far and wide, yet over half (58 percent) of credit professionals say they have not received a cost-ofliving pay rise in the last 12 months. The rising cost-of-living has sparked concerns over job security but has similarly prompted some professionals to seek a better salary. Almost a third (31 percent) of those working in credit have moved jobs in the last 12 months, compared to 44 percent who haven’t moved but have considered it and a quarter (25 percent) who haven’t moved nor considered it. Whilst over half (53 percent) of professionals say the current cost of living isn’t affecting their decision to move job, 25 percent say they’re now more inclined to move and 22 percent say they’re less inclined. Of those professionals who intend to move jobs in the near future, half (50 percent) describe being more inclined to do so as their current salary does not cover their living expenses. Benefits and flexible working important to credit professionals Pay is a top priority for credit professionals today, but it’s not the only incentive deemed crucial when considering a new role. Aside from salary, a benefits package (30 percent) is the most important factor when assessing a new role, followed by worklife balance (21 percent) and job security (21 percent). According to our research, hiring plans are on the up, as 70 percent of finance employers intend on recruiting staff over the next 12 months, compared to 62 percent last year. Hiring for potential is another approach many employers would consider taking to source a range of talent. An aptitude and willingness to learn is thought to be of greater importance than existing skills by 77 percent of finance employers. On top of this, most (78 percent) accountancy employers say they are likely to hire a professional who does not possess all the required skills, with the intention of upskilling them, which is an effective way to attract a diverse talent pool, create opportunities and bridge the skills gap. Rising cost-of-living could prompt job moves The majority (90 percent) of employers across the accountancy and finance sector increased their staffs’ salaries over the past year, which is similar to the previous year (89 percent). As such, more than two thirds (68 percent) of credit professionals have had a salary increase in the last 12 months. We have also witnessed an increase in salary satisfaction amongst credit professionals, from 59 percent last year to 63 percent in our latest research. When it comes to workplace patterns, most (57 percent) credit professionals are working in a hybrid way, versus over a quarter (28 percent) who are based fully in the office and only 15 percent who work entirely remotely. Flexible working offerings continue to be held in high regard by credit professionals as, although 48 percent would consider accepting a job in the future that didn’t allow hybrid working, over half (52 percent) would decline a job that did not offer this flexibility. As well as this, an organisation’s commitment to sustainability is important to a large majority (91 percent) of credit professionals when weighing up a job opportunity, closely followed by 88 percent of professionals working in credit who say it’s crucial for a prospective company to have a strong sense of purpose. Final thoughts Whilst 48 percent of credit professionals are not considering a career change in the next 12 months, more (52 percent) are contemplating a move. Therefore, it’s a prime opportunity for employers to take on board what professionals value most, in order to attract and retain talent in a skills short market. Despite the hurdles finance employers and credit professionals have had to navigate and overcome in the last 12 months, there are many reasons to enter the new year with a positive mindset, and hopefully our research will arm you with invaluable insights to help you succeed in the year ahead. Author: Natascha Whitehead is Senior Business Director at Hays specialising in Credit Management Brave | Curious | Resilient / www.cicm.com / January & February 2024 / PAGE 25
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