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Latest Treasury Market Trends
We were asked by the Association of Corporate Treasurers to comment upon the latest Treasury Market Trends in the corporate treasury market. Here are some of our thoughts.
Latest Treasury Market Trends
1. Do you believe that the market for treasury professionals has expanded over the last 12 months? How strong is current demand for treasury professionals generally?
The treasury recruitment market remained reasonably static as positions occurred as a result of the replacement of staff who had either moved on through internal promotion or were forced to make external moves due to the severe lack of internal prospects. However there has followed a spirited recovery in activity levels with clients replacing vacant treasury positions across the range from the junior to senior level and also many newly created positions which, as previously predicted, were created as clients expanded departments and new projects initiated.
At the junior level, roles recruited have tended to be more operational in nature with both treasury dealer and analyst roles proving very popular. With the advent of Sarbanes - Oxley and IAS39 there has been extremely high demand for qualified accountants who are interested in working in treasury controller roles and we have a constant supply of roles throughout the UK. For example, we recently received candidate details from a newly qualified accountant with excellent blue chip treasury experience formed through their audit work who we presented to four of our clients, none of whom had active remits to recruit at the time, however they all wished to meet the candidate eventually resulting in two job offers, one of which they accepted. This process took less than a month from initial meeting to acceptance of offer, proof the market is busy for candidates with a sought-after profile.
In the past, the typical trigger factor within the market has been the recruitment of a senior treasury position such as a newly placed Group Treasurer who has assumed their role and then formed their own treasury teams around them. In recent contrast to this we have noticed that recent roles become available at the lower levels and movement has percolated upwards as clients refill vacant roles that have been empty for a number of months but are now able to get approval to recruit as market confidence rises and recruitment freezes are lifted.
2. At what levels of the profession are we seeing the greatest demand – senior treasurers, treasurers, treasury analysts, cash managers?
At the junior level, demand for staff in the M3/M4 corridor continues whilst there has been an improvement in recruitment activity for both treasury dealers and analysts within the West End and City. At the middle management level candidates are being sought with strong consultative abilities, both by consultancies who are responding to client demand for advice on restructuring and process improvement and also candidates who are able to assess current treasury structures and integrate subsidiary treasury operations into main parts of a clients business. However the highest demand in recent months has been for expertise in IAS 39 and FAS 133 as the impact of these is felt throughout Treasury.
At the senior level there has been an increased appetite for candidates as companies enact previously agreed expansion plans though the general lack of M&A activity throughout the market has led to a distinct lack of new treasury teams. Currently there exists a surplus of strong experienced UK based individuals with at least four years excellent treasury experience desperate for their next challenge and who are flexible on a move within either the UK or overseas.
3. Have treasury professionals experienced salary increases over the last year, or are any salary changes experienced merely keeping apace with inflation? What are the reasons behind this? Please can you give examples of current salary ranges for: i) Treasury Consultants ii) Cash Managers iii) Treasury Analysts iv) Treasurer Directors.
The scarcity of available roles has meant that there has been little upwards pressure on salaries meaning that many staff have suffered either wage freezes or lower than expected increases in the past year or so. This has gone part way towards addressing the issue that arose when clients were offering artificially high starting salaries to secure staff when the market was going through what was a boom period a few years ago. It now appears there are more gradual increases taking place within a number of treasuries, which is perhaps healthier in the longer term. Our most recent research has shown that rises at the senior level have been noticeably higher and that full bonuses are also being paid.
4. Are there any interesting geographical factors impacting companies’ demand for treasurers and, consequently, salaries? E.g., growth in demand in towns and cities outside London? London falling behind? The North and Midlands experiencing growth?
Roles have occurred throughout the UK although London and the South East dominate due to the higher concentration of treasury functions within the area. However we have noticed that clients have replaced individuals who have moved around rather than expanding their treasury department during the past two years.
In salary terms the City and West End have definitely not fallen behind although we have noticed candidates more willing to consider moves outside London as the quiet market affects the number of opportunities available and candidates take a more holistic approach in their career search by including factors such as reduced travel time and the impact upon both family and personal time of a new role.
5. Are there any sectorial factors that are currently affecting salaries? – Growth in certain industries, resulting in higher demand and putting upwards pressure on treasurers’ salaries?
We have not noticed any distinct industry sectors differences within corporate treasury recruitment although some of our e-commerce/high tech clients have had to undertake reviews and subsequently improve salary schemes currently in place as many of those with enhanced incentive packages such as share option based reward schemes have adversely suffered due to poor market climate in comparison to those in more traditional companies who have achieved solid progress in their basic salary levels without the higher risk/reward profile of those within more recently established companies.
It is also worthy of note that many of our investment and retail banking clients and many financial services clients have after a fallow three year period commenced recruitment for pre-existing vacant positions and are also increasing head count in a number of areas in particular corporate cash management, middle office group treasury staff and ALM specialists. The knock-on effect in the short term may not be felt immediately but the increased upward pressure on salaries and possible shortage of skilled staff in the future will definitely be felt by corporates in the medium term.
6. Is there growth in demand for interim treasury management to deal with strategy changes, growth or re-engineering? Is employing interim treasury professionals a more viable option for companies operating in today’s marketplace? Are salary levels for such interim professionals showing signs of increase? Is this a growth market?
In terms of the growth in demand and the viability of the longer term use of interims many companies struggle due to the lack of consistency when employing senior interim staff within treasury. As treasury departments become established and momentum gathers a uniform approach is vital across group treasury therefore clients often prefer to rely upon existing staff to hold the fort whilst they engage in the often lengthy process of replacing their senior treasury professional.
Demand for interim staff was high at the end of last year and there have been some requirements at the beginning of this year but this has mainly been focused on temporary needs i.e. maternity and sickness covers rather than interim roles where individuals become involved in more strategic management of treasury projects. We have found current salary levels correspond to the approximate level of assumed responsibility and seniority without any radical increase or decrease during the past year.
7. What are the key current supply side factors? Is there an adequate supply of newly trained treasury professionals entering the market? Or can we anticipate shortfalls?
Within the market those currently seeking salaries from £20,000 to £45,000 are in the highest demand as this is where most corporate treasury roles are concentrated and this is where many vacancies arise through the promotion and development of treasury staff.
At middle management levels, typically £50,000 to £75,000 there is an excellent supply of experienced qualified Treasury professionals who face stiff competition from each other but our expectation is that there will be a gradual recovery at all levels within the market place. Continuing professional development by professional organisations such as the Association of Corporate Treasurers, in particular the Certificate in Cash Management and AMCT qualifications, have provided highly sought after qualifications that are enhancing candidate career prospects and their levels of practical knowledge. Currently clients are being highly selective in their choice of candidates as the market has been quiet and this has led to an increase in the use of the ACT qualifications as filter factors when recruiting in order to rank the wide range of candidates they currently receive when recruiting.
The senior treasury recruitment market has suffered in recent times due in part to the lack of company growth and lower market confidence however many clients are undergoing restructuring programs which creates new positions, executive reshuffles have resulted in replacement of past teams and in addition there has been some replacement of senior treasurers who are retiring from the profession.MR |
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