Lack of mobility leads to salary stagnation across treasury profession

March 2013

The vast majority of treasurers at all levels of the profession are reporting that they are happy in their role, yet many are looking for new opportunities due to stagnating salaries over the past three years, according to MR Recruitment’s 2013 Treasury Salary Survey.

Despite 75% of corporate treasury professionals reporting that they are happy with their job, slightly more (78%) say that they are interested in considering new opportunities, according to MR Recruitment’s 2013 Treasury Salary Survey.  ‘Keeping one eye out’ may be a result of stagnating wages across the profession, as many have stayed put to ride out the tough economic conditions.

According to the survey, the average annual salary for each grade is as follows:

• Treasury analysts/dealers – £41,416.
• Treasury managers – £64,487.
• Treasury consultants – £87,812.
• Assistant treasurers – £78,833.
• Deputy treasurers – £109,303.
• International/regional treasurers – £107,643.
• Group treasurers – £136,477.

Treasury managers and deputy treasurer categories saw the largest average annual increase in salary – up 7% and 5% respectively from 2012; however, other treasury ranks saw wage levels stagnate.

When taken together, it adds up to the start of some movement in what has been a very slow job market, according to Mike Richards, Managing Director, MR Recruitment.  “Today, four out of five treasury managers are looking for a new job – that is a significant shift from previous years’ results. Even if they are not proactively looking, they are now prepared to have a chat about what is out there.  I think that people are starting to realise that the only way to get a meaningful increase in salary in the current market is to move jobs.”

Treasurers have seen a small increase in overall packages due to the return of bonuses in 2013.  After a cut in bonuses two to three years ago, now is there a recovery starting to happen.  But “the boom times are over, certainly for the foreseeable future,” according to Richards.

 

Are treasury departments growing?

Although one in five respondents expect their treasury department to increase in size, the hope of more staff has diminished each year – in 2012, one in four held out the hope for more people.  Richards says: “There was a greater growth potential about five to six years ago, before the economic crisis when there was a lot happening in treasury.  Today, because of the challenging times, companies may want the whole ‘A to Z’ of treasury, but at the current level of staffing the treasurer may only be able to deliver ‘A to M’.  The ‘N to Z’ and other nice-to-haves will have to wait.”

Treasurers are focusing on the critical factors, not recruiting.  MR Recruitment has one client who has had sign off for a full-time equivalent (FTE) for nine months.  “They haven’t recruited yet because they are coping with implementing a new treasury management system (TMS) and day-to-day treasury activities,” says Richards.  “At the moment, the pressure is on to keep their heads down and carrying on as business as usual.”

To cope with the lack of staffing resources, many treasuries are operating a ‘zone defence’ where everyone is sufficiently proficient at another’s job that they can cover during holidays or sickness.  “This is a very good description,” says Richards.  “One of our FTSE 100 treasurers says that they are happy to do the treasury dealing if the dealer is off sick, but they are a very expensive treasury dealer.  But currently a request for another member of staff would be denied, as the whole company already has a recruitment freeze in place.”

Although some have reported a large jump in interim treasury recruitment, Richards refutes this.  “It has been quiet because there hasn’t been anything new to do.  Treasurers are being asked to make do and mend.”  But some large change projects are coming down the line, such as the Single Euro Payments Area (SEPA), as well as a need to improve cash management initiatives.  “The only way to improve or take treasury to the next level is to bring in interim resources, or perhaps a junior operational member of staff which will then give the senior members of staff some time in their schedule to carry out new projects,” Richards says.

 

Future plans

The 12^th survey in 10 year, the MR Recruitment Treasury Salary Survey surveyed 682 participants globally, at all levels from treasury assistant to global treasurer.  The survey has a large proportion of respondents from the UK and EU, but with the opening of MR Recruitment’s new office in the US, Richards is hoping the US portion of the survey will make a leap in participation level.  The recruitment firm also plans to do a Swiss survey, which is well-timed given the recent news that all 26 Swiss cantons voted to cap the pay of top company executives.

This insight was first published on www.treasurytoday.com