MARKET INSIGHTS & 2020 SALARY GUIDE - MCGREGOR-BOYALL.COM - MCGREGOR BOYALL
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HR & Talent Management
Market Insights &
Salary Guide
2020
mcgregor-boyall.com
Contents
Market Overview 3
Challenging Market Conditions 4
"The word "commercial" has
Attraction and Retention 5
never been more critical when
IR35 Off-Payroll Regulations 8 organisations are seeking
Top Skills in Demand for 2020 10 HR Talent."
Salary Guide 11
Contact 14
Market
Overview
If asked to describe 2019 in one word it would be... 2019 saw a rise in demand for In-House Talent Acquisition Business roles and Centre of Expertise roles whether
turbulent! The constant “will it happen / won’t it Specialists, with organisations seeking individuals who in Reward, Talent Management, HR Change and
happen” circus surrounding the dreaded Brexit word, can advise on talent acquisition strategies, ensure they Transformation or HR Analytics. Competition is
(a word most of us, whether leave or remain, would are offering a strong candidate experience and help build always fierce for these individuals in the market and
be happy to never hear again), incessant political a strong employer brand. However, with the increasing will continue to be so in the future.
jostling for supremacy with no one party really offering commoditisation and automation of hiring processes
a cohesive solution and yet ANOTHER General Election meaning candidates often receive no feedback on This is especially true in needing HR Specialists with
has left the UK market hesitant and uncertain. Add applications and this, along with slower processes, can a strong change element, requiring prior exposure
to this the upcoming changes to the IR35 Off-Payroll leave candidates feeling dissatisfied with the overall to restructures, designing target operating models
Regulations which are being extended to the Private experience and the organisation as a whole. With talent and experience in embedding new models as well
Sector in April 2020 and you can see why it has been a already more hesitant than normal about moving within as M&A and divestiture - all critical requirements as
torrid and changeable market for hiring talent in the HR an uncertain market, we have seen challenges in hiring businesses look to reshape to ensure they are fit for
space. for certain roles as clients become more inflexible around purpose.
their increasingly complex needs, as well as more risk
The general consensus around IR35 in the risk-averse, averse and less willing to hire individuals without a proven Here’s to hoping for a smoother and less tumultuous
Financial Services sector is a blanket PAYE approach track record despite having high level capabilities. The 2020, but our prediction is that turbulent times are
aimed at ensuring the Banks are not at risk of HRMC competition for the candidates who are able to fulfil these going to last a little while longer amid the increasing
subsequently holding them to account for future tax complex requirements is ferocious, meaning roles are demand and battle for top commercial HR Talent!
requirements. However, there seems to be no appetite remaining unfilled for extended periods of time.
for increasing the rates on offer to Contractors, meaning
the interim population will be the one to absorb all the The word “commercial” has never been more critical when
risk and cost associated with this approach. organisations are seeking HR Talent. Long gone are the
days of people seeking tactical reactionary “personnel”
While this may work as an interim solution as the specialists who are only used by the business to sort out
market gets its head around what those real financial contractual obligations and check on holiday or absence.
implications are, the vastly reduced financial benefits of These have been replaced by sleek processes, automation
working on an interim basis and as a flexible resource and off-shoring/near shoring where relevant, meaning the
will be lost. This is likely to mean that the flexible drive and demands on HR talent is increasingly business
workforce which is critical to supporting businesses
through change and interim needs will be much
reduced, and the burden of future proofing to ensure
focused. Organisations are now seeking individuals who
are able to account for macro and micro economic factors
and view the organisation holistically to drive business
NINA ADAIR
talent needs continue to be met will fall on HR. aligned people strategies. This critical element is now a PRACTICE HEAD
non-negotiable when seeking HR Talent in both HR HR & TALENT MANAGEMENT RECRUITMENT
3
Challenging Market
Conditions
The UK Labour Market held up well for most of 2019 Interestingly 57% of candidates stated they are Top 3 Reasons for Headcount Increases in 2019:
1 2 3
despite challenging economic conditions. This was happy with their current salary compared to only
reflected in the HR space with 64% of employers 31% stating the same last year. However, 43% are
reporting an increase in the salaries of their NOT happy with current salary which could result
workforce and 66% reporting an increase in in additional challenges for employers as they Business Expansion into Acquisition /
headcount. 34% reported salaries had remained struggle to hold on to their top talent. growth new areas merger
at existing levels and only 2% reported a decrease.
This trend was reflected in the candidate data with Salary Changes - Employer Perspective: Top 3 Reasons for Headcount Decreases in 2019:
1 2 3
50% reporting an increase in salaries, 39%
reporting no change, but a slightly higher 11%
reporting a decrease in salaries.
34% 64% 2% Cost cutting Market Technological
Of those businesses who reported an increase in No Change Increased Decreased exercise challenges advances
headcount in 2019, 45% reported an increase in
permanent headcount and 42% reported an
increase in both permanent and contractor Salary Changes - Candidate Perspective:
"64% of employers and
headcount.
However, 23% of employers actually reported a
decrease in headcount, up 10% from 2018, further
demonstrating the impact the continuing
39% 50% 11% 50% of candidates
uncertainty around Brexit and global economic
No Change Increased Decreased
reported salary
increases in 2019."
factors are having on businesses. 37% of
candidates believe current market conditions
will result in no changes to salaries in 2020, with
33% expecting salary decreases over the next 12
months.
4
Attraction and
Retention
When it comes to retaining top talent, employers in the HR & Talent Management space cited culture / environment as the most important factor, followed by
career progression and flexible working opportunities. Candidates agreed that culture / environment was the most important reason for remaining in a business,
followed by base salary and leadership.
What Employers consider to be the most important factors for retaining top talent: What Candidates value most in their current organisation:
Not Quite Neutral Very N/A Not Quite Neutral Very N/A
Important Important Important Important Important Important
Culture / Culture /
Environment 9 9 82 % Environment 11 13 76 %
Base Salary 32 15 53 % Base Salary 17 15 66 2 %
Leadership 19 21 58 Leadership 17 17 66
2 % %
Flexible Working / Flexible Working /
26 10 64 % Work Life Balance 2 22 4 72 %
Work Life Balance
Overall Overall
2 23 25 50 % 2 17 17 64 %
Compensation Compensation
Career Progression / Career Progression /
Expanding Skill Set 11 8 81 % Expanding Skill Set 28 4 68 %
Market Confidence / Market Confidence /
Job Security 2 23 27 46 2 % Job Security 2 28 24 44 2 %
New Challenge 23 22 55 % New Challenge 2 34 13 51 %
Bonus Potential 8 36 34 22 % Bonus Potential 31 2 %
8 31 28
Flexible Benefits Flexible Benefits
Package 6 32 27 33 2 % Package 15 20 31 32 2 %
5
Attraction and
Retention
70% of candidates stated they would be likely or Factors most important to Candidates when considering a new role:
very likely to change jobs in the next 12 months, up
from 62% in 2019. This is likely to be due, in part, to
the amendments to the IR35 Off-Payroll Regulations
coming into force in April 2020, as many businesses
70% 65% 54% 26% 24% 17%
Company Overall Flexible Working Company Brand Career Leadership
won’t be extending Contractor contracts beyond Culture Remuneration Opportunities / Reputation Progression
31st March 2020.
When looking for a move, candidates cited
company culture, overall remuneration and flexible
working opportunities as the top three most 14% 12% 8% 6% 4% 2%
Benefits Expanding Business Levels of Employee Management Diversity &
important factors when considering a new Package Skill Set Performance Engagement Opportunity Inclusion
opportunity.
45% of employers cited the remuneration they are
able to offer as their number one talent attraction
/ retention challenge over the next 12 months,
followed by skills shortages (34%) and the benefits
they are able to offer (32%).
62% of employers stated that challenging market
" 70% of candidates stated they would be
likely or very likely to change jobs in the
next 12 months. "
conditions would be their number one business
challenge in 2020, followed by a lack of available
talent (60%) and the impact of Brexit (55%).
6
Attraction and
Retention
Business challenges facing Employers in 2020: Top 6 channels Employers find the most
effective for hiring:
Challenging Market Conditions
Lack of Available Talent
19%
8% 1
Professional
Network
2
Recruitment Process
Outsourcing / In-house
3
Recruitment Agency /
Search Firm
61%
Impact of Brexit
e.g. LinkedIn Recruitment Team
Economic Climate
Effects of the IR35 Off-Payroll Regulations
21%
4
Industry / Personal
Network
5
Online Job Boards
6
Other Social Media
Channels
Advances in Technology
29%
Proposed Changes to Immigration Law Top 6 channels Candidates are most likely to
utilise for finding a new position:
Sector Regulation
44%
59%
1
Recruitment Agency /
Search Firm
2
Professional Network
e.g. LinkedIn
3
Online Job Boards
55% 4
Industry / Personal
Network
5
Direct Application /
Company Career Site
6
Other Social Media
Channels
7
IR35 Off-Payroll
Regulations
In April 2020 the amendments to the IR35 67% of businesses stated they would focus on For those in the Public Sector the changes to the
Off-Payroll Regulations will come into force in the permanent or fixed term contract hires post April IR35 Off-Payroll Regulations have been in force for
Private Sector. Since its inception in 2000, contract 2020, with 19% stating they would look to engage almost two years. So, what impact have the
workers working through PSCs (Personal Service high quality contractors via Umbrella Companies. regulations had? 51% of businesses reported an
Company's) have decided their own tax status. In 16% reported that they would only hire contractors increase in Fixed Term Contracts and 48%
2017, HMRC enforced a change in the public sector if the assignment is genuinely outside IR35. Only 5% reported an increased use of project-based
meaning that “end-clients” became responsible stated they would increase contractor pay to deliverables / SoW arrangements. From a business
for deciding tax status for contractors operating compensate for the increased tax and NI perspective 55% reported increased delays to
through PSCs. This is being extended to the Private contributions. project delivery, 52% reported an increase in costs
Sector in April 2020, causing major disruption to and 48% reported an increase in administration.
the UK contractor market and project delivery. 57% of contractors admitted they are not sure what
action they will take post April 2020, further
When asked what impact the new regulations
would have on the shape of their workforce 57%
of businesses stated they expect an increase in
demonstrating the uncertainty and lack of clarity
that continues to exist around the new regulations. "0% of the contractors
permanent hires and 43% expect an increase in
Fixed Term Contracts. 38% expect to see a
45% expect to see an increase in fixed term we surveyed said they
decrease in contractor requirements and 29% are
contracts and 30% are expecting a decrease in
contractor requirements. However, 29% stated their would move inside
expecting an increase in the use of project-based
deliverables / SoW arrangements.
role was already outside IR35, meaning they would
not be impacted by the changes, and a further 28%
IR35 and pay relevant
stated they would seek an alternative role outside tax & NI contributions
via PAYE."
From a business perspective, organisations are IR35. 0% of contractors we surveyed said they
expecting the new regulations to reduce would move inside IR35 and pay relevant tax and
operational flexibility, increase costs and NI contributions via PAYE and only 14% stated they
administration and cause disruption to future would switch to permanent employment.
contract engagements.
8
IR35 Off-Payroll
Regulations
How Businesses will look to solve their interim hiring requirements Actions Contractors plan to take post April 2020:
post April 2020:
Focus on permanent or fixed term I’m not sure
contract hires
5% 4%
None – my role is outside IR35 13%
Engage high quality contractors
via Umbrellas
13%
Seek alternative role outside IR35 14%
Only hire contractors if the assignment
is genuinely outside IR35 14% Switch to permanent employment
67% 57%
Focus on project-based deliverables / Move inside IR35 and pay relevant tax
SoW assignments and NI contributions via Umbrella
15% 28%
Engage high quality contractors on Move inside IR35 and pay relevant tax
PAYE directly and NI contributions via PAYE (0%)
I'm not sure
16%
Increase contractor pay to compensate
for increased tax and NI contributions
19% 29%
Engage high quality contractors
via agencies that can offer full
" 57% of candidates and 13% of businesses stated they are
pay-rolling services
not sure what actions they will take post April 2020. "
9
Top Skills
in Demand
There were differing views between employers and candidates as to which skills would be most in demand in the HR space in 2020. Employers predict an
increase in requirements for Talent Management and Resourcing / Talent Acquisition Specialists as businesses struggle to source enough quality talent to
support their growth plans in a market beset with skills shortages and economic uncertainty. Candidates felt OD / Change and Transformation and HRIS / HRMI
Analytics Specialists would be most in demand in 2020, with HR Business Partner ranked third.
Top Skill in Demand - Employers View: Top Skills in Demand - Candidates View:
Talent OD / Change &
49 % 52 %
Management Transformation
Resourcing / HRIS / HRMI
43 % 42 %
Talent Acquisition Analytics
OD / Change & HR Business
38 % 36 %
Transformation Partner
Diversity & Talent
36 % 35 %
Inclusion Management
Learning & Resourcing /
25 % 33 %
Development Talent Acquisition
HR Business Employee
23 % 26 %
Partner Relations
Reward / Compensation Diversity &
18 % 24 %
& Benefits Inclusion
HRIS / HRMI
17 % HR Generalist 20 %
Analytics
Reward / Compensation
HR Generalist 11 % 17 %
& Benefits
Employee Learning &
9 % 15 %
Relations Development
HR Director 8 % HR Director 9 %
10Salary Guide
Permanent Contract*
Role 0 - 3 yrs 3 - 7 yrs 7 yrs plus 0 - 3 yrs 3 - 7 yrs 7 yrs plus
Generalist HR
HR Director £90,000 £170,000 £300,000 £600 £1,100 £1,700
Head of HR £80,000 £100,000 £140,000 £500 £800 £1,300
HR Business Partner £70,000 £100,000 £130,000 £450 £700 £1,300
HR Manager £55,000 £65,000 £75,000 £350 £400 £500
HR Advisor £35,000 £45,000 £55,000 £250 £300 £350
HR Administrator £28,000 £32,000 £40,000 £175 £200 £275
HR Shared Services
Head of £70,000 £95,000 £150,000 £450 £650 £1,400
Manager £45,000 £65,000 £80,000 £325 £400 £500
Advisor £30,000 £40,000 £50,000 £200 £275 £350
L&D / Talent Management
Director £90,000 £130,000 £180,000 £600 £900 £1,600
Manager £60,000 £70,000 £90,000 £400 £450 £650
Advisor £35,000 £45,000 £55,000 £250 £300 £350
Administrator £28,000 £32,000 £40,000 £175 £200 £275
11Salary Guide
Permanent Contract*
Role 0 - 3 yrs 3 - 7 yrs 7 yrs plus 0 - 3 yrs 3 - 7 yrs 7 yrs plus
HR Change / OD / Transformation
Head of £80,000 £120,000 £180,000 £500 £1,100 £1,600
Consultant £50,000 £85,000 £120,000 £325 £550 £900
Compensation & Benefits / Reward
Director £90,000 £150,000 £210,000 £600 £1,100 £2,000
Head of £80,000 £110,000 £140,000 £500 £800 £1,300
Manager £60,000 £75,000 £90,000 £400 £500 £650
Advisor £40,000 £50,000 £70,000 £275 £325 £475
Administrator £25,000 £30,000 £40,000 £175 £200 £275
Recruitment / Talent Acquisition
Director £90,000 £120,000 £180,000 £600 £900 £1,600
Manager £70,000 £80,000 £105,000 £475 £500 £700
Advisor £40,000 £55,000 £65,000 £275 £325 £425
Administrator £23,000 £30,000 £35,000 £150 £200 £250
Graduate Recruitment
Director £90,000 £110,000 £130,000 £600 £800 £1,000
Manager £55,000 £75,000 £85,000 £350 £450 £550
Advisor £35,000 £45,000 £55,000 £250 £275 £325
12Salary Guide
Permanent Contract*
Role 0 - 3 yrs 3 - 7 yrs 7 yrs plus 0 - 3 yrs 3 - 7 yrs 7 yrs plus
HRIS Analytics / Implementation
Director £90,000 £120,000 £180,000 £600 £900 £1,500
Senior Consultant £60,000 £70,000 £90,000 £450 £475 £600
Junior Consultant £35,000 £45,000 £65,000 £250 £300 £425
Employee Relations
Head of £80,000 £100,000 £150,000 £500 £750 £1,400
Manager £50,000 £65,000 £85,000 £325 £400 £550
Consultant £35,000 £45,000 £55,000 £250 £350 £400
Diversity & Inclusion
Head of £80,000 £95,000 £130,000 £525 £750 £1,200
Consultant £45,000 £70,000 £85,000 £350 £400 £550
*Contractor Rates correct as of January 2020 but subject to change post 6th April 2020 due to the implementation of the IR35 Off-Payroll Regulations. Rates will be impacted depending on payment model - e.g. PAYE, Umbrella, etc.
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