The biggest pay increases in the UK (+7%) in 2019 are expected to be in the North West compared with any other region in the country for *professional salaries.

This compares with London (+3%), Yorkshire (+3%), and the Midlands (+1%). The data comes from leading recruiter Robert Walters annual Salary Survey.

Those on a contract, temp or project-based fees (charging by the day or hour) will see a significant increase in their rates – namely in the Midlands (+11%), London (+9%), and St Albans (+5%).

Chris Hickey, UK CEO at Robert Walters, comments:

“It comes as no surprise that salaries outside of London will be receiving bigger percentage increases than the capital.

“The UK remains a ‘two-speed economy’, with London-based financial services firms experiencing slow growth due to Brexit-related concerns, while non-financial services companies outside of London experienced much faster growth.

“Manchester, Leeds and Birmingham have been particularly successful in positioning themselves as regional tech-hubs, attracting talent that would have historically migrated to London.”

Salaries in the tech sector are the most lucrative – averaging around £70,000, compared with salaries in other professional sectors such as Law – £65,000, and Accounting & Finance at £53,000.

*salaries refer to all roles within a profession from junior through to senior

Salaries by Region

NORTH WEST – salary increases

The North West is becoming known for its rapidly developing tech hub. No where was demand more apparent in the sector than for professionals in IT Security – with salaries increasing on average by +14%. A Chief Information Security Office (CISO) in the North West can expect offers in the region of £100k, compared to £80k in 2018.

Despite on-going concerns around Brexit, job creation remains high for accounting & finance professionals within the commercial sector (FMCG, sale of goods). However, for finance professionals in the North West the best opportunities for increasing pay seem to lie in interim/contract work.

The biggest pay increases in both Private Practice and In-house in Law. Due to a UK-wide candidate shortage, in-house and Private Practice lawyers at the 2 year post-qualified experience (PQE) level will be able to command salary increases by as much as +6% – for in-house this would be in the region of £41k – £60, and for those in Private Practice between £35k – £47k.

Manufacturing & Engineering looks promising, with permanent salaries expecting to rise by +8%, and contract day rates by +14% on average.

Interim roles in Supply Chain & Procurement will be lucrative, with average day rate expected to rise this year by +8%. Biggest increases will be for Supplier Relationship Manager – £400 – £550 p/d (+15%), Procurement Director – £700 – £1000 p/d (+13%), and Demand Planning Manager – £350 – £600 p/d (+8%).

In contrast to other regions, Banking & Financial Services is offering healthier pay increases – particularly for talent with 3+ years experience in middle & front office functions. Pockets of intense hiring will happen in business-critical roles such as risk, with Regulatory Risk roles fetching £40k – £55k (+40%), Credit Risk – £37k – £65k (+13%), and Fraud – £37k – £65k (+7%).

North West – salary decreases

Whilst salaries for accounting & finance across the North West remain fairly positive, it’s a different story in Mersyside. On average salaries for permanent roles will decrease by -4%, and for contract work by -7%. The biggest cuts in both perm and contract will be for Credit Control Managers, Accounts Payable Manager/Team Leader, and Payroll Manager/Team Leader.

Salaries in Human Resources and Secretarial & Support will remain largely static in 2019.

Salaries by Sector

ACCOUNTING & FINANCE

This year we will see an increase in interim and temp roles within finance as companies prepare for Brexit. Professionals that are digitally proficient and tech savvy and able to work in a fast-paced and changing environment will be particularly sought after. The expectation of salary increases of more than 10% has become commonplace, with top-performing talent expecting lucrative compensation packages above market value. There will be a continued need for industry-trained management for accountants at the recently qualified (£50-55k) level.

LEGAL

Hiring across the legal sector has become increasingly competitive, leading to firms paying premiums for experienced lawyers across most skill sets. Demand is partly due to a lack of lawyers at the two to four year post-qualified experience (PQE) level, caused by a reduction in the number of trainees being hired a few years ago, coupled with the increase of European regulations.

Procurment & Supply chain

In spite of Brexit, it will be business as usual for the procurement and supply chain sector. Businesses will still be seeking top talent to drive efficiency and best practice in order to survive in today’s climate and to also gain a competitive advantage.

Hiring managers will find it difficult to come across high-quality supply chain and engineering candidates in 2019 and will have to contend with a significant candidate shortage as job openings continue to increase in this area.

Banking & Financial Services – Operations

Due to uncertainty around Brexit, banks and financial services are taking a relatively cautious approach to recruitment characterised by replacement hiring – resulting in a near 0% increase in pay. Compliance, risk, and audit are the exceptions, with professionals in these areas highly sought after due to the pressure from regulators and Brexit-related planning.

Human Resources

Professionals with a background in talent acquisition, rewards and benefits, internal recruitment and HR information systems will be highly sought after in 2019.

Information TECHNOLOGY

In 2019, demand will increase for interim talent as employers implement data, digital and transformation projects. Companies will continue to invest in their security, architecture and data capabilities, driving up salaries in these areas.

Image: courtesy of Public Domain Pictures 

Download the Robert Walters 2019 Salary Survey here.