20.01.26
Are Your Finance Salaries Competitive Enough Today?
Are Your Finance Salaries Competitive Enough Today?
Losing a perfect candidate at the final hurdle is frustrating. You've invested hours in interviews, the team loves them, and they seem keen - until the offer goes out. Then comes the silence, or worse, the rejection because a competitor offered 15% more. In the current market, relying on salary bands set two years ago is a guaranteed way to lose talent.
To secure the financial leadership your business needs, you must understand what "competitive" actually looks like right now.
Key Takeaways
- Market Volatility: Historical data is obsolete; real-time market feedback dictates current rates.
- The Hidden Cost: Underpaying leads to prolonged vacancies, which cost more in lost productivity than the salary increase itself.
- Total Reward: Benefits like hybrid working are essential, but they rarely justify a below-market base salary for senior roles.
- Agency Insight: Working with a specialist finance recruitment agency provides live data on what candidates are accepting today.
The Reality of the Market
Why are finance salaries fluctuating so rapidly?
Economic pressure and a scarcity of qualified professionals drive costs upward. Inflation increases the baseline cost of living, pushing candidates to demand higher starting salaries simply to maintain their standard of living. Simultaneously, a shortage of qualified senior staff creates a candidate-led market where businesses must outbid each other to secure the limited talent available. When you attempt to hire senior finance managers, you aren't just competing with local firms; you're competing with remote roles and counter-offers designed to retain staff at all costs. This is one of several common mistakes in accountancy recruitment that leads to failed hiring drives.
Does a strong employer brand lower salary requirements?
A strong brand attracts interest, but it rarely closes the deal if the financial gap is significant. Candidates prioritise financial security and fair compensation for their expertise over prestige. While a great culture helps, it cannot subsidise a salary that falls below the market median. We often see businesses with excellent reputations lose out to lesser-known competitors simply because the competitor aligned their offer with current market rates. To avoid this, you must adopt robust retention strategies for accountants that start at the offer stage.
Identifying the Gap
How do I know if my offer is below market rate?
High rejection rates at the final stage indicate a misalignment. If candidates consistently withdraw after hearing the salary, or if they use your offer purely to leverage a raise from their current employer, your financial package lacks competitiveness. Understanding the true cost of counter offers is vital; candidates often use a low external offer to secure a better deal internally. If you are struggling to fill a niche role and candidates are disengaging at the numbers stage, the market is telling you that your budget does not match the talent you require.
Do online salary calculators provide accurate data?
Online calculators provide broad averages that lack the nuance of specific role requirements. They aggregate data across wide regions and varying levels of seniority, often producing a figure that is irrelevant to your specific vacancy. A "Finance Manager" in a manufacturing SME requires different skills and commands a different salary than one in a PLC. Relying on generic data leads to budgeting errors that derail the recruitment process before it begins.
Beyond the Base Salary
Do benefits actually compensate for lower pay?
Benefits enhance a competitive offer but do not replace it. Candidates evaluate the "Total Reward" package, yet the base salary remains the primary decision driver because it dictates mortgage affordability and lifestyle. While flexible working and health insurance are attractive, they are increasingly viewed as standard expectations rather than premium perks. To win the best talent, especially when you need to hire a Treasury Analyst or similar specialist, the base salary must first meet the market threshold; only then do benefits become the differentiator.
How to Benchmark Your Finance Salaries
Step 1. Audit Your Current Bands
Review your existing pay structures against the specific skills you require. If you haven't adjusted these bands in the last 12 months, they are likely behind the inflation curve. Check internal equity but be prepared to acknowledge that external hires may cost more than existing staff.
Step 2. Consult Real-Time Market Data
Speak to a recruitment partner to get day-to-day feedback on what candidates are actually accepting. We see the offers that win and the ones that fail every day. Salary benchmarking matters, and this "live" intelligence is far more accurate than published reports which are often six months out of date.
Step 3. Factor in the 'Total Package' Value
Calculate the monetary value of your benefits, such as hybrid working or bonus schemes. Present this as a "Total Reward" figure to candidates. This helps them visualise the full value of the role, potentially bridging a small gap in base salary expectations.
FAQs
How do I benchmark finance pay?
You benchmark finance pay by comparing your internal salary bands against recent placement data from recruitment partners and competitor job ads. This process reveals the gap between your budget and current market expectations, allowing you to adjust offers before interviewing candidates.
Are salaries rising in the finance sector?
Yes, salaries are rising due to skill shortages and inflationary pressure. Candidates in specialised roles now command higher premiums, forcing businesses to increase offers to secure talent over competitors who are also bidding for the same small pool of experts.
What is a finance recruitment agency's role in benchmarking?
A finance recruitment agency provides real-time data based on actual offers accepted in the last month, rather than historical averages. We help you define a competitive range that balances your budget with the need to attract high-calibre applicants.
How often should we review salaries?
Review salaries every six months in a volatile market. Annual reviews often leave you lagging behind rapid shifts in candidate expectations, leading to retention issues and failed recruitment drives.
Does remote work lower salary expectations?
Remote work rarely lowers salary expectations for senior finance roles anymore. Candidates view flexibility as a standard requirement, not a perk that justifies a pay cut. Offering remote work expands your talent pool, but you must still pay competitive market rates.
Why do online salary surveys fail?
Online surveys fail because they rely on self-reported, often outdated data that lacks context. They rarely account for specific regional nuances or the premium required for niche qualifications, leading to inaccurate budgeting.
What is the cost of getting the salary wrong?
Getting salary wrong costs you time, recruitment fees, and productivity. Low offers result in offer rejections, ghosting, and starting the hiring process from scratch, which leaves critical finance positions vacant for months.
Don't let a salary gap cost you your next hire
If you're unsure where your current vacancies sit in the market, contact us for a confidential benchmarking discussion to ensure your offers are competitive enough to win.
Author Bio
Inci Evcil is a Consultant at Sewell Wallis, recruiting specifically for the Senior Finance market across South and West Yorkshire. She works with clients across the region, providing talent for roles such as Financial Controller, Finance Business Partner and Finance Director, leveraging her deep knowledge and extensive network to place senior finance professionals in industry, practice, and not-for-profit sectors.
