UK accountants are expecting to receive a average bonus of 18.1% this year, amounting to £11,587 each
If this is accurate in terms of actual payouts, it would equal the highest level since 2010.
According to Marks Sattin, the level of bonuses expected this year is 3.1% up on those recorded last year. In 2012, accountants expected a 15% bonus, below the level they were paid on average of 17%.
A strong bonus season will really cement the feeling that we've turned a corner
Despite expectations being lower than 2010 in percentage terms, when 19% was the average percentage of salary paid in bonus, they are £1,149 higher in cash terms due to rising base salaries.
The total bonus pot is anticipated to be around £3.4bn in 2013/14, compared with £3.1bn last year.
Dave Way, managing director of Marks Sattin, said, “Last year, accountants’ bonuses exceeded their own expectations, and this year they’ve revised them up accordingly. It’s been a strong year for the sector, with the recovery taking hold and economic activity on the rise so confidence is high.
“A strong bonus season will really cement the feeling that we’ve turned a corner.”
Marks Sattin has also found that the importance of financial incentives for accountants has grown in the past year. Research from the recruitment group found that 30% now saying this was a key reason for leaving their last role compared with 28% last year. This makes it now the second most common reason for changing jobs, leapfrogging “seeking a new challenge” which is a key reason for 29% of professionals.
The most common reason to leave is for career development.
Way added, “Remuneration is growing in importance for accounting professionals and managers should be aware of this when it comes to bonus season.
“However, the itch of a stagnant career is something no amount of money will scratch, so equally important is a focus on talent management and career progression.”
The research was based on 656 accountants surveyed this month.
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