At Morgan McKinley, we endeavor to provide up-to-date market insight to provide expert knowledge on your sector. Here we offer key recruiter information within the Internal Audit sector, covering permanent salaries across banking & financial services and commerce & industry sectors in London and the Home Counties.
Rapid recruitment and salary growth in banking
The demand for internal auditors during 2015 was high, particularly in the banking sector. There are some challenges in attracting recently qualified accountants into the discipline, but those more experienced internal auditors now see it as a wise career choice. The skills are transferable internationally, so to address any talent shortfall, we are seeing more candidates arriving from abroad, often without ACA (or similar) but instead qualified by experience.
The discipline divides into two very distinctive markets: Banking and financial services and commerce and industry. The first of these is highly driven by increased regulation and we have seen a growth in headcount within internal audit functions, with many firms increasing headcount by 20-25% in 2015. There is still some room for further growth and jobs are seen as more secure against redundancy.
Commerce and industry has not grown as dramatically, but we have seen an evolution here too. Organisations are more selective with regard to candidates. Here, internal audit may be seen as a route into the wider business or finance function and, as such, employers are looking to identify potential future leaders.
We are witnessing large differences in remuneration. A recently qualified internal auditor in the commerce and industry markets can expect around £47-50k per annum, whereas the same calibre of internal auditor in a banking firm will receive around £55-60k. Year-on-year, salaries have moved up by about 10% in banking, with 15-25% increases typically needed to incentivise a move. These moves are likely to be met with a counteroffer.
Growth at more senior levels (VP level and above) in banking has predominantly been focused on subject-matter experts within the areas of Regulatory Audit (Conduct Risk and Financial Crime), Risk Audit (Model and Quantitative Risk), and IT Audit.
Internal audit is certainly now a higher profile role which means that hiring organisations devote more time and effort to the recruitment process to secure the best candidates. Many banks are also making more strenuous efforts to address the gender imbalance within this discipline.
|Banking | Permanent - London|
|Basic Salary (£ Per Annum)|
|Investment Banking||Retail / Commercial Banking||SME Banking||IT Audit|
|Commerce and Industry | Permanent|
|Basic Salary (£ Per Annum)|
|London||Home Counties||IT Audit|
|Senior Audit Manager||70,000-85,000||65,000-80,000||65,000-80,000|
|Head of Audit||130,000+||110,000+||100,000+|