Strategy, Projects & Change Management 2016 Salary Guide

Strategy, Projects & Change Management 2016 Salary Guide

Hamish McCombie 01.01.2016

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 Strategy, Projects and Change sectors, covering permanent salaries across London and South West England.

London

Regulatory knowledge is not easily transferable

2015 proved to be another year of continued regulatory demands, with no immediate end in sight. Legacy systems, processes and reporting all carried on changing with few quick fixes. Core roles being recruited included Programme Manager, Project Manager, Business Analyst, Business Architect, subject-matter expert and Lean/Six Sigma consultants. These hires were to work on projects covering stress testing and market risk frameworks. Both of these required experienced hires with knowledge of techniques such as VaR (Value at Risk).

The large investment banks have been targeting projects to improve their central risk portfolio offices and the impact has resulted in hiring of experience credit candidates who can execute data modelling. Basel III continued to have a positive effect on hiring with experience in NSFR (Net Stable Funding Ratio) being most sought after and business analysts experienced with LCR (Liquidity Coverage Ratio). Despite a delay in the deadline for MiFiD II being announced, demand for hiring on these projects will at the forefront for most investment banks in 2016.

Many banks are trying to redress the balance between permanent and contract employment but the challenge is that when the regulations came in, banks needed to hire a flexible workforce, which pushed up salaries. Since these have not come down it is therefore difficult to persuade many contractors to take on permanent roles.

There is a talent shortage in some areas of projects and change, in particular because of ring fencing; the need to split trading from retail banking. For example, there are not enough people on the market with experience of FRTB (Fundamental Review of the Trading Book) transparency projects in investment banking. In general, when a new regulation comes out there will obviously not be many project and change professionals with direct experience so it is necessary to look for people with broad exposure and the ability to take on new initiatives.

Regulatory knowledge is not so easily transferable between different countries, but we saw some two-way movement of permanent staff between London and New York. There is a strong push within banks to attract more women into project and change roles but it is still a male-dominated world and it will take time for that to change. 

The biggest movers were the consultancies who hired quite aggressively in 2015 whereas banks have had to hire people reacting to the regulation deadlines. We were also surprised by the extent of hiring by asset management companies. Salaries have generally plateaued but there are exceptions in risk change projects where a bank needs to execute quickly and talent is in short supply.

Increase in demand for contractors

Job offers to contractors increased more than 35% in 2015 compared to the previous year, mainly due to new or modified regulations that had to be addressed urgently, such as embedding Basel III regulations or gearing up for Basel IV, which has to be in place by 2017. MIFID II (Markets in Financial Instruments Derivative) has also called for more contract and interim staff. Core roles being recruited included programme manager, project manager, business analyst, business architect, subject-matter expert and Lean/Six Sigma consultants.

Although a few contractors have been hired from abroad, the skills are not always transferable because of the need to understand how regulations work within a specific geographical market or regulatory environment. 

Day rates have settled at a higher level while banks are still under pressure to contain costs, so unless there is an urgent requirement to hire a change specialist we will not see much movement going into 2016. A typical day rate is £550 for a Business Analyst, but that can easily go up to £650 if there is an urgent requirement and experienced talent is in short supply.

Banking | Permanent - London
Basic Salary (£ Per Annum)
Role 0-2 Years 3-5 Years 6-9 Years 10+ Years +
Business Analyst 40,000-50,000 50,000-70,000 70,000-100,000 *
Project Manager * 60,000-70,000 70,000-120,000 120,000-180,000
Programme Manager * * 90,000-120,000 120,000-180,000 +
PMO 40,000-50,000 50,000-70,000 70,000-120,000 *
SME * 50,000-70,000 70,000-120,000 *
Lean Consultant 40,000-50,000 50,000-70,000 70,000-120,000 *
Business Architect * 65,000-75,000 75,000-120,000 120,000-180,000

 *Typically, these roles do not exist at this level

Banking | Temporary - London
Rate (£ Per Day)
Role Low Average High
Business Analyst 450 550 650
Project Manager 550 650 750
Programme Manager 700 800 900
PMO 300 450 600
SME 500 600 700
Lean Consultant 450 600 750
Business Architect 600 700 800

 

Commerce and Industry | Permanent - London
Basic Salary (£ Per Annum)
Role 0-2 Years 3-5 Years 6-9 Years 10+ Years 
Business Analyst 35,000-45,000 45,000 - 65,000 70,000-100,000 *
Project Manager * 55,000 - 65,000 70,000-120,000 110,000 -150,000
Programme Manager * * 90,000-120,000 110,000 -150,000 +
PMO 45,000-50,000 45,000 - 65,000 70,000-120,000 *
SME * 45,000 - 65,000 70,000-120,000 *
Lean Consultant 35,000-45,000 45,000 - 65,000 70,000-120,000 *
Business Architect * 60,000-70,000 75,000-120,000 110,000 -150,000

*Typically, these roles do not exist at this level 

Commerce and Industry | Temporary - London
Rate (£ Per Day)
Role Low Average High
Business Analyst 350 450 550
Project Manager 450 550 650
Programme Manager 600 700 800
PMO 200 350 500
SME 400 500 600
Lean Consultant 350 500 650
Business Architect 500 600 700

South West 

Plenty of work and talent to go round

The change arena within financial services companies continues to grow with projects lined up for three years or more in some firms so there is a strong demand for project managers. This is a contractor-led market and there seems to be adequate locally based talent to meet the demand. Many individuals entered the contractor market during the recession, when a large number of restructuring projects were initiated, and have grown accustomed to the lifestyle and high income. The drive for further efficiencies and to cope with regulatory change will ensure that there is plenty of work for strategy, project and change professionals in 2016 and beyond. Rates have levelled out but this still remains a lucrative career choice.

Banking | Permanent - South West
Basic Salary (£ Per Annum)
Role 0-2 Years 3-5 Years 6-9 Years 10+ Years
Business Analyst 30,000-40,000 40,000-55,000 55,000-75,000 *
Project Manager * 40,000-55,000 55,000-75,000 75,000-85,000
Programme Manager * * 60,000-80,000 80,000-100,000
PMO 25,000-35,000 35,000-45,000 45,000-65,000 *
Business Architect * 40,000-50,000 50,000-70,000 120,000-180,000

*Typically, these roles do not exist at this level  

Banking | Temporary - South West
Rate (£ Per Day)
Role Low Average High
Business Analyst 300 450 600
Project Manager 350 450 550
Programme Manager 500 700 900
PMO 250 300 350
Business Architect 300 450 600
Commerce and Industry | Permanent - South West
Basic Salary (£ Per Annum)
Role 0-2 Years 3-5 Years 6-9 Years 10+ Years
Business Analyst 25,000-35,000 35,000-55,000 55,000-75,000 *
Project Manager * 35,000-55,000 55,000-75,000 75,000-85,000
Programme Manager * * 60,000-80,000 80,000-100,000
PMO 20,000-30,000 30,000-40,000 40,000-70,000 *
Business Architect * 35,000-55,000 55,000-75,000 75,000-85,000

*Typically, these roles do not exist at this level  

Commerce and Industry | Temporary - South West
Rate (£ Per Day)
Role Low Average High
Business Analyst 200 250 300
Project Manager 250 350 450
Programme Manager 400 450 500
PMO 150 200 250
Business Architect 200 250 300
Hamish McCombie's picture
Director | Financial Services Operations
hmccombie@morganmckinley.co.uk