The economic impact of Covid-19 has affected average salary levels across the accountancy and finance sector in 2020, according to new data released today by Reed.
From analysis of over 6.5 million jobs posted to reed.co.uk over the last three years, the Reed Accountancy and Finance Salary Guide 2021 found that Covid-19 had a negative impact on overall salary levels within the sector, with a decrease of 0.1%, resulting in a typical salary of £48,030, compared to £48,065 in 2019.
This is in comparison to the UK national increase of 2.32% and in the face of slow inflation, with the Consumer Price Index (CPI) 12-month rate falling to just 0.3% in November 2020, from 0.7% in October 2020, and the Office of Budget Responsibility predicting it to stay below 2% until 2025.
The unprecedented challenges in 2020 with the combination of Covid-19 and Brexit has led to accountancy and finance being one of the worst performing sectors in the country when it came to salary growth. Roles that saw the largest decreases include chief operating officer (-4.3%), accountant receivable manager (-4.3%) and group financial controller (-3.7%).
However, the firm revealed some roles did experience increases, including payroll assistant (4.3%), credit controller (3.9%) and accounts payable assistant (3.3%).
Chris Willsher, Reed Accountancy and Finance expert, said: “The accountancy and finance sector has been devastated by both Covid-19 and Brexit, and the disruption it’s caused due to the widespread uncertainty. London in particular has been impacted with the capital being home to thousands of accounting and finance firms who have been forced to tighten their budgets, with salaries taking the hit.
“Accountancy firms were not very proactive on flexible and remote working prior to COVID-19, but employees and jobseekers will now expect it as standard. While businesses are still somewhat reluctant to implement this way of working full-time, many are more open to it now – this will only benefit them in the candidate-short market, allowing employers to widen their search by eliminating geographical boundaries.”