Published on 16th January 2017
Looking for more recent salary information? Download our 2021 Insolvency Salary guide here >
The insolvency recruitment market has remained stable since Q3 2016 with the number of new insolvency appointments remaining fairly flat.
Low interest rates and creditor tolerance has certainly contributed to the static market conditions across both corporate and personal insolvency although bankruptcy numbers are worryingly on the up.
The impact that this has had on recruitment levels throughout 2016 has been significant. With less work coming through the door for IPs, the need to recruit staff has not been all that necessary. A sizeable number of those insolvency professionals who have moved on have gone on to leave the profession entirely taking with them transferable skills into finance or investment based roles.
The gaps that have then arisen in team structures have been filled with internal promotions and on occasion a resulting hire at the Junior Administrator level has occurred.
Skills in demand
Generally, the candidate pool across restructuring and insolvency is getting smaller. In recent years, less firms have been hiring graduates and fresh starters into the business and so we’ve seen less Administrators and Senior Administrators with 2-3 years’ experience available on the market. Couple this with more senior candidates exiting the profession and you have a rapidly shrinking candidate pool across the spectrum.
Candidates with good business advisory and restructuring skills are still well sought after at the top end of the market and the shortage of candidates with the relevant skill sets at Manager and Senior Manager grade has made recruiting these type roles a major challenge.
There has been a lot more contentious insolvency work coming through in the last 18 months and so finding candidates with good investigation experience will become more and more prevalent going into 2017.
Predictions for 2017
It is hard to fully forecast future trends within the insolvency and restructuring market at this time but what is clear is that the market place is not suddenly going to spike with new appointments.
Interest rates will remain at 0.25% and as long as they stay low, corporates and individuals will be able to just about hang on and survive. Brexit negotiations in March may have an impact but to what extent remains unclear.
Advice for employers
Employers need to be able to move quickly when talent arises as there is a significant shortage of candidates and the good ones will be snapped up quickly.
Salaries have remained fairly static in recent years but we did notice this year, employers have paid slightly more than they did before as a means to secure the right skill sets from talent out on the market. It is therefore advisable for firms to show a degree of flexibility on pay or to be able to offer other incentives such as flexible working hours or an annual discretionary bonus scheme to both attract and retain talent.
Advice for jobseekers
Candidates that can gain exposure to more advisory based work will be well positioned to make the most of the market next year.
Holding a professional qualification such as the CPI, ICAEW Certificate in Insolvency or ACA/ACCA at Administrator, Senior Administrator or Senior Executive grade will help to bolster any job applications that you make next year.
Insolvency salaries (London)
Mid-tier/SME firms Q1 2017
Salary per annum
85K - 115K
65K - 85K
Manager (JIEB qualified)***
55K - 65K
Manager (No JIEB)****
50K - 58K
40K - 50K
Senior Administrator (ACA/ACCA)
40K - 46K
Senior Administrator (CPI or QBE)
34K - 40K
28K - 34K
Administrator (No qualifications)
24K - 30K
20K - 24K
30K - 36K
24K - 30K
Looking for more up to date salary information? Download our 2021 insolvency salary guide here >
Notes on salary table:
* Advisable to be able to pay an additional 5-10% on top of this band for an exceptional Director who has the capabilities to generate fees.
** JIEB & ACA/ACCA with at least 2-4 years as a Manager should be earning a salary from £70,000. Lower end of the pay grade will be for those newly promoted to the grade or those with vast levels of experience but no professional qualifications.
*** ACA/ACCA in addition to the JIEB with at least 2-3 years in Management will be £60K-£65K.
**** Top end would be for very good operators with strong management skills.
1. Titles and levels vary from organisation to organisation.
2. The salary ranges given are only approximate guides. For tailored salary advice, please contact us directly.
3. Roles outside of London are likely to be £5K - £10K lower than the salaries indicated above.
4. 12-month base salaries are assumed.
5. All other benefits and bonuses are in addition to these figures.
6. Bonus ranges can vary significantly from company to company and will be influenced by market conditions, business and individual performances.