Having experienced a flat insolvency market for the past few years, most Insolvency Practices would agree that activity has increased over the past six to nine months.
The most recent Insolvency Service statistics for Q4 2016 back this up with more recorded compulsory liquidation appointments than in the previous quarter. The underlying annual number of corporate and personal appointments were unchanged from 2016.
Skills in demand
Hiring good staff at Administrator and Senior Administrator grade remains a major challenge for employers, with less movement taking place and a significantly reduced pool of candidates becoming available. A number of insolvency professionals have left the profession altogether in recent months.
Those candidates with 12 months to five years cradle to grave corporate case experience will be looked at favourably by the marketplace and those with the accountancy qualification or CPI are very well viewed.
Temporary and contract requirements picked up in Q1 despite the majority of vacancies being permanent. This has been due to the sporadic nature of new appointments coming through with Insolvency Practices favouring immediately available candidates that can step in and assist over a fixed busy period.
Predictions for the coming months
In addition to a fairly flat marketplace, the imminent insolvency rule changes (April 2017) are set to really shake up the profession. Insolvency Practitioners across the UK will have spent much of Q1 ensuring that all staff are fully aware that there will be new processes in place with respect to changes in communications between Insolvency Practitioners and Creditors, the abolition of statutory forms and the automatic appointment of Official Receiver as first trustee upon bankruptcy declaration.
With this at the forefront for most Insolvency Practitioners, we expect recruitment levels to remain flat, although some firms are looking to hire technical regulatory specialists to assist with implementing the changes required and to educate staff on the new rules.
Insolvency salaries (London)
Mid-tier/SME firms Q2 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
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.
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