BusinessCompany NewsBest FDs remain in private sector

Best FDs remain in private sector

UK finance directors do not believe that the private sector is losing its best finance talent to the public sector.

Link: Last week’s Big Question

Seven out of ten FDs responding to this week?s Accountancy Age/Reed Accountancy Personnel Big Question said they detected no shift. ‘No sensible financial talent is going to make a move solely on the basis of a couple of percentage points on their salary,’ said one FD.

Another said: ‘The pay in the public sector is generally only sufficient to attract lower quality staff. Job satisfaction would also be lower in the public sector therefore unless salaries were significantly higher than average such positions would continue to attract the less able.’

John Buckley FD of Sauter Automation said there were ongoing reasons why the private sector was more attractive.

‘It must be recognised that public sector pay has started from a lower base, and much of the salary increase differentials are simply a “catch up”. It must also be recognised that the private sector provides many benefits in kind. How many local councils provide company cars? How many provide BUPA? The public sector generally doesn?t provide bonuses either, and certainly not profit share. Salary is only one aspect of the private sector package.’

Only 13% of the FDs questioned agreed that many of their colleagues were moving over.

‘The public sector is probably a better work environment (e.g. better human resources management and more staff-training etc) and may offer more job security. Therefore if the public sector can improve the pay it will become a serious alternative,’ said Nick Watkins of Contisteel Limited.

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