For finance job candidates, we have good news - agencies are still a valuable resource for those looking for managerial positions in the banking and finance industries.
Our recently released 2015 Interim Direct Hire Agency Benchmarking Report explores industry averages of recruiting agency fees, as well as market trends. The data specific to the finance industry reflects the projections made in this report.
Recruiting agency fees as a percentage for the finance industry are an average of 21.9 percent, while their premium fees are an average of 32 percent. As a dollar amount, fees are an average of $25,038.
This data was collected from a sample of 35,000 transactions in our marketplace over the last five years.
Fees as a percentage are flattening - up only 0.2 percent from 2014. Premium fees as a percentage have not grown at all. In addition, demand for recruiting agencies is causing agency numbers to grow, leading to a saturation in the market.
For employers - we're using this data to project the exact average agency fee, average premium fee and salary you'll pay for candidates in the finance industry in 2016.
SHRM forecasts a base salary increase of 3.1% in 2016.
In a previous post regarding projected managerial agency fees and salaries, we shared that the Society For Human Resource Management (SHRM) predicts that salaries will increase by an average of 3.1 percent next year, but budgets are only increasing by 2.7 percent.
The chart below shows projected average finance recruiting agency fees for the finance industry. Although the data above shows finance industry fees flattening, you should still plan for fees as a dollar amount to rise.
The average salary and finance recruiting agency fees you’ll be paying in 2016.
We’ve taken a look at average salary data for positions in the finance industry from the Bureau of Labor Statistics (BLS).
Based on the reported mean salary from the BLS:
- We calculated a 2016 salary based on the projected finance industry increase (3.1%)
- Then, we calculated the 2016 fee as a dollar amount based on the projected finance industry average fee as a percentage (21.9%)
- Finally, we calculated the lowest premium fee as a percentage based the finance industry standard (32%).
The chart below shows the average direct hire finance recruiting agency fees you can expect to pay, based on the industry standard.
|Managerial Occupation||Mean Annual Wage||Projected 2016 Salary (3.1% Increase)||Projected Agency Fee|
|Administrative Services Managers||$92,250||$95,109.75||$20,258.38|
|Advertising and Promotions Managers||$114,700||$118,255.70||$25,188.46|
|Compensation and Benefits Managers||$118,670||$122,348.77||$26,060.29|
|Computer and Information Systems Managers||$136,280||$140,504.68||$29,927.50|
|Education Administrators, All Other||$69,430||$71,582.33||$15,247.04|
|Education Administrators, Elementary and Secondary School||$91,780||$94,625.18||$20,155.16|
|Education Administrators, Postsecondary||$101,910||$105,069.21||$22,379.74|
|Education Administrators, Preschool and Child Care Center/Program||$52,190||$53,807.89||$11,461.08|
|Farm, Ranch, and Other Agricultural Managers||$58,550||$60,365.05||$12,857.76|
|Farmers and Ranchers||$43,520||$44,869.12||$9,557.12|
|Food Service Managers||$53,500||$55,158.50||$11,748.76|
|General and Operations Managers||$117,200||$120,833.20||$25,737.47|
|Human Resources Managers, All Other||$105,510||$108,780.81||$23,170.31|
|Industrial Production Managers||$101,640||$104,790.84||$22,320.45|
|Managers, All Other||$110,210||$113,626.51||$24,202.45|
|Medical and Health Services Managers||$103,680||$106,894.08||$22,768.44|
|Natural Sciences Managers||$136,450||$140,679.95||$29,964.83|
|Postmasters and Mail Superintendents||$67,000||$69,077.00||$14,713.40|
|Property, Real Estate, and Community Association Managers||$65,880||$67,922.28||$14,467.45|
|Public Relations Managers||$115,400||$118,977.40||$25,342.19|
|Social and Community Service Managers||$67,730||$69,829.63||$14,873.71|
|Training and Development Managers||$111,030||$114,471.93||$24,382.52|
|Transportation, Storage, and Distribution Managers||$93,180||$96,068.58||$20,462.61|
*Occupations listed are taken from the Bureau of Labor Statistics, "Business and Financial Operations Occupations" Major Group. "Major Group Average" includes all positions listed above.
You can use the chart above to plan for direct hire recruiting agency use in the finance industry next year.
Plan for your budget in 2016 – Our guide can help.
Using the data above, you should be able to plan for direct hire recruiting agency use for each finance position that you plan to send to search. With agency spend probably accounting for between 20 and 30 percent of your recruiting budget in 2016, it's important to understand how you're using your recruiting agencies.
Our Recruiting Leader's Guide to Direct Hire Agency Planning can help you understand the current use of your direct hire agencies, learn what you should be incorporating into your 2016 budget, and help you determine where you can start today.
We’re constantly collecting and projecting data that we pull from our marketplace regarding agency fees and salaries in different industries. If you’d like to learn how to turn this into value insights for your budget season – we’d love to help.