Essex Sector Skills Profile: Finance Sector

Essex Sector Skills Profile:
Finance Sector
Sector Definition: Finance, insurance and professional services.
FINANCE
Employs over 36,000 people locally, in over 6,000 companies
Employers Include: IFDS, First Data, HSBC, Lloyds TSB, BNY Mellon, Marsh UK Ltd, Highways Insurance
Co. Ltd, Equity Insurance Group, Ford Credit, Baker Tilly
NATIONAL HEADLINES
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
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Employs over 2 million people with a concentration in London (including high numbers of Essex commuters)
The main skills in short supply are job-specific and technical capabilities such as actuaries. Skills gaps are also particularly
concentrated on sales and customer service jobs (2011)
A report by PricewaterhouseCoopers (PwC) suggests that a robust and well run financial services sector would generate a
quarter of a million new jobs nationally by 2020 in providing credit and demand for sectors such as manufacturing
An emerging recovery for the UK economy has generated some optimism in the sector in terms of activity through jobs
and growth may be slow as banks limit their expenditure
LOCAL AND REGIONAL HEADLINES
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Proximity to the city of London and lower rents has led to a prevalence of the finance and related sector in areas such as
Chelmsford, Brentwood and Southend.
Vacancies for Chartered Accountants, Business &Financial Project Management Professionals have been most dominant
KEY DRIVERS FOR FUTURE EMPLOYMENT AND SKILLS
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Retirement and other factors are expected to lead to a net requirement of 120,000 administrative and secretarial staff
nationally
Achieving efficiency is leading many companies to explore IT solutions though security issues may need addressing
The ‘Financial and Legal Skills Partnership’ asserts that ‘young people need to know about the many new opportunities
the industry can offer’ and that ‘further education is a critical component in communicating the financial sector’s new
opportunities’
KEY OPPORTUNITIES/CHALLENGES
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Enrolments in relevant subjects (business, administration and law, maths) appear high though significant numbers of
young people will be commuting to finance jobs outside Greater Essex
Only 5% of Business, Admin and Law apprenticeships are in Accountancy or Retail Financial Services (63% Business
Admin)
As with other sectors, finance employers assert that employability skills at school need to improve.
What is it like working in the sector?
o Working long hours in a fast-paced environment;
o Substantial bonuses for some finance professionals. Sales roles can also earn commission or bonuses;
o Good opportunities for progression;
o Further employee benefits, such as joining-up bonuses, private healthcare, pension plans and sports club
membership.
1. Summary of the sector at UK, regional and local level.
Nationally, over 2million people work in the finance sector, with employment particularly concentrated in London. The
largest sub-sector in terms of employment covers banks and building societies, investment funds and credit companies,
employing 563,000 people in 2010. The insurance, legal services, and management consultancy and company head offices
sub-sectors are also significant employers. (Source: UKCES 2012).
In Essex, there are over 1,600 financial and business services companies (with more in related sectors as below), 42% of
which have been at their current location for 5 years or more – and have no plans to leave. The sector accounted for total
sales of over £13,575 million in 2012. There are approx. 14,500 jobs across the county, with the majority of these clustered
in Chelmsford, Colchester, Southend-on-Sea, Basildon or Brentwood. These clusters have the potential to further drive
competitiveness and innovation, and will benefit other businesses looking to locate within Essex. The sector constitutes 2%
of enterprises in the county.
Essex is an excellent logistical location. Essex’s finance and business services firms source 50% of their needs locally but
because of excellent transport connections they find it easy to secure supplies from the rest of the UK and worldwide
without difficulty. Cheaper office accommodation than in London, a prevalence of established large companies locally, good
quality staff and a pleasant environment are other key reasons why successful Finance and Business firms establish
themselves in Essex. (Source: M.E.L Research and Mazars).
1.1. Job roles within the sector (examples)
Accounts wages clerks, bookkeepers
Finance & Investment analysts & advisors
Financial institution managers
Solicitors & Lawyers
Counter Clerks
Financial managers and chartered secretaries
Management consultants
Actuaries, Economists & Statisticians
Accountants
Pensions & Insurance Clerks
Pensions and Insurance Clerks
Software Professionals
Brokers
Customer Care Occupations
1.2. Industries within the sector
Accountancy and Finance
Insurance
Underwriting
Banking
Life and Pensions
Broking
Legal Professions
1.3. Course provision in the county (2011/2012 full academic year)
Figure 1: Course provision in FE&IPP, S6F – Enrolment Data
Level 4
5,000
Level 3
Level 2
4,500
Level 1
350
4,000
3,500
140
3,000
2,500
4,335
2,000
3,355
1,500
1,000
500
0
35
550
FE & Independent
Private Providers
195
School Sixth Forms
Accounting and Finance
575
340
465
FE & Independent
Private Providers
School Sixth Forms
Administration
FE & Independent
Private Providers
School Sixth Forms
Business Management
5
FE & Independent
Private Providers
Business,
Administration and
Law
Figure 2: Apprenticeships – Participation Data
Level 4+
900
Level 3
Level 2
800
700
600
500
625
400
300
200
270
100
0
145
30
20
Accountancy
Business
Administration
25
Customer Service
15
5
Management
10
Marketing and
Communications
5
Retail Financial
Services
5
Sales and Telesales
Figure 1 - This graph covers provision in Further Education Colleges (including Sixth Form Colleges, which are also classed as FE), School
Sixth Forms and a small amount of provision (usually on Foundation Learning -Entry Level and Level 1) at Independent Private Providers.
These numbers relate to enrolments – a learner will be counted more than once if they are enrolled on more than one course (such as 3
A levels).
Figure 2 - This graph covers the number of sector-related apprenticeships in the county. These numbers relate to participation (learners
are only counted once).
Note: For a more complete list of course providers and apprenticeships available, please visit http://www.i-essex.co.uk/ and
http://www.apprenticeships.org.uk/
Table 1: Higher Education provision in Essex, Southend-on-Sea and Thurrock
Essex-based University/College*
University of Essex, Colchester
Anglia Ruskin University, Chelmsford
Course
BSc Accounting
BSc Accounting and Finance
BSc Finance
BSc Accounting and Management
BSc Banking and Finance
BSc Finance with Mandarin
BSc Accounting and Mathematics
BSc Accounting with Economics
BSc Finance and Modern Languages
BSc Business Administration
BSc Management and Marketing
BA Latin American Studies with Business Management
BA Sociology and Management
BSc Accounting and Finance
BSc Accounting and Financial Management
Association of Chartered Certified Accountants (ACCA)
BA Business Management
BA Marketing
1.4. Establishment and workforce concentration in the sector
Map overview of the number of employees in Finance sector in each ward within Essex, Southend-on-Sea and Thurrock
Figure 3: 6,500 individual businesses in Essex, Thurrock and Southend-on-Sea
450
64: Financial service activities, except
insurance and pension funding
400
350
65: Insurance, reinsurance and pension
funding, except compulsory social security
300
66: Activities auxiliary to financial services
and insurance activities
250
69: Legal and accounting activities
200
70: Activities of head offices; management
consultancy activities
150
100
50
0
(Source: ONS 2011)
Figure 4: 36,800 employees in Essex, Thurrock and Southend-on-Sea
3,000
64 : Financial service activities, except
insurance and pension funding number
2,500
65 : Insurance, reinsurance and pension
funding, except compulsory social security
number
2,000
1,500
66 : Activities auxiliary to financial services
and insurance activities number
1,000
69 : Legal and accounting activities number
500
0
70 : Activities of head offices; management
consultancy activities number
(Source: Nomis 2011)

The largest industry within the Finance sector is Activities of head offices; management consultancy activities.
The highest number of individual businesses in this industry is in Chelmsford (395 in 2011), employing a total of 1,160 people. This means
that the size band of these companies is generally 1-5 employees, with an average number of 2-3 people working in each business.
The highest number of employees in this industry is in Southend-on-Sea, with just over 2,740 people working in 275 companies across the
district. Therefore, the size band of Southend-on-Sea companies working in Activities of head offices (management consultancy activities) is
higher than in Chelmsford: 6-10 employees, with an average of 10 people working in one business.

The second largest industry is Legal and accounting activities
The highest number of individual businesses in this industry is in Chelmsford (245 in 2011), employing a total of 1,460 people – also the
highest number of employees within this industry. This means that the size band of these companies is generally 6-10 employees, with an
average number of 6 people working in each business.
1.5. Examples of companies locally
International Financial Data Services (IFDS), Basildon (UK Headquarters), Chelmsford and Brentwood – A leading supplier of investor
record keeping services and systems to UK and European financial services companies.
More than 2,600 employees at IFDS working across the four sites in Essex.
Marsh UK, Witham – provide risk and insurance products and services to international clients.
The company was ranked #1 insurance broker to work for by UK graduates in 2012.
Cofunds, Chelmsford – UK’s largest independent platform for financial services.
650 permanent staff at Cofunds offices in London and Chelmsford.
First Data, Basildon – The world’s largest provider of transaction processing services has its UK headquarters in Basildon.
2000 employees at First Data in Basildon, Dublin, Nottingham and Glasgow.
th
Equity Insurance Group, Brentwood – The most profitable insurance company in Essex and the UK’s 6 largest motor insurance
company, with more than 1million policy holders.
1100 employees at Equity Red Star, Brentwood.
Liverpool Victoria, Basildon and Brentwood – UK’s largest friendly society, a leading financial mutual and top income protection provider
in the advised market, insuring 1 in 10 cars in the UK and more than half a million homes.
Over 5,500 employees working in 17 offices across 10 main locations around the UK.
J&M Insurance, Epping (Head Office) – Specialist taxi insurance and public and private hire insurance (minicabs, black cabs, taxi fleets,
chauffeur vehicles and minibuses).
Angel Underwriting, part of Catlin Group Ltd, Colchester - Catlin UK underwrites property and casualty insurance for UK regional clients
and also provides an alternative to wholesale clients who prefer coverage written on company paper.
Guarantees and Bonds Ltd, Maldon – Specialist insurance broker providing all forms of Surety Bonds, Financial Guarantees and other
Financial Instruments for all trade sectors including Construction, Travel, Engineering and Manufacturing.
Swinton Group, Chelmsford (commercial branch opened in April 2013) – UK largest high street insurance broker with 553 commercial
insurance and personal insurance outlets nationwide. Swinton Commercial has 34 commercial offices.
2. Vacancy and Salary trends
2.1. Current Salaries
Figure 5: Current salaries in Finance Sector – National level
Brokers
Financial managers and directors
Finacial institution managers and directors
Actuaries, economists and statisticians
Finance and investment analysts and advisers
Solicitors
Management consultants and business analysts
Taxation experts
Chartered and certified accountants
Insurance underwriters
£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
2.2. Vacancy concentrations in Essex, Thurrock and Southend-onSea
Figure 6: Finance sector – Vacancies in 2012 and 2011
2011
2012
450
400
JobCentre Plus Vacancy – Example 1:
350
Job Title: Junior Diamond Broker
Location: Brentwood
Salary: £30,000-£50,000 OTE
Job Description: As a Diamond broker your role will involve:
-Building relationships with potential investors.
-Sending out literature, dealing with queries from potential
investors.
-Discussing investment opportunities.
-Opening & Closing your own deals (where possible).
-Meeting and greeting clients on a face to face basis.
Skills/Qualifications: Suitable candidates for this will need to
meet the following criteria:
- 1 years minimum experience within an investment or sales role.
-A strong, clear telephone voice.
-Confidence and maturity to speak with investors from a variety
of backgrounds.
-Ambition and self-motivation to be successful.
-The ability to work well in a fast paced, pressured environment.
-The initiative to work alone but must work well as part of a team.
300
250
200
150
100
50
0
(Source: Nomis, based on JobCentre Plus data only)
Please note that due to limited data sets, the numbers above do
not include December vacancies for both years.
Figure 7: Total number of online vacancies advertised in the
county between 03 April 2013 and 02 May 2013
JobCentre Plus Vacancy – Example 2:
Finance Officers
Job Title: Assistant Accountant
Location: Colchester
Salary: £22,000-£27,000 per year plus benefits including study
support
Job Description: A thriving business on the outskirts of Colchester is
looking to recruit an Assistant Accountant to help an ever expanding
business portfolio. If selected, you will be responsible for assisting
with bookkeeping to trial balance, the production of management
and year end processes.
In return for your commitment to the role, the company offers a
competitive package including study support and the opportunity to
develop your accounting experience.
Skills/Qualifications: Not specified.
Source: https://jobsearch.direct.gov.uk
6
Brokers
11
Taxation Experts
11
Bank and Post Office Clerks
17
Financial Administrative Occupations N.e.c
26
Business and Related Associate Professionals
N.e.c
35
Pensions and Insurance Clerks and Assistants
44
Insurance underwritters
55
Management Consultants and Business Analysts
56
Finance and Investment Analysts and Advisors
64
Financial Accounts Managers
75
Sales Accountants and Business Development
Managers
85
Financial Managers and Directors
89
Business and Financial Project Management
Professionals
120
Chartered and Certified Accountants
142
0
20
40
60
80
100
120
140
(Source: Labour Insights, 2013)
Figure 6 shows that the overall number of vacancies across the county stayed the same from 2011 to 2012. At district level, Colchester
and Chelmsford companies advertised the highest number of vacancies in 2012, while in 2011 JobCentre Plus recorded the highest
number of vacancies in Colchester and Southend-on-Sea.
In 2013, there have been more jobs in Business Services (average number of 750 vacancies/month) than in Financial Services (average
number of 70 vacancies/month) or Banking – the industry where employers did not need workforce this year (maximum of 10 vacancies
recorded by JobCentre Plus in March).
Figure 7 shows that the Finance and Business sector in Essex mostly needs chartered and certified accountants, while the highest paid job
in the sector nationally – brokers – appears to not be on demand in this area.
2.2.1. Hard-to-fill vacancies (trends) – include no of existing vacancies at a given time vs. sought occupations
At national level, increased financial scrutiny has raised the demands for auditors, credit managers and corporate governance
professionals. Regarding the insurance industry, requirement for Solvency II experience remains prevalent and there is particular demand
for senior professionals such as actuarial analysts (Source: Hays, 2013 http://www.hays.co.uk/press-releases/HAYS_745238 ).
160
2.2.2. Skills/Qualifications/Experience required that make these vacancies hard to fill
Skills requirements at national level
Finance
Accountancy
Team work
Analytical
& Insurance
Project Management
Research & analysis
Presentation
Banking
Life & Pensions
Broking
Legal Professions
Customer service
Analytical
People skills
Numeracy
Management
ICT capabilities
Project management
Insurance
product
design
Risk Management
Entrepreneurship
Commercial
awareness
Financial
management
Decision-making
Business
understanding
Marketing
Administration
2.3. Skills Gaps and Shortages
Nationally, the number of vacancies reported in the sector (58,800) in 2011 account for three per cent of total sector employment, just
over the UK average. Of these vacancies, 20 per cent (11,700) are deemed hard-to-fill by employers and 18 per cent (10,600) are due to
skills shortages. Associate professional roles are the hardest to fill, due mainly to a shortage of applicants with the right skills. The main
skills in short supply are job-specific and technical capabilities such as actuaries within the insurance sub-sector. In addition, 12 per cent
of sector employers report skill gaps, again in line with the average for all sectors. Skill gaps are particularly concentrated on sales and
customer service jobs. (Source: UKCES, 2012)
3. Future growth
3.2. Future trends in job roles and skills demands
In addition to filling new jobs nationally, the sector will have to replace people leaving their jobs because of retirement or other factors.
For example, while the overall number of administrative and secretarial staff in the sector is expected to fall by 18,000 between 2010 and
2020, over the same period the sector is expected to face a requirement to recruit 138,000 administrative and secretarial staff to replace
retirees, a net requirement of 120,000. (Source: UKCES, 2012)
Insurance broker, Brents of Brentwood, offers commercial insurance for business and personal insurances such as households, car and
travel insurance. The company plans to take on new staff into near future and expand into new markets such as veterinary insurance
(Source: M.E.L Research and Mazars).
4.2. Case studies
In 2012, HSBC in conjunction with the Financial Skills Partnership’s Directions Service launched a national work experience programme for
130 14-19 year old across the UK. During the placement, students complete workbooks and a business project, and receive a careers
advice session. For those students who have a particularly successful placement and demonstrate genuine interest in a career at HSBC,
there is the opportunity to undertake further placements in successive years.
Useful Links:
Financial Skills Partnership: http://www.financialskillspartnership.org.uk/
National Apprenticeship Service (NAS): http://www.apprenticeships.org.uk/About-Us/National-Apprenticeship-Service.aspx
Prospects (The Official Graduate Careers Website): http://www.prospects.ac.uk/
National Careers Service: https://nationalcareersservice.direct.gov.uk/Pages/Home.aspx
Universal Jobmatch (Jobcentre Plus job search tool): https://www.gov.uk/jobsearch