2016 Salary Trends in Finance

2016 Salary Trends in Finance2016 Salary Trends in Finance2016 Salary Trends in Finance ConlanHow are 2016 salary trends likely to impact jobs in the finance industry?Most employees in the financial sector will see a salary increase in 2016, with middle managers expected to experience the most significant bump in pay, experts say. Finance executives and lower-level workers in the financial industry are projected to see salary growth in the coming year as well, though at a slightly slower tarif.There are several economic factors that have been increasing demand for financial skills that could continue to drive salary growth in the industry through 2016.Improved Economy for Finance JobsAs with many industries, the stronger economy has helped the finance industry see some gains, says Mariam Lamech, manager of research at the Association For Financial Professionals. Salary and hiring freezes left over from the recession have been melting, and organizations have been making up for lost ti me with salary increases.In particular, this has meant good news for the middle management tier of finance employees, says Lamech, which according to AFP research saw an average salary increase of 4.6% in the past year, compared with 3.5% for executives and 3.4% for staff positions.The Irvine, California-based Economic Research Institute is projecting similar numbers, although it expects a slowing of salary increases for lower positions in finance (2.7% in 2016, down from 3% in 2015). It also projects growth for middle positions (3% in 2016, up from 2.6% in 2015) and executive salaries (3.5% in 2016, up from 3.1% in 2015.)The unemployment rate for positions such as accountants is about half of the national unemployment rate, so financial professionals are in high demand, says Dallas-based compensation consultant Dindy Robinson. Top performers in particular may see salary increases of up to 10%.Advanced Degrees Pushing Up SalariesLamech says employees advanced degrees are pushing up salaries as well. Those with MBAs and higher degrees are earning more than $9,000 more than those who just have bachelors degrees or high school educations, she says. Education is playing a big role.Professional certifications come into play as well on the treasurer/finance side as more people get their CPAs and CPCs. In the middle level and lower level, those who have certifications will benefit from a higher salary, Lamech says.The Growth of Specialty NichesLamech says compensation for finance positions varies considerably by industry, a trend that is expected to continue through next year. In the past three years, energy and utilities have commanded the highest average salaryand technology job salariescame in second.The average financial salary in the energy sector is $120,000 a year, Lamech says it was $116,000 in tech. Continued growth in ansicht industries could keep trends high.The push for a higher 2016 minimum wage isnt affecting financial salaries directly, says Jonas John son, senior researcher at ERI. However, a higher minimum wage does have an indirect effect on how all salaries are calculated, he says.If the lower end ratchets up, a lower level job might suddenly make more than the one above it, and so the salary increases up the scale, he says. People who set compensation need to keep an eye on so-called wage compression as a higher minimum wage pushes up from the bottom.A higher minimum wage would have the biggest effect on the lower two levels at an organization, he says. Once you get into higher levels, the effects fall off.