Need to lure staff from private sector may force pay hike

Housing associations could be forced to increase pay and benefits to combat a serious shortage of finance staff, one of the sector’s largest recruitment consultants has revealed.

The shortage of personnel for all levels of finance roles means housing associations are increasingly targeting recruits from commerce and industry, according to accountancy recruitment firm Hays.

Its latest salary survey concludes that the housing sector may have to review the salary packages it offers finance staff in order to attract more of them.

The average national salary for a director of finance at a housing organisation with more than 10,000 units was £68,250 for the last six months of 2004, a 4.1% rise year on year. The average national salary for a financial controller was £44,750, an increase of 1.6%.

Greater London and the South-east had the highest average pay for finance directors, with a typical salary of £87,000. Northern Ireland had the lowest at £39,000.

However, the average national salary for part-qualified finance staff dropped 0.7% to £22,208.

Mark Glaze, Hays’ public services business manager, said associations were finding it difficult to compete with other sectors in attracting staff.

He said: “Salaries in the commercial sector are a big driver and bonuses make a position in commerce very attractive. Associations need to promote the intangible attractions of housing, such as putting something back into the community.”

Glaze added that skills shortages affected housing associations at different levels, with some facing problems at senior level and others finding it difficult to recruit junior staff.

Inge Kettner, finance director at Whitefriars Housing Group, which manages 19,000 ex-council homes in Coventry, said: “We start to have difficulty at finance assistant level. We benchmark salaries, which shows we’re mid-market, but there’s ignorance about housing. We’re seen as part of the council and often people don’t want to work for a council.”