Economic subjects | Human resource management » Pentasia Salary Survey

Source: http://www.doksinet SALARY SURVEY 2018 MOVERS & SHAKERS Source: http://www.doksinet Salary Survey iGB-PENTASIA SALARY SURVEY 2018 The inaugural iGB Salary Survey reflects the evolving needs of a sector grappling with the challenges of maturity, writes Stephen Carter. Welcome to the first-ever iGaming Business industry salary survey in partnership with the sector’s leading recruitment agency Pentasia. Their data experts have segmented the advertised salary data from its global network by job, grade and location to give the industry’s most comprehensive and detailed insight into sector recruitment trends to date. With the analysis starting in 2016-17, enabling benchmarking of the data from this point, it is understandably tempting to look for patterns or evidence in the data of the forces that have reshaped and buffeted the sector in recent years, from consolidation, to CSR and compliance pressures, impending Brexit and, of course, regulation and tax changes.

Turning first to the headline findings, the sector as a whole saw a 2.7% increase in average salaries in 2017-18 compared to the prior year, broadly consistent with wider trends, the UK jobs market for instance experiencing 2.8% growth in the period As Pentasia MD Alastair Cleland comments, this underpins igaming’s status as “a thriving and growing market, with a talent shortage that continues to favour candidates”. The headline figure however masks some huge variances within the data, most significantly with regards to seniority. As shown in the bar chart opposite, growth has been far more pronounced at the uppermost levels, widening the gap between senior and managerial pay. Cleland provides analysis of this on the opposite page. There are also vast differences in the annual salaries paid by companies to candidates for doing the same job at the same grade. Thus while the average annual MD/C-suite salary was £128k across the two-year period from 2016-2018, the top 10% earned an

average of £235k. Similarly, in senior marketing roles, the average earned was £101,500, while the top tier took home £176,000. It’s also fair to assume that this upper 10% has a distorting effect on the overall average for each job category, meaning that many reading this survey who consider themselves to be earning the norm may not necessarily see their pay measuring up to this. Viewed from a regional/jurisdictional perspective, the hike in senior level salaries was most prominent in Gibraltar, up 42% year-on-year. Principal igaming consultant Cara Kerr told iGB: “The ‘Brexit 56 iGamingBusiness | Issue 113 | November/December 2018 effect’ has not been noticeably evident – though clearly the effects of the coming few months could be significant.” In Malta, set to receive the biggest post-Brexit boost from the Crown Dependency licences losing EU (grey) market access when the UK leaves in 2019, average salaries were up 3.4%, above the overall industry growth rate but

behind the UK and Ireland with 5.84% Head of Malta Pentasia Anthony Hennessy says the island is suffering “a major talent shortage exacerbated by influx of new operators”. The gaps are “particularly painful at the mid-management levelwhere it really slows the pace of business” and include affiliate, account and customer service managers. A robust compliance function is of course becoming increasingly pivotal to building a sustainable business in the igaming sector, driven by recent reputation-damaging regulatory interventions and fines levied on operators for KYC, money-laundering, social responsibility and advertising failings in the UK. This has attached a growing premium to “senior compliance talent who can identify and make recommendations based on imminent and changing regulation”, says Cleland. As for the impacts of the consolidation dance which has seen most of the major listed players combine in recent years, Cleland says the effects have been gradual as businesses

have been careful to retain their most talented staff. “Displacement caused by merging teams has created some areas where candidate availability outstrips vacancies – such as London, where candidates are finding they must either travel for work or transfer to new sectors”, he adds. Emerging and potentially disruptive tech is also attracting those with entrepreneurial tendencies away from the big igaming firms to smaller, more agile startups, with those building on blockchain and AI proving particularly magnetic, according to Cleland. He points out that: “ICOs have enabled these smaller operations to become cash rich quickly and enables them to offer highly attractive salaries alongside the chance of new success.” Last but not least, remote working is becoming number one request on the candidate wishlist, but one that that sector employers are by and large still unwilling or unable to accommodate. “As the freelance and remote economy continues to grow, likely either

employers or candidates will need to adapt or compromise, says Cleland. Source: http://www.doksinet Salary Survey Average salary by job category and level (GBP) 2016-17 2017-18 Source: Pentasia Mind the gap Pentasia MD Alastair Cleland on the growing gulf between the top- and mid-range earners Our industry rewards those at the top, but a salary gap between the top and mid-range earners is opening up, writes Pentasia MD Alastair Cleland iGaming is renowned as an industry where the big winners win big, with a number of directors and founders having amassed billion-dollar fortunes from their work in the sector. The packages on offer to those lower down the ladder may not match this, but the iGaming industry tends to pay handsomely at all levels. This year’s salary survey shows pay across the sector has increased 2.75% year-on-year, but it’s the senior leaders who have enjoyed the biggest pay hike in the period. Salaries in excess of £100,000 are increasingly commonplace, not

just for the C-Suite but also for specialists and heads-of-department in areas including compliance, tech development and product management. However as senior salaries have increased, the gap between mid- and senior-level pay has widened. Bosses earning double the salary of those directly below them are increasingly common. This has created a top-heavy remuneration culture. There are three factors contributing to the widening gap. First, an ongoing scarcity of experienced iGaming leadership talent drives up wages. Secondly, mid-level salaries are limited by precedent or comparable hires. Finally, senior roles often require candidates to relocate, which necessitates higher salaries to make the roles more attractive. Making the jump from a mid- to seniorlevel position is often seen by employers as challenging. This means many can be unwilling to recruit from lower tiers of their business for the most senior roles. Often it takes a new employer to recognise a candidate’s potential

and offer them the chance to step up. Experience remains key, both for driving up salaries and securing the top jobs. Those with a decade or more’s industry experience have a significant advantage over candidates from other sectors when it comes to landing senior roles. Ours is a unique and nuanced industry where knowledge and experience are valued. Certain fast-tracks are now emerging. Experience in key operational departments such as tech, compliance or marketing boosts career prospects as employers look to build these skillsets into their leadership team. In the increasingly complex, regulated and competitive online gaming market, it’s above all strong leadership that employers look for. Career paths which include a wide range of departmental interaction and exposure to different markets are most likely to result in a seat at the top table. Ultimately, employers who invest their trust, responsibility and top-tier salaries in ambitious candidates who are willing to prove

themselves – even if they haven’t yet done so – may discover that their investment pays dividends. iGamingBusiness | Issue 113 | November/December 2018 57 Source: http://www.doksinet Salary Survey THE REGIONAL PICTURE Pentasia’s regional specialists break down the factors driving salary and recruitment trends in some core territories for iGaming Business THE UK CARA KERR, PRINCIPAL IGAMING CONSULTANT London is still clearly the hub of gaming activity, although here consolidation has caused some talent displacement, with talent forced to look elsewhere if committed to utilising their industry specialism. London however is still a good place to be – a key technology hub with lots of activity within the largest market. We have seen a rise in companies heading north or outside of London, and often even outside the UK’s other tech hubs. It is challenging to find talent there but often attractive for senior candidates looking for a lifestyle change and long-term benefits.

We have seen some big customer service and other departments leave London as consolidation can result in duplication of such functions. GIBRALTAR CARA KERR The Brexit effect has not been noticeably evident, although clearly the effects of the coming few months could be significant. Salaries are still growing, and while the rate of new companies setting up has slowed and others are relocating, this is offset by growth with no major closures and large companies still moving teams out there. It is a small market for talent and not for everyone, but can be an attractive option, particularly as the mid-level talent shortage can provide a good career path towards senior roles. SCANDINAVIA HENRY PETERSEN, PRINCIPAL CONSULTANT, SCANDINAVIA Relatively steady in terms of salary levels, and whilst entry level salaries may have fallen, the pay-off for those with a minimum of 2-3 years’ industry experience continues to be appealing. Scandinavian operators are still basing as many roles as

possible in Malta, and want to continue doing so. UK: Average salary by job category and level (GBP) 58 iGamingBusiness | Issue 113 | November/December 2018 Source: Pentasia Source: http://www.doksinet Salary Survey Average salary by location and level (GBP) NB: Datasets for Africa, Asia, Caribbean/LatAm and remote too small for reliable reading Source: Pentasia The effects of Swedish regulation from 2019 remain to be seen, but considering regulators’ close partnership with the major operators is unlikely to bring any major surprises, although licence requirements could upset the balance. Marketing teams’ workload will likely increase, as much of the Swedish regulation will affect their campaigns and CRM output. The key shortages for Scandinavian operators at present are within affiliate and CRM, with the responsibility for compliance falling on the whole business. SPAIN GIULIANO LAFIRENZA, HEAD OF SPAIN AND LATAM Spain remains an attractive region not only for its

market but also for the quality and size of its gaming talent pool. New tech teams continue to set up in Barcelona – Londonbased firms hiring in Spain generally find a good range of strong candidates, sourced either within region or from further afield as expat candidates look to bring their experience back home. Barcelona and Madrid remain the top locations for gaming operations with talent clustered around these areas. The gaming sector largely employs specialist leadership talent, marketing functions, operations and customer service, whilst locating more substantial teams - such as tech - elsewhere in Europe. The main challenges are the sector’s own expansion due to the issue of more licences and of closely related industries such as ecommerce, fintech and payments. The growth of Spain’s wider tech sector is good for gaming, but employers need to remain aware of new out-of-sector jobs which may attract valuable staff. As for the recent tax changes, operators looking to

benefit from a Ceuta or Melilla location will need to base senior leadership talent in the North African cities, a potential opportunity for many candidates, but unlikely to appeal to all. NORTH AMERICA MARWA MITCHELL, VP RECRUITER FOR NORTH AMERICA The opening of the US sportsbook market has primarily affected the top of the chain, with senior salaries the first to be raised in order to attract suitable candidates. US incumbents and European entrants urgently need experienced senior execs on the ground and are willing to pay. Although with financial returns as yet unproven, there’s a limit to the purse strings. Now the initial excitement is over, employers are cautious not to over-value candidates. Visa restrictions are also severely limiting the inflow of talent from elsewhere in the world. Those with existing citizenship or the potential to work are in short supply, even potential supply from more the supposedly more favourable Australian visa is not proving fruitful. Mid-levels

can be attained locally and out-of industry, with the right senior leadership to provide guidance and industry expertise. The local talent pool is now increasingly open to moving inter-state. Even those with long-held roles realise the huge potential and are more open to the trend towards training people. iGamingBusiness | Issue 113 | November/December 2018 59 Source: http://www.doksinet Salary Survey Malta Malta: Average salary by job category and level (GBP) Source: Pentasia “The island still has a major talent shortage exacerbated by the influx of new operators” MALTA ANTHONY HENNESSY, HEAD OF PENTASIA MALTA The island still has a major talent shortage exacerbated by the influx of new operators. Malta has a clearly established ecosystem for the island’s big operators, while more exciting startups provide an often-attractive shot at more immediate success, with accompanying risk. The biggest salary increases are in businesscritical operational leadership – areas

where compromise or out-of-industry hires are not an option – such as compliance, senior tech roles, finance and operational management. The shortages are particularly painful at the mid-management level and include affiliate, account and customer service managers – where it really slows business pace – but employers are 60 iGamingBusiness | Issue 113 | November/December 2018 still not always willing, or able, to increase salaries to attract these. Affiliate specialists are particularly in demand because it takes time to build a B2B network. The senior roles get filled by experienced people, but it leaves openings for managers and executives. Some companies are training people up, but this is rare despite most having a pressing need in this area. The main in-demand languages are Swedish and German, although it remains difficult attracting these people in competition with their home country. The cost of living is increasing – candidates now tell us €23k is the minimum to

achieve the most basic lifestyle – with junior staff often prepared to move abroad to get this. This is causing some customer service operations to flow away from Malta. Source: http://www.doksinet Salary Survey THE SPECIALISTS Pentasia’s role specialists provide detail on the salary and recruitment trends in their respective areas SALES & ACCOUNT MANAGEMENT KARL HARENBURG Candidate demand is focussed on a secure base, particularly in city hubs where living costs are high. They are unwilling to risk their lifestyle on bonus packages, typically 20-40% within the remuneration package, reliant on meeting targets. Contrary to belief, the No 1 motive for switching sales jobs is not money but a more interesting employer. Most are open to new opportunities and often mobile, except those with the deepest networks among large operators and suppliers where long-term deal shares place a high penalty on leaving. Exiting igaming for payments and AI tech is also increasingly attractive.

Level Avg. Bottom 10% Average Avg. Top 10% £18k £28.5k £41k Mid/Manager £31.5k £54.5k £79k Senior £64.5k £98k £148k Executive CUSTOMER SERVICES CHANELLE DEMANUELE It’s rare to find a CS department that’s growing as AI technology, chat bots and ‘self-service’ help reduce the need for human support. This may explain the growing wage gap in CS, as fewer, more skilled CS leaders can use technology to resolve a workload previously only possible with large teams. This approach of outsourcing CS - with a handful of outsourced CS and fraud providers in Malta picking up the increasing workload – means you no longer need native-speaking, upper intermediate-level operatives. Cyprus, Bulgaria and even Costa Rica have all been locations for relocation of CS out of Malta. Avg. Bottom 10% Average Avg. Top 10% Executive £15k £20.5k £28k Mid/ Manager 24.5k £45k Senior £60k £71k Level PRODUCT & PROJECT CARA KERR Salaries are growing across the

board, but we’re seeing more progress to higher levels due to the increased importance of product, project and programme management roles in igaming. Businesses used to force product heads into being ‘people managers’ of 10-30 people, but this resulted in low job satisfaction and became a key motivator for leaving. Now they are more savvy about using product & project managers for what they are good at, with some managing 30+ products with very few direct reports. Placing them in the right setup with the right levers to control is crucial Level Avg. Bottom 10% Average Avg. Top 10% Executive £26k £32.5k £38.5k £69k Mid/Manager £37k £59k £84k £82k Senior £72.5k £110k £172k iGamingBusiness | Issue 113 | November/December 2018 61 Source: http://www.doksinet Feature COMPLIANCE, LEGAL & FRAUD JONATHAN REBEIRO New and updated regulation has added significant workload to compliance, legal and fraud departments in some markets over the past year.

This increased responsibility has driven up senior salaries, particularly in Malta, as compliance professionals earn their place at leadership level. Increasingly, compliance is about stakeholder management across organisations, and those responsible for meeting regulatory requirements have to be strong relationship builders. Operators are increasingly electing to spread responsibility across their organisation rather than within distinct compliance functions, leading to a reduction in some more junior compliance roles. Level Avg. Bottom 10% Average Avg. Top 10% Executive £18k £29k £40k Mid/Manager £33k £53k £72.5k £104.5k Senior FINANCE & OPERATIONS CHRISTINE HILI We are seeing significant increases in salaries, particularly at the senior level where direct industry experience is essential and therefore highly valuable. This is an area where businesses are understandably unwilling to compromise, particularly for those charged with commercial responsibility and

managing key growth initiatives. Individual roles are increasingly exceeding £150k with many hitting £200k. Technically astute operational leadership talent commands some of the highest salary levels: CTOs, VPs of technology, trading directors, also those with an appetite for working in emerging markets. Level Avg. Bottom 10% Average Avg. Top 10% Executive £15.5k £27.5k £39.5k £75.5k Mid/Manager £29.5k £50k £79k £137k Senior £63k £116k £232k DESIGN & TECH CAROLINE BUTLER There is a huge quantity of vacancies in the industry for design and technology specialists, and this is continuing to grow thanks to the requirement to build a whole department internally with teams of 5-20 hires. However, this isn’t leading to increased salaries, as employers have not adapted their expectations to the highly competitive, candidate-favourable market. Now we see a rising trend of hiring more junior developers at a lower rate (say £32-35k) despite the additional

training that is required, as opposed to hiring smaller teams of experienced hands (say £45-50k). However, this in turn has resulted in an employee turnover rate of around 18 months. Candidate requests for remote work increase daily – it’s the number one request on our tech desk, but to our knowledge only one company in Malta enables work from home, exemplary of the 62 iGamingBusiness | Issue 113 | November/December 2018 demand/supply gap. Nowadays, igaming doesn’t have quite the pull-factor it used to – once it was the hottest industry for these candidates, but now there are equally attractive competitors vying for strong design and technology departments. Tech and design candidates are always interested in learning or getting exposure to new technology - from PHP to new back-end language, or Javascript to the popular React or Angular frameworks. Perhaps in our favour is the fact that blockchain is also an area of interest. This drive for learning may, however, play a part

in another motive for switching roles - non-technical skills like leadership or team responsibility are in demand from employers, but not desirable for the candidates. Level Avg. Bottom 10% Average Avg. Top 10% £20k £31.5k £41k Mid/Manager £34.5k £57k £86k Senior £56.5k £104k £159k Executive Source: http://www.doksinet Feature ANALYTICS & DATA MARKETING DARYL KING Analytics’ technical skillset has increased substantially, even in the past two years. Software knowledge in analytics cloud system softwares, SME, Amazon RedShift, AWS, Azure, Google big query – PowerBI, SQL, rPython. This requires two skillsets in one person, a developer inside an analyst, which you are not usually going to find in a graduate, more in a developer looking to turn into an analyst. This can be an attractive route towards specialism as it’s often a higher-profile role, not all computer-based and based on stakeholder management and cultivating c-suite relationships. So why

the salary drop? Lots of technical analytics work is being moved away from London or other head offices to elsewhere in Europe, such as Bulgaria, Romania and Vienna, where the lower cost of living means can you can employ someone working at senior BI level for €45k as opposed to €65k. AI is where the big money is at – you can earn €150-200k as a graduate at Google or Microsoft. GARETH MULLEY Marketing in gambling is crucially important – it’s what differentiates your offer and helps attract and retain players. These departments are being asked to do more and more, but haven’t seen pay rises that reflect this increased workload. Plus, tighter regulation creates compliance responsibilities which largely fall on marketing. Facing huge fines, errors can be made easily even by the most junior of executives, creating more pressure from compliance and legal departments. Marketing departments have some of the lowest career satisfaction rates, and perhaps this increased pressure

and the requirement for specialism narrowing career paths have led to the general dissatisfaction. There’s little difference in salary rates between acquisition and retention roles, which are both equally valued, but there’s definitely split between ‘brand’ and ‘digital’, with results-driven digital roles paying more. We’re also seeing a trend to reorganise acquisition talent into teams of paid social (all social output) and biddable media (including programmatic). A crucial business choice is whether to build this in-house, which can be complex and lead to minimal returns, or outsource to often costly specialist agencies. Marketing departments also want to bring more skills in-house, in particular, the low-hanging fruits of SEO and content. Analysis, campaign testing multichannel and multi-testing have become increasingly important in marketing, and candidates really need to show some mathematical ability in their CV. Avg. Bottom 10% Average Avg. Top 10% Executive

£23k £33k £40k Mid/Manager £39k £57k £80.5k Senior £78k £97k £131.5k Level Level Executive Mid/Manager Senior Avg. Bottom 10% Average Avg. Top 10% £20.5k £29.5k £40k £28k £49.5k £80k £67.5k £101.5k £176k The data Based on 2,665 jobs in the periods July 2016-June 2017 and July 2017-June 2018. Jobs were categorised by level according to the following criteria. ‘Executive’ includes those in entry-level, junior and non-managerial roles; ‘Manager’ includes experienced, specialist and department leads; ‘Senior’ includes heads of department, management and leadership. Original salary currencies have been converted into GBP at the rate 1USD:0.75GBP; 1EUR:085GBP; 1AUD at 057; 1CAD at 059; HKD at 009; SEK at 0085; SGD at 057 The headline job categories include the following positions: Analytics & data - business intelligence, customer insight, marketing analytics and data management; Compliance, legal & fraud - strategic and

operational regulatory practice; Customer services - call and chat operators, live dealing and support; Design & tech - includes technical development, front and back end development, UX and digital design, game design and development; Marketing strategy, campaigns, digital marketing, CRM, acquisition, retention affiliate and VIP; MD & C-suite - C-level executives including CEOs; Finance & operations - finance, business infrastructure, technical delivery, management and support roles; Product & project - product management and project management specialists; Sales & account management - B2B sales and business development professionals. iGamingBusiness | Issue 113 | November/December 2018 63