Hays Accountancy & Finance - April 2007

Commerce & Industry

Hotspots

NSW:

• Finance managers and accounting managers with five to six years' qualified and industry-specific experience.
• Financial accountants and analytical/management accountants.
• Experienced tax accountants and tax managers from financial services and banking backgrounds - industry growth previously created a need for entry-level tax accountants however this has now transferred to a demand for experienced tax managers, particularly those within investment management and fund accounting teams.
• Qualified financial accountants with banking and financial services experience - as we approach year-end the demand for financial accountants will increase.
• Fund accountants at the $65,000 to $75,000 level - the ongoing skill shortage in this area is attributed to growth and new fund creation.
• APRA/statutory reporting - a deficiency of candidates who specialise or are willing to remain in statutory reporting roles is heating this demand. Previously APRA was included as an element of a financial accounting role, but continued growth has witnessed the emergence of APRA reporting specialists, particularly on a contract basis.
• Accounting graduates and assistant accountants with one to three years experience and who have commenced or are about to commence their CPA or CA - while a reasonable number of candidates exist in the market, candidates with experience analysing and costing manufacturing activities are in particular demand. Continual activity in the manufacturing sector in addition to a preference by candidates at this level towards service industries is heating this demand.
• North Sydney's accounting support market is very active with an influx of accounts clerks and accounts payable vacancies as business growth heats back office demands.
• Payroll Officers - payroll vacancy activity has increased substantially, heating demand for candidates with several years' exposure to a specific system.

Victoria:

• Senior accountants - the continual stream of companies looking to list on the ASX is resulting in an ongoing demand for senior accountants in the $120,000 plus market who have experience accounting for listed companies.
• Accountants with financial governance, audit, SOX, IFRS, risk and general compliance backgrounds - this remains a key area due to the ongoing focus on risk and compliance. There has however been a shift to more 'business as usual' roles rather than implementation or rollout projects.
• Tax accountants - a number of mergers and acquisitions have taken place requiring these skills. This is however an area of chronic candidate shortages and any candidate with a strong tax background in either public practice or commerce will be considered for multiple opportunities.
• Qualified business and financial analysts at the $70,000 to $100,000 level - employers are still investing in value-adding accounting and finance positions as they continue to enjoy growth and healthy economic conditions. Candidates with a combination of analytical skills and an ability to build relationships with non-finance decision makers can expect to be considered for many positions that may focus on cost cutting, pricing, market analysis and interpretation and investigation of financial results.
• CA or CPA qualified accountants with four to five years experience - there has been no change in the chronic shortage of candidates wishing to make their first move from public practice into commercial roles. Due to the lower intake of graduates by the Top 4 and 2nd tier firms in 2001-2002 there is a resulting shortage today of CA or CPA qualified accountants with four to five years experience. Consequently employers struggle to fill financial and management reporting positions, particularly if they have a technical focus.

Western Australia:

• Financial controllers - SME growth has resulted in a number of organisations that previously relied on external accountants deciding to bring the function in-house.
• Project accountants and analysts remain an area of demand.
• Corporate accountants and senior financial accountants - this demand is to allow financial controllers to focus on ever increasing statutory compliance requirements.

ACT:

Degree qualified accountants with two to five years experience continue to remain in high demand, without a corresponding supply. Financial accountants with four to five years experience and their CA or CPA receive multiple offers. The severe shortage of candidates exists due to a lack of university graduates remaining in Canberra, a reasonable number of graduates pursuing overseas and interstate opportunities upon completing their CA or CPA program and the ongoing demand from the public service and their increasing salaries.

Queensland:

• Business analysts
• Cost accountants
• Management accountants - a surge in vacancy activity within manufacturing and larger companies is heating this demand.
• Part-qualified assistant accountants with commercial experience, particularly at the $45,000 to $55,000 level.

The coming quarter

Towards the end of the quarter the June financial year-end will create increased temporary and contract activity across Australia, with employers already specifying their needs in anticipation. This will most certainly have an effect on permanent requirements taking us into the next financial year.

In Sydney the property industry continues to drive accountancy & finance growth, creating increased vacancy activity. Hiring intentions within the banking sector have increased, and permanent positions are expected to be created over the quarter within fund accounting, business performance and decisions support teams. Temporary activity should increase for new positions within funds, statutory accounting, financial accounting and tax.

Further vacancies are expected to be created in Perth where the economy continues to grow. An increase in replacement activity over the coming quarter is also expected as candidates take advantage of the current market's strength to advance their career.

In Queensland, vacancy activity is centred on the replacement of departing staff. As we approach financial year-end, finance executives are focused on budget preparations and are consequently not looking to create new roles this quarter. Temporary demand is currently high due to the large number of projects occurring in the state, particularly in infrastructure. A significant increase in fixed-term contract positions and temporary-to-permanent recruitment is expected, as companies remain hesitant to make a rushed recruitment decision due to budgetary constraints.

In Victoria but also occurring nationally, many large organisations have been focusing on reviewing, monitoring and improving the perception of their company to prospective employees. They are keen to ensure they are branding themselves in a positive and accurate light to attract and then retain high calibre candidates who fit their culture.

Executive recruitment

Sydney has experienced a notable increase in executive vacancy activity, with many organisations creating vacancies at the middle management level, such as financial controllers.

South East Queensland's executive market is similarly buoyant, particularly the City and Southside of Brisbane. As more venture capitalists invest in the market there has been a need for industry focused CFO's, particularly within manufacturing. Candidate levels are high given Brisbane's incoming stream of interstate and overseas applicants. The focus for roles in mining is in the Bowen Basin where salaries are well above market average. Industry experience is imperative in this instance.

A decrease in specialist compliance (SOX) or internal audit roles has occurred in Queensland, since companies have implemented the necessary processes internally. Vacancy activity is now focused at a lower level around maintenance as opposed to implementation requirements. A strong need remains however for financial accountants and management accounts with costing experience for the manufacturing sector.

In Victoria increased activity from private equity investors has created a demand for senior finance professionals who can offer an analytical and commercial focus to a controllership role. The acquisitions made have created a need for a financial controller or CFO to focus on the continuing success of the acquired business.

In Canberra a number of CFO's, financial controllers, finance managers and corporate services managers are changing roles, and some organisations have grown in recent times and thus require new staff at this level.

Perth's executive market remains steady. Perth vacancies are not externally advertised and a number of candidates are quietly looking for a good career opportunity when it becomes available.

Salaries

Salaries are expected to remain relatively stable over this quarter following 12 months of steady increases. Candidates however know they are in demand and are therefore placing pressure on employers for higher salaries. Candidates now also expect greater non-cash benefits in their package.

Sydney and Canberra are exceptions, where an upward trend is expected to continue with salaries increasing ahead of inflation, particularly in niche and hotspot areas such as tax, fund accounting, APRA reporting and for experienced financial accountants leading up to year end. At the accounting support level, candidates are specifying the salary they want and are becoming more selective over roles chosen, particularly at the entry level and for specialist roles such as credit control and payroll where there is a shortage of solid, experienced candidates.

Overall 2007/2008 salary increases are not expected to be as high as in 2006/2007. Many companies are finding it difficult to sustain salary increases and while the market in general is still facing a candidate shortage it is not in a state of panic.

Candidate trends:

While there has been an improvement in candidate quantity since January, quality remains an issue and the shortage of solid skills, particularly at the $65,000 to $85,000 level, remains. As a result, industry has been required to engage the profession to fill short-term gaps in employment while recruitment processes are undertaken. Candidate levels in the market above $100,000 are significantly higher and there has also been an increase in qualified first-time movers from chartered accounting firms, who are in demand for fund accounting, product accounting and financial accounting roles.

There has also been an increase in candidates applying for vacancies for which they are over-qualified. Employers are risk-averse in this respect and are unwilling to employ a candidate with a Masters Degree in Accounting or an MBA for a $42,000 accounts payable position because of the perceived risk that they will get bored and leave the role after a few months.

Perth has experienced an increased number of senior management accountants relative to financial accountants. Strong candidates are returning to Perth from a UK working holiday or are relocating on a permanent basis. Quality candidates are often on the market for less than 72 hours.