Hays Accountancy & Finance - July 2007

Commerce & Industry

Hotspots

NSW:

Graduate accountants with between one and four years solid experience in corporate companies are in demand (particularly within the FMCG, pharmaceutical and manufacturing industries) due to the promotion of candidates internally. Those studying towards their CPA or CA are in particular demand. Experience in manufacturing, import/distribution or industrial companies is very useful and candidates with solid resumes that feature more than two years with each employer are more successful in gaining interviews than those who have regularly changed employers.

Accounts payable and accounts receivable processing candidates are also in demand, with candidates with long-term experience with one employer (especially in manufacturing/product-based industries) required. In addition, finance directors seem reluctant to hire degree-qualified AP and AR candidates because they view them as over-qualified and unlikely to stay in the role long term.

Financial accountants are required to assist with end of financial year work. Those with IFRS experience and ASX exposure are most desirable and qualifications are viewed favourably.

Management accountants are in demand due to Australian business expansions internationally while minimal turnover for costing roles ensures low levels of candidate availability. SME company accountants are also required due to a recent trend to up-skill from a bookkeeper to a qualified accountant.

Newcastle has seen a particular demand for qualified multi-skilled accountants to complete both financial and management accounting and perform clerical duties as required. This demand is driven by the mining sector; with new mines opening and existing mines expanding, which creates vacancies for accountants. In turn, SMEs that supply to the mining sector have increased their accounting requirements as their businesses also grow.

Victoria:

Unlike NSW's hotspot for graduate accountants, Victoria's primary hotspot exists for newly qualified candidates at the $60,000 to $75,000 level in both financial and management accounting. Candidates with between two to five years experience can expect numerous job offers. Statutory accountants and analysts also remain an area of demand in the state, while an increase in candidate movement at the $150,000 and above senior finance level may create a hotspot in the coming months.

Western Australia:

Western Australia's market continues to show significant strength. The majority of vacancies are newly created rather than replacing departing staff and are typically for financial and management accountants with between four to seven years experience. Another hotspot of demand exists for fly-in fly-out (FIFO) business analysts (both permanent and contract) due to candidate movement within this traditionally stable market. In addition part time candidates are required for newly created positions in smaller organisations that are expanding. This is a definite change as FIFO and part-time vacancies have not been common over the past 12 months.

While Western Australian employers have traditionally requested specific accounting system skills when recruiting contractors, flexibility in relation to system skills is now paramount.

South Australia:

General candidate movement in the South Australian market has created a hotspot for tax professionals with between five and 10 years experience, while management accountants remain an area of extreme candidate shortage. In a seasonal trend, audit candidates are required due to financial year-end, while medium to large organisations are bringing the senior tax function in house. Process improvement continues to be a key focus for organisations, which is creating demand for financial analysts.

ACT:

Similarly to NSW, degree qualified accountants with between two and five years experience are in high demand, without a corresponding supply. Vacancy activity has also increased for financial accountants with between four to five years experience and their CA or CPA and these candidates often receive multiple offers.

The ongoing shortage of degree qualified and financial accountants is due to a lack of candidates remaining in Canberra upon completion of their degree or CA/CPA. Demand from the public service and their increasing salaries is also attracting candidates from commerce & industry, while the ongoing growth in the economy is contributing to the scarcity, as businesses expand to take advantage of continued market strength.

The coming quarter

Vacancy activity remains very high across Australia, driven in particular by newly created roles in both accounting support and senior accounting. Contract market urgency is expected to ease slightly once end of financial year work is completed, however at this time the traditional movement of senior financial accountants and controllers increases, ensuring the market still remains very active. Permanent candidate movement increases as people accept a new position and their role becomes vacant.

Three further market trends will also keep activity high over the coming quarter. The increasing use of counter offers results in high demand from those attempting to recruit, while a desire by employers to secure solid skills has seen temporary-to-permanent recruitment increase as it allows an employer to effectively have a working trial of a candidate. Finally, contractors are often moved to other projects once their original contract expires, which keeps the temporary market buoyant.

Executive recruitment

While the major candidate shortages exist at the level up to $85,000, the executive market is expected to heat in late August and September, particularly for CFOs, financial controllers, finance managers and corporate services managers.

Salaries

The 2007 Hays Accountancy & Finance Salary Survey, released in June, reveals financial accountants and finance managers experienced high increases in salaries at 7.3 percent and 6.7 percent respectively (in companies with a turnover up to $50 million). Western Australia experienced unprecedented salary growth as competition amongst employers for candidates was fierce. For example, a degree qualified assistant accountant with four years or more experience now typically receives $68,000 compared to $58,000 in 2005/2006; a management consulting principal/director now typically receives $160,000 compared to $135,000 in 2005/2006.

At the support level, payroll staff experienced the biggest salary increase. For example the typical salary for a payroll clerk increased 6 percent and a payroll supervisor/manager (less than 250 employees) increased 10.6 percent. Assistant accountants with specific industry experience can now command a higher salary than their colleagues who have more general industry exposure.

Candidates are now able to command higher rates for contact roles and permanent salaries are being offered with additional benefits to entice candidates, such as additional superannuation contributions, novated leases and gym memberships.

The Hays Salary Survey can be viewed at www.hays.com.au/salary

Candidate trends

Given the low unemployment rate and high vacancy activity, the shortage of candidates still exists and the market is very competitive. However the good news for employers is that it is not showing signs of worsening, with the only exceptions being the highlighted hotspots above.

The number of available indirect tax and internal audit candidates has increased in Western Australia as these candidates seek a move from professional practice into commerce. The state is also attracting interest from candidates currently working within Queensland's resources sector who are seeking a move in light of the higher salaries on offer by Western Australia's resources employers.

South Australia and ACT are experiencing a reasonably steady and strong supply of candidates at the senior levels, although this is offset by the shortage of candidates at the intermediate level. As a result of the shortage, ACT's industry has started to engage the profession to fill short-term gaps in employment whilst recruitment processes are undertaken.

Other trends

Despite market and media commentary, some employers remain unaware that the market is moving very quickly due to the candidate shortage. Employers need to act quickly to secure their ideal candidate as solid candidates are often now available for less than 72 hours and stretching the recruitment process unnecessarily only leads to disappointment.

It is also essential to offer the current market salary rate since solid candidates have become increasingly aware of their market worth and are negotiating better salary packages and receiving multiple offers. They Hays Salary Survey is now available at www.hays.com.au/salary and is a comprehensive guide to market salaries.

More employers are considering international recruitment, such as a campaign to attract skilled candidates from the UK. While companies are more willing to sponsor candidates from overseas, experience and good communication skills remain prerequisites. There are many degree-qualified candidates who are eligible for permanent residency that are unable secure accounting support work due to their limited practical experience.