Hays Accountancy & Finance - April 2008

The Profession

Hotspots

Across NSW, hotspots exist for business services seniors and supervisors at the near-qualified and qualified levels. A significant percentage of these candidates is attracted by commerce and industry roles, while the growth of mid-tier business services divisions are heating up the requirements for staff. In addition, firms are starting to specialise in superannuation, creating new divisions, or building on the existing superannuation talent pool internally. As this is a relatively new market, firms are attracting candidates from the traditional business services arena at the intermediate and senior level and are training them into superannuation teams.

Experienced insolvency candidates at the senior levels and above and auditors at all levels also remain in short supply.

In South Australia, candidates from business services backgrounds with between three and seven years experience, and their CA/CPA either completed or in progress are the major hotspot. A general lack of candidates and the movement of accountants from firms to commerce continue to impact the whole professional practice market.

Audit remains a focal point of demand, particularly for candidates with between three and seven years experience. iBusiness services, tax managers and senior accountants are required.

Victoria's market is characterised by busy but stable activity. A continued shortage of skills exists across most services lines from tax, to internal and external audit, business services, transaction services, and IT audit from newly qualified to those with six years experience level, since this is the point that candidate typically leave the profession for commerce opportunities.

Experienced corporate tax and indirect tax candidates are in particularly short supply and increased scrutiny by the ATO has meant an increase in the volume of work available. Meanwhile, the high volume of M&A activity in Melbourne has created an acute need for experienced transaction services professionals. Vacancies are greater at the manager and director levels.

Business services seniors and managers are in high demand in both small and mid tier firms due to the frequency of movement in the market. On average a small to mid-sized firm accountant will stay in their position for only two years and this is creating a steady flow of vacancies.

In Western Australia, vacancy activity is at an all time high, however the availability of Perth-based experienced professional practice candidates seems to have reached a low point. The demand for staff is so high that employers often joke that if a candidate is not heavily counter-offered upon resignation, they are concerned about the candidate's skills. This is a clear indication of the huge demand for specialist skills across the state. Due to the lack of accountants with between two to five years experience, employers are now outsourcing large amounts of tax and accounting work overseas since they simply cannot source the required staff to sustain work internally.

Western Australia's prime hotspot has become the recruitment of external auditors for the coming busy season. Timing can make a huge difference to an auditor's successful move. Often auditors apply for roles after the busy season, but this minimises their chances as few firms are still recruiting then. Candidates that apply in April and May, before or during the planning for the busy season, will find themselves in far greater demand. Many large practices are importing the required skills from overseas affiliates at huge expense since they cannot delay or put off the work and they were disappointed by candidate availability last season. This is a clear indication of the local market's inability to supply the necessary skills required.

The coming quarter

Job vacancies have been growing strongly and this trend will continue over the coming quarter. However, given the ongoing shortage of experienced candidates, firms have become more flexible about the specific levels of experience required for their vacancies. Firms will now employ candidates with the right attitude and softer skills rather than specifying a particular experience level that they must obtain before being considered for any vacancies.

Executive recruitment

With firms focusing on succession planning and growing their practices, senior manager and partner level recruitment activity will remain very busy. Partners and potential equity partners are increasingly mobile and there has been a rise in candidates returning or relocating between states, particularly to Perth.

Salaries

We expect some minor upward salary movement as firms ensure they are offering a competitive salary to retain their staff. The demand for experienced staff that decide to change employers remains strong, which is keeping pressure on wages. It is now accepted as the norm that employers will pay study clawbacks for new employees. It is also accepted that most active candidates will receive at least one offer that is well above market rate.

Candidate trends

Candidate levels have declined as firms increase salaries to quality staff in order to retain them. Work/life balance and flexible hours have also helped reduce staff movement between practices.

We are now seeing large numbers of interstate candidates relocating to Perth to further their career. While competitive salaries can be earned in the city, the main reasons for this movement include accelerated career progression, interesting work, and work/life balance. In addition, we are seeing increasing numbers of candidates from South Africa and the UK coming to the state, and employers value the skills these candidates bring.

We have seen a seismic shift in the market in terms of how candidates utilise recruitment consultancies. There used to be a view that if an accountant could find a role independently, they would. It is now common for candidates to prefer an agency that is established and knowledgeable to manage their job search.

Employment trends

There has been a slight but notable easing of demand due to improved staff retention programs. This is reducing sideways movement in the market.