Supply & Demand – Is a shortage of Qualified Accountants helping candidates achieve better financial packages?
Over the past 18 months, it has become evident that the market has very much become “candidate driven” once again and this appears to be giving those individuals seeking a move more leverage over pay and conditions.
When it comes to negotiating moves for qualified accounting roles, a combination of market factors means that candidates certainly seem to have a wealth of opportunities to consider.
The economic recovery means a large number of the regions accountancy firms are growing and therefore need to recruit more staff, however the Industry/commerce market for accountancy jobs is also extremely buoyant and these opportunities can potentially be preferred options for candidates due to perceived higher salaries and in some cases a better work-life balance.
As a result, we are seeing more accountants being attracted by a move into industry, which in turn creates a shortage of qualified staff for Accountancy Practices. In my experience there are staff shortages across the region for specialist within external audit, tax compliance/advisory and general practice (business/corporate services). This skills shortage is also enhanced by the fact that the larger accountancy firms reduced or stopped their graduate intakes during the recession so there are fewer qualified accountants coming through, which will still be evident over the next 2 years.
Considering all of these factors, candidates emerging into the market are in a very strong position, this is clearly good news for individuals seeking opportunities, but what are the effects of this for the employers?
Accountancy practice do need to tackle the issue carefully. In the short term offering potentially increased salaries and benefits packages may help solve the problem and secure the talent/experience need to help grow the practice, however there could be a danger of creating issues with pay scales and benefits package which in turn could result in the firm losing previously loyal staff.
Maybe a re-evaluation of pay and benefits packages is potentially needed for some Accountancy Practices to come in line with market rates. This does not however mean that a small independent firm should be trying to pay similar salaries to larger independents or Nationals, but to be comparable to similar sized firms within the region.
If you would like more information regarding salary bench marking, please do not hesitate in contacting Barber McLelland on 0114 279 2843 or email justin@bmrecruitment.co.uk