Originally posted on 6 Jan 2014
I came across some interesting information from the US. The high demand for accountants in US is boosting salaries according to an article this month by Danielle Lee in accountingTODAY. You can read it here.
The simple message from the Robert Half International’s (RHI) annual guide to compensation in accounting and finance, is that accountants’ salaries will continue their steady growth in 2014. Across the board, RHI projects that accounting and auditing salaries will rise 3.4 percent. Generally, the more years of experience, the slightly higher the salary increase.
Indeed, according to Robert Half International’s senior executive director Paul McDonald, the demand for experienced accountants is fiercer than ever.
“The war for talent is very hot right now,” he said. “We’re seeing those experienced folks commonly receive multiple offers. I’ve talked to many at the experienced level and senior level who have had offers and acceptance within two to four weeks after putting their resumes out, or even mentioning to people they’re looking for new opportunities.” The bounty also extends to entry-level job seekers, he added. “It bodes well for students and the accounting profession – it’s a very good picture, a great time to be an accountant and auditor.”
It’s not just a US thing. In the UK, it was reported on 6 January that nearly a fifth of workers plan to move to a new job this year as the UK labour market continues to improve, according to a survey released by the Institute of Leadership & Management (ILM). The survey suggests that 19 per cent of workers are planning to leave their current employment.
So, the pressure is going to be on for UK accounting firms. Pay the going rate or you’ll be in danger of losing your best people. Then, you’ll have to recruit new people, train them, pay the higher salaries anyway and pay the recruitment agency fees on top.
As a reminder, any extra salary costs will probably need to be passed on to clients. Have you looked at your fee rates recently?