Salaries lift as professional shortages bite

Accountancy salaries are rising sharply on the back of severe global shortages for suitably qualified professionals. Increases are most notable where accountants are required with experience of specific market niches. However, there is a consensus across the recruitment market that accountants need to develop additional skills to attract the highest possible salaries. Recent research from the UK’s Association of Graduate Recruiters concluded that many job vacancies remain unfilled because employers look for stronger soft skills from candidates, particularly in communications abilities.

Ian Graves, managing director for continental Europe of consultants Robert Half International, explained: ‘The traditional model of the accountant has changed. Today’s accountants not only need financial acumen, but must also find a balance between leadership and managerial skills.’

A survey for Robert Half found that managers nominated communication skills (13%) and an open-minded attitude (12%) as the most important attributes to develop. These were regarded as far more important than credit control management (4%), risk management (2%), or corporate governance (1%).

Chris Cole, managing director of recruitment consultants Finance Professionals, said that several factors had driven up salaries. ‘There is a demographic shortage of candidates,’ he explained, ‘with a shortage of candidates compared with peak years. There has been an increase in regulation – the Sarbanes–Oxley Act, MiFID, and IFRS – and companies have become more aware of the need for stronger controls and economic growth. This means that a well-qualified accountant with robust skills and who can work well with others can charge a premium.’ Cole calculates that salaries have typically risen 10% to 20% in the past three years.

According to the annual survey of another consultancy, Robert Walters, ‘2006 [in London] has been characterised by a notable shortage of newly-qualified accountants entering the job market.’ Bonus packages have increased by 15% for newly qualifieds, and by 50% for senior accountants. Employers have found the recruitment of internal auditors a particular problem, says Robert Walters.