Holding up
'The job market hasn't by any means ground to a halt - companies are still recruiting,' says Paul O'Hara of specialist recruiters Badenoch & Clark. 'However, many are using temps to avoid having to commit to extra headcount until they see how the economy is going, although some are inclined to take longer over their hiring decisions, often in the belief that the market is flooded with perfect candidates - which isn't the case at all.'
Nevertheless, pools of available finance candidates in most countries have grown - but recruitment agencies say their clients are keeping them busy and the temporary job market has been much more resilient than that for permanent people. Recession or not, accounts and financial reports must still be produced - and if permanent posts have been cut, temps provide a flexible resource. 'Some employers are making redundancies in certain finance functions, while still hiring temps in other areas,' observes Mark Thomas, an associate director at WH Marks Sattin.
Philip Griffiths, a consultant at FSS, has some 20-years' experience of recruiting temporary workers, and has seen how organisations deploy staff during several downturns. According to Griffiths, temporary workers can prove more cost effective than permanent staff: 'Strategic staffing policies mean companies can stay lean by only hiring temps at peak periods, such as the year end, or by bringing in experts to manage projects - rather than pushing their permanent people to work longer hours. There comes a point where temps are a necessity, not a luxury.'
Saved by the project
The booming global economy propelled the phenomenon of 'special projects' to the fore - with organisations keen to implement initiatives to restructure or manage change. Some of these have fallen by the wayside, but fewer than you might think: 'Yes, some projects are being put on hold, but those aimed at cost cutting, which will ultimately help a company through the downturn, are continuing,' says Thomas.
There may not be many brand new projects being introduced - but long-term, large-scale supply, resource, and planning projects are unlikely to be abandoned, says Griffiths: 'Many companies are focusing on improving specific recession-related areas of finance, such as credit control and invoice processing procedures, as well as compliance issues, creating opportunities for talented temps.'
Project accountants in permanent employment may well ask what exactly is a permanent job anyway? Today, workforces are far more mobile and transient - even in China, where the job for life concept has been virtually swept away. And the gloomy economic outlook means many accountancy contractors in long-term project roles are far safer than their 'permanent' peers in less business-critical posts.
One ACCA finalist, part of a team working on an 18-month project to set up a European African shared service centre (SSC), says: 'If I was employed permanently, the project would come to an end as soon as the SSC was established anyway - and then where would I be? As a temp, I earn a higher hourly rate, with a completion bonus to look forward to. I don't worry about what will happen when it finishes - I'm optimistic that, as someone who's experienced in contracting and has proved that I can see a project through to the end, I'll be a good prospect for other positions.'
Skills in demand
According to O'Hara, other projects being kept going despite the downturn - such as those linked to reconciliations and cash flow - are often headed up by permanent employees with teams of expert temps beneath them, while he has seen increased demand for business analysts to come in to assess how companies can quickly become more efficient.
And Thomas adds: 'People with niche skills in areas such as compliance and risk can still earn reasonably good salaries. While there is a wealth of candidates looking for a limited number of jobs in mainstream management and financial accounting, core technical financial accountants are still busy - and the roles are there for them. Some employers are even considering good part qualified accountants, at mid-to-late stages of their studies, instead of newly qualifieds, acknowledging that although the candidates may be less experienced, they could be more cost effective.'
This could spell good news for trainees considering their practical experience requirements: 'My boss wasn't allowed to replace a qualified accountant who resigned a few months ago,' says Mukesh, who is taking his first set of Professional level papers in June. 'Everyone else has had to raise their game. This means that several of the temps who are ACCA students, including myself, have been taking on duties that we wouldn't normally have been trusted with. It's been a very steep learning curve and quite pressurised - but ultimately I'm gaining experience in both technical finance skills and personal organisation, and that will count towards my ACCA performance objectives. I'm also hoping my hourly pay will go up as a result.'
Advice for candidates
The temporary job market doesn't find favour with everyone, however. Many people who have lost permanent jobs find the world of contracting bewildering and unsettling. Recruiters are acting to reassure them - although they have to strike a balance between the needs of both jobseeker and employer.
'I've found candidates' attitudes to be mixed,' says Thomas. 'Most are fairly pragmatic; they understand the reality of the situation, especially if they've been out of work for a while.'
But he warns: 'One crucial piece of advice for all those who have been made redundant and are now seeking temporary work is to consider how committed they are. If an employer needs an accountant to work on a six-month assignment, they want someone who'll see it out. Candidates naturally need to look after their own interests, but bear in mind that your commitment will be scrutinised at interview. However, completion bonuses will occasionally be offered in return for staying the course of an assignment, sometimes paid by the employer, sometimes by the agency.'
Griffiths insists that choosing the temporary route can be a viable long term option: 'Temp work can add real value to your CV,' he says. 'In fact, student accountants may ultimately be given more responsibility than they might enjoy in a permanent role. I recently placed a temp in a FTSE 100 company on a six month assignment during a restructuring; he now heads up the financial reporting side of the finance team, and is on an excellent salary.'
And O'Hara adds: 'Candidates who have been used to permanent work tend to be more concerned about their long-term futures - and they're looking for more downturn-resilient organisations, such as companies in the oil and gas sector which are fairly immune due to their global demand. Within the public sector, there's a need for people with both private and public sector experience - but candidates should beware of thinking they can walk into public sector jobs; there's intense competition for roles in this sector, and employers can be demanding, in terms of the level of skill and experience required.'
Being made redundant can, it seems, turn out to be a golden opportunity to find a new, more rewarding way of working. 'It can be daunting starting any new job, permanent or temporary,' says Thomas, 'but temps tend to be welcomed into finance teams, as they're often simply glad to have the extra help.
'Look at the experience in a positive way,' he concludes. 'Many temp assignments will have the potential to help you experience a different industry sector and develop your skill set, possibly faster than your previous permanent job. And then, if you prove yourself, when the economy turns you'll be in a great position if the job goes permanent, as both you and your potential employer will have had the chance to size each other up.'
FINANCIAL SERVICES: DOWN BUT NOT OUT
Believe it or not, many banks are still taking on temps, despite the highly publicised waves of sackings since the credit crunch struck. 'Clearly, volumes are way down from their peak,' says Tom Forrest of finance recruiters Joslin Rowe. 'But since the new year, there's been some reason to feel more positive; we're starting to see higher volumes of temp jobs coming through, and quicker turnarounds with decisions.
'Banks tend to react quickly to adverse markets - last year, there was a lot of cutting, of both people and pay rates - but the slightest increase in confidence generates new work, even if that confidence isn't necessarily long term. Many banks still want to hedge their bets, so they like the flexibility that temps provide, and they don't impact on headcount freezes.'
Forrest says that people with highly specific skills - such as detailed knowledge of financial products - are still in demand, as well as product controllers and financial controllers. 'Contractors with exposure to interest rate and exotic derivatives products, and structured equity and credit derivatives, are sought after,' he says. 'Those whose exposure goes deeper than just producing P&Ls would be looked at. For risk roles, banks require specialists who can start quickly in response to urgent regulatory demands - accountants with independent price verification and valuation skills are in demand.'
To those in banking who have been made redundant, he advises: 'Your CV needs to be highly detailed in terms of achievements and successes. Work closely with a recruitment consultant you trust; someone who'll help you properly structure that CV. The days of banks hoovering up temps simply because of their qualification or the name of their previous employer are gone. Now, it's all about selling your experience.'
In the current market, banks will want to see evidence of having worked through large scale change: 'Many banks are in a state of flux,' says Forrest.
'If you've spent a long time at your previous employer, you'll need to snap out of any institutionalisation that may have set in and quickly assess your strengths and weaknesses. Employers are seeing lots of CVs at the moment - it's how you differentiate yourself that makes the crucial difference.'
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