Salaries for accounting and financial
professionals are on the rise, with a
national average increase in base compensation of 3.8 percent projected for
2007, according to the 2007 Salary Guide
from Robert Half International.
“To attract and retain top performers, it’s
critical for firms in the Chicago market to
adjust salaries for in-demand positions,”
says Toby Coffey, Chicago division director
of Robert Half Finance & Accounting. “In
addition, employers are more commonly
offering signing and performance bonuses
and enhancing benefits packages. Options
like flexible scheduling, part-time work
and telecommuting are becoming increasingly popular.”
Smart Business asked Coffey more
about hiring and compensation trends —
both in the local market and for specific
areas of the financial landscape.
You’ve just published the 2007 Salary Guide.
What are the trends?
Financial hiring in Chicago is booming.
The market is very competitive and
prospects for highly skilled accounting and
finance professionals remain bright. We’re
seeing salary increases nearly across the
board. Business expansion is fueling hiring
activity and driving the demand for skilled
professionals. Employers are also hiring
more professionals to assist with compliance initiatives.
Compensation levels have been on the
upswing since 2004. In 2007, financial
salaries are projected to increase 3.4 percent to 3.8 percent for individuals staying
in the same role. For individuals changing
jobs, that figure may be closer to a 10 percent to 15 percent increase. Positions that
will see notable increases in 2007 include
compliance specialists, internal auditors,
financial analysts and public accountants.
What are examples of salary levels for
accounting and finance professionals in the
Chicago area?
In 2007, average starting salaries for senior manager and director positions at mid-size public accounting firms ($25 million to $250 million in sales) in Chicago are projected to climb 7.6 percent, to between
$100,860 and $147,600 annually. Entry-level
professionals at small firms (up to $25 million in sales) can anticipate a 5.1 percent
increase in average starting salaries, to the
range of $46,740 to $54,120 per year.
Chief compliance officers with large
companies (more than $250 million in
sales) can expect the largest percentage
increase in base compensation of any position in 2007, with average starting salaries
forecast to rise 14.4 percent, to between
$162,975 and $222,938 in Chicago.
Internal audit managers at large Chicago-area companies may see base compensation in the range of $95,325 to $124,845, up
5.8 percent from 2006.
What do you expect in terms of job growth in
2007?
Nationwide, demand for accounting and
finance professionals will be particularly
strong in the financial services, manufacturing and commercial real estate sectors. In
Chicago, some of the fastest-growing industries include manufacturing, commercial
real estate and retail. Positions in demand
include cost accountants, staff and senior
accountants, and financial analysts.
Businesses — public companies in particular — need professionals with knowledge of
U.S. Securities and Exchange Commission
reporting requirements to help maintain
compliance with the Sarbanes-Oxley Act and
other regulatory requirements.
Also, there is huge demand for specialized financial positions in Chicago. The
needs of a large, publicly traded organization are different than those of a small, privately held firm. For instance, large companies are in great need of employees who
have knowledge of how to work with 10K
and 10Q reports.
Where are the shortages?
A year ago, I would have said shortages
exist among ‘specialized’ employees. While
that still holds true, today there is demand for
a broad matrix of applicants — from entry-level to controller and CFO. There is simply a
shortage of qualified individuals at all levels.
What will be the biggest recruitment challenges in 2007?
Firms are having difficulty finding skilled
candidates, particularly for in-demand
positions such as staff accountant and
internal auditor. As a result, the hiring
process is moving more swiftly than ever.
It’s truly a job-seeker’s market right now, so
employers need to staff strategically and
act quickly to hire the ideal candidate.
Companies that provide strong compensation packages and have a history of success are at an advantage in the hiring market. Those that may not have the budget to
offer premium salaries should highlight
other qualities that distinguish their firms
— such as strength of their management
team and potential advancement opportunities. Use every option available, including working with recruiting services and
internal referrals, to secure top candidates.
TOBY COFFEY is Chicago division director of Robert Half
Finance & Accounting. Reach him at [email protected].
Robert Half International has 350 locations throughout North
America, Europe, Asia, Australia and New Zealand. For a free copy
of the 2007 Salary Guide, visit www.roberthalf.com or phone
(800) 474-4253.