A strong demand for accounting and
finance professionals, coupled with
the shortage of skilled accountants, has driven up base salaries, according to
the recently released “2007 Salary Guide”
from Robert Half International, which is a
specialized consulting and staffing services
firm that publishes its annual salary data
based on an analysis of the thousands of
job placements managed by the company’s
U.S. offices.
Base salaries for accounting and finance
professionals are projected to increase, on
average, by 3.8 percent in 2007. Among
those who will see the greatest gains in
base pay include compliance professionals, internal auditors, financial analysts and
public accountants.
“It’s useful for businesses to know if they
are in the ballpark with hiring salaries so
they can remain competitive,” says Tom
May, branch manager for Accountemps in
Cleveland, which is the temporary
accounting staffing services arm of Robert
Half International.
Smart Business spoke with May about
the details of the findings of the salary
guide and what businesses can do to
attract and retain these professionals.
Is your salary guide available to the public?
Any company or individual can get a
free copy of the ‘2007 Salary Guide’ from
Robert Half International by visiting
www.roberthalf.com or phoning (800)
474-4253.
What does the guide contain?
The data for the guide is gathered
through our permanent and temporary
placement in the U.S. throughout the year.
The company has been putting this information into a yearly free guide since 1948,
and it is invaluable when companies are
looking to determine salary ranges in the
accounting and financial services industry.
The U.S. Department of Labor’s Bureau of
Labor Statistics references this guide when
preparing its ‘Occupational Outlook
Handbook.’
The latest salary guide highlights a trend that has been evolving for the
past couple of years: the shortage of
accounting personnel and the increased
need for finance and accounting workers. The reasons for these trends are
two-fold: business expansion and
increased regulations, notably the
Sarbanes-Oxley Act. The prospects for
accounting and finance professionals
are bright because of these two factors,
which have lifted base salaries considerably.
Which areas of expertise will see the most
dramatic salary increases in 2007?
According to the guide, chief compliance officers can expect starting salaries
to increase by 14.4 percent. Senior manager and director positions at public
accounting firms can expect starting
salary increases to climb to 7.6 percent.
In the banking and financial services
sector, business analysts can expect to
see a 6.5 percent increase; private
bankers will see an increase of 6.3 percent. Other dramatic increases include
bookkeepers (6.7 percent increase), corporate finance analysts (7 percent
increase) and risk managers (6.7 percent
increase).
What are the top areas experiencing the
most acute talent shortage?
There are three main areas: corporate
compliance, internal auditing and public
accounting (in the areas of auditing, taxes,
risk management and corporate governance). Sectors in industry that we expect
to see the biggest demand will be in manufacturing and commercial real estate, not
only because of the increased need for regulation compliance, but also because of
business expansion in these industries that
are fueling the need for more accounting
and financial personnel.
Are there specific skills that businesses are
looking for the most?
Forensic accounting is highly sought-after today because of Sarbanes-Oxley.
Since there is a shortage, how can businesses position themselves to better attract and
retain this talent?
Knowing competitive base salaries is
all-important, particularly for a specific
region of the country. It is also important
for businesses to know how they stack up
in relation to other companies, because
the financial and accounting talent they
are trying to attract are keenly aware that
there is a shortage.
It is important not only to focus on base
salaries, but the benefits and perks offered
to the employee. Companies need to be
smarter about what they offer potential —
and current — employees. Businesses
need to stand out from competition in
what they offer and make the work environment interesting and fun, such as offering pot lucks and fun days, which will help
retain permanent employees.
TOM MAY is the branch manager of Accountemps in Cleveland.
Accountemps (www.accountemps.com) is the world’s first and
largest specialized staffing service for temporary accounting,
finance and bookkeeping professionals, with more than 350
offices worldwide. Reach May at (440) 777-8367 or
[email protected].