EXECUTIVE
SUMMARY |
Statistics show strong job
prospects for CPAs are likely
to continue well into the next decade. The
U.S. Department of Labor’s Bureau of Labor
Statistics (BLS) anticipates employment
for accountants and auditors to grow by at
least 22% between 2004 and 2014.
Sarbanes-Oxley
compliance, corporate governance
regulations, and an overall
desire to serve clients better is
prompting many publicly traded companies
to increase the size of their accounting
departments—adding positions that did not
exist five years ago.
Starting
salaries for positions in public and
corporate accounting are
expected to see bigger increases than the
overall national average of 3.8% for all
industries—particularly at the senior
level. Employers are also focusing on
improving popular benefits such as
training and education, health plans and
flexible scheduling.
Robert Half International is the parent
company of Robert Half Finance &
Accounting, Accountemps and Robert Half
Management Resources.
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ndividuals with solid
accounting and finance skills and experience are
in great demand but short supply. It is clear that
the current market favors job seekers, especially
in the accounting profession. More than 50% of
1,000 hiring managers said they faced a shortage
of qualified workers, making recruiting a
year-round necessity, according to the Robert Half
and Careerbuilder.com
Employment Dynamics and Growth
Expectations (EDGE) Report. As a
result, many companies are rolling out the red
carpet to attract the best and brightest, offering
signing and performance bonuses, premium
compensation, and in some instances, accelerated
salary reviews. In its 2005 report,
Supply of Accounting Graduates and the
Demand for Public Accounting Recruits, the
AICPA estimated future hiring by public accounting
firms of every size to remain high through 2009.
The U.S. Department of Labor’s Bureau of Labor
Statistics (BLS) supports these findings with an
anticipated growth of at least 22% in employment
for accountants and auditors between 2004 and
2014. This outpaces the engineering and law
sectors, which are expected to grow an average of
only 13%, but compares closely to the medical
profession.
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How Smaller CPA Firms Can Compete
for Top Talent CPA firms
with fewer resources and less recognizable
brand names face challenges competing for
talent. How can smaller firms make
themselves more appealing to prospective
recruits?
Tout the Advantages of Your Work
Environment
Emphasize the following on Web
sites, at job fairs and during interviews:
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“Family-like” atmosphere.
Organizations that place a
high value on camaraderie, collaboration
and open-door communication can be very
attractive to job candidates.
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Advancement opportunities.
Accountants in smaller
firms have more visibility and are
typically allowed to take on more
responsibilities and make key decisions
earlier in their careers than those at
larger firms.
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Little or no travel.
Employees who don’t want
to spend a lot of time on the road are
often drawn to smaller firms where the
need to travel long distances between
offices or clients is limited.
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COMPLIANCE REQUIREMENTS, BUSINESS
EXPANSION The variety and
complexity of business changes in recent years
present challenges and opportunities for
accounting professionals. Sarbanes-Oxley
compliance, corporate governance regulations and
an overall desire to serve clients better are
prompting many publicly traded companies to
increase the size of their accounting
departments—adding positions that did not exist
five years ago. Businesses entering their third
year of SOX compliance are focused on managing
financial reporting activities, internal controls
and audits, and financial systems and processes.
An increased focus on preventing and detecting
corporate fraud is also driving the demand for
CPAs and forensic accountants. Mergers and
acquisitions are on the rise; expansion activities
are widespread. Experienced accountants and
auditors oversee the integration of accounting
processes following a merger, advise on financial
risk in international markets, and collaborate
with IT departments on vital projects such as
internal control automation. All these activities
are driving up demand for qualified CPAs.
RISING SALARIES
The upward trend in pay for accountants is
confirmed by data gathered for the 2007 Salary
Guide, which represents all three Robert
Half financial divisions (Accountemps, Robert Half
Finance & Accounting and Robert Half
Management Resources). A national average increase
in base compensation of 3.8% has been projected
for this year, although a wide range of positions
in public and corporate accounting are expected to
see bigger increases in starting
salaries—particularly at the senior level. In a
survey of 1,000 hiring managers, 21% said the
inability to offer competitive compensation was a
key obstacle to hiring qualified workers (see
Exhibit 1).
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Obstacles to Hiring
Qualified Workers |
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Senior managers and directors of large public
accounting firms (more than $250 million in sales)
expected to see national average starting salaries
between $92,000 and $141,000, an increase of 8.1%
over 2006 levels. Similarly, those at medium ($25
million to $250 million in sales) and small firms
(up to $25 million in sales) could see gains of
more than 7% in base pay. Other positions in
public accounting are predicted to grow 4% to 5%.
Within corporate accounting, compliance
executives are likely to see the biggest gains.
The average starting salary for a chief compliance
officer at a large company is $132,500 to
$181,250—an increase of 14.4% from 2006.
Meanwhile, at a medium-size organization, a chief
compliance officer would typically earn a base
salary between $111,000 and $145,500—a 9.3%
increase over last year. Even small businesses are
paying significantly more this year for executive
talent: A chief compliance officer earns 6.3% more
in base salary, or $90,500 to $116,000. Starting
salaries in areas such as controller, internal
audit, cost accounting, tax, financial analysis,
and general accounting could rise by 5% or more.
CREATING VALUE THROUGH
CREDENTIALS
Accountants who possess in-demand
professional certifications, such as the CPA, an
MBA or other pertinent graduate degree, can expect
to earn up to 10% more in base salary than those
who do not, according to Robert Half’s research.
The Salary Guide predicts the
following types of accountants will see the most
significant gains in base pay this year:
Public accountants,
especially those with the CPA
designation.
Compliance specialists
with knowledge of SEC regulations.
Internal auditors,
especially those who have earned the
certified internal auditor (CIA) credential.
Financial analysts,
particularly at the senior levels, who
can assist companies pursuing new growth
initiatives. For some positions, certain
professional certifications and specific types of
knowledge are highly desirable and, as
demonstrated above, can have a direct and positive
impact on starting compensation. The CPA
designation remains the most in-demand
accreditation for a variety of public and
corporate accounting positions. Other desirable
credentials include the certified internal auditor
(CIA), certified fraud examiner (CFE) and
certified information technology professional
(CITP).
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Keeping Current Can Help
Firms Overcome Recruitment and Retention
Challenges For today’s
up-and-coming professionals, a paycheck
isn’t enough. They want to do meaningful
work in a stimulating environment. From a
talent perspective, technology-savvy young
professionals gravitate to firms that
invest in the latest technology and
provide the necessary resources, such as
leading software solutions, to get the job
done. For the firm, the return on
investment in technology is significant.
It helps recruit talent and provides a
foundation for a firm to position itself
as an employer of choice, as findings from
the CCH Young Accounting Professionals
Survey prove. For example,
at Birmingham, Ala.-based Lovoy,
Summerville & Shelton, recommendations
from the young hires led the firm’s
shareholders to review new tax and
accounting research solutions. The firm
ultimately switched to the research tools
the firm’s young CPAs recommended,
according to Donald Howell, CPA, a
shareholder in the firm, which has 13
employees. Technology can promote
a better work/life balance. It allows
employees to work remotely and makes work
hours more flexible. It enables the firm
to implement knowledge management
processes to help overcome the staffing
challenges looming as the large and
experienced baby boomer generation of
professionals phases into retirement.
No firm can magically make the pool of
eligible recruits larger, but they can
understand the impact that investment—or
lack of investment—in technology
infrastructure can have on recruitment and
retention. Infrastructure is not just an
added expense; it is an investment in the
firm that supports productivity and makes
it a place that CPAs want to join and
stay. Survey your own
professionals. Find out what’s important
to them, how they would grade your
infrastructure, and whether it meets their
needs and expectations. Most importantly,
act on what you learn.
By Bob Dias, vice
president of product and segment
management of CCH, a Wolters Kluwer
business,
www.CCHGroup.com. A white paper
detailing the CCH Young Accounting
Professionals Survey is available at www.CCHGroup.com/JOA
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EXPLORING PROGRESSIVE BENEFITS
In addition to raising base pay
for certain positions and offering bonuses, many
employers are enhancing compensation packages for
accountants with an array of progressive benefits.
The perks include on-site daycare services,
health-club memberships and stock options. Based
on anecdotal information gleaned from regular
interviews by Robert Half staffing executives with
companies and candidates, popular benefits
include:
Training and education.
Because certifications are
particularly important to the career track of
today’s accounting professionals, some employers
are reimbursing employees for courses related to
earning those credentials. A Robert Half survey
found that less than half (46%) of companies today
provide reimbursement to employees for relevant
continuing education, but this number could grow.
Progressive organizations recognize that employees
want to keep learning and that training and
professional development programs can help
motivate and retain workers.
Health benefits. While
medical and dental insurance may seem like an
expected part of an employee compensation package,
the promise of quality and affordable health
coverage remains highly valued. In fact, workers
surveyed for the EDGE Report cited health
insurance as the most important job benefit.
Flexible scheduling.
Flexible scheduling is one of
today’s most desired employment benefits. Many
accounting professionals are being offered options
such as telecommuting and compressed or flexible
workweeks. Generous portions of paid vacation
days, as well as time off following particularly
stressful times of year, such as tax season, are
being provided by some employers. With
firms struggling to add enough staff to keep pace
with business growth, it can be a financially
rewarding time as well—especially for the most
talented practitioners. Those who work to keep
their skills current and take advantage of the
best opportunities to use their experience will
reap the greatest rewards . |