ambition market trends spring 2010 accounting

8/9/2019 Ambition Market Trends Spring 2010 Accounting

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Market Trends and Salaries ReportSpring 2010

Accounting & Finance RecruitmentAustralia


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Contents

Executive Summary 3

Economic Overview 4

Ambition Accounting Jobs Index 5

Salary Guide 6

Demand Factors 8

Supply Factors 10

Sector Notes 12

Future Trends 13

Talent Services Team 15

About Ambition 16

Other Specialist Services 17

Accounting andFinance Recruitment

Market Trends & Salaries Report


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Executive Summary

Reecting back on 2009, it proved to be a challenging year or everybody employers,employees, businesses, job-seekers and recruiters alike. Some commentators had hopedor a quick turnaround in 2010, but despite a surge in the frst quarter, the hoped orinstant recovery turned out to be more myth than reality.

What we have seen however is a slow, steady improvement in the recruitment sectorover the past 6-9 months with some encouraging signs that the improvement is set tocontinue throughout the year ahead. Unemployment remains low. Growth remains steady.We are witnessing frst hand an increase in recruitment activity and anecdotal evidencesupporting a strengthening employment market is starting to be backed up by data.

At the recently qualifed end o the candidate market we are starting to see individualsreceiving multiple oers an early indicator that competition or talent is set to resume.This is backed by a conviction that businesses are becoming more confdent about theeconomic conditions, evidenced by a removal o head count reezes, strategic re-structuring o business units or potential growth, and an increase in demand or sta.

O course, some dark clouds do remain on the economic horizon. The recent Europeandownturn, coming as it has on the back o the US sub-prime lending crisis hascaused some concern in local markets. This downturn has been most keenly elt bylarger multi-nationals with head ofces in overseas locations but recent experience

has made the rest o the business community acutely aware o the eect globaluctuations can have on the local economy.

As recruiters, this is always an exciting time to be in the market. With improvingeconomic conditions providing opportunities or businesses to grow and develop,we can now help our business partners achieve their goals by doing what we do best -fnding the right candidate or the right role.

Recruitment decisions made in this current environment can have long termimplications or a business, and the value o working with a trusted advisor to ensurethat the right placements are being made has never been more apparent.

At Ambition, providing that value is what were all about.

Gavin HouchellManaging Director, Ambition Finance

We can nowhelp our businesspartners achievetheir goals bydoing what we dobest - fnding the

right candidateor the right role.

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Accounting andFinance RecruitmentMarket Trends & Salaries Report


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unemploymentcontinues todrop, growth

remains steadyand businessesmove into the

new fnancialyear with asense ocautious

optimism.

Economic Overview

The Australian economy continued its recovery rom the 2008/09 downturn in a morepositive ashion during the frst hal o 2010. Unemployment levels dropped, interestrates remained balanced and overall growth continued at a steady pace.

In this age o globalised capital however, the market remains sensitive to overseasdevelopments. This is a lesson we learned frst hand during the US sub-prime lendingcrisis, and more recently with the downturn in the European economies. Issues o publicdebt (particularly in Greece), and a growing concern over the long term implicationso the setback in that region fltered through to the Australian markets quite quickly,aecting share prices initially, ollowed by dips in business and consumer confdence.

Balanced against that is the relative robustness o the Asian economies, who (apartrom Japan) have by and large enjoyed a V shaped recovery. The subsequent strengtho economies in our local region and the associated growth in demand has helped tokeep the Australian economy buoyant. Commodity prices have risen ater sharp declinesin 2008 o particular signifcance or Australia the prices or resources which serveas raw material or steel (coal, iron ore) production have been exceptionally strong.Combined with a strong Australian Dollar, this has created historically high terms otrade, with signifcant ow on eects to the rest o the economy.

Closer to home, a certain degree o political volatility has been experienced as theFederal Government both resolves its leadership issues and refnes its taxation policy.With a new Prime Minister in place and a Federal Election in August one in whichtaxation reorm promises to be a central platorm we can expect the economy toremain frmly entrenched within the national political narrative.

In summary, whilst there remain some legitimate concerns on the global economichorizon, the Australian economy appears to be in a position o relative strength.Demand or resources in the region remains strong, unemployment continues to drop,growth remains steady and businesses move into the new fnancial year with a senseo cautious optimism.


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increasein activitysupports whatwe are seeingfrst hand inthe market

Ambition Accounting Jobs Index

Notes on the Ambition Accounting Jobs Index

2009 was a challenging period in the accounting recruitment sector, with the indexremaining below 200 or the almost the entire year.

A stronger start to the 2010 quarter is reected in the index, with the subsequentdecline in business confdence due to uctuations in the European economy showingin the dip during the April/May months.

There were encouraging signs at the end o the last fnancial year however, with the

index climbing above 200 or the frst time in over 12 months. This increase in activitysupports what we are seeing frst hand in the market, and there is cause or cautiousoptimism that the overall trend is moving toward that o the U shaped recoverypredicted by economists ollowing the downturn in 2008/09.

Note: The index started at 100 in May 2003.

Accounting Jobs Index - Seasonally Adjusted

07/08 09/08 11/08 01/09 03/09 05/09 07/09 09/09 11/09 01/10 03/10 05/10 07/10

400

350

300

250

200

150

100

50

0

378

348354

312

292

251

233215

197186184

163 171 164185

172 173157

179196 191

180 184201

214


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Salary GuideFinance & Accounting Professionals

CFO/Divisional Finance Director15+ Yrs

$270k+

Tax

Head of Tax10+ Yrs

$180-250k

Tax Manager

7-10 Yrs$140-180k

Tax Accountant4-7 Yrs

$80-140k

Treasury

Head of Treasury10+ Yrs

$180-250k

Treasury Manager

7-10 Yrs$140-180k

Treasury Accountant4-7 Yrs

$80-140k

Audit

Head ofInternal Audit

10+ Yrs

$180-250k

Internal Audit Manager

7-10 Yrs$130-180k

Senior Internal Auditor5-7 Yrs

$100-130k

Internal Auditor3-5 Yrs

$70-100k

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Strategy & Planning

Head of M&A10+ Yrs

$220-260k

Financial Planning

& Analysis Manager7-10 Yrs$160-200k

SeniorFinancial Analyst

5-7 Yrs

$110-150k

Financial Analyst3-5 Yrs

$80-110k

Financial Reporting

GroupFinancial Controller

10+ Yrs

$180-250k

Finance Manager

7-10 Yrs$130-180k

SeniorFinancial Accountant

5-7 Yrs

$100-130k

Financial Accountant3-5 Yrs

$70-100k

Commercial/ManagementAccounting

Commercial Manager10+ Yrs

$180-250k

Senior Management

Accountant/Manager7-10 Yrs$130-180k

ManagementAccountant

5-7 Yrs

$90-130k

Cost Accountant4-7 Yrs

$70-100k

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The fgures or the Commercial sector are ranges expressed as TCE (Total Cost oEmployment) packages.

Cash + Superannuation, excluding Short Term Incentives. These vary according toorganisational size and sector and the individual circumstances o both the job seekerand employer.

Positions are described by years o postgraduate experience and ranges o $AUD.


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fnancialproessionals

with the abilityto add value to

the business plansare particularly

sought ater.

Slow & steady growth

Whilst not experiencing the instant recovery hoped or, the market has experiencedstable, steady improvement. The upswing has been uneven, with some sectorsrecovering at a much aster rate than others, but overall the recruitment market in theaccounting sector is showing positive signs again.

The frst quarter o 2010 was particularly encouraging, activity crept up across mostareas. In more recent times there has been an air o caution rom the market asemployers watched careully or allout rom the European wobble, beore a late surge

toward the end o the year in line with traditional seasonal patterns.

Out with the survival plan, in with the business plan

During the recent downturn many companies were orced to move away rom theiroperational strategy, to instead ocus on cost reduction in the short term. In a sense,business plans were ripped up and replaced by survival plans.

With the market beginning to turn around, many companies are once again lookingat how they can best grow in the marketplace. This in turn is leading to a shiting opriorities and a re-structuring o business units. Projects that were previously put on

hold are now being re-initiated, and capital expenditure costs that had been deemedtoo expensive are now beginning to re-surace.

Opportunities within this space are beginning to ourish. Cost Accountants, ProjectManagers & Business Analysts are all in demand, and fnancial proessionals with theability to add value to the business plans are particularly sought ater.

Churn is happening again

Over the last 12 months employers have enjoyed a relative position o strength inthe ongoing battle to retain talent. With market conditions generally poor, and a air

degree o insecurity about the economy itsel, many employees decided it would bewiser to remain sae in their current roles than it would be test their employmentprospects on the open market.

This is now changing. With generally improving conditions and growing confdenceabout the direction o the economy, many employees are beginning to once againgauge the market or job opportunities.

Employees at the $70K-$130K are looking to make up or lost time on pay rises andpromotional opportunities, and with a wealth o opportunities opening up, theiraspirations or better wages and career advancement is beginning to outweigh their

concern with job market volatility.

Demand Factors


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many employeeslook to change

jobs in anattempt tourther theirpersonal goals

ater a periodo careerstagnation

At the $150K+ levels we have noticed a huge increase in the amount o applications,as senior sta, who are now currently in a role, are starting to show interest in takingthe next step in their careers.

These indicators point toward a period o substantial transition within the marketplace,as many employees look to change jobs in an attempt to urther their personalgoals ater a period o career stagnation (the churn actor). As sta members fndnew positions either internally or externally, employers in turn are orced to fndreplacements or those losses. These transitional replacements will trickle downthrough the structure creating opportunities or candidates at the lower salary levelsas employees at the higher levels move up.

Focus on Leadership & soft skills

Another shit we are noticing is or transitions to be made by employees who wereworking at companies who ailed to adequately manage sta management issuesthroughout the recent economic downturn. In many cases, this downturn highlightedto sta how important it is that their employer shows a level o care and commitmentthrough tough and testing times. Employers who managed lay-os poorly, or diddamage to sta relations through the placement o unreasonable work demands

are now starting to experience increased turnover in a recovering market where newopportunities are appearing.


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both employersand employees

alike arebeginning

to eel moreconfdent about

the conditionsahead

Job Stability vs Career Progression

During the difcult economic conditions o the past 12-18 months, the naturalinclination o employees has been to stay in the job they currently possess, rather thantake the risk o making career changes in a time o signifcant market volatility.

With a large number o cutbacks, and cost reducing layos, the candidate pool becameinused with workers who were looking to get back into the work orce.

Accordingly, during that period we saw a proportionately high amount o people

without jobs looking to secure new positions. That may be starting to change. Over thelast ew months more applications are being received rom candidates who alreadyhave a job, and are looking to take the next step in their career.

Generally speaking, a large group are passively seeking opportunities (as opposedto actively trying to fnd the frst job they can get). They are interested in whatopportunities are out there, without necessarily being disillusioned by their currentemployer. The nature o the recent market slump has led many employees to sacrifcepay increases or career advancement or the sake o job stability.

In some cases employers have taken advantage o this by renegotiating salary terms

in their avour, or placing a greater burden on their employees through reduced headcount. In most cases however, employees are comortable that these stances were inline with the market conditions, and that steps taken to reduce costs were necessaryor the business at the time.

With the market conditions continuing to improve however, and both employers andemployees alike beginning to eel more confdent about the conditions ahead, manyworkers are looking to make up or lost time.

Multi-Nationals suffering from overseas head count freezes

Whilst local businesses continue to progress ollowing a disappointing 2009,companies with overseas head ofces continue to struggle. Multi-Nationals with largestakes in Europe are being aected by economic downturns there, and in spite oreasonably buoyant conditions locally, are still experiencing head count reezes as theirinternational head ofces look at cost reduction strategies.

Many locals working in multi-national corporations are beginning to believe thatthe grass may be greener elsewhere. Pay reezes and a reduction in the opportunitiesor promotion became the norm over the past 12 months throughout most sectors a act that was accepted by the majority o employees. With market conditionsimproving locally, many employees in multi-national corporations are reluctant to

accept continued career stagnation again. With opportunities beginning to appear

Supply Factors


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we expect theow o AustralianAccountantsand fnanceproessionalsto international

destinations toremain steady,rather than aood.

elsewhere, it will be difcult or multi-nationals who may be beginning to see aturnaround locally, to ask their sta to continue to wait or expected pay increasesand career advancement as their struggling parent companies look to shore up theirdeclining proft margins in challenging international economic conditions.

Big Four increasing their recruitment intake

In 2009 we saw a signifcant decrease in the graduate intake by the major accountingservices frms, as the Big Four reduced their intakes in response to the sluggish globaleconomy.

With the economy showing sustained improvements in most areas however, it appearsthat the Big Four will be looking to increases the size o their intake in 2010/11. As oneo the key indicators o the overall health o the accounting recruitment market, this isgreat news not only or graduates, but or the industry as a whole.

The push by the Big Four to broaden the base o backgrounds rom which thecandidate pool is drawn also looks set to continue, with an increasing number ograduates being taken rom non-traditional accounting areas, such as engineering orthe social sciences.

This trend reects the changing ace o modern accountancy where to succeed anemployee requires not only a degree o technical competency, but also a wide range ocommunication, interpretation and inter-personal skills.

Overseas Supply

Australia continues to be a destination o choice or seasonal workers, particularlyrom the UK market via either the 417 visa (working holiday) or 457 visa (whichrequire an employee to be sponsored by an employer or the duration o their stay).Similarities in culture, liestyle consideration and the general robustness o the AussieDollar combine to make working in Australia an attractive proposition.

Conversely, in 2009 we saw a reduction in the amount o Australians travelling to workoverseas, largely due to the even greater volatility experienced in international marketswhen compared to our own. Over the last ew months we have begun to see someevidence o this changing, with London in particular showing some signs o recovery.O course, until the European economy stabilizes, we expect the ow o AustralianAccountants and fnance proessionals to international destinations to remain steady,rather than a ood.

We also continue to see an increasing ow o candidates who have entered thecountry through the permanent stream o the Federal Governments General SkilledMigration Program, which the Government has increased over the years in an attemptto redress the imbalance between temporary and permanent skilled migration - apolicy rom which we are now starting to see results.


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Recruitmentis currently

being drivenby large capital

expenditureprojects

Sector Notes

Property & Construction

This sector was hard hit during the downturn and in turn cut heavily rom theirstafng levels. With the market beginning to turn around, and development projectsonce again getting the green-light, many companies are now aggressively lookingto recruit. Busy sector across the board, but Commercial Analysts / Managers at the$130K+ levels are particularly in demand.

Private Equity - Investee Companies

Ater a general decline in recruitment trends in line with the economic conditions,we are beginning to see an uptick in this area. With growing confdence in marketconditions businesses have again begun driving their investment businesses with moredecisiveness, which in turn has led to greater recruitment activity. Opportunities at the$150K-250K+ level exist, although competition remains strong.

Telecommunications/IT

Quite a bit o activity has been driven by consolidation, frstly through sta reductionsand then through business unit realignment and restructuring. Funding or businessexpansion is increasing, leading to increased recruitment demand; particularly at the

$70K-$130K level.

Resources/Energy & Utilities

This sector has remained robust as it did throughout most o the 2008/09 downturn.Recruitment is currently being driven by large capital expenditure projects, andaccordingly, Accountants with skill sets in the analysis and reporting areas at all levelsbetween $90K-$180K are greatly in demand.

Retail & FMCG/Pharma

These sectors have suered over the past couple o years that are now starting tosee some growth. The early months o 2010 we saw signifcant demand in theseindustries or Business & Commercial Analysts as companies look to re-stock ollowinga sustained period o low recruitment activity.

Media

This sector remains airly active, with strong demand or fnance proessionals acrossthe board, as media companies look or talent capable o adding value to their growthopportunities. Demand at the $80K-$140K level is high, particularly or those withrelevant niche industry experience, and an understanding o market behaviours and/orconsumer trends.


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In thisenvironment,we usuallysee upwardpressure onsalaries

Future Trends

Increases in Multiple Offers

Evidence is pointing toward increased competition or top tier candidates.Proessionals with strong technical capabilities, strong communication & inuencingskills, with relevant industry experience are beginning to see multiple oers rom frmswho are keen to attain their services, particularly at the $70K-$140K level.

Whilst this is only happening or the top tier right now, history suggests we canexpect to see this expand in the coming months. As the demand or talent becomesmore pressing, and the candidate pool becomes less deep, weve generally experienced

companies becoming more competitive in their eorts to acquire new sta. Firms thatpreviously missed out on talent due to slow recruitment processes, or deated salaryoers, will now need to adjust their practices to better compete in the changing marketplace. Candidates who previously were happy to be oered a job begin to receive severaldierent oers when looking or work, and can accordingly become more discerning.

In this environment, we usually see upward pressure on salaries, particularly in marketsectors where supply is low. Just as importantly however, the companies who win thewar or talent in highly competitive markets are the ones with streamlined recruitmentprocesses. In environments where a talented potential employee is felding numerousdierent options, the ability to make decisions, adjust terms or allay concerns quickly isoten more important than the numbers themselves.

Re-structuring of bonuses and LTIs

For companies that had structured their salary packages around share options andlong term share considerations, the recent downturn in the economy presented someinteresting challenges. With targets across the board that the economic conditions o thetime made impossible, and share options set at prices well above the value o the shares,the value o many Long Term Incentives (LTIs) became negligible. As rewards or goodwork they were no longer valuable. As incentives or retention, they also lost their lustre.

Accordingly, many businesses have begun to restructure salary packages around thesenew conditions. Creative companies however are using this as an opportunity. Rightnow share prices may be deated as a result o the recent economic climate. Withbusiness confdence improving, the expectation in many sectors is that share prices willsoon return to normal. This gives employers a short window in which they can tailorincentive schemes through which their sta can receive excellent value. We have seenthis already take place in a number o companies with a particular ocus o courseon the senior levels.


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The majorchallenge acingemployers over

the next 12months will

almost certainly

be retention.

Retention remains a major challenge for employers

The major challenge acing employers over the next 12 months will almost certainlybe retention. With the market picking up, and confdence improving we can expectemployees who have oregone pay increases over the last year or so to start lookingmore earnestly at the job market.

Whilst there are opportunities here or employers to acquire new talent, the dangerwill o course be in losing their own existing talent base. Many employers have alreadyrecognised this, and have begun to make plans around pro actively ameliorating their

employees salary concerns, with the intention o limiting stafng losses in a morecompetitive employment market.

Just as important however is an employers ability to address the non-remunerativeside o the employment equation; sta interaction, leadership and work/lie balance.By and large these issues were put on the back burner over the past 12 months, ascompanies ocused on cost reduction and the implementation o business survivalstrategies. With that period coming to an end, smart employees are now askingquestions o their leadership teams. Are they able to articulate a vision or the nextyear? Are they willing to address concerns about stafng levels and employee atigue?Will the sacrifces made during the last year be rewarded during annual reviews?Businesses unable to provide satisactory answers to these questions may soon fndthemselves in danger o losing key personnel.


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our objective isto partner withyou as a trustedadvisor to ensureyou have thenecessary skills,

knowledge andnetworks.

The Talent Services Practice within Ambition Finance consists o a team o dedicatedTalent Consultants that are based across Australia. Providing specialist advice andassistance to fnance proessionals, our objective is to partner with you as a trustedadvisor to ensure you have the necessary skills, knowledge and networks to achieveyour uture aspirations.

We manage and tailor our oering to a number o specialist network groups and oer:

Career planning, appraisal support and interview guidance

Networking events and talent development workshops

Market newsletters, key trends and salary reports

Key industry and client inormation

Exposure to specialist recruitment Consultants

Specialist network groups include: 1st movers CAs, International QualifedAccountants, Audit, Risk & Compliance, Product Controllers, Fund Accountants,Banking and Operations and more.

For more inormation on joining one o our specialist network groups and broader

services oered by the Talent Services team contact Emma Collins Manager, TalentServices on (02) 9249 5062 or [email protected]

Talent Services Team


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we havethe greatest

exposure to thebest availablecandidates inthe market.

About Ambition

Ambition Technology

Ambition Technology, based in Sydney and Melbourne, is structured to mirror theIT departments o its National portolio o clients, with three dedicated teams oconsultants ocusing on Applications, Business Inormation and Inrastructure.When you need a resource we have the greatest exposure to the best availablecandidates in the market.

We are actively involved in the Technology market, we know whats happening,

where and with whom. You receive inormation to allow you to stay competitive

and ahead o the curve.

Andrew CrossManaging Director Ambition [email protected]

Ambition Finance

Ambition Finance specialises in the recruitment o permanent and contractAccounting, Banking and Finance Proessionals. With ofces in Sydney, Parramatta,Melbourne and Brisbane we advise and recruit newly qualifed Accountants through toCFO level.

With our knowledge, networks and expertise we have access to both active and

passive candidates and exciting career opportunities with leading Blue Chip frms.

Gavin HouchellManaging Director Ambition [email protected]


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the frst brandin Australiawhich purelyrecruits in theaccountingsupport sector.

Other Specialist Services

AccountAbility was the frst brand in Australia which purely recruits in the accountingsupport sector.

Our red carpet network has been established o thoroughly screened, skilled andexperienced candidates within the accounting support sector that are immediatelyavailable to satisy our clients requirements. Quality aligned with speed o service is

at the core o what AccountAbility can oer and we fll 80% o temp roles over thephone and 90% o our perm roles within 6 - 8 working days.

We have a business and a brand which talks specifcally to our target market;

understands what drives candidates in support roles to change job and most

importantly how they like to be treated.

Ruairi FlynnManaging Director [email protected]

myambitionwww.myambition.com is a career development website that helps you accelerate yourjob search and career. You can access ree articles and coaching tools relating to allaspects o career management including:

Job Search where to start when looking or a new job

Resume Writing tips to help you sell your skills

Interview Advice advice covering all aspects o the interview process

Career Coaching access to Career Coaches who will support and navigateyour situation

Everyone needs help with their career at some point, myambition.com is a one-stop

shop or all things career related

Sally-Anne BlanshardCareer Manager [email protected]


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Notes


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20/20

SydneyLevel 5, 55 Clarence StreetSydney, NSW 2000Tel (02) 9249 5000

MelbourneLevel 36, 140 William Street

Melbourne, VIC 3000Tel (03) 8629 1000

ParramattaLevel 4, 3 Horwood PlaceParramatta, NSW 2150Tel (02) 9633 7300

BrisbaneLevel 7, 410 Queen StreetBrisbane, QLD 4000Tel (07) 3211 9333

www.ambition.com.au

Hong Kong1202 1205 Alexandra House18 Chater RoadCentral, Hong KongTel (852) 3101 3066

www.ambition.com.hk

Singapore65 Chulia Street#39-05/06 OCBC CentreSingapore 049513Tel (65) 6854 5600

www.ambition.com.sg

London13 Southampton PlaceLondon WC1A 2ALTel (44) 20 7404 4004

www ambition co uk

AccountAbility - SydneyLevel 5, 55 Clarence StreetSydney, NSW 2000Tel (02) 8296 5300

AccountAbility - MelbourneLevel 36, 140 William Street

Melbourne, VIC 3000Tel (03) 8629 1300

AccountAbility - ParramattaLevel 4, 3 Horwood PlaceParramatta, NSW 2150Tel (02) 9633 7300

AccountAbility - BrisbaneLevel 7, 410 Queen StreetBrisbane, QLD 4000Tel (07) 3009 6100

www.AccountAbility.com.au

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