How Counting on U is transforming accounting
The origin of the Counting on U Project stems from the CEO of the IPA, Andrew Conway – who said “The biggest issue...
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As 2013 winds to a close and 2014 beckons, the accountancy hiring market is improving in some areas but is still soft in others. Roles are open at all levels, say recruiters, but there are definitely sectors that are more of a seller’s market for the right skill sets. The most frequently mentioned? Analytical skills.
Kevin Jarvis, a director at recruitment firm Robert Half International (NSW), sees a sweet spot for hiring in the mid-market qualified accountant level, particularly in the analytical areas – financial analysis, business analysis, management accountant. Here, qualified accountants “who can add a lot of value” are in demand, he says.
“Those people who know enough to come in and add value and not be too expensive for a company are very good value for money,” says Jarvis, adding that it doesn’t matter whether they worked in public practice, banking, commerce ... “or wherever”. “Because they have a decent amount of knowledge – from three or four years through to 10 years’ experience – we’re finding good opportunities for those people.”
Susan Drew, senior regional director of Hays Accountancy & Finance, says business services is a vibrant area, particularly for companies concentrating on efficiencies. “Areas such as changing processes, systems integration – the software firms are really a growing opportunity at the moment,” says Drew. “Also the analytical side – companies are looking at that cost-benefit side and looking at analysing sales information and stock information and making sure that they’re moving things as quickly as they can. People with those skills have a lot of appeal.”
Some of this demand is being offset to a large extent by the creation of shared service centres, says Adrian Oldham, regional director for recruitment company Michael Page in Australia. “We’ve seen continued activity in this area,” he says, “and when you combine that with the continued trend toward offshoring/outsourcing, it is definitely hampering recruitment.”
With both of these trends, says Oldham, fewer accountants are needed. “All sorts of businesses are going down the shared service centre route, typically banking and financial institutions and large corporates with an Asia-Pacific footprint, as well as increasing numbers of Australian businesses,” he says. “That’s hitting all levels – graduates and the movement of experienced accountants.
“This is on top of the fact that transactional accounting has in many cases been moved offshore, where basically you’ve got a cheaper resource to do the transactional role that requires less skill.”
On the plus side, says Oldham, roles that are in demand are “business partnering and decision support”. “Roles that focus on providing support to the business, to look at where efficiencies can be made, are in demand, because margins are being squeezed. It’s not necessarily cost accountants – we’re seeing business analysts and financial analysts with good opportunities.”
Oldham says it is more the job functionality that is sought rather than the actual title. “We’re definitely seeing a trend where finance is being used a lot more as a value-add functionality, to generate efficiencies in production or service,” he says.
Graduates coming into the market are finding it quite tough, says Jarvis. “I don’t think the Big Four are hiring at the same rate, but in that case, good candidates have other options.” He suggests they can establish themselves technically as a good accountant within a strong firm or look at a graduate program within a commercial or banking institution.
Big Four hiring has “remained relatively static for several years”, says Alec Bashinsky, Deloitte national partner, People and Performance. But overall, he says, the Big Four firms continue to create opportunities for accounting graduates. “We will again hire more than 500 graduates next year. Banks, corporates and government departments remain strong graduate employers, but we are seeing graduate opportunities created in most industries,” says Bashinsky.
Both institutions and individuals are adapting to the static market for graduate hiring. Bashinsky says many of the universities are turning towards industry learning programs for accounting students, to aid the transition to the workplace – with credit going towards a degree.
Students, too, are increasingly aware that competition is stiff. “We are seeing an increase in first-year university students engaging with us, looking to take up opportunities earlier than their peers – through double-degree programs, summer vacation work or internships,” says Bashinsky. “Students are now aware that the best way to secure a grad role is to complete one or more summer vacation/intern programs or risk missing out.”
Although Deloitte continues to hire roughly the same number of graduates year on year, Bashinsky says the firm is going to market with fewer graduate opportunities, as most of the roles are filled more than 12 months in advance through its summer vacation program.
Jarvis agrees that one of the best things a graduate can show in today’s market is experience they have accumulated before graduating – whether an internship or accounting or commercial experience of some kind gained during their breaks from study. “Commercial organisations are not as profitable as they used to be, which means that the market needs people who are highly driven and who have demonstrated a logical approach to problem-solving, teamwork and communication skills,” he says.
While Jarvis believes “something more tangible on the CV” can be better than further study at the moment, Drew says she is seeing an increase in people going back to university. “Because it’s such a competitive marketplace, people know they have to differentiate themselves,” she says.
“They’re looking at improving their qualifications and adding value, whether it’s a master’s in finance, an MBA or going down the professional qualifications route.”