Financial job candidates asking for unrealistic salaries

The most recent Robert Half Salary Guide found that nearly 60 per cent of chief financial officers have had candidates request an unrealistic salary in the past 12 months, with most requesting an average of 15 per cent above the salary initially offered to them. 

And while nearly half (47 per cent) of finance candidates were successful in securing more than was originally offered, 22 per cent did accept the original salary offered, and 19 per cent walked away from the job offer altogether.

The report said most financial candidates are aware that many Australian employers paid premium salaries to secure skilled talent as business confidence grew post-pandemic, with the Wage Price Index also experiencing its highest growth in a decade, growing 3.3 per cent in 2022.

“The finance market saw premiums used as a way to attract and retain sought-after finance and accounting professionals. This candidate-driven market in late 2021 through to mid-2022 has created an expectation among many financial candidates that it will continue through 2023,” said David Jones, senior managing director at Robert Half Asia-Pacific. 

“However, with a focus on efficiency and cost management now being top strategic priorities for many finance leaders, only those with the highest in-demand skills — such as financial partnering, financial modelling, and big data analytics may find themselves as the recipients of larger salary increments.”

Mr Jones said the double-digit increases would start to ease in the next 12 months for both financial professionals who move companies and those who stay with existing employers.

Employers, too, are becoming much more hard-nosed in the negotiation process, said Mr Jones, with 12 per cent of CFOs withdrawing their offer because of the unrealistic expectation of the finance candidate.

Candidates with good negotiating skills were able to secure a pay rate on average 7 per cent higher than advertised, while 8 per cent received a lower wage, suggesting that some finance candidates still have significant bargaining power to receive a salary higher than originally offered, but this may not last much longer as employers seem less likely to allocate significantly higher salaries going into 2023.

“In the current market, finance candidates remain in strong demand and low supply. However, this balance of power is changing. Given our high inflation environment and interest rate increases to control it, lessening consumer confidence is trickling through to more conservative business decision making,” Mr Jones said.

“Finance leaders, in particular, are evaluating team structures to achieve optimal outcomes.

“Finance professionals who are considering changing jobs need to consider what motivates them, beyond salary alone. Over the last 18 months, salary has often been presented as a primary driver used by employers to attract and retain staff. However, it will become more common for finance leaders to hold firm and reject what they consider unrealistic salary demands.”

With digital transformation alongside cost management being a top priority for CFOs this year, businesses are searching for advisers who can help with decision-making. To guide transformation while keeping business objectives on track, the demand for financial controllers, management accountants, and financial accountants with strong validation and modelling capabilities remains strong.

The research found that almost half (48 per cent) of Australian CFOs need, but are currently missing, finance business partnering skills in their workforce, along with 44 per cent needing big data analytics and literacy and 38 per cent requiring financial modelling skills.

Literacy around technology and automation to streamline processes are central to hiring finance staff in 2023, but these skill sets are not easy to find in the skills-short market. More than half (53 per cent) of CFOs plan to accelerate automation and digital transformation within the organisation, yet 47 per cent of CFOs need, but are currently missing, digital proficiency in their finance function. Digital literacy is crucial for the implementation and upgrade of new financial products to broaden reach and to stay ahead of competitors.