Location-based job market analysis: Melbourne

Melbourne is home to 3.2 million people and with a 12 per cent increase in jobs registered over the last year, the city and its surrounding areas offer a thriving accountancy job market.

Generally speaking, increased market confidence and activity means there is strong growth in most sectors. Rather than just replacing existing positions, employers are creating new positions and this is driving the current recruitment market.

Activity is strong in the CBD region, with a buoyant market created by companies relocating back into the area. In particular the IT, FMCG and SME sectors are experiencing specific growth in St Kilda Road. The city fringe has also seen an increase in activity, particularly for accounting support roles with larger organisations and manufacturing companies who are centralising there or in the suburbs.

In Melbourne's financial executive recruitment market, the strong job opportunities are for:

• Temporary and permanent financial accountants at the $55,000 to 60,000 level
• Temporary and permanent financial/business analysts at the $80,000 level
• Permanent commercial managers at the $130,000 level
• Permanent accounting managers at the $90,000 level
• Temporary systems accountants
• Temporary tax accountants

For these roles, employers in Melbourne generally seek candidates with strong financial accounting experience, including consolidations, tax, statutory reporting and analysis. There has also been a demand for senior finance permanent and contract individuals for project-based roles in the compliance area, including International Financial Reporting Standards (IFRS) and the United States' corporate governance legislation, the Sarbanes-Oxley Act.

In accounting support, increasing awareness of revenue management and control has created strong job opportunities for bank reconciliation officers. For these roles employers generally require candidates with three or more years high-volume reconciliation experience.

As we approach year end, there has also been a rise in payroll positions requiring full-function payroll skills and for assistant accountants, with one to two years experience and strong balance sheet reconciliation or profit and loss skills. At the accounting support level, employers are asking for very specific computer program experience, in particular Chrispay, Oracle and SAP.

In Melbourne, there are now fewer 'pure' financial accounting roles in the market but even these traditionally 'pure' roles require candidates with demonstrated ability to add-value to the business. This means strong people management and commercial skills are valued just as highly as accounting skills.

A recent change to employer recruitment practices across the board has seen increased reliance on behavioural-based interviews and the requirement that candidates demonstrate and validate their experience. At the accounting support level, employers place a strong emphasis on a candidate's system skills, which will need to change as the candidate market tightens.

Salaries have remained fairly stable over the last few years, however candidate expectations have increased and some graduates without practical experience have unrealistic salary views.

The increase in job opportunities and a scarcity of candidates with well-rounded skills has resulted in salary increases for business analyst, system account and payroll positions. Employers are increasingly keen to offer benefits to their employees and there has been a substantial increase in performance-related benefits, such as bonuses and profit share, and in loyalty-related benefits such as shares and parking. Perks such as income protection, rostered days off or flexible working hours, staff discounts and study assistance are also popular.

As we enter a candidate-short market, not only do we expect pressures on salaries to increase, but employers will need to act quickly to recruit potential employees who could be offered more than one opportunity.

Hays Accountancy & Finance recently placed a senior financial accountant with a transportation and logistics company. The successful candidate had over five years experience in a commercial environment, and had transactional and strong analytical skills. While there are candidates available with this type of experience, proven ability in working under pressure and adding value to the business was difficult to find.

We also recently placed an assistant financial accountant with a financial services organisation. The successful candidate was a strong graduate assistant accountant, degree qualified and studying their CPA. They had strong corporate presentation and excellent communication skills. The successful candidate received $50,000 plus superannuation.

We expect vacancies to continue to increase in Melbourne, especially as market confidence remains high and as new roles continue to be created. However as we enter a candidate-driven market, it will become increasingly difficult to recruit and will become a highly competitive market for both employers and employees alike.

About the author: Hays Accountancy & Finance

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