Finance professionals say … 2008 should be great

Economics may be referred to as 'the dismal science' by its critics, but the outlook for its sister disciplines accounting and finance are remarkably upbeat for the year ahead.

Nigel Barcham, managing director of Robert Half Australia and New Zealand, says that despite recent tumult in global financial markets, 2008 will deliver strong employment opportunities for finance and accounting professionals.

'The signs are exceedingly positive for the job market, with no signs of a slow-down,' Barcham says. 'We are seeing a continued uplift in job creation, which coupled with a short supply of very strong candidates across all sectors is positive for finance professionals seeking work in 2008.'

The optimistic sentiment is underlined by results from a Robert Half survey of 401 Australian finance and accounting professionals, which has shown that 39 per cent plan to extend their team in the next 12 months due to anticipated growth in business (36 per cent) and increasing workloads (34 per cent).

Among major Asia-Pacific neighbours, optimism also rules in Singapore, where 46 per cent of managers plan to extend their team, and in Hong Kong, where 43 per cent will be adding team members.

Singapore professionals also expressed confidence about their national economy, with 60 per cent ranking the economy between seven and 10 (10 rated highest, one rated lowest). About 50 per cent of Australians and 33 per cent of Hong Kong professionals ranked their economies in the same range.

Based on actual placements made throughout 2007, the Robert Walters global salary guide predicts the skills shortage will continue to affect average salaries across all sectors in Australia.

'With unemployment at a 30-year low, there is no escaping the significant pressures of the skills shortage,' says Robert Parnell, CEO of Robert Walters Asia-Pacific. 'In effect, strategic recruitment and staff retention have to become ingrained in the long-term growth and succession plans for Australian business.

'The candidate market is rife with counter-offers and significant pay-rise increases, while employers find them-selves under pressure to quickly adapt to market demand and develop full-package salary and benefits to attract the top talent. In many instances the so-called shift in power has seen candidates confidently hold off on job offers, instead waiting for the most attractive packages.'

Robert Walters global salary survey statistics also predict a 10 to 15 per cent salary increase across the board in 2008. Executive level candidates, including those in accounting industries in major cities, might in some cases collect up to double that figure.

'Certain niche skills have come into higher demand,' Parnell explains. 'For instance, experience with the sales and management of private wealth, superannuation and retirement products provide great opportunity.'

Ambition finance managing director Gavin Houchell also says the accounting and finance recruitment market is buoyant, with this mood set to prevail throughout the year ahead.

'There is currently a strong demand for newly qualified accountants across the board,' Houchell says. 'At the mid level we are witnessing strong demand for accomplished analysts, internal auditors, group accountants, all the way up to the financial controller level.'

Ambition expects the market to remain much the same as 2007 throughout the coming year, with the demand for qualified accounting professionals still exceeding supply by some margin.

'With the continued attractiveness of overseas markets and the increasing transactional deficit between candidates coming to and leaving the nation,' Houchell says, 'there is little reason to believe the skills shortage will be resolved any time soon.'

Despite the enduring skills shortage Barcham believes employers are more discerning than ever when it comes to hiring candidates.

Gone are the days when accountants can be mere technical specialists. 'Employers are viewing technical fit as being less and less important in finance professionals,'

Barcham says, 'Candidates need to demonstrate leadership qualities, their ability to think commercially and strategically, and to develop relationships with clients and employees outside their own technical core.'

Sustainability seminar covers the bases

Disseminating information in relation to sustainability is fast becoming an integral need for members of the business community. The Global Reporting Initiative framework is due to become the internationally accepted, best-practice framework for reporting on the environmental, economic and social performance of organisations.

In May, CPA Australia will deliver a half-day seminar designed to inform members on the fundamental aspects of the GRI, the National Greenhouse and Energy reporting Act 2007, and sustainability reporting in the context of corporate responsibility towards economic, environmental and social influence, consequence and actions.

The vital seminar will also explore cost / benefit implications and sustainability priorities. The usage of sustainability reporting for improving corporate governance and as a mechanism for communication will also be explored, along with a discussion of the carbon footprint, its significance as a guide to long-term environmental sustainability, and how to measure it in general terms.

Advocates support a link between good corporate citizenship and better financial outcomes, but each business needs to draw this conclusion for itself.

This seminar will offer an opportunity to learn more about the current and future context of corporate social responsibility to develop awareness that sustainability, and particularly environmental sustainability, is not just about being a good corporate citizen but a core component of corporate strategy.

For further information email anthea.somas@cpaaustralia.com.au.

Reference: April 2008, volume 78:03