A vintage year for accountants

The Michael Page 1996 Barometer indicates a significant increase in job availability across all sectors during the year. Employers increased their accounting staff head count as they gained confidence in the thriving economy. Our figures demonstrate that the economy has clearly picked up at an encouraging rate. For example, the retail and distribution sector, which is often regarded as a measure of consumer confidence, has significantly increased across all regions.

The banking and financial sector has been the real winner throughout the year. This sector experienced a mass of activity and continues to develop. In the City, demand for accountants in banking and financial services remains strong with employers always seeking quality staff. From approximately 1,500 available positions registered by Michael Page City at the end of December 1996, 70% were in the merchant and investment banking sector. Throughout the year, the City continued to provide an active market for accountants to work on a contract basis and there is a continuing demand for applicants who will consider working on a temporary contract of employment.

Professional services

The year witnessed the professional services sector continuing to grow at a very encouraging level, especially within corporate finance, tax and investigation work. However, compliance and audit work has remained relatively flat.

In comparison to 1995, when the media and business sector showed a decrease in available vacancies, this market has now revealed a significant growth with demand continually increasing throughout the year.

Another area which has gained in confidence is the building and construction sector. In 1995, it witnessed a significant lack of demand for accountants, but during 1996 there was a significant increase in activity as employers increased their staff numbers to cope with the prospects within the construction market.

The public sector reports the smallest increase in activity. In 1996, the sector experienced a relatively static employment market. The health service continues to be slow with Government cutbacks in funding clearly affecting recruitment levels.

Insatiable demand

The past year was a dramatic turning point for accountants as demand for their services shot up. These figures indicate opportunities are booming while the economy continues to thrive.

Accountants’ salaries in 1996 more than kept pace with inflation and, in some cases, increased dramatically. As the table shows, salary expectations for newly and recently qualified accountants are at an all-time high, and when compared to almost every other profession, accountants come out on top.

The demand for newly qualifieds was significantly enhanced during 1996.

The packages for newly qualifieds are becoming more and more lucrative as employers realise there is a shortage in the marketplace – which is due to the knock-on-effect from the lack of investment in staff during the recessionary years. Therefore, employers are having to significantly increase salaries to prevent staff being poached by other firms who are willing to offer a more lucrative package.

Although demand is outstripping supply for newly qualifieds, opportunities are only really available for those who possess the right attributes such as a strong academic record, IT and specific sector experience skills.

Newly qualifieds who have blemishes in their exam record, for example, may find opportunities harder to find. However, the range of jobs on offer has never been more diverse.

The regional variations in the salaries shown mainly reflect the cost of living premium of living in the South East, although there is a demand versus supply factor.

Accountants working in banking and financial services continue to attract lucrative salaries, but entry to these positions is competitive and the skills and qualifications demanded are very high. However, personality and communication skills are often the determining factor.

For accountants in the profession, there is currently a shortage of insurance tax/financial services/capital market specialists and for tax specialists with industry/commercial experience willing to return to the profession.

A number of employers within industry and commerce are recruiting for part/newly/qualified CA/ACA/CIMA/ACCAs for internal audit/operational review roles, especially those who are conversant in another European language. Furthermore, blue chip corporations in London, for example, are looking for staff to fill head office roles in consolidation, internal audit and line roles in financial and management accounting.

Geographical spread

The geographical spread of jobs has remained relatively unchanged throughout 1996. London still dominates, but the Home Counties have considerably increased their share of the overall market. Scotland, the East Midlands, and Yorkshire & the North East have changed places over the fourth quarter of 1996 – although there is not much in it.

Throughout the year, the West Country & Wales continued to prop up the league table. However, with the Government’s current inward investment initiatives, especially within Wales, this region should at last begin to experience the benefits of the current economic recovery.

Throughout the year, second language ability became a much more important attribute which should appear on the CV of the most ambitious accountants and certainly those seeking an international career. The 1996 Top Six table indicates French has now overtaken German as the language most in demand.

Appearing more regularly are Russian and other East European languages.

This reflects the demand for UK-trained and qualified accountants to work in the emerging economies of the former Soviet bloc. Polish, in particular, is a language which has becoming increasingly useful.

Japanese, Cantonese and Mandarin speakers are occasionally requested, but are difficult to find.

The Accountancy Age/Michael Page Barometer analyses trends and activities in the accountancy jobs market by examining the total of advertised and unadvertised vacancies. The survey spotlights demand and reflects the overall economic state of the nation.