PracticePeople In PracticeFirms dishing out extra cash to stop accountants resigning

Firms dishing out extra cash to stop accountants resigning

Firms offering 20% salary increase to retain staff, but accountants leave for career development not cash

ACCOUNTING FIRMS are having to increase counteroffers to retain the best talent, with this effort still not enough to keep most of them, according to a financial recruiter.

Counteroffers in accountancy and finance are increasing with the average offer now 20% of salary, 5% more than last year according to specialist accountancy recruiter Marks Sattin.

The poll found that about two in five accountants are demanding about 23% of salary to stay put. However, a further one in five said no amount of money would make them stay.

The number of accountants who are being offered a deal to stay has risen to one in four from one in eight in 2011. The increase in demand for the best talent has led to the current situation with 76% of accountants seeking pastures new compared to 68% last year.

Counteroffers are estimated to be about £569m in the last year with the average offer of £13,290 increase in salary.

Career development was the main reason for the change in role for 44% of those polled, with 24% citing financial reasons.

In most scenarios, it can be better for firms to give up the employee and search for talent elsewhere.

Dave Way (pictured), managing director of Marks Sattin, said:
“UK firms are spending a huge amount on counteroffers – often expenditure that is unplanned and not budgeted for. However, they are rarely effective and rarely scratch the itch of employees looking to leave for career development reasons.

“Counteroffers can also add to instability as employees think they can secure a pay rise just by handing in their notice. In the long run, it costs far less to let resigning employees go and secure ambitious talent from elsewhere.”

Related Articles

ICAEW president: We must adapt to add to our heritage

Accounting Standards ICAEW president: We must adapt to add to our heritage

1y Richard Crump, Writer
Champion Accountants agrees Southport office MBO

Accounting Firms Champion Accountants agrees Southport office MBO

1y Richard Crump, Writer
Social pressures from management causes accounting fraud, research claims

Management Social pressures from management causes accounting fraud, research claims

1y Fraser Simpson, Reporter
AAYP: Online accounting qualifications - a smart option for employers and staff

Management AAYP: Online accounting qualifications - a smart option for employers and staff

2y Acccountancy Age
AAYP 2016: The new breed of accountant

Accounting Standards AAYP 2016: The new breed of accountant

2y Acccountancy Age
Best Practice: Saffery Champness managing partner Rob Elliott

Accounting Firms Best Practice: Saffery Champness managing partner Rob Elliott

2y Calum Fuller, Reporter
Best Practice: Wilson Wright’s Michael Lerner

Accounting Firms Best Practice: Wilson Wright’s Michael Lerner

2y Fraser Simpson, Reporter
Enter the British Accountancy Awards 2016

Accounting Firms Enter the British Accountancy Awards 2016

2y Richard Crump, Writer