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.”