The 2022-2023 Hays Salary Guide has shown that the accounting and finance sector is facing increased competition for skilled professionals. This is a problem many other industries are facing and has led to unemployment dropping to just 3.9% this year. It is expected to drop further to 3.5% in 2023, the lowest record in 50 years. With businesses having to compete more fiercely for the limited talent pool, there is an expectation that gradual salary increases will be budgeted for over the coming financial year.
Accounting professionals were found to have expectations of achieving salary increments of 6% or more on their next review. However, according to Hays Salary Guide, while three-quarters of employers do intend to increase salaries, the level will likely be lower than their employees’ expectations. 84% of accountancy and finance businesses indicated that they would offer less than 6% increases, with the majority likely to fall below 3%.
The review also found that employees were concerned about more than just salary increments. They would also pursue better terms on aspects such as annual leave and payment for professional memberships and training.
It is a challenging period for such businesses as not only are employees demanding more but there is also a skills shortage at a time when talent is scarce. There is strong demand for accounting professionals as 56% of accounting and finance businesses looking to hire more permanent staff over the coming financial year, while 24% are planning to hire more temporary or contract employees.
The most sought-after professionals include accounts officers, assistant accountants, payroll officers, finance managers and financial analysts.
Employees in the industry have become more emboldened by the situation, with 54% feeling confident about asking for a pay rise, while 51% report having already cashed in a salary increase and/or new job. Remuneration has become a driving force for many seeking greener pastures, with over half of job searches being inspired by a desire for more money. Even without the benefit of a promotion or better management. Just 33% of respondents surveyed reported feeling satisfied with their current level of salary.
Regional Director of Hays Accountancy & Finance, David Cawley, said that staff expectations were increasing faster than the pay rises, caused by growing confidence in their worth. He advised employers to look beyond salary increases as this could only be extended so far. He recommended also looking at benefits, career progression, upskilling, purpose, and building the relationship between employer and employee.
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