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Seasoned accounting and finance professionals who know how to help businesses expand as well as those performing compliance work will likely see their paychecks rise in 2007, according to the 2007 Salary Guide from Robert Half International (RHI).
Nationally, RHI predicts an overall 3.8 percent increase in base pay for finance and accounting professionals, based on data collected from tens of thousands of placements, a review of 2006 starting salaries and hiring trends research. The biggest pay boosts will go to experienced compliance professionals, internal auditors, financial analysts and public accountants.
“There’s definitely a tightening of the market in compliance,” says Keith Feinberg, RHI’s director of permanent placement services. “And the three- to five-year person in accounting or analysis is seeing multiple offers and the highest base salary percentage increases.”
Accountants with Sarbanes-Oxley experience continue to reap rewards. RHI projects chief compliance officers at large companies (those with at least $250 million in sales) will see pay boosts of 14.4 percent in 2007, while large company internal auditors will see base compensation go up 5.8 percent.
Accounting Going Strong
In public accounting, look for senior managers and directors at large firms to receive pay increases of 8.1 percent, while those at small and medium firms can expect increases of 7.6 percent. Entry-level professionals should see increases of about 5 percent, regardless of firm size.
With demand outstripping the supply of professionals, public accounting firms are baiting their recruiting hooks with signing bonuses for new recruits and existing hires, as well as expanding work/life balance options to include flexible scheduling, part-time work and telecommuting.
Nothing Lasts
However, one of the factors that put the supply and demand curve for accounting professionals out of whack -- the low number of accounting graduates during the tech boom -- may be correcting itself. Between 1995 and 2002, the number of accounting bachelor’s and master’s degrees awarded nationally declined by about 27 percent, hitting a low of 44,695 in 2002. Yet by 2004, there were 53,760 accounting grads, due to a 70 percent increase in the number of master’s degrees awarded.
Certifications Help Accountants who pursue
certifications increase their market value. “Clients are looking for credentials and technical skills, so get those post-graduate degrees and take the classes and skill courses,” says Feinberg, adding that the CPA is the most popular designation.
Entry Level Is Hot Those doing the day-to-day labor in accounting will be carried up on the rising salary tide in 2007. Bookkeepers, whether they’re full-charge, financial statement, general ledger or generalists, can expect to make 6.2 percent to 6.7 percent more in 2007, according to RHI’s analysis. “Small firms, in particular, are hiring both full-charge and entry-level bookkeepers to handle routine accounting requirements,” the Salary Guide says.
Financial Services Not So Hot One industry where accounting salaries are not expected to rise much is financial services, possibly because that sector experienced significant salary gains in prior years. Other than compliance managers (up 7.8 percent) and trust accountants (up 3.4 percent), none of the jobs in the financial-services sector should post salary increases above 3 percent in 2007, RHI predicts.
Both small and large banking and financial-services firms will be seeking CPAs,
chartered financial analysts, MBAs and Series 7 and Series 63 license holders in 2007. Look for institutions to bring in more temporary and project professionals during the year as well.
In Your Market
Local market conditions, industry sector and personal performance also weigh heavily in the salary calculation game, as does the amount of experience you have in your job. You’ll find the data necessary to customize RHI’s predictions for your market in the Salary Guide or by using our
Salary Wizard.
