Ernst & Young’s Raises Will Be Better Than PricewaterhouseCoopers’
I said it on Tuesday and I’ll say it again. HERE. WE. GO.
Caleb ran a post yesterday about Ernst & Young raises that as of deadline time had no comments. Zilch. Nadda. I was surprised by this because if anything guarantees comments on GC posts it’s talk about layoffs, Overstock.com shenanigans, and money (not in that order). Needless to say, I think this update will change things.
GC received a tidbit from an EY reader about the recent phone call:
“I did receive a voicemail from Steve reassuring compensations but, it appears that the firm will concentrate giving raises to its “high performers”. So, this potentially could mean that only EYers rated a 5 (need to catch a fraud to get this or have really sore knees) or 4s (need to be well liked all the way up the pipeline on an audit) will have a respectable raise.”
So – if you burned through busy season working yourself to the bone for Uncle Steve but stopped short of needing knee pads (it should also be noted that the parts in parentheses above are part of the original email…) you might be shit out of luck for a respectable raise.
Continuing…
“In addition, I checked with a partner and the August 1st early pay increase is a rumor. The rumor appeared believable since EY is a monkey see monkey do type of firm but, our partner said that EY’s raises although be start on October 1st, will be higher than what PwC will offer to its auditors.”
Boom. To quote my man and crime fighting detective Marcus Burnett, “Shit just got real.”
Shit. Just. Got. Real.
Is there any credibility to this? Sure there is. To think that the upper leadership from every firm does not talk to one another about compensation targets is ridiculous. Merely for the sake of the partners’ bottom line, it’s necessary to know what ones competitors peers are paying in compensation. Why some loose-lipped partner is sharing this information is beyond me, but hey, it’s dedicated readers fed up with their own compensation that forward these tips on. Now, let’s talk it out.
Which would you prefer – every 10 key cruncher receiving a mediocre payout or just the stars receiving something slightly-better-than-insulting? Comment below, regardless of which firm you work for. Be sure to shed some light on the timing of EY’s payouts if you know any details.
Credentials for Accountants: Certified Management Accountant
Last week we kicked off our certification series by looking at the CFE for those of you interested in becoming numbers sleuths that also have the figurative iron-clad stones that Sam Antar insists are imperative for any CFE.
This week we look at the Certified Management Accountant (“CMA”) credential and while it’s probably not as sexy as the CFE, a lot of you may want to consider the CMA if you see yourself spending a good portion of your career working as an in-house accountant or finance pro.
The credential is administered by the Institute of Management Accountants whose website states that “85% owork inside organizations, where expertise in decision support, planning, and control over value-adding operations are crucial elements of operational success,” and boasts 60,000 members worldwide.
Here’s the rundown on the CMA:
Education Requirement
You can meet the education requirement by verifying that you have a bachelor’s degree from an accredited college or university or that you have a professional qualification, such as a CPA (here’s a partial list of global certifications that qualify).
Professional Requirements
The professional requirement for the CMA is two continuous years of experience in management accounting or financial management. This can be completed prior to the application or within two years of passing the CMA exam. The website states that, “Qualifying experience consists of positions requiring judgments regularly made employing the principles of management accounting and financial management.”
There is a long list of experience that will satisfy this requirement including financial analysis, budget preparation, management information system analysis, financial management, management accounting, auditing in government, finance or industry, management consulting, auditing in public accounting, research, teaching or consulting related to management accounting or financial management.
CMA Exam
The CMA Exam is currently transitioning from a four-part format to a two-part format. The two-part format rolls out on May 1st but testing of the four-part format will be available through December 31, 2010. The new format will focus on financial planning, analysis, control, and decision support. The two four hour exams consist of 100 multiple choice questions and two 30 minute essay questions.
Part 1 breaks down like this:
Planning, Budgeting and Forecasting (30%)
Performance Management (25%)
Cost Management (25%)
Internal Controls (15%)
Professional Ethics (5%)
And Part 2:
Financial Statement Analysis (25%)
Corporate Finance (25%)
Decision Analysis and Risk Management (25%)
Investment Decisions (20%)
Professional Ethics (5%)
There’s a lot of information on the new exam format including fees, testing windows, and more that can be seen here.
After certification, you are required to complete 30 hours of CPE annually, of which, 2 hours are required to be in ethics.
Career Options
Many CMAs work in budgeting, financial planning, cost accounting, performance evaluation, asset management and other various capacities. The work often times result in internal reports that will help management make prudent decisions rather than just taking wild stabs at running their respective companies. So it goes without saying that this is important stuff.
For those of you still working in the public realm, you can get benefits out of a CMA too. Our favorite Exuberant Accountant, Scott Heintzelman, has a CMA and he told us that it helps him better understand the needs of his manufacturing clients, “I had a bunch of clients in the manufacturing space and many of the controllers were CMA’s. I thought taking the time to get this certification would give me more creditability with this group…it helped me gain more manufacturing clients as they saw me as one of them, not just a CPA.”
Compensation and Other Benefits
According to the IMA’s most recent survey, CMAs earn 24-31% more than their non-certified colleagues. Those surveyed that have both a CMA and a CPA have even higher salaries. Now, we know what that you’re hung up on money but there are some other advantages too.
According to Scott, “Partners then had this belief [then] that the CMA was a brutal test (and it was). So a year later I started the process and actually was fortunate to pass the entire test on the first attempt. I had also passed the CPA exam on the first attempt a year earlier and so my partners suddenly thought I was some super smart young accountant and many believed I was ‘fast tracked’ to partner. I believe I just worked my butt off to learn that stuff, but none the less several of my partners looked at me differently. A very key moment in my young career.”
Compensation Watch ’10: PwC Puts a Number Out There
Multiple sources have told us that Bob Moritz has put a number out there for comp adjustments during the firm’s webcast today :
Sitting in the Bobby Mo Firmwide Townhall Webcast. Raises: 5% to 8%.
But don’t start high-fiving just yet:
PwC expected to be 5% to 8% raises this year, but still a “quarter to go” per Moritz on today’s townhall webcast.
Early reports also are that internal firm services (IFS) will be getting 3-5%.
Thoughts? Your move, KPErnstDeloitteMG.
Bonus Watch ’10: Are Deloitte Partners Getting More Generous to Keep the Peace?
Here we are, it’s April, and most of you are happy to be bored (relatively) at work for the first time in months. Now that your brain isn’t saturated with numbers and/or what you’ll eating at your desk, you may be weighing your options. As we’ve mentioned, Big 4 partners are expecting this and naturally they want to keep their top performers. How best can they do this? Bribery of course!
And at Deloitte, this method seems to be gaining steam. An accountant close to the situation gave us the rundown on the recognition programs at the firm:
• Applause Awards (whenever)
• Outstanding Performance Awards (whenever)
• Merit Bonuses (annual)For the most part AAs ($100 to $500 – tax adjusted) and OPAs ($500 to $5,000 – non-tax adjusted) were frozen for the last 2 years; with MBs only being processed for 1s and sometimes 2s (we’re rated on a scale of 1 to 5 – 1 being the best, 5 the worst – with typically 5% 1s, 10% 2s, 80% 3s, 5% 4s and 5s).
Now that you have the background, there’s this:
Based upon what I’ve been hearing very recently, strong performers have been getting [Applause Awards] for $100 in the NE [Advisory] practice. In some limited instances, partners have also hinted at more money coming their way (seemingly in the [Outstanding Performance] realm). Seems like the partners are noticing that people, especially performers, are getting antsy; and are trying to keep the peace until compensations are adjusted in September…
Well! Good to see that Deloitte partners are taking their firm’s advice (combo of #2 and #5). This could work out well for those of you that are rockstars at Deloitte (and are easily swayed by monetary reward) but for the other 80% that fall into the unexceptional categories, you may just have the longer ladder to look forward to.
Compensation Watch ’10: Is Deloitte Joining the Party?
In the past week or so, merit increases have been communicated or reiterated by three of the Big 4. While the news of the resurrected raises is widespread, most people we’ve talked to (and commenters) are not believers. Most see it as a preventive measure to delay the exodus (or at least keep it within expected ranges).
Since the rest of the Big 4 have already been covered (KPMG, E&Y, PwC) we decided to get proactive on finding out the scoop on Deloitte. We contacted a reliable source and it turns out there may be some communication very soon:
[S]o far nothing. I’m going to an all-hands meeting tomorrow in NYC, so maybe they’ll mention something there. For now, all that I can really say is that there’s whole big bunch of people waiting to jump ship, pending the results of this year’s comp, so they better put some serious increases in…
So it’s safe to presume that if the Deloitte brass doesn’t communicate a satisfactory message, the streets may be flooded with Green Dots. If you’ve gotten guarantees, denials, or anything that remotely resembles an official word on this year’s Deloitte comp, get in touch.
Compensation Watch ’10: KPMG Back to Raises and Bonuses
KPMG’s newly announced Chairman John Veihmeyer knows that you’ve been anxious, so in a message to Klynveldians, Johnny gets right to the point, “I want to take a moment to address a question that I know is on the mind of every KPMG employee: Will there be raises and bonuses this year? The short answer to this question is ‘Yes.'”
For the “vast majority of our people” and bonuses will be available, “our goal is to enhance our variable compensation pool from last year—meaning higher bonuses than last year.”
How’s that for a Friday morning message?
As we reach the midpoint of FY 2010, I want to take a moment to address a question that I know is on the mind of every KPMG employee: Will there be raises and bonuses this year?
The short answer to this question is “Yes.”
As we communicated during this year’s town hall meetings, the business environment is showing measurable signs of improvement. In fact, I am pleased to report that thanks to your efforts the firm is slightly ahead of plan. So by year-end, we fully expect that the pickup in market and business conditions will drive compensation increases for the vast majority of our people. Also, assuming we meet our plan, as we are on track to do, our goal is to enhance our variable compensation pool from last year—meaning higher bonuses than last year for EP performers as well as bonuses for deserving SP performers. Assuring that we recognize and reward our best performers is an integral element of our compensation philosophy and a critical ingredient of the high-performance culture we intend to maintain.
We are optimistic. But along with this optimism, we must maintain realistic expectations. Keep in mind that our FY10 plan is more challenging in the second half, and reliant on significantly improved performance in the spring and summer.
What does this mean? It means that now more than ever, we must come together as a team to do our best work and make 2010 a successful year—one that brings the improved business results that enable us to restore the financial rewards that we all desire. If you’re in Audit, Tax, or Advisory, it means driving business and providing the highest-quality service to clients. If you’re in a Client Service Support role, it means providing our professionals and teams with effective tools, resources, and information they need to win business and deliver excellent service to clients. And all of us need to continue our Spend Smart efforts and do our parts to drive efficiencies in the way we operate.
Whatever the remainder of 2010 brings, you can be sure that KPMG remains committed to its philosophy of providing our people with an attractive and competitive total compensation package that differentiates exceptional performers with superior rewards. And, we remain fully committed to being an Employer of Choice and a great place to build your career.
Thanks for all your contributions to our firm’s success.
Compensation Watch ’10: Ernst & Young Still Planning on Merit Increases
A little more from inside E&Y to round out the week. We got a tip earlier in the week that there was an oddly-timed town hall going on in Chicago this week. Our tipster indicated that the meetings usually occur after the June 30 year-end or in September.
We asked around and from the sounds of it, the meeting amounted to an extremely sober pep rally. The need for a little HR cheerleading is completely understandable, considering the month E&Y has had.
“[T]hey just talked about how they know morale is down, yet no plans for how to fix it. Additionally, they said there would be raises this year, but no mention of how large or small…[and] your basic HR ‘Thank’s for your help’ stuff.”
We haven’t heard the details for the cause “low morale” but it’s quite possible that it could be due, at least in part, to the ehmanlay rothersbay uckshowfay. Plus, busy season is in the home stretch and most people are just over it at this point. As far as fix for morale, our suggestions of Canadidan Tuxes, Timberlands and Hitler videos are obviously being ignored with extreme prejudice. We’re all out of suggestions. Maybe they aren’t the best ideas but at least we’re trying.
The silver lining here is that comp increases are still on the agenda after the initial announcement made by Steve Howe back in January. If they go back on this promise — we’re confident they won’t — you can just blame it on Dick Fuld.
Compensation Watch ’10: PwC Moving Up Adjustment Date?
There’s been some whispering about PwC moving up its compensation and adjustment time frame from September to July and that’s got people curious.
At first glance this makes sense because the firm has a June 30 fiscal year-end. PLUS! Since Bob Moritz has already made it abundantly clear that there will be raises for 2010 we figure everyone would be excited to hear that the bumps would be coming a little earlier this year.
However, since everyone likes to jump to conclusions over the slightest little change, we’ll indulge. There have already been whispers of layoffs at PwC here and there but nothing that we’ve been able to confirm so people are probably antsy. And if the adjustment date is moved up we’re sure people are worried that means layoffs will be happening sooner rather than later. We can’t read anyone’s mind but we’re thinking this should be in the ballpark…
But if you’re anxiety is well founded, tell us why or get in touch.
UPDATE, a shade before 1 pm: One of our sources inside PwC shared their thoughts with us:
I think the overall feeling was positive…it will probably make some people happy (depending on the %) and hopefully limit the higher performers from going out into the market, however, it may also help some people look for jobs sooner (i.e. they don’t have to wait until September now, if the raises are low). Most people still have a lot of questions, including the estimate of the increase for each band of the rating system, what the bonus pool is going to look like, and although that is not being paid until September, whether we will know what the bonus amounts are in July.
Three Signs That It Might Be Time to Get Out of Public Accounting
Busy season is rounding the corner and, if you look carefully, you might be able to see the light at the end of the tunnel. Squint. No I swear, it’s there.
My posts this week will shift from social media to the potential job market. As a public accountant, you should always be cognizant of the fact that you have the ability to continuously develop your strengths and mold your career path. Want to pursue of a career in hedge funds? Network within your firm to be staffed on the right engagements. Need to add tax experience to your resume? Seek out a rotation.
Here are three signs that you should get you thinking about exploring your options.
1. You’ve got your CPA – This might go without saying, but many people enter the public accounting industry with the “two years and done” mentality. Pass the CPA, earn some experience stripes, and get the *$@% out. There’s nothing wrong with this, but don’t expect to $100K jobs to be jumping into your lap. The average salary bump for younger staff from public to the private sector can range from 5-10%, usually topping out around 15%. If this isn’t enough of a bump to seriously consider a private job, don’t lose sight of the quality of life improvement a new job can bring. No, not the smoke and mirrors your firm is promising you. The real deal.
2. Someone you know is interviewing – Believe it or not, the job market is actually improving. The hiring freezes on many financial firms is now limited largely to supporting roles (i.e. HR folks like myself). Hedge and private equity funds are picking up their hiring as the markets begin to thaw. Recruiters are not wasting their time with interviewing individuals for the sole purpose of interviewing. So take note next time your senior staff member has three doctor appointments in a week; perhaps you should be “coming down with a nasty bug,” too.
3. Recruiters call – and you listen – Speaking about recruiters, be prepared for an onslaught of calls. Their timing is no coincidence. The private sector has been shuffling around over the last few months (remember when your client contact suddenly went MIA?), and as the cycle goes, the newly opened private jobs will inevitably be filled by auditors and tax accountants from public. Listen to the cold, scripted calls; be open to a pay increase and better work hours; reclaim your weekends. It can’t hurt to listen to the (substantiated) claims that you’re undervalued in today’s market.
Newsflash: you are grossly undervalued.
The Job Outlook Is Good for Accountants…But More Competitive
With one major deadline passed and two more coming up next week, some of you might be thinking about your employment options. It’s a common occurrence post-busy season to reflect on the past three-ish months, contact a recruiter and explore your options.
idea of what kinds of jobs might be attracting accountants in the year ahead so we got in touch with recruiter Adam Klitzke, Managing Partner of Emerson Search, LLC in Denver, Colorado.
Adam told us that he thinks that “2010 and…2011 are years where there is a “hot” background or skill set,” as opposed to a hot position (e.g. financial reporting, IFRS, or technical accounting). “[D]uring the previous 3 months, we haven’t seen the same job come up twice, but we have seen clients targeting the same type of candidate.“
So what does a hot “background or skill set” look like? Adam shared four primary characteristics that recruiters are currently looking for:
• 4-7 years of experience, the majority of which has been spent at a Big 4 firm.
• Experience with clients that comply with SEC regulation.
• Has experience supervising staff.
• Has obtained their CPA license.
“These candidates are not having any trouble landing interviews,” Adam told us. He added that in terms of your competition, there are far more bodies jockeying for a position, “in the current market we are seeing 5-10 candidates like this [with the ideal skill set] competing for the same job, whereas 3 years ago, a client would be lucky to see 2 candidates with this background.”
What if you don’t have the ideal skill set? Don’t worry, it’s not hopeless, “a second tier would look like someone with non-Big 4 public accounting experience coupled with industry experience (with a mid to large size public company – $200M+), supervisory experience, and a CPA license or an MBA,” Adam said.
Naturally, if your current background is lacking in these , it will be more difficult for a recruiter to help you land some interviews. Adam told us that while there are jobs out there for people with backgrounds that don’t fit the model above, those candidates typically find jobs without the services of a recruiter. If you’ve got bigger plans for yourself than that, it will be worth your time to pursue some or all of the points above.
The good news for those of you looking to make a move now is that you can expect to do well in terms of salary. As Adam told us, “Salary negotiations will be firm, but fair. Candidates will be able to negotiate an increase in pay and do NOT need to take a pay cut.”
Finally, another development he has seen has to do with the morale, “employee morale seems to be quite low and neither department heads or human resources are doing anything to combat that.” So, if you’re meeting with a recruiter it pays to be honest why your old employer didn’t give make you feel so good about yourself, “clients have asked us for ideas on how to improve morale and we have been able to help them as there are things a company can do other than increase salary to improve [that].”
Bottom line is that whatever your situation, it pays to be honest with recruiters about exactly what you are looking for. If you don’t like what you’re hearing from them, be honest and don’t settle for a position that you’re definitely not interested in pursuing. It may be a more competitive market but if you’ve got a strong background, you’ll have options.
Women Accountants Earn 60% Less Than Men in UK
Somehow female accountants over 45 in the UK earn 60% less than their male counterparts. The disparity is so ridiculous it defies understanding, but according to a study conducted by the ICAEW and Robert Half, men earn more than women at all stages of their careers and the gap widens with increased experience. This finding is consistent with the 2008 report. So ladies, if you’re on the partner track and thinking, “London might nice,” we’d advise against it. As for our female readers from the UK, you can always jump the pond, we’d love to have you here …
From the report:
Overall, male [Associate Chartered Accountants] are better remunerated than females – an average basic salary of £88,200 for males (median £76,000) is almost 50% higher than their female colleagues’ average of £60,500 (median £53,000) (Fig 3). The average male salary is up by 7% on last year, females by 10%. However, the average bonus of £24,700 for males has dropped slightly compared to last year, while that of their female colleagues, at £11,600, has increased by 33% (median £6,900 males and £2,400 females). The bonus received by male ACAs represents 28% of average basic salary, while females received only 19%.
The differential reflects in part at least that male ACAs are typically older (46 against 40 for females), longer qualified (18 and 14 years respectively) and more likely to be in a permanent full-time role (88% and 72%). They also spend longer hours at work (45 v 38 hours per week).
It’s especially cute how this is “in part” chalked up to age and experience. It would probably be terribly bad form for the ICAEW and Robert Half to come right out and say that the difference in average pay is say, absolutely ridiculous and blatant evidence of patriarchal institutions exhibiting clear gender bias when it comes to compensation.
ICAEW/Robert Half Career Benchmarking Survey 2009 [ICAEW via Accountancy Age]
Accounting Salaries Mapped by Region
Back again to decipher more of the data that you so graciously shared with us on our salary thread from December.
After noting that average Big 4 salaries and non-Big 4 salaries were essentially even, we now present the average regional salaries for you enjoyment or dismay:
• Mid-Atlantic– $88,831
• Northeast– $72,024
• Southeast– $56,000
• Midwest– $65,124
• Southwest– $73,185
• West – $64,706
Some analysis and the map, after the jump.
Surprisingly the Mid-Atlantic boasted the highest average salary based on the data collected. This was due primarily to two salaries that were reported from “JDs” working in “Washington National Tax.” The Mid-Atlantic average also included an Associate Director that reported a considerably higher salary than the average. If these three salaries are removed, the average salary is $76,254. which may be more in line with your expectations.
Another surprise that we saw was the higher than expected Southwest average salary. Again in this case, a brave Senior Manager in an advisory practice reported a much higher salary than most submitted. When this is removed the Southwest average comes down to $68,134, again, probably closer to what you would expect.
The Northeast, Southeast, and West all seem about right to us although we might have expected the West salaries to be a bit higher but then again we’re going with what we’ve got.
The map below shows how we grouped the states in the respective regions, with a few additional details on the regions.
Accounting Salaries Are Dead Even; Is Big 4 Work Experience the Difference?
Last month we opened a thread on your salaries and your response was impressive. Just for fun, we found some poor soul to crunch some of the numbers so that we might share some information on the data we gathered.
We’ll start off with a post facing off the Big 4 salary against non-Big 4 salary. Here are the average salaries for each based on the data we collected:
• Non-Big 4 – $72,136
• Big 4 – $71,166
If you getting worked up over less than a $1,000 difference, then you’re more shrewd than we imagined. For the more reasonable of you, the discussion is, what are the unmentionables here? Both Big 4 and non-Big 4 firms have their advantages and many of you have made the jump from Big 4 to non-Big 4; non-Big 4 to Big 4; Big 4 to non-Big 4 back to Big 4, whatever.
A popular argument is that the Big 4 work experience is irreplaceable on a resumé but is it? Will potential employers really pick someone with a Big 4 background the majority of the time?
Most people would agree that auditing is auditing and the tax law is the same no matter where you work. Smaller firms have just a many unique clients as large firms so there’s experience to be gained everywhere.
Now before you start shouting, “if you want a job at a Fortune 500 company, blah, blah, blah” how many of those jobs are really out there? Enough so that everyone that has left a Big 4 firm will be able to find a job? Let’s not pretend we all have the same ambitions here.
An Open Thread on Accountants’ Salaries at the Big 4: What Do You Make?
We received a request over the weekend to discuss everyone’s favorite topic: money.
This is a great idea on many levels since A) it’s been quite some time since we’ve dedicated a post to the subject B) there are plenty of newbies that have started since then but mostly C) knowing what everyone else is making is your God-given right.
Hopefully, this new thread will get everyone up to speed (or just completely pissed off on a Monday) and ready to run through brick walls in 2010.
In the comments, provide the following:
• Salary without bonus, bonus amount
• Level
• Practice (audit/tax/advisory), practice subgroup
• Firm, city/region
• Other notes/complaints
The reader requesting the thread, was kind enough to provide their details:
• $52k, $3k (in start year, bonus was a whopping $0 this year)
• Associate 2
• Audit
• PwC, Northern California
This is an equal opportunity post so regardless of your firm, get your numbers out there (this means you: GT, BDO, RSM/M&P, Crowe, Moss Adams, anyone else).
UPDATE, Tuesday: Thanks for all the input so far. Feel free to email us if you want to give us more details on your salary or ideas or other related thread discussions.
Other money related discussions:
Problem of the Day: Do You Quit Your High-Paying Job with the Idiot Boss?
Satisfied with Your Salary?
Problem of the Day: Your Staff Makes the Same Money As You (Maybe More)
Salary Satisfaction Poll Results
An official tally was necessary since it’s pretty obvious that Americans are way more hung up on money than our British counterparts. Results after the jump.
• So satisfied I need a cigarette – 8.7%
• Even if it’s bad, it’s still pretty good – 36.4%
• I can’t get no satisfaction – 54.9%
Frankly, we expected a larger margin of victory for “no satisfaction” what with the ubiquitous Siberia treatment and some of the staff making more than you. We admire your resolve.
As for the 9% of you that are getting hot thinking about your paycheck, we’re assuming you’re either in a constant state of bliss or delusional. Kindly elaborate.
Thanks to all that voted!
Satisfied with Your Salary?
This is the last thing we thought we would see: No grumbling from accountants over pay freezes.
Maybe our number crunching friends across the pond are less hung up on money but Stateside “No grumbling” is, at the very least, debatable.
We figured getting a comparison poll was in order. So, continuing the theme of election day, we’ll ask you to vote again, this time on how you feel about your current salary. Feel free to elaborate in the comments.
Robert Half’s Salary Guide Doesn’t Have Many Surprises
Robert Half has issued its salary guide for 2010 and we wouldn’t say that’s its chock full of good news. It follows the Ajilon salary guide that came out a couple of weeks ago and it seems to present a lot of the same sobering conclusions.
Salaries will be virtually flat, according to Bob’s guide, increasing approximately 0.5% for next year. However, there are some areas that seem to have better prospects than others including:
• Tax accountants
• Financial analysts
• Senior and staff accountants
• Business analysts
Along with these positions, the guide states that employers are seeking professionals with certifications, broad experience, and expertise in technology or compliance.
RH also has a “Public Accounting Outlook” in the guide and it does not paint a pretty picture:
Compensation packages in public accounting have seen notable changes. Salary levels have moderated, with declines reported in some areas. Additionally, instances of large signing bonuses and raises are far less common and typically reserved for premier performers.
The silver lining is, again, for tax professionals but since more companies are trying to do tax work in house, public firms are now competing directly with their corporate clients for the talent. It also indicates that some smaller firms have done some hiring and our earlier post on considering a smaller firm elicited some comments in favor of choosing that route.
Overall, with the significant change in the political environment, the job market for accountants seems to be trending towards positions centered around compliance and rule changes and the competition will likely be fierce. You can request a copy of the salary guide by going here.
For those of you currently on the job search, discuss the salary trends that you are seeing in the current market. Good luck to everyone that is currently on the hunt.
Problem of the Day: Your Staff Makes the Same Money As You (Maybe More)
Apparently it’s happening, people. With several firms freezing pay for this fiscal year, some already hinting at an additional freeze for fiscal year 2010, and with less fewer offers being made on campus, it’s not outside the realm of possibility that the new associate nearly has the same salary as you.
It goes without saying that this is a contentious issue amongst the staff and it can be made worse if it is known to exist between members of the same team.
If you’ve been busting your ass for the last two to three years and seen very little appreciation in the form of merit increases and suddenly the new associate walks in making virtually the same as you, your motivation may evaporate on all fronts.
From a staff perspective, no new associate, no matter how virtuous will ever ask, “Is that what a senior associate makes? I wouldn’t be comfortable making that much without any experience.” Nice thought but not gonna happen. Firms will claim that they have to keep salaries competitive in order to win the best talent and may even encourage it in order to foster the “competitive environment”.
So discuss how prevalent this is on your team, in your office, or at your firm. Is there any good solution here? We’re talking about money, so there has to be some opinions.