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SALARY SURVEY 2008/09 The survey provides employers and candidates with useful insights into employment conditions, business confidence levels and recruitment trends. Our commentary is based on both quantitative and qualitative research and covers both the Commerce & Industry and Banking & Financial Services sectors. QUICK LINKS TO : FINANCIAL SERVICES COMMERCE & INDUSTRY CHARTERED PROFESSION PUBLIC SECTOR
INTRODUCTION
The recent shortage of finance professionals has placed inflationary pressures on salaries and forcing employers to increase their investment in recruitment and retention strategies. Addressing the skills imbalance is a challenge that will only be solved through long-term commitment by the government, business community and educational institutions. An underlying contributor to the skills crisis is the disparity between the number of people choosing to study accounting and the level of demand from employers. Whilst the requirement for finance professionals has increased steadily over the last 15 years of economic growth, the number of people choosing to study accounting has remained stagnant over the last decade. There needs to be further investment in initiatives to boost student numbers, as well as increased conversion opportunities for non-accounting graduates. To this end, the Institute should be congratulated on the recent introduction of the Graduate Certificate of Chartered Accounting Foundations. This graduate certificate is a new pathway to the profession for people with non-accounting degrees. In our view, the other major threat to the supply of finance professionals comes from overseas employers. The same skills shortages are being experienced in countries like the UK and US, and the recognised high standard of training in Australia means our best and brightest are being targeted. Working visa requirements for Australians in these locations have been eased, and the adoption of international financial reporting standards mean finance skills are more transferable than ever. Our quantitative research reveals the primary motivator for a move overseas is career progression. These finding are substantiated in a survey conducted by the Institute in which 75% of respondents cited career advancement as the main driver. Employers need to act on this by communicating the benefits of a career in Australia, by investing in professional development courses and enrolling their best performers in long-term talent management programs. The government also has a role to play in funding targeted education programs and working towards an improved tax system.
FINANCIAL SERVICES
MARKET OVERVIEW
Employers within the banking and finance sector will continue to face the challenges of recruitment and retention in a tight labour market. Domestic competition is being intensified on a global scale as financial institutions in locations such as the UK and Asia Pacific target Australian professionals. The resulting skills shortages mean employers in the banking and finance sector are looking at candidates from other industries, provided their core skill sets are transferable. In addition to broadening their recruitment search, employers have to accelerate their hiring decisions in order to secure skills ahead of competitors. EMPLOYMENT FORECAST
We anticipate average salary increases of 5% although double digit rises are already occurring for hard to find skills. Additional incentives being offered include sign-on bonuses, payment of professional membership fees and subsidised childcare. | FINACIAL SERVICES SALARY TABLE | | | Salary | $’000 | | | | | FINANCIAL/MANAGEMENT ACCOUNTING | | | Graduate – Single Degree | 35–45 | | Assistant Accountant (Graduate with 1–2 years) | 45–60 | | Part Qualified CA/CPA | 60–80 | | Newly Qualified CA/CPA | 80-90 | | CA/CPA (3–5 years) | 80–110 | | CA/CPA (5–9 years) | 110–150 | | | | | FINANCIAL CONTROLLER | | | Small company/Niche financial institution | 140–160 | | Large company/Financial institution | 160–200+ | | | | | CFO/HEAD OF FINANCE/FINANCE DIRECTOR | | | Small company/Niche financial institution | 160–200 | | Large company/Financial institution | 220–300+ | | | | | FUND ACCOUNTING | | | Graduate Fund Accountant | 35–45 | | Fund Accountant (1–2 years) | 45–65 | | Fund Accountant (2–4 years) | 70–90 | | Manager (4–8 years) | 90–120 | | Senior Manager | 110–160 | | | | | PRODUCT ACCOUNTING/PRODUCT CONTROLLER | | | Product Accountant (1–3 years) | 60–90 | | Product Accountant (4–6 years) | 80–100 | | Senior Product Accountant | 90–120 | | Product Controller (Small team) | 120–170 | | Product Controller (Large team) | 160+ | | | | | INTERNAL AUDIT | | | Auditor (1–3 years) | 60-80 | | Senior Auditor (4–5 years) | 85–110 | | Manager | 110–130 | | Senior Manager | 130–180 | | Head of Audit | 180+ | | | | | TAX | | | Tax Accountant (1–3 years) | 55–75 | | Senior Tax Accountant (4–5 years) | 75–110 | | Tax Manager (5 years+) | 110–145 | | Head of Tax | 200+ | | | | | FUNDS ADMINISTRATION | | | Fund Administrator (0–2 years) | 45–55 | | Unit Pricing/Analyst | 55–65 | | Account Manager/Team Leader | 60–70 | | Account Manager/Senior Account Manager | 70–95 | | Client Service Manager | 70–130 | | | | | CORPORATE ACTIONS | | | Juinor (1–2 years) | 50–60 | | Senior | 60–70 | | Supervisor | 70–80 | | Manager | 80–120 | | | | | OPERATIONS | | | Junior (0–2 years) | 45–55 | | Senior (2–3 years) | 55–65 | | Supervisor | 60–75 | | Manager | 75–110 | | Senior Manager/Head of Operations | 110–180 | | ISDA Confirmations | 50–70 | | Trade Support | 55–75 | | Operational Risk | 90–140 |
PERMANENT EMPLOYMENT
• Highest demand is for candidates with financial services exposure and experience in product control, tax and audit.
• Chartered accountants from the Big 4 accounting firms with 3-5 years’ experience are at a premium.
• At the senior end of the market, candidates with Asia Pacific experience are attractive to employers, specifically in the areas of change management, strategic review and internal control. CONTRACT EMPLOYMENT
• Legislative changes which have extended working holidays visas have better enabled Australian employers to take advantage of skilled travellers on a contract basis.
• Highest demand is for contractors with skills in financial analysis, business analysis, internal audit and niche skills such as Basel. | FRONT OFFICE SALARY TABLE | | | Salary | $’000 | | | | | CREDIT RISK | | | CORPORATE/INSTITUTIONAL BANKING | | | Credit Analyst (1–3years) | 72–105 | | Senior Credit Analyst (3–7 years) | 105–145 | | Associate Director Credit (8 years +) | 145+ | | Director | 220+ | | | | | BUSINESS BANKING | | | Credit Analyst | 60–85 | | Credit Manager | 85+ | | | | | RELATIONSHIP MANAGER/BUSINESS DEVELOPMENT | | | CORPORATE/INSTITUTIONAL BANKING | | | Manager/Associate Director | 125–180 | | Director | 200+ | | | | | BUSINESS BANKING | | | Relationship Manager (1–5 years) | 85–135 | | Senior Relationship Manager (5 years +) | 135+ | | | | | PROJECT FINANCE/ADVISORY | | | Analyst/Executive (1–3 years) | 85–115 | | Manager (3–6 years) | 115–170 | | Associate Director (6 years) | 170–220 | | Director | 220+ | | | | | INVESTMENT BANKING | | | CORPORATE FINANCE/ADVISORY | | | Analyst/Executive (1–3 years) | 75–125 | | Associate/Manager (3–8 years) | 125–155 | | Associate Director (8 years +) | 155–220 | | Director | 220+ | | | | | EQUITIES RESEARCH | | | Assistant Analyst | 85–145 | | Analyst | 145–200 | | Senior Analyst/Lead Analyst | 200+ | | | | | EQUITY CAPITAL MARKETS | | | Analyst | 70–110 | | Manager | 110–140 | | Associate Director | 140–170 | | Director | 170+ |
COMMERCE & INDUSTRY MARKET OVERVIEW
Finance and accounting skills are in high demand and pressures from overseas employers are intensifying domestic skills shortages. We are seeing high numbers of newly qualified accountants accepting positions overseas and this is leading to severe shortages of mid-level professionals. This exodus is a serious concern because the number of people choosing to study accounting has remained fl at over the last decade. There has not been an increase in the supply of qualified labour at a time when demand for finance skills has escalated. The flow-on effect is intense competition for available candidates and this is putting upwards pressure on salary levels. Shortages are most prevalent at the junior and mid-levels, although the broader skills crisis extends across the entire finance industry. From a national viewpoint, the highest levels of employment growth have occurred in WA and QLD as a consequence of the resources boom. Companies undertaking exploration projects and expansion plans are hiring finance and accounting staff to support growth. This is driving demand for financial accountants, management accountants and business analysts who have experience in resources industries. EMPLOYMENT FORECAST
While our prediction is for average salary increases of 5%, rises of 10% or more are likely in the resources sector and nationally at the newly qualified level. Employers are likely to increase their graduate intake programs but this will only have a limited effect if the number of people studying finance does not improve. Pay increases will largely be on the base salary component, although we anticipate bonuses will be used more frequently as an additional incentive. In order to retain staff in the current environment, employers will need to demonstrate clear opportunities for career progression and invest in training and development PERMANENT EMPLOYMENT
• Newly qualified professionals with impressive academic results are in a strong bargaining position with numerous opportunities available.
• Strong demand for financial accountants, corporate reporting managers, tax specialists and internal auditors.
• Candidates who demonstrate commercial awareness and strong communication skills in addition to technical proficiency are in highest demand.
• Extensive opportunities for returnees from markets in the UK, USA and Asia Pacific. CONTRACT EMPLOYMENT
• Critical skills shortages are forcing employers to explore the contracting alternative as an interim solution.
• High demand for mid-level financial accountants, management accountants, business analysts and systems accountants which are reflective of similar shortages in the permanent market.
• Slight decrease in project-based contracting opportunities due to completion of systems implementations.
| COMMERCE & INDUSTRY SALARY TABLE | | | | Size of Company | Small/Med | Large | | Salary | $’000 | $’000 | | | | | | ACCOUNTS CLERK, ACCOUNTS PAYABLE & ACCOUNTS RECEIVABLE | | | | 0–1 year | 40–47 | 45–52 | | 1–2 years | 45–55 | 48–55 | | 2–5years | 50–65 | 55–70 | | | | | | ASSISTANT ACCOUNTANT | | | | 0–2 years | 48–60 | 55–65 | | 2 years+ | 55–70 | 60–75 | | | | | | PAYROLL | | | | Payroll Officer | 45–55 | 50–65 | | Payroll Supervisor | 60–75 | 65–80 | | Payroll Manager | 65–90 | 85–100 | | National Payroll Manager | 80–110 | 100–140 | | | | | | INTERNAL AUDIT | | | | 1–3 years | 45–65 | 50–70 | | 3–5 years | 65–90 | 70–95 | | 5–7 years | 90–120 | 95–140 | | Manager | 110–130 | 120–160 | | Head | - | 180+ | | | | | | IT AUDIT | | | | 1–3 years | 35–65 | 40–70 | | 3–5 years | 70–90 | 75–110 | | 5–7 years | 90–130 | 100–150 | | Manager | 110–130+ | 130–160+ | | Head | - | 150+ | | | | | | TAX ADVISORY & COMPLIANCE | | | | 1–3 years | 40–60 | 45–70 | | 3–5 years | 60–90 | 75–105 | | 5–7 years | 100–130 | 110–140+ | | Manager | 130+ | 150+ | | Head | – | 200+ | | | | | | QUALIFIED FINANCIAL & CORPORATE ACCOUNTANTS | | | | 3–5 years | 75–90 | 80–100 | | 5–7 years | 90–120 | 100–125 | | 7 years+ | 100+ | 120–140 | | | | | | QUALIFIED MANAGEMENT ACCOUNTANTS & BUSINESS ANALYSTS | | | | 3–5 years | 75–90 | 85–105 | | 5–7 years | 90–110 | 95–130 | | 7 years+ | 90–130 | 100–140 | | Manager | 130+ | 150+ | | | | | | QUALIFIED SYSTEMS ACCOUNTANTS | | | | 3–5 years | 75–85 | 80–100 | | 5–7 years | 80–110 | 90–120 | | 7 years+ | 110+ | 120+ | | Manager | 120+ | 140+ | | | | | | SENIOR MANAGEMENT | | | | Group Accountant | 80–110 | 100–150 | | Finance Manager | 100–150 | 110–160 | | Financial Controller | 120–180 | 140–200 | | Company Secretary | 150+ | 150+ | | Finance Director/CFO | 150+ | 200+ |
CHARTERED PROFESSION MARKET OVERVIEW
Leading professional services firms have forecast strong growth and are increasing their recruitment activity to support these projections. There has been a steep rise in demand for qualified accountants across a range of functions including audit, assurance, taxation and corporate finance. One of the major challenges facing the chartered profession is talent retention. The traditional flow of talent to sectors such as commerce and banking is being eroded by an exodus to chartered firms overseas. Firms in locations such as the UK and US are facing similar skills shortages and are successfully targeting Australian professionals who are regarded as well trained and hard working. The adoption of international accounting standards means skills are becoming more transferable and as such we anticipate this trend will gain momentum. Firms in Australia have responded along similar lines by targeting markets in the UK, South Africa and Asia Pacific. In our view the most successful campaigns focus primarily on selling the career advantages of working in Australia, with the associated lifestyle benefits as a secondary selling point. Career advancement is a primary motivation for taking a new position and as such should be addressed in international recruitment campaigns. EMPLOYMENT FORECAST
We anticipate average salary increases of 5% although employers will have to go as high as 15% to secure specialist skills in assurance, audit and corporate finance. Looking at the year ahead, our forecast is for the buoyant employment market to continue with numerous opportunities for finance professionals. PERMANENT EMPLOYMENT
• Demand for experienced accountants in assurance and advisory, taxation and insolvency.
• Key shortages in audit and corporate finance, particularly at new manager and senior levels.
• Big 4, second and mid-tier firms focusing on graduate intake to bolster future capabilities in a tight labour market. CONTRACT EMPLOYMENT
• The contract market is limited because firms rely on establishing long-term business relationships and consequently prefer to hire on a permanent basis.
• The assurance area is one exception as the workload fluctuates throughout the year and contractors are brought in during busy periods.
• WA is the strongest market for contractors because of the acute labour shortages caused by the resources boom. | CHARTERED PROFESSION SALARY TABLE | | | Salary | $’000 | | | | | BUSINESS SERVICES EXPERIENCE | | | Cadet/Trainee 0–1 year | 30–37 | | Undergraduate 1–2 year | 28–37 | | Undergraduate 2–4 years | 30–47 | | Graduate 0–1 year | 35–47 | | Intermediate 1–2 years | 38–55 | | Senior (Part Qualified) Minimum 2 years | 48–65 | | Senior (Qualified) Minimum 3 years | 55–72 | | Supervisor/Assistant Manager Minimum 4 years | 70–85 | | Manager Minimum 5 years | 80–120 | | Senior Manager Minimum 6 years | 120–150 | | | | | EXTERNAL/INTERNAL AUDIT EXPERIENCE | | | Graduate 0–1 year | 34–47 | | Intermediate 1–2 years | 38–52 | | Senior (Part–Qualified) Minimum 2 years | 45–57 | | Senior (Qualified) Minimum 3 years | 55–75 | | Supervisor/Assistant Manager Minimum 4 years | 70–85 | | Manager Minimum 5 years | 80–120 | | Senior Manager Minimum 6 years | 120–150 | | | | | IT AUDIT/ COMPUTER ASSURANCE EXPERIENCE | | | Graduate 0–1 year | 40–47 | | Consultant 1–2 years | 40–52 | | Senior (Part–Qualified) Minimum 2 years | 45–64 | | Senior (Qualified) Minimum 3 years | 60–75 | | Supervisor/Assistant Manager Minimum 4 years | 70–85 | | Manager Minimum 5 years | 80–120 | | Senior Manager Minimum 6 years | 120–150 | | | | | TAX EXPERIENCE | | | Graduate 0–1 year | 38–48 | | Consultant 1–2 years | 45–57 | | Senior Consultant 2–4 years | 54–75 | | Supervisor/Assistant Manager 4–5years | 70–85 | | Manager Minimum 5 years | 85–120 | | Senior Manager Minimum 6 years | 120+ | | | | | CORPORATE FINANCE EXPERIENCE | | | Graduate 0–1 year | 43–50 | | Consultant 1–2 years | 45–64 | | Senior Consultant 2–4 years | 60–75 | | Supervisor/Assistant Manager 4–5years | 75–90 | | Manager Minimum 5 years | 80–120 | | Senior Manager Minimum 6 years | 120–150 | | | | | CORPORATE RECOVERY/INSOLVENCY EXPERIENCE | | | Graduate 0–1 year | 35–44 | | Intermedate 1–2 years | 36–50 | | Senior (Part Qualifi ed) 2–3 years | 50–64 | | Senior (Qualifi ed) 3–4 years | 60–74 | | Supervisor/Assistant Manager 4–5years | 70–85 | | Manager Minimum 5 years | 80–115 | | Senior Manager Minimum 6 years | 115+ |
PUBLIC SECTOR AND NOT-FOR-PROFIT MARKET OVERVIEW Organisational change and reform programs are driving demand for candidates from the commercial sector to come on board and implement strategic initiatives. The challenge in attracting candidates is typically a financial one, with public sector salaries falling below those available in the private sector. The salary gap is likely to widen in the coming year as commercial companies are better positioned to offer additional financial rewards to attract talent in a tight labour market. There is particularly strong demand for candidates with management accounting and analytical skills for mid-level roles. At the senior end of the market, there is a requirement for candidates who have both the technical and negotiation skills to cultivate a commercial approach to operations. Themes of organisational and cultural change require professionals with strong communication and negotiation skills, combined with financial knowledge. EMPLOYMENT FORECAST
The year ahead will be a challenging one in terms of labour supply. Salary increases in the public and not-for-profit sectors will be nominal and bonuses are not common. Instead, benefits such as employment stability and flexibility are critical in attracting and retaining employees. PERMANENT EMPLOYMENT
• Strong demand for financial analysts, management accountants, tax accountants, statutory accountants and finance managers.
• High occurrence of multiple and counter offers being made to candidates, which increases their ability to shop around for the best opportunity.
• Charities and membership bodies are continuing to target professionals from the private sector in order to improve on business practices. CONTRACT EMPLOYMENT
• The shortage of permanent candidates is acting as a catalyst for the contracting market.
• Strong demand for accounting skills that can be utilised in a project environment associated with restructuring initiatives, such as the set up of shared service environments or finance transformation projects.
• Seasonal demand for statutory accounting and budgeting continues to drive demand for finance contractors.
| PUBLIC SECTOR AND NOT-FOR-PROFIT SALARY TABLE | | | | Size of company | Small/Med | Large | | Salary | $’000 | $’000 | | | | | | ACCOUNTS CLERK, ACCOUNTS PAYABLE & ACCOUNTS RECEIVABLE | | | | 0–1 year | 38–44 | 42–50 | | 1–2 years | 44–52 | 50–58 | | Supervisor/Manager | 52–65 | 58–75 | | | | | | ASSISTANT ACCOUNTANT | | | | 0–2 years | 45–55 | 50–60 | | 2+ years | 55–60 | 60–65 | | | | | | PAYROLL | | | | Payroll Offi cer | 45–55 | 50–65 | | Payroll Supervisor | 55–65 | 65–75 | | Payroll Manager | 65–85 | 75–120 | | | | | | INTERNAL AUDIT | | | | 1–3 years | 45–60 | 50–65 | | 3–5 years | 60–80 | 65–90 | | 5–7 years | 80–100 | 90–115 | | Manager | 100–120 | 115–140 | | Head | – | 140–200+ | | | | | | IT AUDIT | | | | 1–3 years | 45–65 | 50–70 | | 3–5 years | 65–90 | 70–110 | | 5–7 years | 90–130 | 110–150 | | Manager | 110–130+ | 130–160+ | | Head | - | 150+ | | | | | | TAX ADVISORY AND COMPLIANCE | | | | 1–3 years | 40–60 | 45–65 | | 3–5 years | 60–90 | 65–95 | | 5–7 years | 90–120 | 95–140 | | Manager | 110+ | 130+ | | Head | - | 170+ | | | | | | QUALIFIED FINANCIAL & CORPORATE ACCOUNTANTS | | | | 3–5 years | 70–85 | 75–90 | | 5–7 years | 85–100 | 90–110 | | 7+ years | 100+ | 110–130+ | | | | | | QUALIFIED MANAGEMENT ACCOUNTANTS & BUSINESS ANALYSTS | | | | 3–5 years | 70–85 | 80–95 | | 5–7 years | 85–100 | 95–110 | | 7+ years | 100–120 | 110–130 | | Manager | 120+ | 130+ | | | | | | QUALIFIED SYSTEMS ACCOUNTANTS | | | | 3–5 years | 65–75 | 65–85 | | 5–7 years | 75–90 | 85–100 | | 7+ years | 90+ | 100+ | | Manager | – | 120+ | | | | | | SENIOR MANAGEMENT | | | | Group Accountant | 70–85 | 75–100 | | Finance Manager | 80–110 | 100–140 | | Financial Controller | 100–140 | 120–160 | | Company Secretary | 150+ | 150+ | | Finance Director/CFO | 130+ | 150+ |
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