Intense competition for top performers in accounting and finance is affecting everything from recruitment to retention, while creating hiring trends for companies that are having an impact on compensation levels.
Key findings from the 2018 Robert Half Salary Guide for Accounting and Finance show a sweetening of salaries, benefits, perks, bonuses, raises, along with a recognition of the risks of being inflexible with hiring requirements and lacking velocity when making an offer.
What’s behind these seven hiring trends, and what, exactly, should employers and managers be aware of, in order to bring top talent on board and keep them happy? Let’s start with salaries.
1. Strong starting salaries
Talented job seekers have choices. To land in-demand workers, companies need to offer competitive starting salaries. Here’s a sampling of the anticipated Canadian salary midpoints for some of the hottest jobs for 2018:
- Compliance analyst: $74,500
- Controller: $115,000
- Financial analyst, staff-level: $59,750
- General accountant, manager: $80,000
- Payroll manager: $72,750
- Senior internal auditor: $90,500
- Senior tax accountant: $88,000
- Staff accountant: $48,500
These starting salaries are national averages and will vary by location. Highly skilled workers, including those with finance and accounting designations, will command even higher salaries. Download the Salary Guide for the anticipated wage ranges for 150 positions in accounting and finance in Canada, and keep your salary negotiations professional.
2. Benefits for all
Benefits can help with recruitment and with retaining top talent at your company. The most common employer-provided benefit, defined as any non-cash compensation not directly tied to performance, relates to insurance. According to the Robert Half survey of human resources, compensation and benefits professionals in North America, 95 per cent of companies provide medical insurance, 89 per cent cover dental, 88 per cent offer life and 81 percent adds vision. Other popular insurance policies are accidental death and dismemberment (79 per cent) and disability (78 per cent).
Around two-thirds of respondents have an employee assistance program, which includes helpful services such as addiction counseling and legal aid. Another popular benefit is reimbursement for tuition fees, with 56 per cent of employers willing to pay for their staff to earn academic degrees and professional designations.
3. Employee perks above and beyond
Perks are additional privileges that employers offer employees. These extras are a great way for companies to stand out from the competition, attract top talent and retain valuable employees.
Flexible work schedules are the most common perk, with 62 per cent of respondents saying they allow staff to choose — within reason — when they work their daily hours. This employee perk is popular with employers and employees alike, as it costs companies little or nothing to implement, while making a huge difference to their staff’s work-life balance and job satisfaction. Remote work, offered by 34 per cent of businesses surveyed, can also be mutually beneficial: Employees save time and money by skipping the commute, while employers can build their workforce without having to lease or buy larger facilities. Seventeen per cent offer compressed scheduling, such as working four 10-hour days.
Of perks that require an outlay, the most common is hosting social events for workers, which occurs at 39 per cent of employers surveyed. To support a healthy lifestyle, 25 per cent have either an onsite gym or offer memberships to a nearby fitness center.
4. Offers of bonuses and incentives
Businesses rely on a basket of financial carrots, of course, to keep performance at peak levels. The most common incentive, according to research in the Salary Guide, is the spot bonus for individual or group achievement, used by 37 per cent of respondents’ organizations. Eighteen per cent hand out retention bonuses, typically awarded after an employee stays on a predetermined number of months.
Profit-sharing occurs at 20 per cent of companies surveyed. A similar tactic, used by 18 per cent of respondents, is to offer stock options, restricted stocks or performance shares. Sixteen per cent feature deferred compensation, usually in the form of pensions and retirement plans.
When businesses give bonuses, they almost always tie it to performance. What varies is the metric: 27 per cent of respondents base it on individual and company performance, and 22 per cent include those two factors plus team performance. Sixteen per cent look at just individual performance.
5. Raises based on performance
Most employers tie raises to performance. Of the HR professionals surveyed, 72 per cent said salary increases at their companies are calculated based on merit, such as hitting productivity targets or meeting goals. For 38 per cent, wages increase in tandem with the cost of living. A smaller subset of respondents, 17 per cent, raises salaries automatically according to length of service.
6. Modifications in hiring expectations
Companies have become increasingly flexible with their skills requirements, according to the Salary Guide, and are willing to offer training and professional development. Accounting job training can be offered with on-site workshops, off-site conferences, webinars, online courses, mentorship programs, and professional memberships. Accommodating candidates in this way gives them a hiring edge over firms that remain rigid in their approach.
7. Reduction in the time to hire
While a thorough vetting of candidates is critical, more businesses need to realize that failing to accelerate the hiring process in a competitive market can be detrimental. Companies that make prospective hires sit tight for too long risk losing them to other, faster-moving companies. Seventy-one per cent of Canadian workers in a Robert Half survey said they’d lose interest in a job if they had not heard from the employer within two weeks of the interview.
For your business to grow and thrive, you need top talent. Following these hiring trends and the right mix of competitive compensation, financial rewards and in-demand perks, you can influence the hiring outcome and enjoy employee retention going forward.