Market Trends and Salaries Report

Spring 2010
Accounting & Finance Recruitment
Australia
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Contents

Executive Summary 3

Economic Overview 4

Ambition Accounting Jobs Index 5

Salary Guide 6

Demand Factors 8

Supply Factors 10

Sector Notes 12

Future Trends 13

Talent Services Team 15

About Ambition 16

Other Specialist Services 17

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Executive Summary

Reflecting back on 2009, it proved to be a challenging year for everybody – employers,

employees, businesses, job-seekers and recruiters alike. Some commentators had hoped
for a quick turnaround in 2010, but despite a surge in the first quarter, the hoped for
instant recovery turned out to be more myth than reality.
What we have seen however is a slow, steady improvement in the recruitment sector
over the past 6-9 months – with some encouraging signs that the improvement is set to
continue throughout the year ahead. Unemployment remains low. Growth remains steady.
We are witnessing first hand an increase in recruitment activity and anecdotal evidence
supporting a strengthening employment market is starting to be backed up by data.
At the recently qualified end of the candidate market we are starting to see individuals
receiving multiple offers – an early indicator that competition for talent is set to resume. “We can now
This is backed by a conviction that businesses are becoming more confident about the
economic conditions, evidenced by a removal of head count freezes, strategic re- help our business
structuring of business units for potential growth, and an increase in demand for staff. partners achieve
Of course, some dark clouds do remain on the economic horizon. The recent European their goals by
downturn, coming as it has on the back of the US sub-prime lending crisis has doing what we do
caused some concern in local markets. This downturn has been most keenly felt by best - finding the
larger multi-nationals with head offices in overseas locations – but recent experience
has made the rest of the business community acutely aware of the effect global right candidate
fluctuations can have on the local economy. for the right role.”
As recruiters, this is always an exciting time to be in the market. With improving
economic conditions providing opportunities for businesses to grow and develop,
we can now help our business partners achieve their goals by doing what we do best -
finding the right candidate for the right role.
Recruitment decisions made in this current environment can have long term
implications for a business, and the value of working with a trusted advisor to ensure
that the right placements are being made has never been more apparent.
At Ambition, providing that value is what we’re all about.

Gavin Houchell
Managing Director, Ambition Finance

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Economic Overview

The Australian economy continued its recovery from the 2008/09 downturn in a more
positive fashion during the first half of 2010. Unemployment levels dropped, interest
rates remained balanced and overall growth continued at a steady pace.

In this age of globalised capital however, the market remains sensitive to overseas
developments. This is a lesson we learned first hand during the US sub-prime lending
crisis, and more recently with the downturn in the European economies. Issues of public
debt (particularly in Greece), and a growing concern over the long term implications
of the setback in that region filtered through to the Australian markets quite quickly,
affecting share prices initially, followed by dips in business and consumer confidence.

Balanced against that is the relative robustness of the Asian economies, who (apart
“unemployment from Japan) have by and large enjoyed a ‘V shaped’ recovery. The subsequent strength
continues to of economies in our local region and the associated growth in demand has helped to
keep the Australian economy buoyant. Commodity prices have risen after sharp declines
drop, growth in 2008 – of particular significance for Australia – the prices for resources which serve
remains steady as raw material for steel (coal, iron ore) production have been exceptionally strong.
and businesses Combined with a strong Australian Dollar, this has created historically high terms of
move into the trade, with significant flow on effects to the rest of the economy.
new financial Closer to home, a certain degree of political volatility has been experienced as the
year with a Federal Government both resolves its leadership issues and refines its taxation policy.
sense of cautious With a new Prime Minister in place and a Federal Election in August – one in which
taxation reform promises to be a central platform – we can expect the economy to
optimism.“ remain firmly entrenched within the national political narrative.

In summary, whilst there remain some legitimate concerns on the global economic
horizon, the Australian economy appears to be in a position of relative strength.
Demand for resources in the region remains strong, unemployment continues to drop,
growth remains steady and businesses move into the new financial year with a sense
of cautious optimism.

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Ambition Accounting Jobs Index

Notes on the Ambition Accounting Jobs Index

2009 was a challenging period in the accounting recruitment sector, with the index
remaining below 200 for the almost the entire year.

A stronger start to the 2010 quarter is reflected in the index, with the subsequent
decline in business confidence due to fluctuations in the European economy showing
in the dip during the April/May months.

There were encouraging signs at the end of the last financial year however, with the
index climbing above 200 for the first time in over 12 months. This increase in activity
supports what we are seeing first hand in the market, and there is cause for cautious
optimism that the overall trend is moving toward that of the “U shaped recovery”
predicted by economists following the downturn in 2008/09.
“increase
in activity
Note: The index started at 100 in May 2003. supports what
we are seeing
first hand in
Accounting Jobs Index - Seasonally Adjusted the market”
400

350 378
348 354
300 312
292
250 251
233
200 215
197 214
196 191 201
186 184 185 179 180 184
150 163 171 164 172 173
157

100

50

0
07/08 09/08 11/08 01/09 03/09 05/09 07/09 09/09 11/09 01/10 03/10 05/10 07/10

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Salary Guide
Finance & Accounting Professionals

CFO/Divisional Finance Director

15+ Yrs
$270k+

Tax Treasury Audit

>

>

>
Head of
Head of Tax Head of Treasury Internal Audit
10+ Yrs 10+ Yrs
10+ Yrs
$180-250k $180-250k
$180-250k
>

>

>
Tax Manager Treasury Manager Internal Audit Manager
7-10 Yrs 7-10 Yrs 7-10 Yrs
$140-180k $140-180k $130-180k
>

>

>

Tax Accountant Treasury Accountant Senior Internal Auditor

4-7 Yrs 4-7 Yrs 5-7 Yrs
$80-140k $80-140k $100-130k
>

Internal Auditor
3-5 Yrs
$70-100k

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Commercial/
Management
Financial Reporting Accounting Strategy & Planning
>

>

>
Group Commercial Manager Head of M&A
Financial Controller 10+ Yrs 10+ Yrs
10+ Yrs
$180-250k $220-260k
$180-250k
>

>

>

Senior Management Financial Planning

Finance Manager Accountant/Manager & Analysis Manager
7-10 Yrs
7-10 Yrs 7-10 Yrs
$130-180k
$130-180k $160-200k
>

>

>

Senior Management Senior

Financial Accountant Accountant Financial Analyst
5-7 Yrs 5-7 Yrs 5-7 Yrs
$100-130k $90-130k $110-150k
>

>

>

Financial Accountant Cost Accountant Financial Analyst

3-5 Yrs 4-7 Yrs 3-5 Yrs
$70-100k $70-100k $80-110k

The figures for the Commercial sector are ranges expressed as TCE (Total Cost of
Employment) packages.
Cash + Superannuation, excluding Short Term Incentives. These vary according to
organisational size and sector and the individual circumstances of both the job seeker
and employer.
Positions are described by years of postgraduate experience and ranges of $AUD. Accounting and
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Demand Factors

Slow & steady growth

Whilst not experiencing the “instant recovery” hoped for, the market has experienced
stable, steady improvement. The upswing has been uneven, with some sectors
recovering at a much faster rate than others, but overall the recruitment market in the
accounting sector is showing positive signs again.

The first quarter of 2010 was particularly encouraging, activity crept up across most
areas. In more recent times there has been an air of caution from the market as
employers watched carefully for fallout from the European wobble, before a late surge
toward the end of the year in line with traditional seasonal patterns.

“financial Out with the survival plan, in with the business plan
professionals During the recent downturn many companies were forced to move away from their
with the ability operational strategy, to instead focus on cost reduction in the short term. In a sense,
business plans were ripped up and replaced by survival plans.
to add value to
the business plans With the market beginning to turn around, many companies are once again looking
are particularly at how they can best grow in the marketplace. This in turn is leading to a shifting of
priorities and a re-structuring of business units. Projects that were previously put on
sought after.” hold are now being re-initiated, and capital expenditure costs that had been deemed
too expensive are now beginning to re-surface.

Opportunities within this space are beginning to flourish. Cost Accountants, Project
Managers & Business Analysts are all in demand, and financial professionals with the
ability to add value to the business plans are particularly sought after.

Churn is happening again

Over the last 12 months employers have enjoyed a relative position of strength in
the ongoing battle to retain talent. With market conditions generally poor, and a fair
degree of insecurity about the economy itself, many employees decided it would be
wiser to remain safe in their current roles than it would be test their employment
prospects on the open market.

This is now changing. With generally improving conditions and growing confidence
about the direction of the economy, many employees are beginning to once again
gauge the market for job opportunities.

Employees at the $70K-$130K are looking to make up for lost time on pay rises and
promotional opportunities, and with a wealth of opportunities opening up, their
aspirations for better wages and career advancement is beginning to outweigh their
concern with job market volatility.

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At the $150K+ levels we have noticed a huge increase in the amount of applications,
as senior staff, who are now currently in a role, are starting to show interest in taking
the next step in their careers.

These indicators point toward a period of substantial transition within the marketplace,
as many employees look to change jobs in an attempt to further their personal
goals after a period of career stagnation (the churn factor). As staff members find
new positions either internally or externally, employers in turn are forced to find
replacements for those losses. These transitional replacements will trickle down
through the structure – creating opportunities for candidates at the lower salary levels
as employees at the higher levels move up.

Focus on Leadership & soft skills “many employees

Another shift we are noticing is for transitions to be made by employees who were
look to change
working at companies who failed to adequately manage staff management issues jobs in an
throughout the recent economic downturn. In many cases, this downturn highlighted attempt to
to staff how important it is that their employer shows a level of care and commitment further their
through tough and testing times. Employers who managed lay-offs poorly, or did
damage to staff relations through the placement of unreasonable work demands personal goals
are now starting to experience increased turnover in a recovering market where new after a period
opportunities are appearing. of career
stagnation”

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Supply Factors

Job Stability vs Career Progression

During the difficult economic conditions of the past 12-18 months, the natural
inclination of employees has been to stay in the job they currently possess, rather than
take the risk of making career changes in a time of significant market volatility.

With a large number of cutbacks, and cost reducing layoffs, the candidate pool became
infused with workers who were looking to get back into the work force.

Accordingly, during that period we saw a proportionately high amount of people

without jobs looking to secure new positions. That may be starting to change. Over the
last few months more applications are being received from candidates who already
“both employers have a job, and are looking to take the next step in their career.
and employees Generally speaking, a large group are “passively seeking” opportunities (as opposed
alike are to actively trying to find the first job they can get). They are interested in what
opportunities are out there, without necessarily being disillusioned by their current
beginning employer. The nature of the recent market slump has led many employees to sacrifice
to feel more pay increases or career advancement for the sake of job stability.
confident about
In some cases employers have taken advantage of this by renegotiating salary terms
the conditions in their favour, or placing a greater burden on their employees through reduced head
ahead” count. In most cases however, employees are comfortable that these stances were in
line with the market conditions, and that steps taken to reduce costs were necessary
for the business at the time.

With the market conditions continuing to improve however, and both employers and
employees alike beginning to feel more confident about the conditions ahead, many
workers are looking to make up for lost time.

Multi-Nationals suffering from overseas head count freezes

Whilst local businesses continue to progress following a disappointing 2009,
companies with overseas head offices continue to struggle. Multi-Nationals with large
stakes in Europe are being affected by economic downturns there, and in spite of
reasonably buoyant conditions locally, are still experiencing head count freezes as their
international head offices look at cost reduction strategies.

Many locals working in multi-national corporations are beginning to believe that

the grass may be greener elsewhere. Pay freezes and a reduction in the opportunities
for promotion became the norm over the past 12 months throughout most sectors
– a fact that was accepted by the majority of employees. With market conditions
improving locally, many employees in multi-national corporations are reluctant to
accept continued career stagnation again. With opportunities beginning to appear

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elsewhere, it will be difficult for multi-nationals who may be beginning to see a

turnaround locally, to ask their staff to continue to wait for expected pay increases
and career advancement as their struggling parent companies look to shore up their
declining profit margins in challenging international economic conditions.

Big Four increasing their recruitment intake

In 2009 we saw a significant decrease in the graduate intake by the major accounting
services firms, as the Big Four reduced their intakes in response to the sluggish global
economy.

With the economy showing sustained improvements in most areas however, it appears
that the Big Four will be looking to increases the size of their intake in 2010/11. As one “we expect the
of the key indicators of the overall health of the accounting recruitment market, this is
great news not only for graduates, but for the industry as a whole.
flow of Australian
Accountants
The push by the Big Four to broaden the base of backgrounds from which the and finance
candidate pool is drawn also looks set to continue, with an increasing number of
graduates being taken from non-traditional accounting areas, such as engineering or
professionals
the social sciences. to international
destinations to
This trend reflects the changing face of modern accountancy – where to succeed an
employee requires not only a degree of technical competency, but also a wide range of
remain steady,
communication, interpretation and inter-personal skills. rather than a
flood.”
Overseas Supply
Australia continues to be a destination of choice for seasonal workers, particularly
from the UK market via either the 417 visa (working holiday) or 457 visa (which
require an employee to be sponsored by an employer for the duration of their stay).
Similarities in culture, lifestyle consideration and the general robustness of the Aussie
Dollar combine to make working in Australia an attractive proposition.

Conversely, in 2009 we saw a reduction in the amount of Australians travelling to work

overseas, largely due to the even greater volatility experienced in international markets
when compared to our own. Over the last few months we have begun to see some
evidence of this changing, with London in particular showing some signs of recovery.
Of course, until the European economy stabilizes, we expect the flow of Australian
Accountants and finance professionals to international destinations to remain steady,
rather than a flood.

We also continue to see an increasing flow of candidates who have entered the
country through the permanent stream of the Federal Government’s General Skilled
Migration Program, which the Government has increased over the years in an attempt
to redress the imbalance between temporary and permanent skilled migration - a
policy from which we are now starting to see results.
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Sector Notes

Property & Construction

This sector was hard hit during the downturn and in turn cut heavily from their
staffing levels. With the market beginning to turn around, and development projects
once again getting the green-light, many companies are now aggressively looking
to recruit. Busy sector across the board, but Commercial Analysts / Managers at the
$130K+ levels are particularly in demand.

Private Equity - Investee Companies

After a general decline in recruitment trends in line with the economic conditions,
we are beginning to see an uptick in this area. With growing confidence in market
conditions businesses have again begun driving their investment businesses with more
“Recruitment decisiveness, which in turn has led to greater recruitment activity. Opportunities at the
is currently $150K-250K+ level exist, although competition remains strong.
being driven
Telecommunications/IT
by large capital
Quite a bit of activity has been driven by consolidation, firstly through staff reductions
expenditure and then through business unit realignment and restructuring. Funding for business
projects” expansion is increasing, leading to increased recruitment demand; particularly at the
$70K-$130K level.

Resources/Energy & Utilities

This sector has remained robust – as it did throughout most of the 2008/09 downturn.
Recruitment is currently being driven by large capital expenditure projects, and
accordingly, Accountants with skill sets in the analysis and reporting areas at all levels
between $90K-$180K are greatly in demand.

Retail & FMCG/Pharma

These sectors have suffered over the past couple of years that are now starting to
see some growth. The early months of 2010 we saw significant demand in these
industries for Business & Commercial Analysts as companies look to re-stock following
a sustained period of low recruitment activity.

Media
This sector remains fairly active, with strong demand for finance professionals across
the board, as media companies’ look for talent capable of adding value to their growth
opportunities. Demand at the $80K-$140K level is high, particularly for those with
relevant niche industry experience, and an understanding of market behaviours and/or
consumer trends.

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Future Trends

Increases in Multiple Offers

Evidence is pointing toward increased competition for top tier candidates.
Professionals with strong technical capabilities, strong communication & influencing
skills, with relevant industry experience are beginning to see multiple offers from firms
who are keen to attain their services, particularly at the $70K-$140K level.

Whilst this is only happening for the top tier right now, history suggests we can
expect to see this expand in the coming months. As the demand for talent becomes
more pressing, and the candidate pool becomes less deep, we’ve generally experienced
companies becoming more competitive in their efforts to acquire new staff. Firms that
previously missed out on talent due to slow recruitment processes, or deflated salary
offers, will now need to adjust their practices to better compete in the changing market
place. Candidates who previously were happy to be offered a job begin to receive several
“In this
different offers when looking for work, and can accordingly become more discerning. environment,
we usually
In this environment, we usually see upward pressure on salaries, particularly in market
sectors where supply is low. Just as importantly however, the companies who win the see upward
war for talent in highly competitive markets are the ones with streamlined recruitment pressure on
processes. In environments where a talented potential employee is fielding numerous
different options, the ability to make decisions, adjust terms or allay concerns quickly is
salaries”
often more important than the numbers themselves.

Re-structuring of bonuses and LTI’s

For companies that had structured their salary packages around share options and
long term share considerations, the recent downturn in the economy presented some
interesting challenges. With targets across the board that the economic conditions of the
time made impossible, and share options set at prices well above the value of the shares,
the value of many Long Term Incentives (LTI’s) became negligible. As rewards for good
work they were no longer valuable. As incentives for retention, they also lost their lustre.

Accordingly, many businesses have begun to restructure salary packages around these
new conditions. Creative companies however are using this as an opportunity. Right
now share prices may be deflated as a result of the recent economic climate. With
business confidence improving, the expectation in many sectors is that share prices will
soon return to normal. This gives employers a short window in which they can tailor
incentive schemes through which their staff can receive excellent value. We have seen
this already take place in a number of companies – with a particular focus of course
on the senior levels.

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Retention remains a major challenge for employers

The major challenge facing employers over the next 12 months will almost certainly
be retention. With the market picking up, and confidence improving we can expect
employees who have foregone pay increases over the last year or so to start looking
more earnestly at the job market.

Whilst there are opportunities here for employers to acquire new talent, the danger
will of course be in losing their own existing talent base. Many employers have already
recognised this, and have begun to make plans around pro actively ameliorating their
employees’ salary concerns, with the intention of limiting staffing losses in a more
competitive employment market.
“The major Just as important however is an employer’s ability to address the non-remunerative
challenge facing side of the employment equation; staff interaction, leadership and work/life balance.
employers over By and large these issues were put on the back burner over the past 12 months, as
companies focused on cost reduction and the implementation of business survival
the next 12 strategies. With that period coming to an end, smart employees are now asking
months will questions of their leadership teams. Are they able to articulate a vision for the next
almost certainly year? Are they willing to address concerns about staffing levels and employee fatigue?
Will the sacrifices made during the last year be rewarded during annual reviews?
be retention.” Businesses unable to provide satisfactory answers to these questions may soon find
themselves in danger of losing key personnel.

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Talent Services Team

The Talent Services Practice within Ambition Finance consists of a team of dedicated
‘Talent Consultants’ that are based across Australia. Providing specialist advice and
assistance to finance professionals, our objective is to partner with you as a trusted
advisor to ensure you have the necessary skills, knowledge and networks to achieve
your future aspirations.

We manage and tailor our offering to a number of specialist network groups and offer:
• Career planning, appraisal support and interview guidance
• Networking events and talent development workshops
• Market newsletters, key trends and salary reports
• Key industry and client information “our objective is
• Exposure to specialist recruitment Consultants to partner with
Specialist network groups include: 1st movers CA’s, International Qualified you as a trusted
Accountants, Audit, Risk & Compliance, Product Controllers, Fund Accountants, advisor to ensure
Banking and Operations and more. you have the
For more information on joining one of our specialist network groups and broader necessary skills,
services offered by the Talent Services team contact Emma Collins – Manager, Talent
Services on (02) 9249 5062 or emma.collins@ambition.com.au
knowledge and
networks.”

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About Ambition

Ambition Technology
Ambition Technology, based in Sydney and Melbourne, is structured to mirror the
IT departments of its National portfolio of clients, with three dedicated teams of
consultants focusing on Applications, Business Information and Infrastructure.
When you need a resource we have the greatest exposure to the best available
candidates in the market.

“We are actively involved in the Technology market, we know what’s happening,
where and with whom. You receive information to allow you to stay competitive
and ahead of the curve.”

“we have Andrew Cross

Managing Director – Ambition Technology
the greatest andrew.cross@ambition.com.au
exposure to the
best available
candidates in
the market.”

Ambition Finance
Ambition Finance specialises in the recruitment of permanent and contract
Accounting, Banking and Finance Professionals. With offices in Sydney, Parramatta,
Melbourne and Brisbane we advise and recruit newly qualified Accountants through to
CFO level.

“With our knowledge, networks and expertise we have access to both active and
passive candidates and exciting career opportunities with leading Blue Chip firms.”

Gavin Houchell
Managing Director – Ambition Finance
gavin.houchell@ambition.com.au

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Other Specialist Services

AccountAbility was the first brand in Australia which purely recruits in the accounting
support sector.

Our red carpet network has been established of thoroughly screened, skilled and
experienced candidates within the accounting support sector that are immediately
available to satisfy our clients requirements. Quality aligned with speed of service is
at the core of what AccountAbility can offer and we fill 80% of temp roles over the
phone and 90% of our perm roles within 6 - 8 working days.

“We have a business and a brand which talks specifically to our target market; “the first brand
understands what drives candidates in support roles to change job and most in Australia
importantly how they like to be treated.”
which purely
Ruairi Flynn recruits in the
Managing Director – AccountAbility
ruairi.flynn@accountability.com.au
accounting
support sector.”

myambition
www.myambition.com is a career development website that helps you accelerate your
job search and career. You can access free articles and coaching tools relating to all
aspects of career management including:
• Job Search – where to start when looking for a new job
• Resume Writing – tips to help you sell your skills
• Interview Advice – advice covering all aspects of the interview process
• Career Coaching – access to Career Coaches who will support and navigate
your situation
“Everyone needs help with their career at some point, myambition.com is a one-stop
shop for all things career related”
Sally-Anne Blanshard
Career Manager – myambition.com
sally-anne@myambition.com

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Notes

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ambition
Careers Recruitment and Contracting
Accounting, Finance and Technology

Sydney AccountAbility - Sydney

Level 5, 55 Clarence Street Level 5, 55 Clarence Street
Sydney, NSW 2000 Sydney, NSW 2000
Tel (02) 9249 5000 Tel (02) 8296 5300

Melbourne AccountAbility - Melbourne

Level 36, 140 William Street Level 36, 140 William Street
Melbourne, VIC 3000 Melbourne, VIC 3000
Tel (03) 8629 1000 Tel (03) 8629 1300

Parramatta AccountAbility - Parramatta

Level 4, 3 Horwood Place Level 4, 3 Horwood Place
Parramatta, NSW 2150 Parramatta, NSW 2150
Tel (02) 9633 7300 Tel (02) 9633 7300

Brisbane AccountAbility - Brisbane

Level 7, 410 Queen Street Level 7, 410 Queen Street
Brisbane, QLD 4000 Brisbane, QLD 4000
Tel (07) 3211 9333 Tel (07) 3009 6100

www.ambition.com.au www.AccountAbility.com.au

Hong Kong
1202 – 1205 Alexandra House
18 Chater Road
Central, Hong Kong
Tel (852) 3101 3066

www.ambition.com.hk

Singapore
65 Chulia Street
#39-05/06 OCBC Centre
Singapore 049513
Tel (65) 6854 5600

www.ambition.com.sg

London
13 Southampton Place
London WC1A 2AL
Tel (44) 20 7404 4004

www.ambition.co.uk