New International Salary Guide - Accounting

Warning to employers not to ignore traditional accounting roles

Junior positions better remunerated in Germany; senior positions and experience better rewarded in Ireland

According to a new salary guide from Robert Half International, the specialised recruitment firm, there is a widening pay gap between the remuneration or traditional accounting roles and specialist functions. Over a five to ten year period the difference is on average ten per cent between the two types of role.

The widening pay gap appears to be driven by a perception in the market that there is a particular lack of qualified people to fulfil specialist functions. With increasing salaries for specialist functions, industry experts have noted a secondary impact on the supply of finance professionals with traditional finance practitioners re-training as specialists or new entrants into the industry focussing on the specialty functions.

The drive for specialist functions has been driven by the increasing complexity of the accounting profession with new legislation such as IFRS and Sarbanes Oxley.

Ian Graves, Managing Director Continental Europe, Robert Half International, said:

ìThe findings of the 2006-2007 salary guides confirm that the changing role of the traditional accounting function and its increasing complexity is being ignored.

Our advice for employers is not to ignore the traditional accounting roles and ensure that their remuneration reflects the true state of the market today, to avoid potential problems in the future.î

Other findings from the guide, which covers 15 different finance roles across 13 countries, highlights some interesting trends which act as useful salary benchmarks for both employers and employees worldwide. For example, salary figures reveal that junior positions in the financial world are better rewarded in Germany, implying that clerks, purchase ledger clerks and payroll clerks earn higher wages than similar positions in all other countries surveyed.

Conversely, for more senior roles, Ireland appears to be the most lucrative country to work in. Where, for example, chief accountants, management accountants, financial controllers and finance managers are better rewarded than their counterparts in other parts of the world. The only exception is Finance Directors which are best rewarded through salary in New Zealand. This result reflects the limited supply of qualified FDís in the country.

Ian Graves continued:

ìThe guide was created to help companies make informed hiring decisions. It also helps those looking for a new job and want to ensure they are rightly rewarded for their level of experience. If potential candidates are looking for a move overseas they should do further research into local standards of living; economic cycles; local tax policies and supply and demand of skilled candidates to ensure that the leap abroad does not unduly hit them in the pocket.î

ìOf course, with benefits becoming such a key factor in recruitment and staff retention, both companies and potential employees would do well to remember that pay isnít the only way to attract and retain candidates. Many candidates are happy to accept a lower salary if the work /life balance is made more attractive by perhaps offering benefits such as extra holiday, sabbaticals or working close to home. This is particularly good news for smaller companies who struggle to keep up with the ever increasing salaries or countries who are looking to attract employees from overseas where salaries may be higher.î