Race is on to hire newly qualified accountants

The race is on to capture the latest crop of newly qualified accountants as ACA results are released this week. With exceptional levels of demand across the banking, accountancy and commercial sectors, this elite pool of talent will have even more career options open to them than their predecessors.

Job opportunities for newly qualified ACAs have continued to rise this year and supply has once again been unable to keep up with demand. Morgan McKinley, a specialist in investment banking and financial services recruitment recorded an increase of 19% in newly qualified banking roles coming into its London business between January and August 2007 compared to the same period last year. However, the number of ACAs qualifying remains well below that of the pre-downturn years. According to the latest available statistics from the ICAEW, there were 47% fewer newly qualified ACAs entering the market in 2006 compared to 2001, 2626 individuals and 3871 respectively.

Now, the war for talent between the investment banks, accountancy firms and commercial organisations to secure these individuals has become even fiercer and this means increased levels of remuneration, greater career progression opportunities as well as a more diverse range of roles on offer.

Within investment banks, key areas of hiring for newly qualified ACAs include product control, financial control, internal audit as well as less traditional openings such as business analyst and strategic change management positions.

Within the Big 4 and Top 20 accountancy firms, recruitment is strong within the following areas; audit and assurance, forensic accounting and transactional and corporate tax.

Within commercial organisations, demand is high for financial accountants, management accountants, internal auditors and tax specialists.

Steve Leeson, Associate Director, Morgan McKinley comments;

ìAll firms across industry sectors are working hard to ensure their employee offering remains competitive, whether it is through the remuneration packages and career progression opportunities they offer or the implementation of improved work/life balance policies plus perks such as duvet days or the option to work compressed hours.î

The highest paying roles are within the banking sector, with up to 2 yearsí post-qualified ACAs within controlling earning an average basic salary of 57,000 plus a 20% bonus. This is in contrast to an average of 53,500 for corporate tax positions within a Big 4 accountancy firm and 50,000 for Top 20 trained individuals going into internal audit roles within the commercial sector.

Steve Leeson, Associate Director, Morgan McKinley comments;

ìCompensation levels may not be the only factor that newly qualified ACAs will take into consideration when deciding their next career move but it is still a key motivator and with investment banks holding the ACA qualification in such high regard, they are willing to pay a premium to secure these individuals. In turn, if accountancy and commercial firms are going to retain the talent they need at this level, they have to make sure that their pay rates remain competitive, not only within their own sector but across all industries.î

Nevertheless, the most important issue at this stage of an ACAís career should be deciding which direction they want their career to take in the long-term.

Kirsten MacLeod, Operational Director of financial recruiter, ECHM comments;

ìNewly qualified accountants really need to think about what their long-term career goals are before making a choice as to which role and indeed sector is right for them. For example, if you want to build a career in industry with your objective being to work your way up into a finance director position in five or ten years time, then the longer you stay in practice or in fact the banking sector, the more difficult it will be to make the transition. Likewise if you are currently in one of the smaller practice firms but your ultimate goal is to be a partner in a Top 20 firm, then as a newly qualified, this is probably the best time to make the jump. It is worth remembering that the highest paid, most attractive looking job on offer now might prove restrictive in terms of career progression later.î

Sponsored by market leading employers across the banking, accountancy and commercial sectors, Morgan McKinley and ECHM have published career guides to help newly qualified accountants take advantage of the growing number of opportunities available and to enable them to make informed choices about their future career paths.

To receive a complimentary copy of Morgan McKinleyís 2007 ACA Handbook ñ The Definitive Guide to Banking email aca@morganmckinley.com

Complimentary copies of ECHMís 2007 NQ Career Guide, which provides information and advice to newly qualified accountants on careers within commerce and industry, public practice and the public sector, are available to order by email at nq@echm.com

2007 Basic Salaries for key ACA roles:

Commerce & Industry - Big 4/ Top 20 Trained
Financial/Group Accounting - 45k - 55k
Management Accounting/ Analysis - 40k - 50k
Internal Audit - 45k - 55k
Tax Manager - 45k - 60k

Financial Services
Product Control - 55k - 60k
Financial Control - 46k - 54k
Internal Audit - 47k - 52k

Public Practice (Big 4/Top 20)
Forensic Accountant - 40k - 48k
Audit & Assurance - 40k - 47k
Corporate Tax - 35k - 65k

Source: Morgan McKinleyís 2007 ACA Handbook and ECHMís 2007 NQ Career Guide. Salary ranges are for ACAs up to 2 yearsí post qualified.