UK companies show growing optimism in employment forecast

- One in four companies plan to hire more staff during the next six months, and one third of HR and finance managers expect starting salaries to increase

Research released today by specialist recruitment consultancy Robert Half Finance and Accounting reveals that one in four (26 per cent) companies are planning to increase staffing levels in the next six months and more than a third (39 per cent) expect starting salaries to rise during that same period.

The survey of over 1,000 companies across the UK also examines what is behind this optimism and provides insights into employer efforts to try to retain their best and brightest. Encouragingly, when asked about the main factor driving the need to hire additional staff, more than half (54 per cent) of respondents said it was due to business growth and expansion. One in five (22 per cent) respondents said it was due to increasing workloads while just five per cent said it was because of staff turnover.

David Jones, Managing Director of Robert Half Finance and Accounting, said: ìIt is particularly encouraging to see that managers are optimistic about their hiring intentions. Much has been made of the ëwar for talentí and our Index clearly shows that skilled accounting and finance professionals remain in high demand. Employers must continue to focus on retention as a way of maintaining business continuity.

îAs businesses continue to grow and the demand for candidates intensifies we can also expect to see further increases in remuneration.î

Just under half (41 per cent) of the HR and finance managers surveyed acknowledge that finding candidates with general accounting skills remains the most difficult challenge, far more so than sourcing candidates with specialist skills in financial analysis, audit or tax ñ all polling less than six per cent.

Similarly, when asked about the skills that their own finance departments lack, one in four (27 per cent) say it is general knowledge of new financial regulations. Other skills that HR managers are looking to introduce into their finance team include general IT knowledge (27 per cent), communication skills (24 per cent) and business acumen (23 per cent).

David Jones added: ìThese figures are evidence that the role of the accountant has changed. Employers continue to seek candidates with a general accounting background that can also add value to both clients and the internal dynamics of the team. In-depth industry knowledge, highly tuned financial acumen, communication skills, IT know-how and leadership ability are becoming the prerequisites for the modern day accounting professional.î

In line with the renewed focus on retention, the survey also reveals that one third (33 per cent) of companies now provide regular training and development and have formal programs in place to foster career development.

Conversely, only one in ten respondents say they consult with new employees to structure a tailored benefits package.