Skills shortage leading to an increase in graduate accountancy salaries

As employers around the world continue to feel the effects of a shortage of accounting and finance professionals, new accountants are set to be duly rewarded for their career choice.

A new global salary survey from Robert Half has revealed that starting salaries for entry level positions, such as Assistant Accountant rose by nearly 25% between 2006 and 2007 with recent graduates now earning an average of 19,500 per annum up from an average of 15,500 in 2006.

As the pool of skilled workers shrinks, it will become increasingly important for employers not only to attract new talent but also to retain their current staff. This is good news for recently qualified individuals, as the study also reveals that the most talented professionals have the opportunity to earn up to 80,000 as a Chief Accountant after 6-9 years in the finance industry. Although this may seem to be a long way off for many university leavers now, this all adds up to a very exciting time for new accountants to embark on their careers.

As Phil Sheridan, UK Managing Director of Robert Half, explained; ìNew regulations in the industry have resulted in a need for more professionals and have in many ways created a level playing field where both entry-level and seasoned professionals have the same opportunities to thrive and benefit financially.î

The Robert Half Global Financial Salary Guide assessed 18 countries and revealed rising salaries across the majority of accountancy positions worldwide. For example, an entry level Internal Auditor in Australia can expect to earn an average of AUD$47,500, an increase of 21% from 2006. In Germany, a Tax Manager with 3-5 years experience can expect to earn an average of Ä65,000 compared to Ä45,000 in 2006. These findings suggest that accounting professionals now have the potential to earn attractive salaries in a variety of regions, making the possibility of re-locating to a far off destination a very viable option.

Phil Sheridan continued, ìAccountants at all levels and in all organisations have seen their stature elevate and new opportunities emerge. The urgent need for professionals with the right skills along with the benefits of employing a more diverse, multicultural workforce that reflects the global nature of business today is likely to drive more businesses to seek talent globally in the years ahead.î

As a result of demand for their increasingly valuable services, accountancy firms continue to predict that they will ride out the credit storm unscathed. In fact many believe that recent turmoil will lead to an increased demand in the short term as regulation sharpens, becomes more stringent and in turn the finance industry feels the affects of increased levels of auditing. For many, there hasnít been a better time to join the professional accounting industry.