OPPORTUNITY KNOCKS F ACA SKILLS ARE IN DEMAND SAYS ICAEW SURVEY, BUT BEWARE

CAREER BENCHMARKING | ICAEW ■
OPPORTUNITY
KNOCKS
ACA SKILLS ARE IN DEMAND SAYS ICAEW SURVEY, BUT BEWARE
EXPECTATION GAP BETWEEN YOU AND EMPLOYERS
F
ollowing a challenging couple of years, the 2011
ICAEW/Robert Half Career Benchmarking Survey of
some 3,000 ACAs working in industry reveals that the
accountancy profession is showing promising signs
of recovery. While there are mixed views among members on
future prospects for career development, the good news is
a general return of salaries and bonuses to pre-recessionary
levels.
ACAs’ average basic gross salary is now £82,400 – the median
being £70,700 – with those outside the UK averaging £114,700.
That is, however, balanced against the earnings gap between
male and female ACAs, which remains striking. Female ACAs
report an average basic salary of £62,300 (a 6% increase on last
year’s £58,800 average) but this is around 70% of the £89,500
average salary for male ACAs (up 4% from £86,100). [See box
overleaf].
A majority of young ACAs (qualified in the past four years)
ACCOUNTANCYMAGAZINE.COM | MARCH 2011
say they are likely to look for promotion with their present
employer, while one in three members surveyed will consider
moving employer in the next two years.
‘In the last two years we have seen the pre-eminence of
the finance function and what it can do in terms of measured,
profitable growth or cost-reduction and efficiency drives,’
says Phil Sheridan, UK managing director of Robert Half
International. ‘ACAs have come to the fore. Good technical
and commercially-minded accountants can really make a
difference. These people feel positive because their profiles in
their organisations have been pushed forward and their ability
to influence decisions has increased. The challenge now is how
they use that to accelerate their careers.’
Around half (52%) of all members surveyed, however,
feel the global recession has had an impact on their career
development: it has had a positive effect for just 11% of them.
Around four in 10 say they believe their careers have suffered.
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■ ICAEW | CAREER BENCHMARKING
It’s been a particular issue for those in mid career, especially
men qualified for nine to 19 years: 45% at this stage of career
expressed this view.
This is a potential concern for employers, because half of
ACAs who feel negatively affected by the downturn would
consider moving to a new employer in the next two years
– compared with around one in three of all ACAs surveyed.
‘Some people may feel their career has been put on hold for
the last two years,’ Sheridan says. ‘I still think they may have had
exposure to new experiences. If they use that experience well,
they should be able to push forward with their careers in the
next 12 to 18 months.’
OPPORTUNITY KNOCKS WORLDWIDE
ACAs looking to change employer should find a number of
opportunities. One in four managers are currently recruiting
or planning to recruit for the finance team. This is particularly
likely for larger organisations with 1,000 or more employees
(34%) and those based in the Middle East (52%) and continental
Europe (43%). In contrast, only 24% of UK organisations and
15% of smaller companies (with up to 50 employees) report
recruitment activity.
The sectors reporting most recruitment are energy, water,
mining and utilities (38%), insurance (38%) and leisure, tourism
and hospitality (38%). In contrast, recruitment is less likely in
manufacturing and engineering companies (19%) and the
charity and not-for-profit sector (19%).
‘On the ICAEW jobs board, ICAEWjobs.com, we had more
jobs listed this January than in January 2010 or 2009,’ says Luke
Collier, ICAEW head of online recruitment. ‘There are a lot more
jobs on the market now.’
Collier has noted most activity in sectors such as energy,
water and utilities and insurance, echoing the findings of the
survey, but also in banking and capital markets. Employers who
want to keep hold of staff will need to pay attention to their
retention strategies, he warns. ‘The fact that there are a lot more
jobs on the market will have a big impact on retention,’ he says.
‘Companies need to think about how to keep their ACAs happy
and motivated. One of the best ways to improve retention is to
provide more development opportunities and to give people
more responsibility.’
ACA SKILLS IN DEMAND
Managers who are recruiting are particularly looking for skills
in financial, management and regulatory reporting (51%) and
core accounting, bookkeeping and transaction processing
(51%). These are the same skills highlighted in last year’s survey,
but demand for core accounting and bookkeeping skills has
increased notably (by 13%).
There are variations in skills demand across sectors, however.
In banking and capital markets, there is a higher demand for
skills in core accounting and bookkeeping and internal financial
controls, while the energy, water, mining and utilities sector
has more need for ACAs with skills in planning, forecasting and
budgeting and risk management.
ACAs at different career stages place different emphasis on
the importance of the various skills and competencies required
to do their job well. Early in their career, analytical skills are
thought by ACAs to be key to doing their job well, much in
line with the key competencies sought by managers when
recruiting ACAs at this level. As their career progresses, ACAs
place less importance on analytical skills, and influencing and
leadership skills gain prominence as key skills they feel that they
need to demonstrate.
BEWARE DISCONNECT BETWEEN
CANDIDATES AND EMPLOYERS
However, the survey has highlighted some disconnect between
the skills ACAs perceive they need and those actually sought
by hiring managers when recruiting. This disconnect is evident
among those qualified for nine years or more.
At more senior levels of recruitment, hiring managers place
greater emphasis on evidence of broader-based leadership
skills, while ACAs at this level consider that influencing skills are
more important. The finding highlights the need for ambitious
young ACAs to develop strengths in these areas.
‘We know that the ACA qualification is working well in
terms of providing the right skills for newly qualifieds,’ says
Collier. But ACAs then need to develop additional capabilities.
‘As an institute, we want to make sure members understand
what the market is looking for from them, and then provide
the support they need to help them develop their skills
accordingly.’
WHAT EMPLOYERS WANT FROM ACAs
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WHAT ACAs THINK EMPLOYERS WANT
MARCH 2011 | ACCOUNTANCYMAGAZINE.COM
CAREER BENCHMARKING | ICAEW ■
GENDER PAY GAP REMAINS
The earnings gap between male and female ACAs
remains striking. Female ACAs report an average basic
salary of £62,300 (a 6% increase on last year’s £58,800
average) but this is around 70% of the £89,500
average salary for male ACAs (up 4% from £86,100).
In contrast to the findings in the 2010 survey, the
gap now appears to be widening in the earlier career
stages. Women aged under 30 saw their average
salary fall by 6% (after a rise of 3% last year) to £44,400,
while men in the same age group enjoyed a 6%
increase (following a 5% fall in 2010) to achieve an
average salary of £52,400. (Full-time female ACAs earn
an average salary of £68,400 while full-time males earn
£90,800 – a difference of 25%.)
Male ACAs also do significantly better on bonuses.
Overall, the average bonus for males, at £20,600, is
nearly two and a half times that of women’s at £8,500
(although both increased by similar proportions from
last year).
DIFFERENT GENDER PRIORITIES?
Are these findings related to the life choices that
ACAs make? The survey indicates different priorities
between men and women, at least at certain stages of
their lives. Female ACAs who qualified between nine
and 19 years ago (typically in the 30-45 age range),
and who have children, place particular emphasis
on flexible working. Male ACAs at the same career
stage, also with children, place greater than average
emphasis on pay and responsibility.
Other factors include:
■ Demographics: male ACAs are typically older (aged
46 compared with 41 for females).
ACCOUNTANCYMAGAZINE.COM | MARCH 2011
‘The male/
female
earnings
gap says
nothing about
differences in
ambition, but
more about
attitudes to
risk’
■ Working patterns: female ACAs are far more likely
to work part-time – 24% compared with just 9%
of males.
■ Sector-specific pay differences: a quarter (24%)
of female ACAs are employed in lower-paying
sectors such the government, charity and not-forprofit sectors, compared with 15% of male ACAs.
Average public sector basic salaries (£65,600) and
bonuses (£1,400) are significantly below average
(£82,400 and £17,400 respectively) for ACAs as
a whole.
‘It is unfortunate that there is a pay gap,’ says
Phil Sheridan, UK managing director of Robert Half
International. Differences in personal choices that
men and women make, he suggests, are part of the
reason. ‘We have seen women who have young
families look more for stability in their employer.
They have been less inclined to make a move and
take a risk. The male/female earnings gap says
nothing about differences in ambition, but more
about attitudes to risk.’
Recognising that career interruptions have
a significant effect on women’s pay and prospects,
ICAEW has just launched a leadership development
programme for female members (see article
p99). Rhonda Martin, the ICAEW development
manager responsible for the programme, as well
as the ICAEW Narrowing the Gap initiative for
returners to work, says: ‘We are looking to help our
female members to look at what they need to do to
add to their current strengths. They need to build
confidence and self-belief and actively manage
career interruptions to succeed in leadership
positions’.
The 2011 ICAEW/Robert Half
International Career Benchmarking
Survey was carried out online by
an independent market research
company between 6 October and
2 November 2010. A total of 3,169
members in business outside of
practice responded. For full details
of the research, visit www.icaew.
com/careersurvey. For specific
queries, contact Yvonne Burr,
head of ICAEW strategic research
at [email protected]
T: +44 (0)20 7920 8426.
Information about ICAEW
leadership programmes are
available at www.icaew.com/
leadership and about career
progression and specific support
for female members at
www.icaew.com/careersupport
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