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Accountancy firms halt recruitment as credit crunch takes toll
Over half (57%) of the top 100 accountancy firms say they are going to decrease or keep staff levels the same next year, according to recent research by web recruiter cvmail. Whilst only 5% of accountancy firms said they actually intended to cut headcount, this nevertheless represents the first pause in growth since since 9/11.“The effect of the credit crunch on top accountancy firms has been felt in a slowdown in corporate finance work and may feed through into consultancy work,” said Andy Eddleston, commercial manager at cvmail. “However, their core audit & assurance and tax work should be largely unaffected. It is hoped that the vacuum created by the slowdown in areas like IPOs will be filled with rescue and recovery work.”
Despite this year’s slowdown in recruitment, accountancy firms say that one of the biggest issues they face in the year ahead is attracting a higher quality of candidates with 91% of respondents saying that it is a high priority in the year ahead.
Controlling recruitment agency costs was rated as a high priority by 47.6% of respondents. Agency fees can now be substantial. The average percentage of a hire’s salary going to a recruitment agency in fees is now 21%, with the highest percentage paid by the respondents was 30% and the lowest was 12%.
In the US, there have been reports of Big Four lay-offs amongst junior staff for the past six weeks. Some successful trainee applicants have been told there start date has been deferred by 12 months. In the UK, cvmail’s research shows the top accountancy firms still receive an average of 44 CVs for each vacancy. Each firm conducts an average of seven first stage interviews and three second stage interviews
Number of comments: 6
AccountingWEB.co.uk 3-Jul-2008
Categories: Practice News
Times read: 4417
This could be good news for the interim management industry because we can provide the flexible resources to help an accountancy practice handle the peaks and troughs of client servicing.
There are many good quality highly experienced accountants looking for short term project work - if you know where to look!
Regards
Simon Marchant-Jones
Head of Practice
AshtonPenney Interim
what has selling fish got to do with anything ?
Who wants to work in a big accountancy practice.Boring!!!!!If you are totally unimaginative or desparate or a high-flying partnership candidate willing to sell your sole,this might be where to go
I think the only time when working in an accountancy firm is of any use is when one requires the necessary training as a financial accountant. However, I would advise any young aspiring management accountant to go into corporations that are into trading, manufacturing or retailing worldwide and beef up their linguistic skills with at least one European language and one Asian language under their belt and venture into areas like global business.
There is more to one's career path than going to accounting firms which seem to narrow one's options in having a successful entrepreneurial career. Heck did the three richest men in the world join accounting firms to be successful?
Serious news for anyone applying for an accountancy job in the UK right now.
The suggestion that dozens of people apply for each position in some firms must be quite daunting for those seeking employment there.
I wonder how well written the CVs in question are?
I've long encouraged those writing CVs to keep in mind the purpose of their CV. It should NOT be written with the objective of supplying all relevant background information in an effort to get the JOB.
A CV should not be prepared in an effort to get the job. It's purpose is to get the INTERVIEW.
That subtle difference will enable some applicants to be short-listed and interviewed in preference to others who seem more desperate and focused on the 2nd stage of the process (the job).
