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Cautious optimism for accountancy jobs in 2010

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7th Jan 2010
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The post recession business environment will offer new opportunities for skilled finance professionals to shine, but political pressure to cut costs will affect the jobs market.

While 2009 was a year of economic disruption, 2010 is set to be year of political upheaval with a general election coming up and campaigning already underway by both leading parties. The key campaign issue, unsurprisingly, is how the £178bn public sector deficit can best be reduced, but what effect will this penny pinching have on the jobs market for finance professionals?

"Overall, we anticipate increased levels of movement in the accountancy and finance sector over the next 12 months," advises Nina Carpanini, senior manager at Hays Accountancy & Finance.

"In the public sector, increased pressure to reduce spending, coupled with the prospect of a general election is leading many employers to reconsider their recruitment strategies," according to recruitment consultant Badenoch & Clark's World of Work report.

"In the first half of 2010 we envisage a greater use of contract and interim staff in the public sector as organisations await greater clarity on government plans, priorities and spending once the election is out of the way."

The recruitment of part-qualified and newly qualified finance professionals is also likely to increase as skill shortages emerge due to lack of recruitment over the last year, according to Carpanini.

Bye bye management consultants
This year could also see the end of the traditional management consultancy, according to some analysts. "At the moment a lot of clients are looking at where they're spending their money and consultancy is a huge area of spend for many organisations," says David Fleming, associate director of Badenoch & Clark. "I don’t think the likes of the Big Four are going to struggle to find work, but we have seen instances where organisations have started considering interim resources to affect changes, rather than spending on consultancy."

Projects which were put on hold due to cost cutbacks last year may be brought back to life in 2010, which will shift the skills requirements of many organisations.

Management accountants will be in demand as organisations prioritise managing their budgets and looking to the future, and there will be a renewed focus on project and change management skills.  "Professionals with proven leadership skills will also be crucial to employers," notes Carpanini.

"People who have the right behavioural sets - i.e. an understanding of the numbers, a good strong technical underpinning and the ability to go out and influence others - will continue to be in demand. In particular there will always be a need for accountants who have a technical understanding of things like IFRS and risk – it gives the CFO piece of mind that someone is really tackling these issues," says David Fleming, associate director of Badenoch & Clark.

IFRS in particular could be a key growth area for this year. "IFRS has been around for a while but nowadays rather than saying it would be a great bonus if candidates had an understanding of IFRS, there are many more roles that carry the requirement for it," advises Fleming.

Damage repair
From an employers' perspective, retention of top talent will be a key priority in 2010 as the economy recovers and firms look to rebuild employee engagement after last year's pressures. In Badenoch & Clark's survey 53% of organisations reported difficulty finding the right candidates last year, while research by PriceWaterhouseCoopers found that a third of UK employees are considering changing jobs as a result of not feeling valued by their employers in 2009.

"Workers' ambitions to find new roles could be good news in terms of creating movement and opportunities in a rather stagnant labour market and within companies, but organisations will need to strike a balance between enjoying the reduction in employment costs that attrition can bring with the need to avoid overstretching existing staff'" says Mike Rendell, partner and leader of HR services for PricewaterhouseCoopers.

"While many accounting professionals have been happy to stay in their jobs during the recession, the upturn will see a marked turnaround in the jobs market. This will, in turn, lead to opportunities for those out of work, those looking to enter the profession, as well as those looking for a change from their current employer as more positions become available," commented Clive Davis, director of specialist financial recruitment firm Robert Half.

"New Year is clearly a popular time for people to make important decisions. Rather than losing their best people as individuals resolve to make changes to further their careers, organisations need to articulate the internal options available to top performers and remind workers why they chose to work for their employer in the first place – be that a competitive salary, interesting work or operating with values that match their own," added Rendell.

Cautious optimism
An increased focus by the public sector on spending and budgeting in general could be good news for finance professionals looking for their next 'big break' – but it's a game of two halves according to David Fleming.

"It's difficult to say exactly what this year will bring for accountants. The only thing that seems crystal clear at the moment is that there will be an overhaul of public spending, which will impact jobs in the public sector. This means that organisations will either need more accountants to look at where money is being spent and how cost savings can be delivered, or they might suggest that it's not a frontline service and cut back on accountancy jobs. At this moment in time it's impossible to say which way it will go," he says.

The private sector reaction might not follow the same pattern but employers will continue to tread carefully.

"We expect employers to remain cautious, wary of mistakes made in previous years. There are likely to take longer to make their hiring decisions," says Clive Davis.

"Overall we expect 2010 to be an exciting year for finance workers, as they look to their career progression. It definitely has the potential to be a very exciting time for young professionals."
 

Replies (2)

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By SMiller44A
11th Jan 2010 11:31

'Penny Pinching'

Reducing a £178 billion public sector deficit is going to require a bit more than 'penny pinching.'

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By Gina Dyer
12th Jan 2010 15:49

True

You're quite right, but where will the axe fall?

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