Employment Services
Competitive salaries
How the complicated Sarbanes-Oxley Act is driving up paychecks
By Marcia Passos Duffy
Smart Business Columbus | December 2006
Accounting and finance professionals are in strong demand today, a
trend that will continue into next year, according to the recently released
“2007 Salary Guide from Robert Half
International,” a specialized consulting
and staffing services firm. The company
has published its yearly salary data based
on an analysis of the thousands of job
placements managed by its U.S. offices.
High demand means higher salaries, the
guide reports. Base salaries are projected
to increase, on average, by 3.8 percent in
2007. Among those that will see the greatest gains in base pay are compliance professionals, internal auditors, financial analysts and public accountants.
“Finance and accounting professionals are
in high demand for two reasons: business
expansion and compliance initiatives,” says
Andrea Dunn, division director for Robert
Half Finance and Accounting in Columbus.
Smart Business spoke with Dunn
about the details of the salary increases
for accounting and finance employees,
and what businesses can do to attract
and retain these professionals.
What is happening with the finance and
accounting talent pool?
Businesses, particularly public companies, are demanding more professionals
with knowledge of the U.S. Securities and
Exchange Commission (SEC) report
requirements to help maintain their compliance with the Sarbanes-Oxley Act and other
regulations. These professionals can expect
the highest increases in salary in 2007.
The average starting salary for a chief
compliance officer will rise 14.4 percent in
2007 — that’s $132,500 to $181,250 a year.
Those with internal auditing skills in large
companies will see an increase in starting
salaries of 5.8 percent over 2006 — that’s
between $77,500 and $101,500 a year.
What about entry-level positions? Are people for those positions in high demand as
well?
Yes, there is also a high demand for staff
positions. Our guide shows that entry-level
accounting professionals at small firms
can expect a 5.1 percent increase in average starting salaries — that’s in a range of
$38,000 to $44,000 per year. And all other
positions in between, as well, can expect
healthy increases in compensation.
What are the top areas that are experiencing the most acute shortage?
The top three are in internal audit and
compliance, financial analysis and public accounting. Combined auditing principals and technology are particularly a
very sought-after skill set at the moment.
Information technology audit managers
at large companies will see average
starting salaries increase by 5 percent
over 2006 levels — that is an $85,500 to
$114,500 annual salary.
What are companies doing to attract these
accounting and finance professionals?
It is important that companies know
how to price starting salaries in order
to remain competitive and attract these
professionals. So the first way to
attract a top candidate is to know
exactly what the going compensation
rate is at the moment for a particular
profession.
Companies are also offering signing
bonuses for new recruits — and also for the
existing staff members. There are also other
creative options such as offering flexible
work schedules, part-time work, enhancing
benefit packages and other perks, and
telecommuting.
I suspect that while companies are offering more compensation, other steps could
be taken to help retain talent. Companies
need to find other creative ways to increase
the satisfaction of their employees in order
to keep them.
Are salaries similarly rising nationwide?
It is important to note that these numbers are averages and that compensation can vary region to region. You can
be sure that salaries for a position on
the East Coast won’t be the same as for
the Midwest. But the demand — regardless of region — will continue to be
high in 2007. Industry-wide, the demand
will be particularly strong in financial
services, manufacturing and commercial real estate sectors.
Is your salary guide available to the public?
Yes. Free copies are available from
Robert Half International by visiting the
Web site www.roberthalf.com or by
phoning (800) 474-4253.
ANDREA DUNN is division director for Robert Half Finance and
Accounting specializing in full-time placement. Robert Half
International has more than 350 locations throughout North
America, Europe, Asia, Australia and New Zealand, and offers
online job search services at www.rhi.com. Reach Dunn at (614)
221-9300 or andrea.dunn@roberthalf.com.
