Advice & Resources, BB News, Industry Insight
As we progress through 2024, the financial and accountancy recruitment sector continues to evolve, shaped by economic pressures, political changes, and shifting workplace dynamics. At Broster Buchanan, we’ve observed several key trends impacting both employers and candidates across all sectors.
The job market for finance and accountancy professionals will remain highly competitive in 2024. We’re seeing an ongoing and persistent skills shortage, particularly for roles requiring specialised expertise or industry-specific knowledge.
Whilst job flow in the first half of the year has seen a significant decline in the number of available roles coming to market at all levels from junior finance up to C-Suite, we are yet to see a mirrored increase in available candidates. In most recruitment markets there is a counter-lever effect that sees the number of available candidates dictating the number of available jobs, i.e. as numbers of vacant positions increase, usually, the number of available candidates decreases, in turn, making it more competitive an challenging to hire. This doesn’t appear to be the case in the current market so whilst there are fewer roles to be filled, the ongoing scarcity of talent has led to increased competition amongst employers, with many organisations struggling to fill critical positions.
We’ve noted a particular shortage in areas such as financial analysis, tax, and data-driven decision-making roles where candidates are using finance business partnering skills to help budget holders across the business make sound financial decisions.
The ongoing cost-of-living crisis continues to impact both employers and employees. Candidates are increasingly prioritising roles that offer competitive salaries and comprehensive benefits packages. This has been particularly notable across sectors such as charity, not-for-profit and public sectors, where their key candidate attractions are often beyond the basic salary on offer. Anecdotally we have spoken with candidates working with the finance departments of charities and know that they can’t afford to ask for a pay rise, but they also know they can’t afford to meet increased mortgage and childcare costs, so they have to look for roles outside of the charity sector even though they are committed to the social purpose or the organisation that they work for.
Additionally, we’ve observed a trend of candidates being more assertive in salary negotiations, seeking remuneration that reflects both their skills and the increased cost of living over the past 3 years. Employers have been responding to these pressures in various ways. Some are offering more attractive salary packages to secure top talent, whilst others are focusing on enhancing their overall benefits offerings, including flexible working arrangements, enhanced pension contributions, and wellbeing programmes.
Potentially, some candidates who moved at the peak of market demand in 2021 and 2022 and may have received above-market-rate salaries may find themselves in “negative equity” when considering their next career move, as there is an expectation gap between what employers are willing to pay in a market that has corrected back closer to pre-pandemic levels of demand and the increased salary demands from candidates looking for a new role.
The demand for hybrid working arrangements has solidified in 2024, with many candidates now viewing flexibility as a non-negotiable aspect of their employment, whilst employers who have noticed issues of productivity or training and development of new and existing staff are attempting to compel staff to work onsite more frequently. This is another “expectation gap” in the market, and candidates are on average hoping for 1–2 days of their week to be office-based, but employers are aiming for a minimum of 3–4. With LinkedIn advising us in a recent training course that the number of remote roles being advertised at the start of 2024 was down by 28%, this has potentially seen candidates seeking a new role staying longer in their current position while they compete for highly sought-after remote opportunities, which has cooled the market.
This does mean that organisations that offer a balance between remote and office-based work are often more successful in attracting and retaining top talent and so if you are limited on what salary you can pay, flexibility will often secure you a better calibre candidate for a lower salary. Similarly, if you are hoping to recruit people to be on site 5 days per week, you may find that you need to pay a market premium to attract the best candidates.
The recent general election had been looming over people through the early part of 2024 with it introducing an element of uncertainty into the job market. Many businesses adopted a cautious approach to hiring, particularly in the run-up to the election, in particular those reliant on public funding or with significant transactions with the public sector. Candidates are also likely to have been more cautious in making a move. However, now that the results are in, we anticipate a period of increased activity and market confidence as organisations adjust their strategies in line with the new government’s policies.
Initial predictions based on the Labour manifesto would suggest potential growth/demand hiring opportunities could be seen in green finance with a focus on clean energy projects, housing finance with the bold pledge to build 1.5million new homes, including within social housing and an ongoing focus on developing financial services, including unlocking the potentials of the mutual sector.
As we move through 2024, we anticipate that the recruitment landscape will continue to be dynamic and evolving. Employers who can offer competitive packages, embrace flexible working arrangements, and provide clear career progression opportunities are likely to have the edge in attracting top talent.
For candidates, the market offers numerous opportunities but also requires a commitment to continuous learning and adaptability. Those who can demonstrate a blend of technical expertise, soft skills, and the ability to navigate change will be well-positioned in this competitive landscape.
Should you be interested in hiring staff, or considering your career options, there are a great many opportunities to be achieved in the current market, but we can guide you through what is still an uncertain, and, at times, unpredictable market.
