The accountancy industry has shown remarkable resilience in the face of global economic uncertainties, and 2023 was no exception. As we move into 2024, the demand for qualified accountants remains high, with significant hiring activity and competitive salary growth across various sectors.
High Demand for Talent
In 2023, there was a noticeable demand for accountants across core areas like audit, tax, financial reporting, and management consulting. This demand was not limited to traditional industries but extended into sectors like IT and tech, which have become prominent drivers of recruitment in the accountancy field. Big Tech companies, though hiring at a slower pace compared to previous years, continued to expand their financial teams. Additionally, smaller tech firms, especially within AI and other innovative sectors, were actively seeking skilled accountants.
Salary Inflation and Permanent Opportunities
The tight labour market in 2023 led to substantial salary increases for accountants, with compensation seeing a rise of 5-7.5% in most roles. This upward salary trend is expected to continue into 2024, with the demand for permanent staff putting candidates in a strong position to negotiate competitive compensation packages. Accountants are finding themselves with more career opportunities that align with their long-term professional goals.
Embracing Remote Work
The accountancy profession, known for its adaptability, has embraced remote work arrangements. 90% of accountancy jobs recruited by Sigmar offered hybrid working options, allowing professionals to enjoy greater work-life balance while still being able to pursue opportunities across a wider geographic area. Hybrid work models, typically involving a combination of office-based and remote work, have become the norm.
Temporary Market Resilience
While there was a slowdown in the number of temporary and contract roles in the first half of 2023, the second half of the year saw a significant rebound. Multinational corporations (MNCs), especially in the tech, software, and pharmaceutical sectors, were highly active in hiring contractors, signaling a strong outlook for the temporary market in 2024.
Salary Premium for Contractors
Contractors continue to enjoy a salary premium over permanent roles, with salaries typically 10-20% higher due to the flexibility and reduced overhead costs associated with contractor engagements. As companies seek temporary talent for specific projects or periods of high demand, contractors have a distinct advantage in terms of both compensation and flexibility.
Hybrid Working Preferred by Both Contractors and Employers
Both employers and contractors are increasingly prioritizing hybrid work arrangements, typically a 3/2 split between remote and office-based work. This arrangement offers flexibility, better focus, increased productivity, and improved work-life balance for contractors while still ensuring access to in-office resources and team collaboration.
Outlook for Accountants in 2024
The accountancy job market remains exceptionally positive heading into 2024, with ongoing demand for skilled professionals across various sectors, competitive salary growth, and a growing preference for remote and hybrid working models. Contractors continue to command a premium for their flexibility, and multinational companies are expected to remain active in hiring both permanent and temporary accounting talent.
Accountants who embrace technological advancements, maintain strong technical skills, and demonstrate a commitment to continuous learning will be well-positioned to thrive in this dynamic industry.
For assistance with your job search or to explore exciting opportunities in accountancy, feel free to contact us at Sigmar!
