Despite real evidence that the market for tax professionals, is moving ahead at the fastest pace in several years, the salary levels of tax professionals have not necessarily reflected the changes we are seeing in the economy.
The latest salary surveys from both Markit Economics and KPMG have revealed that the increase in permanent job placements in the UK have reached a four year high, while temporary placements are growing at a slower rate. In terms of salaries, these are growing at their highest level since 2007.
Companies are opening up new roles, expanding their business and feeling more hopeful about future growth. Employers are also under some pressure to increase salaries to bring them back to pre-crash levels and to ensure they stay within inflationary targets. This has led to increasing salaries in a number of markets – particularly for those switching jobs. Of course the demand for tax professionals will always rise as business confidence increases.
A number of the larger firms (particularly in the Top 10) are also reporting a shortage of good candidates to fill roles. This is particularly true in the tax arena where Big 4, Top 10, Mid-tier and Niche tax practices are looking for high quality tax professionals with specialist backgrounds. This is something which is being seen across the UK – but particularly in the larger urban areas.
While this is great news, it doesn’t always appear to be translating into higher salaries for those already in secure jobs. The reasons people tend to stay in their current roles are ones of security – a factor which has been at the forefront of a lot of tax professional’s minds for the last few years – however the situation is now changing.
Companies across the country want new people to fill varied and bespoke roles, often creating roles especially for those with particular skill sets. A number of firms are also not afraid to spend more money to secure the right person. Currently, the best way to get a better salary is to move to a new company – however this is something which will settle down (for successful firms) as businesses realise they need to retain staff. I believe there is an upward trend due, which will be more noticeable from 2014.
The answer for tax experts (looking to improve their position) is to either negotiate a better salary with their current employer, or to set their sights on new roles, in this fast moving market and gain higher salaries and rapid promotion by taking their talents to new employers.
This article was written by Medet Ali at Creative Tax Recruitment. Contact him on: 0207 872 5819