Finance leaders see ‘benefits’ as key to talent attraction

By Steve Sully, Regional Director, Finance & Accounting, at Robert Half.

As we look ahead to the next 12 months, hiring the best talent will continue to be the top priority for finance leaders. And as our 2023 Salary Guide revealed, a strong brand and higher salaries are table stakes in today’s tight labour market – employers have to offer more in the way of flexibility and industry-leading benefits if they are to compete for the top finance and accounting talent.

Despite inflationary pressures and a cost-of-living crisis that shows no signs of abating, CFOs remain bullish, with half looking to expand their businesses and increase headcount. The big challenge lies in sourcing that talent though – 89% are concerned about not being able to access the right finance skills with the majority (58%) saying that they expect the situation to worsen in 2023.

In terms of the most in demand roles, respondents told us that they are looking for a breadth of finance talent, from more junior accounts assistant roles to assistant management accountants and upwards to more qualified financial accountants and group reporting staff. If we consider specific skills, they highlighted a need for knowledge of accounting standards, ERP systems, controls and SOX. However, as well as technical accounting experience, hiring managers are also looking for adept communicators and strong team players with excellent business partnering skills. They want agile learners who have a desire to develop.

Salaries and financial support

If we examine UK salaries regionally for corporate accounting, accounting operations and commercial accounting roles, we find that, perhaps unsurprisingly, London salaries are 22% higher than the national average – CFOs in the capital can command up to almost £275k. While the South East, East, Scotland and South West regions are paying above the national average, salaries in the North East, North West, West Midlands, Wales, East Midlands and Yorkshire were all below.

Counter offers are increasingly also coming into play as organisations fight to keep hold of their talent. We would expect this trend to continue in 2023 given the demand for and short supply of resources. In fact, the recent Robert Half Candidate Sentiment Survey confirms this – with two fifths (38%) of workers surveyed who had received a job offer, also receiving a counter-offer, rising to half of those aged 18-34 years old (52%). However, as confirmed in our Salary Survey, business leaders are aware that this is a short-term fix in that it doesn’t typically lead to improved retention. Many firms are viewing counter offers as a ‘necessary evil’ despite the fact that 27% admitted that employees that accepted these would still eventually leave. This suggests that while counter offers are widely welcomed by candidates seeking more money in the current climate, employers need to tread carefully and focus their efforts on longer-term retention strategies.

So, while CFOs acknowledge that regular salary reviews are a must if they want to retain their top talent, to further boost their talent attraction efforts, they must also look at other forms of financial support to help with the cost-of-living crunch, which is stretching household incomes to the limit. Subsidised meals, discounted season ticket loans to help with commuting costs and travel income streaming (enabling employees to draw down on salaries early) are some example measures.

Hybrid working is here to stay

After salary, the next most important benefit is flexible working. Almost 7 in 10 (69%) employers are offering their staff a part office, part home arrangement with just 14% enforcing a work from the office policy. The 2:3 model – two days in the office, three at home – is seemingly the most popular. To be noted, working arrangements can often be the deciding factor when candidates come to accept a job offer, so it’s vitally important. Somewhat surprisingly, almost 4 in 10 (38%) felt that productivity would be higher in the office.

Over a third (36%) mentioned the negative impact of working from home on career progression with 29% also saying that it’s harder to monitor staff for burnout or dissatisfaction. As well as being important hubs for social interaction, offices can reinforce the manager-employee relationship as well as a company’s culture.

Development is another key attraction and retention tool across the sector. While our findings found that almost a third (32%) were promoting training opportunities, more than a third (38%) of companies did admit that a lack of career progression is a problem. This is worrying as finance and accounting professionals want to grow their skills beyond reporting. Hiring at lower levels is one way to facilitate this and offer more career progression.

Mental and financial wellbeing

Employers are also considering or have already introduced other perks to improve work-life balance, such as early finishes, granting more annual leave or shorter working days for the same salary. Mental wellbeing remains a priority, especially after the pandemic when so many workers suffered from burnout. Employee assistance programmes (EAPs) with 24/7 helplines that also offer financial training are being offered to reduce stress caused not only by increased workloads but by other factors such as rising energy bills.

Other important factors in talent attraction and retention include a greater focus on transparency around business ethics and Environmental, Social and Governance (ESG) matters. Companies deemed to be ‘doing the right thing’ are at a clear advantage when it comes to hiring, especially for the younger cohorts who are looking to join organisations that share their values. Diversity, Equity and Inclusion (DEI) is another huge focus for candidates when considering applying for jobs.

To their credit, many organisations are rising to the challenge in what is a difficult economic landscape and are doing everything they can to help their people financially. They have had to be innovative, renegotiating supply contracts, increasing automation of processes, reducing office space and bonuses to cut overheads so that they can fund salary increases. And they will have to continue to do so in 2023, which is expected to be another difficult year.

And as our finance and accounting salary guide findings have shown, the mood from the boardroom is an upbeat one as organisations are looking to grow and bolster their finance teams. Indeed, over a quarter (26%) said that they are planning to hire in 2023. The ongoing number one challenge however does remain attracting and retaining top talent in a jobs market that favours candidates. Organisations can no longer rely on their brand name and salary – they need to focus on the total rewards package, which means offering benefits that can enhance work-life balance and wellbeing.