Although Australia has been unable to avoid the fallout from the global credit crunch, it seems that there will always be jobs for good accountants. 
 
Story Melissa WIlkinson Illustration Gregory Baldwin 
 
The global credit crunch has cut a devastating path through the job markets in many developed countries around the world. The US and Europe are now officially in recession and large companies, particularly in the banking sector, have shed layers of staff in an effort to slash costs. 
 
Although Australia hasn’t been completely immune to the financial market turmoil, its economy has been surprisingly resilient in light of recent events. Policy makers have moved swiftly to introduce measures to stop everything from slowing to a complete halt. The Reserve Bank has made large cuts to the official cash rate and shifted to an expansionary monetary policy setting in order to ease tight credit conditions and support flagging business confidence. 
 
The federal government also introduced a $10.4 billion spending package in early December 2008 to help drive consumer spending and spur on economic growth. The overall job market is showing signs of softening with the September and December 2008 quarterly data noticeably weaker than comparative periods. Jobs in boom and bust sectors like investment banking have been hardest hit. However, according to the recruiters, the job prospects for those in the accounting profession still look promising. 
 
Outlook – Qualified Accountants 
Kristen Mangelsdorf, Queensland general manager for LINK Recruitment, says that despite the global downturn, good people with accounting skills will be in demand. 
 
“There’s a lot of uncertainty about what the economy will hold for 2009 but there is always a shortage of talented people. Technically experienced accountants in particular are likely to be in the most demand and the job market for general or management accountants will probably show the most weakness. 
“The Melbourne job market is likely to stay fairly buoyant because of the number of head offices there which will need accounting support. The New South Wales accounting job market is showing signs of weakness because of its role as Australia’s finance centre,” she says. 
 
Mangelsdorf warns that companies should keep a long-term perspective when making any changes to their headcount levels. 
 
“Organisations shouldn’t be too short sighted in this market. It’s important not to be reactive and cut quality staff just because the economic outlook is looking uncertain. The clever organisations are already starting to pick up really strong talent. The economy works in a cycle and we’ll always come out of the phase that we’re in,” she says. 
 
Alec Bashinski, partner and People and Performer leader at Deloitte, says that there’s a real misconception in the marketplace about the employment outlook for finance people. 
 
“There’s always demand for top talent in both the qualified accountant and graduate market. Organisations still need the best people to build and grow their businesses. We’ve come off a very high year of growth at Deloitte but we’re still conservatively optimistic about future growth outlook. “In terms of specific skills, there’s quite a bit of demand for people with deeper levels of specialisation in areas like transfer pricing and GST. Relationship and client management skills are also highly valued,” he says. 
 
Robert Olivier CA from recruitment firm Olivier says that the global credit crunch is having a direct impact on the nature of the roles that are in demand. 
 
“There are fewer deals being done around town which is reducing the demand for audit, transaction services and tax advisory skills. Receivable roles have already dropped significantly which suggests companies may be outsourcing debt collection as they try and maintain their cash flow. The internet job data also suggests that businesses are cutting non-client-facing, non-revenue-raising support roles. 
 
“In terms of hot jobs, there is noticeable demand for specialist skills like insolvency and forensics. Companies are looking for people with particular experience in restructuring and turnaround. 
 
“Given the breadth of work available in professional services firms, Chartered Accounting roles are holding up better than those in other parts of the accounting profession. Commercial accounting roles are more susceptible to uncertain economic conditions, so there’s been some softness here. This is usually because companies don’t tend to start up or expand when the economy is slowing,” he says. 
 
The Olivier Job Index of internet advertised accounting roles in late 2008 found that accounting is still one of the largest job advertisement classifications among white collar occupations In terms of demand, accounting as a profession sits just behind IT&T. 
 
Grahame Doyle, NSW director for recruitment firm Hays, says that there is always a direct link between the job market and what’s going on in the rest of the economy. 
 
“We’re seeing a lot of demand for people at the supervisor level in the risk area and insolvency. There’s a noticeable influx of qualified Australians coming back from the UK and US financial services markets. These people bring back unique skills and international experience so they should be quite in demand. 
 
“There’s also likely to be a change in the way firms are recruiting. Businesses which are taking a cautious approach to the first half of 2009 are more likely to put people in contract roles as opposed to permanent positions. A year ago, these same employers would have preferred to sign them up straight away in permanent jobs. Accounting salaries are not likely to go down but there’s probably going to be some cooling in salary increases,” he says. 
 
Outlook – Graduates 
A straw poll of the top-tier accounting firms suggests that it’s business as usual in terms of vacation and graduate programs. While some legal firms have been paying their new graduates to start later in 2009, it seems the accounting firms are continuing to invest in their pipeline of young talent. 
 
Australian Association of Graduate Employers chief executive Ben Reeves says that most companies recognise that graduate programs are not something you cut when times are tough. 
 
“Some companies may have frozen their hiring activities for experienced staff but most are still recruiting graduates because they represent the future talent pipeline for the business. There’s also a need to take a long-term view on them as they don’t really become useful for two or three years into their career, at which point the economy may well have recovered. Some companies made the mistake of not hiring graduates during the economic downturn in the early 1990s and when business picked up again they were significantly understaffed,” he says. 
 
The AAGE’s recent survey of 200 leading employers found that despite the recent financial crisis, the number of graduates being hired with 2009 start dates was 2.1 per cent higher than last year. However, this rate of growth has slowed from 11.2 per cent reported a year ago. The survey revealed that the market for accounting graduates is still very tight and after information technology, accounting reported the largest number of unfilled graduate vacancies. (See Unfilled Vacancies chart on page 37). 
 
While the median starting salary for accountants is on the low side at about $45,000, Reeves recommends that students take the additional learning and development opportunities into consideration. 
 
“Graduates who work in accounting roles get a range of additional benefits that aren’t necessarily available in other professions. Accounting graduates studying for the Chartered Accountants Program will generally have their course fees paid for and will typically receive several days of paid study leave each year,” says Reeves. (See Median Starting Salaries chart on page 37). Human resource manager of graduate recruitment at KPMG Adam Buxton says that a graduate program is an investment in a company’s future. 
 
“We look for graduates with good communication skills who can build relationships internally and with clients. We like them to come from a broad range of disciplines so we can widen our talent pool as much as possible,” he says. 
 
PricewaterhouseCoopers is also actively broadening its graduate recruitment net. “We actively encourage applications from students from all disciplines. The nature of our business and client base is so diverse that we need people from all types of backgrounds. Depending on the area that graduates want to go into, we offer all the training they may need,” says PWC’s human capital director Sharon Bell. 
 
Tips For Job Seekers 
If you do have some concerns about the security of your role given the uncertain economic climate, Campbell Sallabank, chief executive of online job board company LinkMe, recommends that the best way to secure a job, is to do a good job. 
 
“People often get fixated on moving from job to job, but if you do things that are valued by the business and are seen to be doing a good job, then it’s unlikely you’ll lose your position. You shouldn’t spend all your time labouring away in the corner but you also shouldn’t waste it by playing politics in the corridor. 
 
“It’s in people’s interests to proactively managing their career and take an interest in it. Companies will have no hesitation in letting someone go if they have to. This means that you should develop relationships with recruitment people in your industry so that you’re prepared if something does happen. Even if you’re not looking for work, you should be on first name basis with at least four recruiters who are specialists in your area. 
 
“It’s also a good idea to create networks with people in your industry who have the potential to be a future boss. This could be a client or a competitor and the relationship should be quietly nurtured as much as possible.” 
 
Sallabank believes that technology and the Internet have been a fantastic enabler for job seekers. 
 
“The Internet has really empowered people around their careers. Newspapers advertisements are now definitely old hat. We’ve gone from an offline world where the power was in the hands of employers to an online world which makes the allocation of labour much more efficient. 
 
“Job seekers should set up job alerts on employment web sites and also be part of social networking sites like Linkedin, Facebook and have their resume in front of employers on career networks such as LinkMe. We’ve invested $11 million in LinkMe’s technology so that we can create a better mousetrap for managing your career. It does this by meshing together a database of job ads, resumes and whom you know.” 
 
While the accounting sector has been quite resilient amid the softer business conditions, job seekers will still need to make an effort to market themselves well. Sallabank says that many candidates fall down in this process because they submit poor resumes. 
 
“One of the biggest mistakes that I see job seekers make is that they include a shopping list of responsibilities. A good CV includes achievement-oriented information which is punchy and highlights the areas which match the job you’re applying for. You should focus on two key areas: what you’re passionate about and what you’re good at. “If there are no jobs in the area that you want to work in, you should look at roles that are similar and then highlight the skills which are transferable. 
 
“Given that 60 to 70 per cent of jobs are not advertised, candidates should also leverage their networks to the maximum. The biggest advantage of going through your networks is that you’re not competing against other people,” he says. 
 
The key message coming from recruiters is that candidates need to have a clear picture of where they want to be in five years’ time and the type of work they enjoy doing. While it’s important not to be too fastidious in a softer job market, being picky is still critical. If you’re considering changing jobs, the advice from recruiters is to stop and think. 
 
Mangelsdorf says that the worse career mistake that people make is jumping too quickly for the wrong reasons. 
 
“If candidates haven’t thought clearly about what they want or get dazzled by the money on offer, they can make a massive career mistake. It’s crucial that they look past the money and closely examine the actual job and the culture of the organisation they’re looking at joining,” she says. 
 
Other senior HR people in the accounting industry say that if you’re not getting any feedback about your current job, ask for it. They recommend sitting down with your manager and asking for specific feedback on your performance and how you can progress in the organisation. 
 
Redundancy Advice 
If the future of your job looks like it may be under a cloud, the recruitment experts recommend not hanging around for a redundancy package. 
 
Olivier says: “It obviously depends on how long you’ve been with a company, but it’s usually far wiser to change jobs while you’ve still got a job. Prospective employers will view you far more favourably because they’re typically quite suspicious about people who’ve been made redundant. Unless the company is cutting a whole division, they’re usually very reluctant to retrench top performers.” 
 
Mangelsdorf says that people who have been made redundant shouldn’t be afraid to look at contracting roles. 
 
“The contracting market is likely to take off to some degree in 2009 as businesses avoid hiring staff on a permanent basis. There used to be a stigma attached to contracting but it’s now seen positively because contractors can bring specific skills for specific projects,” she says. 
 
Recruitment consultants recommend following the money when looking for accounting jobs during a downturn. Sectors like engineering, healthcare and government should be well insulated from global events and continue to perform strongly during 2009. 
 
Job Tips For Graduates  
In terms of tips for the younger job seekers, the experts recommend staying keen and humble. 
 
“Given the softer economic conditions, a lot of Gen Ys will be in shock over the next six months. This is likely to knock some of the Gen Y out the Gen Ys. They’re no longer going to be able to turn up to interviews in sloppy Joes and still get away with it,” says Sallabank.