ACCOUNTING & FINANCE. Talent trends. Insights into hiring, roles, skills and salaries for your team. Singapore H1 2018

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1 ACCOUNTING & FINANCE Talent trends Insights into hiring, roles, skills and salaries for your team Singapore H1 2018

2 80% of employees surveyed in accounting and finance across Asia are concerned about the impact of AI on their job. Economic growth is creating jobs but employees concerned about future Economic growth underpins strong hiring demand In great news for job seekers, overall hiring intentions have increased due to economic recoveries and forecasts of strong GDP growth 1 in China, Hong Kong and Singapore. It s a job seekers market, with more job opportunities than qualified people to fill them. This means tougher competition for employers to win the best talent, particularly as accounting and finance hiring managers are looking for difficult-to-find soft skills. Most employers expect they will need to pay more to attract and keep the best people in the accounting and finance function. To gauge the challenges of employers and employees, Hudson has carried out research for the accounting and finance sector. This report conveys the results from Hudson research conducted in October Employees are concerned about the impact of AI Despite the strong economic conditions, the rapid rise of Artificial Intelligence (AI) and machine learning could significantly impact the jobs market in the near future. In the accounting space, AI is already starting to replace tasks that were done by people, such as data entry and data analysis as companies look for efficiencies. This means that those who stay will need to develop their business partnering and communications skills to create value for their employers. Hudson research Oct. 2017: Accounting & Finance employees, Asia 1 Moon, L. Optimism over economic outlook for 2018 surges among Hong Kong's finance job seekers, South China Morning Post, Jan. 12, 2017, www. scmp.com/business/article/ /optimism-overeconomic-outlook surges-among-hong-kongs-finance Although the majority of employees reported that they expected their jobs to remain intact over the next three years, 4 out of 5 employees in accounting and finance are concerned about the potential impact of AI on their roles.

3 AI a slow fuse? Small impact to teams so far but employees concerned about future 3

4 Will AI change the shape of your team? According to Hudson s survey, 57% of employees expect their role to be impacted by AI and new technologies in the next few years. It s clear that artificial intelligence and machine learning will significantly impact the accounting and finance job function within the short-medium-term, as evidenced by the world s major accounting firms increasing investment in the area. 1 However, a recent study of Asian companies by MIT 2 has predicted that this tech boom will not eliminate jobs, but rather restructure and reorganize them around managing and developing human capital and inputs from machines. 15% of accounting and finance hiring managers report that AI has impacted their team. Top 3 ways that AI is impacting teams 1. Replacing some repetitive job tasks e.g. data entry 2. Analyzing data and forming conclusions 3. It is requiring my staff to learn new technology skills 4 Hudson research Oct. 2017: Accounting & Finance employers and employees, Asia 1 Auditing to be less of a burden as accountants embrace AI, The Financial Times, 2017, 2 Asia's AI Agenda., MIT Technology Review, 2017

5 How concerned are employees about the impact of AI on their jobs? While many believe that AI will transform the industry, the implications are different for employers and employees. 1 in 10 very concerned 3 in 10 slightly concerned 4 in 10 moderately concerned 2 in 10 not at all concerned How will AI impact accounting and finance? Globally, the Big Four accounting firms have begun to invest heavily in AI to streamline and speed up auditing. This is likely to improve efficiency and accuracy while freeing employees to focus on the tasks that need human judgement. With the concurrent rise of linked digital records through Blockchain, hiring managers are poised to radically reshape their operations. While the cost of the technology will be an impediment in the short-term, organizations will have to evolve and innovate to keep up with the demands of both their clients and regulators. In the next three years, how likely do you think it is that your job will exist in its current form? 5% 4% Very Likely 13% 35% 43% Moderately Likely Somewhat Likely Not Sure Not At All Likely 5 Hudson research Oct. 2017: Accounting & Finance employees, Asia

6 SINGAPORE - EMPLOYMENT MARKET INSIGHTS Hiring demand & supply: Restructures underway but firms seeking business partners Many accounting and finance functions are undergoing restructures as organizations in the APAC region are trying to balance their support functions with business efficiency. However, most hiring managers still intend to either maintain or increase headcount, as talented accounting and finance job seekers who can bring value as business partners are in high demand. With all the start-up technology companies in Singapore, demand on accounting and finance talent has increased to support the business expansion. Contracting hiring is also a big trend for Singapore, especially for covering peak season (i.e. year-end closing or annual audit). Hence, throughout 2018, we expect that hiring activities in accounting and finance will remain stable. 87% of employees open to opportunities or actively searching 60% Most Singapore accounting and finance employees are open to hearing about new opportunities, however they are cautious about moving into jobs in an unpredictable market where support functions are being outsourced. However, the majority are passively open to hearing about roles since they feel that there might be a risk of restructuring within their current roles. 27% 13% Open to new opportunities - i.e. passive job seeker Actively seeking a new job - i.e. in the process of applying for jobs Employee intentions Planning to stay in current job 6 Hudson research Oct. 2017: Accounting & Finance employees, Singapore

7 Hiring challenges: Employers seeking cultural fit and leadership capabilities While there are a lot of talented accounting and finance job seekers in the Singapore market with the technical skills to perform the job, employers are particularly seeking people with the right cultural fit and the right soft skills to become business partners. Employers are willing to give up to 10-15% more in pay rises to attract new hires who have leadership qualities as well as the right technical competencies. Top 3 hiring challenges 1. Finding candidates with the right cultural fit for the team 2. Finding candidates with strong leadership capabilities 3. Attracting talent to the organization What are the main reasons for the hiring challenges? 1. Candidate quality - high expectations and not enough cultural fit 2. Business performance - hiring freeze, HR approvals 3. Lack of budget - cannot provide a better remuneration package SINGAPORE - EMPLOYMENT MARKET INSIGHTS What attracts accounting and finance employees to a new role? Career progression Work/life balance The right salary 22% 21% 19% Hudson research Oct. 2017: Accounting & Finance employees, Singapore 7

8 SINGAPORE - EMPLOYMENT MARKET INSIGHTS Leadership challenges: Employee development a concern in environment of change In a business landscape of restructure and uncertainty, accounting and finance leaders are faced with the challenge of helping their employees adapt and thrive within a changing team. Another challenge in this environment is developing the leadership pipeline. Hiring managers are seeking to create a strong middle layer of management in the business, with the skills to both report up to the business leaders and also to manage other people. Another focal point in multi-cultural Singapore is the issue of cross-cultural people management. Top 3 leadership challenges 1. Helping employees adapt to change 2. Developing and training employees Top 3 reasons why employees leave 1. Lack of career progression 2. Bored and need a new challenge 3. Disappointed with salary 3. Managing people across cultures Top 3 alternatives to a pay rise 1 Flexibility at work 23% 2 Additional annual leave 12% 3 Health/medical benefits 23% 8 Hudson research Oct. 2017: Accounting & Finance employees, Singapore

9 In-demand roles and skills: Business partnering is essential Most in-demand job functions/ roles: Financial planning and analysis Corporate finance Financial reporting Internal audit Financial control Business partnering demand increasing There has been an uptick in Singapore of those looking to hire business partners into the finance department, and this is reflected in the in-demand job functions and technical and soft skills. Data skills of crucial importance to businesses Making informed decisions based on data-driven insights is of primary importance to businesses. Individuals who can make sense of the data and influence business decisions are therefore in demand. In conjunction, job seekers need to have the soft skills to articulate these findings, and tell a story about the numbers to influence stakeholders. SINGAPORE - EMPLOYMENT MARKET INSIGHTS Most in-demand technical skills: Data analysis Data mining Data analytics ERP and implementation knowledge - SAP, ORACLE Financial planning and analysis Negotiation skills required to represent finance perspective The finance function in Singapore is becoming increasingly about partnering the commercial and sales teams. There is always a lot of negotiation involved in working with internal and external stakeholders, and the job seekers who can demonstrate the ability to influence outcomes from a finance perspective are most in demand. Most in-demand soft skills: Negotiation and influencing skills Driving and managing change Resilience Critical thinking Innovative thinking 9

10 SINGAPORE - EMPLOYMENT MARKET INSIGHTS Remuneration: Pay increases on offer to top job seekers While there is strong demand for those with the right combination of technical and soft skills and cultural fit, we have seen clients willing to pay significant increases in salary offers to attract or retain top job seekers. Almost half the accounting and finance employees surveyed received pay rises in the previous six months. 47% of accounting and finance employees in Singapore believe they are paid below market rate. Only 33% of accounting and finance employees in Singapore say they would stay at their organization for another 12 months even if they receive a pay rise. Did you receive an increase to your base salary in the past 6 months? If so, how much has your base salary/rate increased by? 41% 1-2% 3-5% 6-8% 9-10% 11-15% 16-20% Over 20% 32% 45% 7% 7% 4% 4% 1% YES Did you receive a bonus in the past 6 months? If so, how much was your bonus? 46% 0-5% 6-10% 11-15% 16-20% Over 20% 13% 26% 15% 27% 19% YES Expectations of pay rises By how much do you expect your base salary to increase at your next review? Increase by more than 10% Increase by 6-10% Increase by 0-5% Remain the same Decrease by 0-5% Decrease by 6-10% Decrease by more than 10% 6% 23% 56% 13% 10 Hudson research Oct. 2017: Accounting & Finance employees, Singapore 1% 1%

11 Salary guide: Accounting & Finance* SALARY GUIDE SINGAPORE (SGD 000) Assistant Manager Manager Senior Manager Director or above Accounting & Finance Accounting Finance Financial Planning & Analysis Internal Audit Tax Treasury Corporate Finance Senior Associate Manager Senior Manager Director or above Accounting Firms Audit Tax N/A *This salary guide is a compilation of salary and market information provided by Hudson consultants, clients, candidates and other sources across Asia. Information was gathered by drawing on the extensive knowledge of our specialist recruitment consultants across Hudson s specialist practice groups. Salary ranges are approximate guides only. They relate to base salaries and exclude bonuses/incentive schemes/stock options etc. 11

12 Contact Samuel Dennis Associate Director DENNIS SAMUEL DAVID Registration No. R Methodology Hudson undertook quantitative research with hiring managers and employees across Asia to analyse the talent landscape and provide insights on what employers might expect in 2018 and beyond. We canvassed the views of over 3,500 employers and employees in Asia in September and October 2017, across multiple job functions. From these findings we developed this report for the accounting and finance profession a combination of the survey findings and Hudson s specialist insights on the hiring landscape. Percentages don t always total 100% because respondents could select more than one option for certain questions. Hudson Accounting & Finance Hudson s specialist recruitment consultants have the in-depth market knowledge of salaries, job titles and hiring trends to ensure you achieve the best outcome for your organization at the appropriate remuneration. We build highly nurtured and engaged pools of select talent so you can find the right person quickly. This means greater speed and precision in placements, and higher satisfaction for both clients and candidates. Our proprietary assessment tools and techniques will help you find candidates with the right technical skills and capabilities for the role and for your team, so you can achieve higher performance and superior business results. Hudson Global Resources (Singapore) Pte Ltd EA Licence Number: 03C4590