HIRING. Accounting, Finance & IT FORECAST 2015

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1 HIRING Accounting, Finance & IT FORECAST 2015

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3 q2 hiring forecast 2015 About Brilliant BRILLIANT is a search, staffing and management resources firm that specializes in the accounting, finance and IT professions. The firm has three locations, Chicago, Illinois; Schaumburg, Illinois; and Fort Lauderdale, Florida. The BRILLIANT name and logo come from the Chinese translation for the sun and moon and when combined create a heightened awareness, or a brilliant state of mind. BRILLIANT uses that heightened awareness to meet and exceed the expectations of its clients, candidates and colleagues. BRILLIANT candidates are highquality job seekers within the accounting, finance and IT professions. Its client base consists of hiring companies within the manufacturing, distribution, health care, professional services, retail, and not for profit industries, among others. To learn more, call , info@brilliantfs.com or visit Contents 4 A Look Ahead by CEO Jim Wong, CPA (Inactive) 5 Hiring Forecast Summary 6 Survey Respondent Data 6 Increase in Unfilled Positions for Both Accounting / Finance and IT 8 Length of Time Positions Unfilled 10 Types of Unfilled Positions 12 Hiring Plans Trend Toward IT 14 Prompt Hiring is Critical 15 Widespread Use of Temporary / Temp-to-Hire / Contract Professionals 16 Intentions to Hire Temporary / Temp-to-Hire / Contract Professionals 18 Assessments of the Talent Pool 20 Source of Successful Hires 22 Social Media Use Steadies 3

4 A Look Ahead Spring is a time for revitalization and rebirth. Just as the ground thaws and the leaves turn green, so do people, jobs, and businesses as they recharge with a new season. In fact, the accounting, finance and information technology professions are projected to be the strongest in years a true indicator that Quarter 2 will see businesses thrive and flourish. Our Brilliant 2015 Accounting, Finance and IT Hiring Forecast was produced in conjunction with Dr. Richard Curtin, Director, Surveys of Consumers at the University of Michigan (Ann Arbor) to determine various hiring trends and economic factors in the greater Chicago and south Florida markets. Close to 400 human resources and hiring-decision makers were surveyed between Jan. 27, 2015 and Feb. 9, The primary industries examined included manufacturing, distribution, health care, consumer products, financial services, professional services, retail, real estate and non-profit organizations. The data shows that companies have an increased number of accounting, finance and IT job openings, even over of this year, for both permanent and temporary positions; Moreover, they plan to fill the roles as soon as possible. We also examined the skillsets, or lack thereof, of candidates they have considered. 4 Dr. Curtin explains, Close to 40 percent of survey respondents reported they plan to fill permanent accounting / finance positions and nearly 60 percent planned to fill IT positions. This shows business activity is increasing, especially with most jobs only being vacant for 1 to 3 months. The study brings important insight for both companies in the market as well as professionals in the accounting, finance and IT professions. Not only are businesses doing so well that they have a spike in open positions, but there continues to be a strong demand for temporary / contract accounting, finance and IT professionals. Most of the vacant accounting / finance and IT positions fell in the corporate accounting spectrum and within data administration for IT. And, one other significant finding was for temporary positions. 35 percent of survey respondents planned to hire temporary IT professionals, nearly double from what was reported in the previous hiring forecast. As with the 2015 Hiring Forecast, BRILLIANT asked survey takers to respond to questions surrounding the hiring of accounting / finance professionals separately from IT. Therefore, you will see that accounting / finance is referred to as one profession and IT as a second profession. We are now pleased to share the following, comprehensive findings. Regards, James F. Wong, CPA (Inactive) CEO, info@brilliantfs.com

5 HIRING FORECAST SUMMARY: Strong Hiring Growth Expected In the Brilliant 2015 Accounting, Finance and Information Technology (IT) Hiring Forecast, the human resources professionals and hiring managers surveyed, anticipated an increase in hiring both permanent and temporary professionals. The increased demand for accounting / finance and IT professionals reflects a recent increase in business activity as the majority of these positions have been available for less than three months. Moreover, survey respondents reported that most of the open positions needed to be filled as soon as possible. Half of all companies also employed temporary accounting / finance and IT professionals, largely to meet specific project goals. Very few mentioned that hiring temporary professionals was due to economic uncertainty or ACA regulations. When asked to evaluate the pool of potential candidates, survey respondents reported that about one-in-five candidates were fully qualified. The most common skills missing among the balance of candidates for accounting / finance staff involved their ability to problem solve, and for potential IT staff, their written and verbal communications skills. Importantly, the most successful hires for accounting / finance and IT staffs originated from search and recruitment firms, personal referrals and internal promotions. Overall, the data indicates an emerging strength in the labor market during 2015 with an increased competition for top talent likely to result in increased wage offers. contact us

6 SURVEY RESPONDENT DATA: Hiring Decision Makers 386 human resources professionals and hiring managers were surveyed and asked to indicate whether they were responsible for hiring accounting / finance professionals only, IT professionals only, or both accounting / finance and IT. Among all survey respondents, 73 percent reported they were responsible for accounting / finance and / or IT hiring in some capacity. In fact, 230 survey takers responded to the questions pertaining to accounting / finance staff; this was well above the 197 in the 2015 hiring forecast and the 163 in Q survey takers responded that they were an IT hiring decision maker. This is well above the 66 in the 2015 hiring forecast and the 46 in Q The 2015 Hiring Forecast survey was specifically designed to focus on hiring trends for the two professions: accounting / finance and IT. The majority of all respondents, 62 percent (50 percent + 12 percent) were responsible for hiring accounting / finance. Hiring responsibilities for IT staff were reported by 23 percent (12 percent + 11 percent) which was between last quarter s 25 percent and the 21 percent reported two quarters ago. The majority of companies in the survey (59 percent) were relatively large companies, employing more than 500 people in total. Only 19 percent of the companies surveyed were small businesses, employing fewer than 100 people. One-in-ten voiced a need for seven or more accounting / finance positions, and one-in-five companies reported having seven or more unfilled IT positions. Increase in Unfilled Positions for Both Accounting / Finance and IT A significantly larger number of companies reported unfilled accounting / finance and IT positions than in the previous hiring forecast. This increased need reflects a combination of recent gains in business activity as well as increased employee turnover. In this survey, 39 percent of all companies reported vacant accounting / finance positions, up from 30 percent in the 2015 hiring forecast and 28 percent in Q Unfilled IT positions grew even more rapidly, with 58 percent of all survey takers reporting vacant IT positions, up from 37 percent in the previous forecast and 33 percent in the Q hiring forecast. Such a large gain reflects both an increase in business, the relentless computerization and onset of advanced technologies in many facets of business, as well as the growing Internet and data security demands. Indeed, one-in-ten voiced a need for seven or more accounting / finance positions, and one-in-five companies reported having seven or more unfilled IT positions. These figures represent a substantial amount of vacant positions and indicate that robust gains in employment can be anticipated. 6

7 Number of Unfilled Staff Positions ACCOUNTING / FINANCE IT POSITIONS: 1 to 3 22% 23% 25% 29% 4 to 6 2% 5% 6% 10% 7 to 10 More than 10 1% 2% 3% 6% 5% 6% 6% 13% contact us

8 Length of Time Positions Unfilled The interpretation that the recent upsurge in planned hiring is due to ongoing increases in business activity is supported by data on how long the positions have been vacant. Most positions have been vacant for a very short period of time. Among those who said they had unfilled accounting / finance positions, the majority were relatively recent 33 percent were vacant for less than three months. For unfilled IT positions, a similarly high proportion (48 percent) was vacant for less than three months. Naturally, most human resources or hiring decision makers cannot instantly replace employees. The hiring process can entail a long series of steps that can easily account for more than a month s time, especially when specific skills are needed in the highly technical fields of accounting / finance and IT. The short period of time that positions have been unfilled provides convincing evidence of the pressing needs for additional employees to facilitate a growing business. Among those who said they had unfilled accounting / finance positions, the majority were relatively recent 33 percent were vacant for less than three months. For unfilled IT positions, a similarly high proportion (48 percent) was vacant for less than three months. Have Unfilled Positions ACCOUNTING / FINANCE 30% 37% % 58% 2015 IT 8

9 Length of Time Positions Remained Unfilled ACCOUNTING / FINANCE IT MONTHS: 0 to 1 10% 14% 14% 26% 1 to 3 14% 19% 21% 22% 3 to 6 More than 6 4% 2% 3% 2% 0% 3% 1 9% contact us

10 Of the 39 percent who had unfilled accounting / finance positions, the most common type of job opening, mentioned by 26 percent, was in corporate accounting. TYPES OF UNFILLED POSITIONS: Corporate Accounting & Database Administration Top List Survey respondents were asked to identify the types of positions that were unfilled; in case of multiple unfilled positions, they were asked about the job title that had the most openings. Of the 39 percent who had unfilled accounting / finance positions, the most common type of job opening, mentioned by 26 percent, was in corporate accounting. This includes financial analysts, tax, general accounting and internal auditors. Lesser skilled jobs in operational support were reported by 11 percent; these jobs included billing, bookkeepers, credit, collections, etc. Understandably, the fewest job openings were for a director of finance, controller, or other top-level management, indicated by 2 percent. Note: The biggest gain in unfilled accounting / finance positions since the 2015 Hiring Forecast was for the higher-skilled jobs in the corporate accounting category. A different split was found for open IT positions. Of the 58 percent who had unfilled IT positions, the largest group (23 percent) were in technical Of the 58 percent who had unfilled IT positions, the largest group (23 percent) were in technical services, which includes help desk professionals, desktop support, etc. services, which includes help desk professionals, desktop support, etc. Mid-skilled positions in database administration, which includes data architects and data warehousing, accounted for the next highest unfilled positions (19 percent). There was a strong rise in the need for data security professionals, reported by 8 percent, up from just 3 percent in the previous quarter. The other highly-skilled group, network administration (including network and communication engineering and management) fell in demand to just 6 percent, down from 13 percent last quarter. This was the only IT job classification to decline from the prior quarter s forecast. It is unclear how much the higher need for IT professionals compared to accounting / finance reflects expanded business needs or relatively high turnover among IT staffs. In either circumstance, the same need for more IT professionals is present. Also, more human resources professionals and hiring decision makers are looking for IT directors. This may indicate that businesses consider IT data and security more critical to the success of their firms. 10

11 Type of Unfilled Positions ACCOUNTING / FINANCE IT Operational Support 9% 11% Corporate Accounting 20% 26% Director, Controller 1 2 Technical Services 8% 23% Database Administration Network & Communications Data Security 6% 3% 8% 13% 13% 19% contact us

12 Hiring Plans Trend Toward IT Net increases in hiring can be expected during the year ahead, with the emphasis shifting toward expanding IT staffs. Increased hiring was planned by 17 percent for accounting / finance professionals, unchanged from There was a slight increase in the number of companies planning to decrease the pace of hiring for accounting / finance professionals, rising to 9 percent from 5 percent in the previous quarter s survey. This could indicate that on balance, net accounting / finance hiring fell to +8 from +12 in the prior quarter. In contrast, greater planned increases in the hiring of IT staff were voiced. Increased hiring of IT staff was reported by 23 percent of all companies, up from 16 percent in the previous quarter although still below the 34 percent recorded in the Q hiring forecast. Just 6 percent planned to reduce the hiring of IT professionals. This means that the net gain now planned for IT rose to +17 from +11 in the previous quarter. Note: The unchanged hiring plans do not necessarily mean no new hiring, it simply means that companies plan no change in the number hired. Various explanations for hiring can include replacing existing staff who retire, change jobs or leave for a number of reasons. In addition, some companies may be in the midst of an expansion and expect to hire the same number as they did the previous year. The question simply focuses on how that rate of hiring is anticipated to change in the year ahead. Increased hiring was planned by 17 percent for accounting / finance professionals, unchanged from

13 Hiring Plans During Next 12 Months ACCOUNTING / FINANCE IT HIRING WILL... 28% 17% 17% 34% 16% 23% Q4 INCREASE INCREASE INCREASE 67% 67% 64% 54% 69% 56% Q4 UNCHANGED UNCHANGED UNCHANGED 3% 0% Q4 DECREASE 2% 12% Q4 UNCERTAIN 5% 5% DECREASE 11% 10% UNCERTAIN 9% 6% DECREASE 10% 15% UNCERTAIN contact us

14 PROMPT HIRING IS CRITICAL Majority Plan to Hire ASAP One way to measure how critical it is for human resources professionals and hiring-decision makers to expand their teams is to determine how quickly they want to bring the new members onboard. Of the 39 percent of survey takers who have open accounting / finance positions, the vast majority (30 percent) wanted them filled as soon as possible. Only 2 percent expected the position to be filled by Q3 of 2015, or later. The same critical need was expressed with regards to IT staff. Of the 58 percent with open IT positions, 50 percent indicated that they needed to fill the open positions as soon as possible. Only 1 percent anticipated hiring for open IT positions in the second half of This data provides a strong affirmation of the overall strength in the labor market. Moreover, it is difficult to imagine how these goals could be accomplished ASAP without using higher wages as an inducement. When Plan on Filling Open Positions ACCOUNTING / FINANCE ASAP Q Q % 7% 7% IT 30% 50% 14

15 Of the 39 percent of survey takers who have open accounting / finance positions, the vast majority (30 percent) wanted them filled as soon as possible. Only 2 percent expected the position to be filled by Q3 of 2015, or later. The same critical need was expressed with regards to IT staff. Of the 58 percent with open IT positions, 50 percent indicated that they needed to fill the open positions as soon as possible. Widespread Use of Temporary / Temp-to-Hire / Contract Professionals The data and analysis up to this point involved hiring plans for permanent accounting / finance and IT professionals. The 2015 Hiring Forecast survey found that temporary / temp-to-hire / contract professionals are an important part of nearly every company. Indeed, half of all companies indicated they currently utilize temporary professionals. 48 percent reported utilizing temporary accounting / finance professionals, while 54 percent reported utilizing temporary IT staff. The difference between these two professions was not statistically significant. Note, however, that there was more uncertainty about temporary professionals for IT staffs compared with accounting / finance. Currently Employ Temporary Professionals ACCOUNTING / FINANCE 2015 YES 48% NO 47% DON T KNOW 5% YES 54% NO 32% DON T KNOW 14% IT contact us

16 Intentions to Hire Temporary / Temp-to-Hire / Contract Professionals Survey takers were also asked about their hiring plans for additional temporary professionals. As might be anticipated, a substantial number of companies reported their intentions to expand their hiring of temporary, temp-to-hire or contract professionals. Among all companies, 15 percent reported that they planned to increase the number of temporary accounting / finance staff. This was unchanged from the 2015 Hiring Forecast. While intentions to hire additional temporary IT staff was comparable to the intended hiring of temporary accounting / finance professionals last quarter, the 2015 survey data indicated more than twice as many survey respondents intending to hire temporary IT staff. Overall, 35 percent plan to hire temporary IT staff, nearly double the 18 percent recorded in the previous two quarters. Overall, 35 percent plan to hire temporary IT staff, nearly double the 18 percent recorded in the previous two quarters. The reasoning given by survey respondents for hiring additional temporary professionals was rarely due to Obamacare or economic uncertainty cited by just 1 percent for both accounting / finance and IT. For accounting / finance, more survey respondents indicated that their companies needed temporary professionals for specific projects (8 percent) or to fill in-demand roles (5 percent). This emphasis on specific project needs was even more dominant for temporary IT staff, mentioned by 23 percent. While the inclination to hire temporary as a means to evaluate people for permanent positions and cultural fit became relatively rare for accounting / finance teams (just 1 percent, down from 5 percent in the previous quarter) this practice became somewhat more common for IT staff (8 percent, up from 3 percent last quarter). 16

17 Reasons to Hire Temporary Professionals ACCOUNTING / FINANCE IT Due to ACA 1% 1% 1% 4% 0% 1% Economic uncertainty 0% 0% To evaluate for cultural fit Have upcoming projects In-demand roles need to be filled % 3% 3% 5% 5% 8% 8% 8% 11% 23% contact us

18 When asked to identify the biggest skill gap among job seekers, about one-in-five survey respondents mentioned that they had found no gap in the skillsets of candidates. Assessments of the Talent Pool When asked to identify the biggest skill gap among job seekers, about one-in-five survey respondents mentioned that they found no gap in the skillsets of candidates. The primary gaps among accounting / finance applicants was widespread, including problem-solving skills (28 percent), expertise (19 percent), cultural fit (19 percent), and communication skills (16 percent). The data in skill gaps for accounting / finance positions were quite similar to the prior quarter, suggesting a constant pool of applicants. The same was not true for IT applicants: fewer survey respondents reported no gaps in their skillsets (23 percent, down from 36 percent last quarter), and more gaps in problem-solving skills (16 percent, up from 9 percent last quarter). Moreover, the most frequently mentioned skill gap among IT candidates was their verbal and written communication skills, mentioned by 30 percent, twice as frequently as for accounting / finance candidates. In contrast, for accounting / finance positions, the most frequently mentioned gap was in problem-solving skills (28 percent) nearly twice as frequently as for IT staff. Moreover, the most frequently mentioned skill gap among IT candidates was their verbal and written communication skills, mentioned by 30 percent, twice as frequently as for accounting / finance candidates. 18

19 Biggest Skill Gap Among Qualified Candidates ACCOUNTING / FINANCE IT Problem solving 9% 25% 28% 16% Communication skills 16% 16% 28% 30% Expertise 13% 21% 19% Cultural fit None 16% 18% 14% 19% 15% 20% 18% 23% 36% contact us

20 Source of Successful Hires Survey takers were asked how they located the majority of their successful new hires i.e. people that proved to be valued additions to their company. Search and recruitment firms provided the most successful new hires for both accounting / finance and IT. For accounting / finance, 36 percent reported search and recruitment firms as the number one source for their successful new hires, virtually unchanged from the previous two quarters. For successful IT hires, 30 percent indicated search and recruitment firms were also responsible, up from 22 percent reported in the previous quarter. Interestingly, other personal contacts, via referrals or word-of-mouth, were mentioned less frequently for both types of staffs, but especially for IT hires (22 percent, down from 35 percent in the prior quarter, and 30 percent in Q4 2014). It should be no surprise given the length of the current expansion that past hires, including temporary professionals, were more likely to be promoted for both professions. Although job boards accounted for fewer successful accounting / finance hires (17 percent, down from 24 percent), this was counter balanced by a gain in successful hires from resumes via the companies websites (11 percent, up from 5 percent in 2015) and by social media (8 percent, up from 4 percent in 2015). The same trade-off for successful IT hires was also found between an increase in resumes from the companies websites (10 percent, up from 3 percent) compared with a decline in social media (4 percent, down from 10 percent in 2015). For successful IT hires, 30 percent indicated search and recruitment firms were also responsible, up from 22 percent reported in the previous quarter. 20

21 Source of New Hire Successes ACCOUNTING / FINANCE IT Search and recruitment firms 22% 30% 37% 36% Referrals; word-of-mouth 15% 18% 22% 35% Online job boards 18% 17% 18% 24% Internal promotions Resumes via company website ed resumes Social media Other contact us % 5% 5% 3% 5% 5% 1% 1% 4% 4% 2% 2% 1% 1% 11% 11% 10% 10% 10% 14% 21

22 Social Media Use Steadies Survey respondents were asked about their social media use for recruiting accounting / finance and IT. In response, the majority of survey takers indicated they used social media as a recruitment tool. Interestingly, the use of social media increased for recruiting IT staff (63 percent, up from 48 percent in the previous quarter) but remained largely unchanged for accounting / finance (52 percent, just below last quarter s 53 percent). Perhaps the more surprising finding was that half of the survey respondents indicated that they did not use social media for recruiting accounting / finance teams, and one-third avoided social media when recruiting IT staff. Of course, the lack of social media in references to successful hires could have been hidden to them by hiring search and recruitment firms that did employ social media. 22

23 Use of Social Media for Recruiting Talent ACCOUNTING / FINANCE YES NO 53% 52% 47% 48% IT YES NO 48% 52% % 37% 2014 contact us

24 About the Brilliant Accounting, Finance and IT Hiring Forecast Since 2012, the search, staffing and management resources firm BRILLIANT, in conjunction with Dr. Richard Curtin, Director, Surveys of Consumers at the University of Michigan, Ann Arbor, has published a quarterly Hiring Forecast analyzing the hiring trends and economic factors affecting the accounting, finance and IT professions. The comprehensive report comes from data collected from human resources professionals and hiring managers surveyed by BRILLIANT within the greater Chicago and south Florida markets. The majority surveyed are responsible for hiring accounting, finance and IT professionals within the manufacturing, distribution, health care, consumer products, financial services, professional services, retail, real estate, insurance, technology and non-profit industries, among others. The Brilliant 2015 Accounting, Finance and IT Hiring Forecast can be accessed on the website: MEDIA CONTACT: Laurie Canning, CSMP Digital Marketing Manager BRILLIANT (p) (e) Lcanning@BrilliantFS.com For more information, visit call , info@brilliantfs.com or follow us on social media. 24

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