Financial Salary Guide & Employment Outlook

Transcription

1 2017 Financial Salary Guide & Employment Outlook

2 About Alliance Resource Group Candidate-first methodology. Our unique discovery process provides an exceptional understanding of the competencies and interests of the financial professionals we place. Our approach eliminates waste from the hiring process and leads to greater employee engagement and retention. Unmatched market knowledge. We understand business. No other firm can match the depth of our financial recruiting expertise or our knowledge of Southern California s talent community. Intelligent hiring strategies. We don t just recruit, we consult. We solve problems. We deliver intelligent strategies for hiring allowing you to work more efficiently. An exceptional experience. At Alliance Resource Group, we re not recruiters, we are your partner. We provide a more collaborative, consultative and strategic approach to hiring. We are fully invested in your long-term success. That s what we call Smarter Recruiting. Table of Contents About Alliance Resource Group : A Year in Review Employment Outlook 6 Employment Trends 8 Finance and Accounting Salaries 11 Public Accounting Salaries & Accounting Operations Salaries 13 Tax, Treasury & Internal Audit Salaries 14 Key Economic Data 15 HOW THE DATA WERE COLLECTED Information in this 2017 Salary Guide was gathered from a variety of reliable sources including the U.S. Bureau of Labor Statistics, Staffing Industry Analysts, The CFO Alliance, local universities, online resources and various studies published by large consulting firms. We also factored in our direct experience in compensation from the last twelve months of executive search and placement activity, along with interviews with key financial/employment personnel. The content represents Alliance Resource Group s interpretation and analysis of information generally available to the public and/or obtained from sources believed to be reliable. No representation or warranty (express or implied) is given as to the accuracy and completeness of the information contained in the publication. 2 3

3 2016 A YEAR IN REVIEW Looking back over the past five years of the salary guides we have published, we have remarked each year on the steady and moderate improvement in the market for accounting and finance talent in Orange County and L.A was no different. With unemployment in Orange County and Los Angeles at 4.2% and 5.5% respectively, we have gradually worked our way back into a vibrant job market with quality positions needing to be filled across the spectrum of accounting and finance specialties. A review of the key economic data provided in this salary guide shows real and material economic improvement over the aggregate period since the end of the Great Recession. The economy has improved greatly and candidates have been more confident in changing positions than they were in the first years following the recession. Companies were equally more confident to add needed talent in Alliance Resource Group is a full-service accounting and finance recruiting firm that offers not just traditional executive search services, but also robust interim consulting and temporary staffing solutions. Often we have experienced counter-cyclical demand between these solutions depending upon market conditions, but in 2016, we found all three disciplines were in high demand. In addition to a need for permanent accounting and finance positions in 2016, the strong trend in M&A activity continued, and we experienced demand for accounting and finance services related to that transactional work. The local real estate and financial services industries have experienced a resurgence, which has also contributed to the tight labor market. As a result, finding quality candidates to fill positions became more challenging in 2016 with those candidates having more opportunities to choose from. 4 5

4 2017 EMPLOYMENT OUTLOOK We expect the market for accounting and finance talent to continue to be vigorous. The volume of activity in 2017 will be similar to what we experienced in The CFO Alliance, a CFO think tank based out of Philadelphia, noted some interesting statistics in their annual CFO Sentiment Study Report. 60% of survey respondents rated their confidence in the U.S. economy as strong or extremely strong. 72% of those CFO s categorize the current state of their industries as strong. 40% plan on hiring new full-time employees in the coming year. This survey of CFOs supports our expectation of continued strength in the job market and proactive hiring of accounting and finance professionals in the coming year. We have noticed new hiring up and down the corporate organizational chart, with our small- and middle-market clients enjoying healthy growth over the past few years. We expect this to continue. Additional trends that add to the robust demand for quality accounting and finance talent include increased opportunities resulting from pending changes to revenue recognition and lease accounting. Over the past few years we have also registered a trend in professionals becoming career interim consultants. We expect this to continue in 2017 and beyond, as it fits with lifestyle choices and companies being more flexible with their workforces. This trend coincides nicely with an increase in demand for project-based professionals we have noticed in Southern California. If you are an employer, you will need to put your best foot forward in your search for talent in Quality candidates are going to be in high demand, and Alliance Resource Group is in a great position to help. If you are a company looking for top talent, we are the go-to firm for your accounting and finance staffing needs, and we can help you identify and source the right talent. If you are that right talent, Alliance Resource Group can help you find the opportunities that can take your career to the next level. 6 7

5 EMPLOYMENT TRENDS Proliferation of Counteroffers Companies that value their employees talent should make sure they are paying them appropriately. Companies have generally been cautious with salary increases throughout this period of recovery. In many cases, this means the current compensation levels of their internal talent may have fallen below what the open market will bring for their services. Reviewing and adjusting salaries where warranted will help companies keep these valued employees. We have been experiencing another interesting trend in the job market for quality accounting and finance talent. More often, we are seeing companies making impressive counteroffers as their top-tier employees give notice. Counteroffers are often messy short-term solutions for both sides and they should be avoided. So how should candidates and companies deal with this trend in counteroffers? For the hiring company, it means they need to put out quality offers to the talent they want to attract. No longer is it certain that a modest increase in compensation or a promotion will secure the accounting and finance talent desired. Generated offers need to be appropriately attractive, depending upon the opportunity and need. Companies should expect that high-quality talent will be getting counteroffers upon resignation and should prepare for that eventuality when making initial offers. Talented personnel considering making a change should consider their reasons. If their decision relates to a compensation issue, they should first consider approaching their current employer about an adjustment before pursuing a job change. In this case, avoiding the counteroffer scenario is best for all parties. But if there is more to the desire for change than compensation issues, the candidate should remember these reasons when they resign. If counteroffered with an attractive salary increase, that alone will not resolve the other fundamental reasons for wanting change. During our research on counteroffer trends, we noted often-cited research by the National Employment Association that upwards of 80% of employees that accept counteroffers leave the company within a year anyway. Alliance Resource Group is here to advise you on these issues. We have our fingers on the pulse of the accounting and finance talent market in LA and Orange County and are ready to help. 8 9

6 Finance and Accounting Salaries CHIEF FINANCIAL OFFICER $500+ $350,000-$570,000 60% $100-$500 $275,000-$450,000 50% $50-$100 $200,000-$325,000 40% $0-$50 $175,000-$250,000 35% CORPORATE FINANCE SVP/VP of Finance $190,000-$300,000 35% Director $135,000-$220,000 30% Manager $100,000-$140,000 15% Senior $75,000-$105,000 10% 1-3 Years $55,000-$80,000 7% to 1 Year $50,000-$60,000 4% Finance Associate (M&A) $65,000-$80,000 35% Finance Associate II (M&A) $115,000-$135,000 95% Finance Associate III (M&A) $125,000-$155, % CAO / CONTROLLER $500+ $220,000-$320,000 40% $100-$500 $150,000-$270,000 30% $50-$100 $140,000-$200,000 20% $0-$50 $125,000-$160,000 15% 10 11

7 Finance and Accounting Salaries - continued DIRECTOR OF ACCOUNTING / ASSISTANT CONTROLLER $500+ $150,000-$190,000 25% $100-$500 $125,000-$175,000 20% $50-$100 $105,000 -$135,000 15% $0-$50 $95,000-$120,000 10% FINANCIAL / SEC REPORTING Director $135,000-$190,000 25% Manager $95,000-$140,000 20% Senior $75,000-$110,000 10% Public Accounting Salaries & Accounting Operations Salaries PUBLIC ACCOUNTING / AUDIT Senior Manager $110,000- $195,000 10% Manager $80,000-$110,000 8% Senior $65,000-$80,000 5% 1-3 Years $60,000-$70,000 5% to 1 Year $55,000-$65,000 3% REVENUE ACCOUNTING Director $120,000-$160,000 20% Manager $100,000-$135,000 15% Senior $80,000-$105,000 10% ACCOUNTING MANAGER / ACCOUNTING SUPERVISOR $500+ $100,000-$135,000 15% $100-$500 $90,000-$125,000 10% $50-$100 $85,000-$110,000 10% $0-$50 $75,000-$100,000 8% SENIOR / STAFF ACCOUNTANT Senior $75,000-$100,000 10% 1-3 Years $55,000-$80,000 8% to 1 Year $50,000-$55,000 5% COST ACCOUNTING PUBLIC ACCOUNTING / TAX Senior Manager $125,000-$205,000 10% Manager $85,000-$130,000 8% Senior $70,000-$90,000 5% 1-3 Years $60,000-$75,000 5% to 1 Year $55,000-$65,000 3% ACCOUNTS PAYABLE / ACCOUNTS RECEIVABLE Director/Manager $80,000-$125,000 10% Supervisor $55,000-$80,000 5% Clerk $35,000-$55,000 2% PAYROLL Director/Manager $75,000-$125,000 10% Supervisor $50,000-$80,000 5% Clerk $35,000-$55,000 2% CREDIT ANALYSIS / COLLECTIONS Director/Senior Manager $120,000-$180,000 20% Manager $100,000-$135,000 15% Senior $80,000-$110,000 10% Director/Manager $75,000-$130,000 10% 1-3 Years $60,000-$85,000 7% Supervisor $55,000-$90,000 7% to 1 Year $50,000-$65,000 5% Credit Analyst $50,000-$90,000 5% Clerk $35,000-$55,000 2% 12 13

8 Key Economic Data Tax, Treasury & Internal Audit Salaries TAX Vice President $180,000-$320,000 40% Director $135,000-$215,000 25% Manager $105,000-$145,000 15% Supervisor $90,000-$115,000 10% Senior $70,000-$95,000 8% Staff $45,000-$70,000 5% TREASURY Treasurer $180,000-$300,000 30% Assistant Treasurer $135,000-$190,000 20% Cash/Treasury Manager $105,000-$140,000 10% Senior Treasury Analyst $75,000-$110,000 8% 1-3 Years $60,000-$80,000 5% to 1 Year $50,000-$65,000 2% INTERNAL AUDIT VP of Audit $180,000-$260,000 30% Director $135,000-$195,000 20% Manager $100,000-$145,000 10% Senior $75,000-$110,000 8% Staff $50,000-$80,000 3% *Actual average bonus percentage paid, not target bonus UNEMPLOYMENT RATE National 8.9% 8.1% 7.4% 6.2% 5.3% 5.1% Orange County 9.1% 7.9% 6.6% 5.5% 4.5% 4.2% LA County 12.2% 10.9% 9.7% 8.2% 6.7% 5.5% LABOR FORCE PARTICIPATION RATE National 64.1% 63.7% 63.3% 62.9% 62.6% 62.8% California 63.2% 62.9% 62.3% 62.3% 61.9% 61.9% REAL GDP HOUSING STARTS - U.S. Real GDP, in billions $15,021 $15,355 $15,583 $15,962 $16,349 $16,691 Real GDP, annual percent change 1.6% 2.2% 1.5% 2.4% 2.4% 2.1% INFLATION MEASURES CPI - annual percent change 3.1% 2.1% 1.4% 1.6% 0.1% 1.4% INTEREST RATES Federal Funds Rate 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% Prime Rate 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% Treasury Bond, 10-Year 2.8% 1.8% 2.4% 2.5% 2.2% 2.0% 30-Year Mortgage 4.5% 3.7% 4.0% 4.2% 3.8% 3.9% Housing Starts, in thousands , , ,172.4 Housing Prices, in thousands, 1990 = Housing Starts, percent change 4.6% 28.1% 18.4% 7.8% 10.7% 5.9% Housing Prices, percent change -4.5% 6.6% 11.5% 5.7% 6.9% 5.3% 15

9 Better hires start with a smarter approach to financial recruiting. Contact us today to learn more about our services Main Street, Suite 440 Irvine, CA info@allianceresourcegroup.com