Increasing recession and layoff talk may force some to start looking over their shoulders for a human resources representative, but for accounting and finance professionals the anxiety may be misplaced.
While it’s still early days for the current economic and employment cycle, a massive supply/demand imbalance for accounting talent may translate into a “full employment recession” for both beginning and early career accounting and finance professionals.
“The demand has been incredibly high; probably as high as it's ever been in my 24 plus year career,” Steve Saah, Executive Director of Finance and Accounting Permanent Placement at Robert Half. “All the indicators point to the competitive environment continuing for the accounting and financial workforce for quite some time.”
Whether its media or industry economists, predictions of a recession and an inevitable increase in unemployment are commonplace. There are already early warning signs coming from Silicon Valley with the tech sector shedding 42,000 jobs this year, according to
Crunchbase.
Other industries — such as banking — are showing cracks with reports that Goldman Sachs
was planning layoffs later this month that could be a harbinger of workforce reductions at other Wall Street firms.
The accounting and corporate finance specific impact of the layoffs thus far has been limited, focused less and culling current workforce in favor of
eliminating job postings or pulling back on projects
targeted at finance.
Saah says that he expects little threat of layoffs in the accounting industry, adding that all the relevant statistics — including a unemployment rate for college educated professionals 20 and older of 1.9% — shows a job market that remains crippled more by a supply shortage than a need to reduce its ranks.
Beyond the numbers, Saah says he is seeing no letup from clients seeking talent.
“A lot of times we see a little bit of a downturn during the summer, with hiring managers taking vacations or interruptions from summer holidays like Fourth of July,” Saah says. “We always see a very natural dip. This year it's been trending upwards and is probably as high as it's been all year long.”
Market watchers would argue that in an economic downturn something would “have to give”, such as cutting salaries and benefits. But Saah says he compensation and job offers continue to move higher.
“Intuitively you would think that compensation would be adjusted down, but there is no doubt that finance and accounting salaries are continuing to trend upwards,” Saah explains. “Up to this point, and certainly for the foreseeable future, I actually think that that companies need to be extremely competitive in their total compensation package.”
But even in a once in a lifetime job market for accounting and finance. there are strategic issues that early career finance and accounting professionals need to keep in mind, Saah adds.
Taking the highest offer is not always the best career move.
My number one advice to people early in their careers would be make sure that they’re making long-term decisions. That includes the job being offered, the company and the new skills and experiences that they will be exposed to. We would all like more money, but the bigger question is will this move open up the next door and is it setting you on the path to be successful over the long haul.
Align your experience to the job.
It’s very important that you're taking the time to focus on the background, experience and skill sets that you have and how they align to the specific position and organization that to which you are applying. Are they the right for the industry and the organization? In today's day and age, it's so easy for individuals to go on and go click, click, click, and apply to three jobs and not consider the consequences.
What’s wrong with your current position?
You should always look at advancement opportunities in your current position, which includes exploring possible future roles. This should be part of a long-term strategic vision that makes certain you're doing all the little things to continually advance your career within the company and increase your profile. This includes taking some courses, CPE and other development opportunities.