Accounting Sector Optimistic of Economic Recovery

Accounting Sector Optimistic of Economic Recovery

The New Zealand Institute of Chartered Accountants revealed today that accounting professionals throughout the country are optimistic about an economic recovery in the coming months, despite continuing to experience pressures on income and expenditure.

A recent survey of 10,000 accountants in New Zealand by the Institute showed 98 percent were optimistic about the economy and 78 percent believed a recovery was likely in 2010. 

“We are pleased at this level of optimism,” said Terry McLaughlin, Chief Executive, New Zealand Institute of Chartered Accountants.

“As our members are key influencers and business advisors, this can be seen as a major signal towards increasing business confidence.”

This finding was part of the 2009 Annual Remuneration Survey into the salaries and working lives of accountants in New Zealand, conducted by the New Zealand Institute of Chartered Accountants in association with specialist recruitment and HR services provider Randstad.

The survey, one of the largest in New Zealand, details the annual salaries for accountants across occupation, position in company, location and type of industry, and gives a valuable insight into the issues affecting accountants.

“Our survey findings reflect the current economic climate with an overall growth in salaries over the last 12 months being 2 per cent. This is as we would expect, given the current pressures facing all businesses.

“However, salary levels are fluctuating significantly between different levels of accountants. Those with associate chartered accountant qualifications suffered an overall 2 per cent drop in salary over the last 12 months. Those at a provisional associate chartered accountant level enjoyed average salary increases of 24 per cent, reflecting their career development.”

“Our members also told us that work is not just about the salary they receive. Work life balance plays a larger role in motivating and keeping employees.  In the survey 64 percent cited it as the biggest motivation in their current role,” said Mr McLaughlin.

Randstad’s Client Solutions Director New Zealand, Suzanne Boyd, said many accounting professionals, regardless of the economic conditions, were looking for additional benefits and flexible work options.

“Achieving a balance between work and home has long been a goal for many people. But often this takes a back seat as economic uncertainty forces many employees to concentrate on salary and employment stability.

“Today, the landscape has changed and accounting professionals, regardless of the economic conditions around them, are now looking to ensure they are receiving additional benefits outside of traditional remuneration,” said Ms Boyd.

The survey found a noticeable North Island South Island divide in terms of salary performance specifically for chartered accountants over the last 12 months. Chartered accountants in the South Island recorded an average salary growth of 5.5 per cent compared to an average 3 per cent decrease for chartered accountants in the North Island.

Other highlights from the survey were:

·       The largest increase in remuneration from 2008 was in the not-for-profit sector (9 per cent) followed by financial services (6 per cent) and Government and the primary sector (4.5 per cent).

·       Accountants in the consumer sector experienced remuneration increases of over 4.5 percent and those in the IT sector experienced a 4 per cent increase in total remuneration.

·       Two thirds (67 per cent) of accountants said they had the ability to work flexible hours, 40 per cent were able to work from home and a further 77 per cent were offered flexiblelunch hours.

·       Sixty-four per cent said their employer offered study and training leave and a further 50 per cent had additional training programs provided.

·       The earning potential and career advancement of accountants remain important factors for accountants, with 42 per cent being motivated by increased salary and career progression.

·       Employer branding and organisational culture were important motivators with 34 per cent saying these were both important.

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