The move to IFRS reporting, the adoption of enterprise resource planning (ERP) and the impact of the US's Sarbanes-Oxley legislation resulted in a buoyant recruitment market for accountants in the general market, according to the latest Brightwater salary survey for 2007.
"There has been a marked increase in the need for project accountants and internal auditors, with those with compliancy risk experience being in particular demand," the survey said.
In Dublin, there has been a notable surge in people looking for the more commercially focused financial controller and financial director roles, according to the survey.
The newly qualified market remains buoyant where strong audit seniors emerging from the training contracts can expect a number of interesting offers, the survey said.
Recruitment at part-qualified level remained steady, with a strong demand for experienced payroll administrators, credit controllers, strong book-keepers and good assistant accountants.
Over the past nine months, there has been a considerable shift in salaries for newly qualified accountants in the financial services industry. An increase of around 17-25 per cent has been seen among basic salaries in the Republic, while in Northern Ireland, there has been a general increase across the board in salaries of £2,000-£5,000 (€2,980-€7,450) in the financial services sector.
The main factors contributing to this are predominantly supply versus demand and higher retention rates of more experienced, existing staff members, the survey said.
"A proactive decision to increase basic salaries of longer-standing members of staff in order to incentivise increased loyalty or providing extra benefits such as mortgage subsidies to encourage continued loyalty, is an increasing trend across financial services organisations," it said.
The temporary and contract market for accountants in the State has remained buoyant throughout 2006 and this trend is set to continue into 2007. The biggest demand is for newly qualified accountants or accountants with around three years of experience.
"There is a shortage of candidates at this level, which has impacted on salaries and we have seen an increase of up to 10 per cent in these areas," said Brightwater.
Salaries for qualified professional staff have continued to rise over the past 12 months within the practice market in the Republic.
Demand for audit staff, particularly at the assistant manager to senior manager levels, continues to outstrip supply in firms of all sizes, the survey found.
The year has also seen a significant increase in salary levels in specialist areas of practice such as corporate finance with those candidates with experience in transaction services, mergers and acquisitions and public-private partnership work demanding a particular premium.
The practice market in Ireland is also attracting an increasing number of overseas professionals both from the newer European Union accession states and from more distant anglophone locations, Brightwater said.
There is still a huge demand for experienced candidates in the fund services area and, due to this demand, companies are now offering substantial increases to existing staff to retain key employees. Typical benefits include pension provision, life insurance and tax-efficient travel plans.
New legislation set by the financial regulator in 2006, coupled with the authorisation of five new insurance companies and their entrance into the International Financial Services Centre in Dublin, have initiated an upsurge in the demand and appreciation for compliance specialists throughout the year.
With this growth set to increase in 2007, individuals with life insurance and investment compliance exposure will have the luxury of choice when assessing prospective employers, the survey said.
"This year, we have seen candidates offered substantial increases in basic salaries to move within the areas of corporate banking, private banking, compliance and portfolio management at all levels of experience," it said.
