GLOBAL TREND REPORT TAX H1 JAN-JUN

Transcription

1 GLOBAL TREND REPORT TAX 014 H1 JAN-JUN

2 STRONG MOMENTUM IN UK & IRELAND In line with our commitment to keep professionals working in the Tax discipline up to date with employment and recruitment trends, early in 2014 Morgan McKinley conducted an international survey of its consultants in four key markets. We found significant contrasts between regions, with the UK and Ireland markets gathering strong momentum, whereas things are moving more slowly in Singapore and Hong Kong, though for different reasons: QUICK LINKS HONG KONG... 2 IRELAND... 3 SINGAPORE... 5 UNITED KINGDOM... 7 Demand is increasing strongly for Human Capital and Corporate Tax experts in the UK In Ireland demand is focused on VAT and Human Capital, and demand for talent is outstripping supply In Singapore hiring organisations are hampered by the lack of local qualified talent In Hong Kong, by contrast, demand has fallen recently Taxation software will be an important growth area in the near and medium term It is important for candidates to stay on top of changes in regulations and developments in the market, even when not actively seeking a new job Where the recruitment market is sluggish, tax specialists should seek out projects with their current employer that will broaden their horizons 1

3 It will be very competitive for tax professionals. HONG KONG DEMAND FOCUSED ON CORPORATE TAX In Hong Kong we have been surprised to see a decline in demand for Tax professionals in recent months and believe this may be driven by the consolidation and globalisation of functions in many organisations. Demand has been mostly focused on replacement headcount for Corporate Tax roles (both planning and compliance). With so few openings we expect that potential candidates will be inclined to stay put in 2014 and wait for an upturn in the market. It will be very competitive for tax professionals so if an opportunity does arise, you will need to prepare very thoroughly for interviews, says Jacky Cheung, Manager of Morgan McKinley Hong Kong. As we expect many potential candidates will be inclined to stay put in 2014, it will not be easy for employers to identify the ideal candidate for the roles that they advertise. SALARIES & BENEFITS The standard annual increment in Hong Kong at the moment is between 3% and 5% for tax professionals. We don t envisage any change to this. 2

4 Companies that try to recruit through their own HR teams will find it especially tough. IRELAND DEMAND CURRENTLY OUTSTRIPPING SUPPLY Recruitment budgets are increasing in Ireland and organisations are looking for both new and replacement headcount as the country s economic situation continues to improve. VAT and Human Capital are the main areas driving demand, which is currently outstripping supply. Irish companies are often reluctant to recruit from abroad as they prefer candidates with deep knowledge of local and national taxation. We have been surprised by the surge in hiring of tax seniors and semi-seniors in all the practices, as until recently it was only the Big Four and Top 10 that were recruiting, and primarily only in Corporate Tax. Now practices of all sizes are looking for tax professionals across most areas, says Kate Flanagan, Tax and Legal Recruitment Specialist at Morgan McKinley. We also expect International Tax to figure strongly as a much sought-after specialisation later in the year, particularly within the in-house sector. In addition to the relevant qualifications (ACA/ CA and AITI CTA) candidates need to be able to demonstrate general strategic, managerial and communication skills in order to land the best positions. Experience is key. There are lots of qualified accountants looking to move into tax and there are plenty of opportunities to upskill on a course with the Irish Tax Institute or Chartered Accountants Ireland, but without the experience it can be very tricky. My advice to job-seekers is to put in a stint in the tax function at your current practice, says Flanagan. Hiring organisations are likely to find it difficult to identify strong candidates in the months ahead as the number of graduates and trainees hired during the economic downturn was lower than usual and this is now having a knock-on effect. Companies that try to recruit through their own HR teams will find it especially tough in the current environment. At Morgan McKinley we are relying heavily on the network we have built up in the Tax discipline to identify quality candidates and to provide market insights. 3

5 SALARIES & BENEFITS We anticipate a modest increase in salaries (perhaps 3-5%) in both practices and in industry. Some firms are paying bonuses again and more will follow this year. Benefits packages vary considerably but we don t expect that companies which have cut allowances such as healthcare will reinstate them. 4

6 Equip yourself for your next move by getting experience in areas such as tax advisory and transfer pricing. SINGAPORE UPWARD PRESSURE ON SALARIES EXPECTED The recruitment market in the Tax discipline has remained stable in recent months in Singapore. While there is demand for both new and replacement headcount, in particular in Corporate Tax (both planning and compliance), local qualified talent is in rather short supply. In both Financial Services and Commerce & Industry it is difficult to find quality candidates, but companies are reluctant to recruit from abroad. There is rarely a back-up plan to fill the vacancy when a tax professional leaves, says Yanni Ma at, Manager, Accounting & Finance Recruitment for Morgan McKinley Singapore. Moreover, many companies are still reluctant to offer significant pay increments in order to incentivise moves. Candidates looking to make a move who have an ACA/CA qualification, a good grounding in tax compliance and general strategic, managerial and communications skills will find openings. Nevertheless we anticipate that in the absence of salary incentives, many will be inclined to remain in their current roles until the market gathers more momentum, says Ma at. In the current climate, we advise potential candidates to seek out opportunities to gain exposure in a tax advisory role. There are a growing number of such opportunities in Commerce & Industry since many employers are setting up their APAC / Southeast Asia headquarters in Singapore, which will bring new tax projects. My advice is to think positive and equip yourself for your next move by getting experience in areas such as tax advisory and transfer pricing and by keeping up to date with regulations. And take the opportunity to travel, extending your knowledge from country to regional level. You could soon become a highly marketable tax all-rounder, says Ma at. 5

7 SALARIES & BENEFITS For hiring organisations it will be increasingly difficult to recruit in a market where there is an acute talent shortage so we expect this will start to have a strong upward pressure on salaries. They could move by as much as 10-15% in

8 We ve been quite taken aback at the pace at which things have changed. UNITED KINGDOM. PRACTICES DRIVING STRONG DEMAND The recruitment market in the Tax discipline is improving significantly with demand increasing for both new and replacement headcount. This is driven partly by the general economic upswing, including increased mergers & acquisitions activity, but also by IT implementations (including both general ERP systems and niche tax applications) and organisational changes. Recruitment is mainly focused on Human Capital and Corporate Tax, where demand is outstripping the talent supply. Many of our clients are interested in meeting candidates from abroad, in particular Europe, says Ian Palmer, Manager, Tax in Practice at Morgan McKinley. Demand is mainly coming from practices, which are looking for talent newly qualified in ACA/CA, CTA, CIO/ADIT. There is also increasing demand for individuals who have attained US Enrolled Agent status. We expect to see more candidates coming forward through We ve been quite taken aback at the pace at which things have changed, especially the scale of demand in tax practices. There has been a backlog of people not moving until they see signs that the market is improving, says Palmer. This is obviously a very welcome development, though hiring organisations may still find it difficult to find candidates who have all the required experience. He offers the following advice to potential candidates: In the current environment, it is worth keeping an open mind and considering your options, even if you are happy in your current job. People often make the best career moves when they are under no pressure to do so, because the choice of a new role is made for all the right reasons. Looking ahead, tax technology is emerging as a major growth area as companies are using software to improve their internal processes. At Morgan McKinley we are confident that our depth and breadth of knowledge of this specialised market will help candidates and hiring organisations to find the best possible match, concludes Palmer. 7

9 SALARIES & BENEFITS We are likely to see a modest movement in salaries and bonuses at the bigger practices. Tax professionals with a niche skill, such as knowledge of a specific tax software suite or international tax regimes will command higher salaries and bonuses, so it is well worth developing your own specialism. 8

10 GLOBAL TREND REPORT TAX A MORGAN McKINLEY GROUP COMPANY