Salary pressures ease in New Zealand accountancy sector

This article was current at the time of publication.

Accountancy salary pressures have eased over the last 12 months, two recent New Zealand salary surveys show.

Recruitment agencies Hays New Zealand and Madison Recruitment found fewer advertised roles across the New Zealand market, increased competition among candidates, and fewer employers willing to pay higher salaries.

“The demand for accountants has stayed steady over the last 12 months, which means it remains one of the top 10 skills most in demand,” says David Trollope, Managing Director of Hays New Zealand. 

Skills in demand

Tax specialists, especially those living in major centres, are in demand. Hays’ survey shows a tax accountant will typically earn $95,000 or as much as  $105,000 in Auckland, and $102,000 elsewhere.

“For a tax manager, a typical salary is $120,000 in Wellington and Christchurch, and slightly lower elsewhere, although tax managers can earn as much as $135,000 for some Auckland roles,” says Trollope.

“Head of Tax is where the big money is, though, with a typical salary of $150,000 in Auckland and an upper limit of $180,000.”

Relief for firms’ payroll

Salary pressures on employers have abated slightly, with the Hays survey identifying just 86 per cent intend to offer a rise in the next 12 months, compared to 95 per cent a year ago.

Among New Zealand businesses generally, the skills shortage has eased slightly over the last 12 months, with 47 per cent reporting no skills shortages, or minor ones.

Madison’s 2024 Employment Market Report found job ads fell significantly during the second half of 2023, and competition for advertised roles increased.

But it also noted a recent increase in demand from employers in the accounting and payroll space as companies start to take plans off “hold.”

Accounting gaps identified

Adam Napper, Madison’s Manager, Professional Services, says his firm still sees shortages in some areas of accounting.

“Most notably [this] is in the public practice space, and more, generally, in the $80,000 to $120,000 salary range.

“Interestingly, this area represents people in a career or life stage that correlates with the large number of people who have left New Zealand to go to Europe or Australia.”

The latest migration data from Statistics New Zealand reveals 81,200 New Zealand citizens left in the year to April 2024, up 41 per cent from the previous year.

“Finding candidates isn’t necessarily the issue in this area – it’s finding quality candidates,” says Napper.

“This is still a competitive space as those who are good are being offered progression opportunities and they are being looked after by their employer.”

Work stays home

The Hays survey of 15,000 Australian and New Zealand respondents across all industries (21 per cent of them in New Zealand) reinforces hybrid (home and office) working as “the new reality.”

Some 75 per cent of employees surveyed in 26 industries now work in hybrid or remote arrangements, and 92 per cent say hybrid is their preferred way of working.

Hays concludes that employers need to invest in communications and team bonding initiatives.

Napper says accountancy is a profession that lends itself to home or hybrid working, and many candidates are looking for an employer who can offer them the option to work from home when they need to.

“On the other hand, some employers have invested in building their workplace culture and reimagining their working environment to make getting back into the office more attractive.”

The important thing, he says, is finding the right balance for the organisation, its employees, and the sector in which they operate.

“There’s a risk that companies who offer no flexibility and want their people in the office five days per week are not necessarily getting access to all the available talent for their roles, and in some cases are not getting access to the best people, as there are plenty of other employers out there who offer flexible/hybrid work options.”

Trollope says their survey respondents had flexible working in the top three, after salary and professional development.

“This is definitely a trend born out of lockdown – it’s the third biggest thing employees are looking for from a new job, at 54 per cent.”

Salary is still king

Salary remains the top consideration, however, with the rising cost of living driving New Zealanders’ employment decisions.

The Hays survey shows 77 per cent of employees are actively looking for, or considering, changing jobs in the next 12 months and a pay rise is their number one consideration at 71 per cent.

“Other than salary, though, they are also looking to better themselves, with three of the top six benefits that employees are looking for being about learning and development,” says Trollope. 

“Learning or developing technical skills at 63 per cent, learning or developing soft skills at 45 per cent, and learning or developing digital skills at 43 per cent all show that staff want to learn and grow – a trend that very much grew out of COVID lockdown and the need to adapt and learn quickly.”