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Almost 60 per cent of CFOs have had unrealistic salary requests in the last 12 months and executives are drawing a line in the sand.
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CFOs call halt to finance salary honeymoon, says recruiter
07 March 2023
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Finance candidates must rein in their salary demands with nearly 60 per cent of CFOs saying they have received an unrealistic salary request in the past 12 months, according to recruitment firm Robert Half.
Senior managing director at recruiter David Jones said CFOs and businesses were starting to regain power in the recruitment process after a candidate-driven mutiny over the past few years saw wages and bonuses skyrocket.
“The finance market saw premiums used as a way to attract and retain sought-after finance and accounting professionals,” said Mr Jones.
“This candidate-driven market in late 2021 through to mid-2022 has created an expectation among many financial candidates that it will continue through 2023.
“However, with a focus on efficiency and cost management now being top strategic priorities for many finance leaders, only those with the highest in-demand skills – such as financial partnering, financial modelling, and big data analytics may find themselves as the recipients of larger salary increments.”
“Taking this further, the next 12 months it will become rarer to see double-digit increases for both financial professionals who move companies and those who stay with existing employers.”
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Robert Half revealed the average salary request by applicants was 15 per cent above the amount which the business originally offered with 6 per cent of CFOs saying they had experienced a financial candidate request a salary 30 per cent higher than what was initially proposed.
In recent years, 47 per cent of applicants were successful in securing a larger salary than initially offered with only 22 per cent accepting the original offer, according to the recruitment firm.
Of the remaining applicants, 19 per cent walked away from the job offer because the salary did not meet their expectations, while 12 per cent of CFOs withdrew their job offer due to the applicant’s high salary expectations.
Mr Jones said due to the still tight labour market some bargaining power remained with applicants, but businesses were becoming more cautious due to deteriorating economic conditions.
“Given our high inflation and interest rate increases to control it, lessening consumer confidence is trickling through to more conservative business decision making,” he said.
“Finance leaders in particular, are evaluating team structures to achieve optimal outcomes from their existing headcount.”
“It will become more common for finance leaders to hold firm and reject what they consider unrealistic salary demands.”
Despite the halt to meeting abundant salary demands, Robert Half found 47 per cent of CFOs still needed to fill roles in their teams, particularly those with digital proficiency and literacy with technology and automation.
“Companies are still looking for financial talent who can demonstrate the key skills required to navigate uncertain yet increasingly digitised markets,” said Mr Jones.
“Unsurprisingly, the fast pace of economic change and digitisation means these skills are in short supply and competition is still fierce.”
“Companies must be prepared to negotiate offers beyond remuneration including other perks and benefits such as flexibility, clear career development pathways, and wellbeing initiatives to attract the talent they need to move ahead.”
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