Empowering Your Tax Career: Trends and Opportunities for 2024

The tax profession is experiencing notable shifts in salary trends, bonuses, work arrangements, and candidate motivations. As tax recruiters, understanding these changes is crucial to attracting and retaining top talent for our clients. This article delves into the latest developments in salary increases, bonuses, working from home trends, and other significant areas such as Equity, Diversity, & Inclusion (ED&I) and sustainability.

Salary Increases: Stabilisation and Disparities

General Salary Trends

The question of whether salary increases across the tax profession have stabilised is complex. While some have been generous with promotions and raises, others have implemented salary freezes over the past 18 months leading up to December 2023. For those entering new positions at the average salary bands, increases have kept pace with inflation. The upper salary bands have seen significant growth, with more cases of salaries exceeding typical market expectations.??

Where We See the Most Movement

The most notable salary movements are occurring at the higher end of the spectrum. Professionals in senior roles or niche specialties are experiencing substantial raises, reflecting a competitive market for top-tier talent. Conversely, mid-level and junior positions have seen less dynamic changes, aligning closely with general inflation rates.

Bonuses: Incentives and Trends

Bonuses are increasingly used as incentives in the tax profession, with firms leveraging them to demonstrate profitability and motivate employees. While some companies have implemented bonus freezes, bonuses remain a key component of compensation packages. They play a vital role in attracting and retaining talent across the industry, reflecting the overall health and success of the organisation.

Working from Home: The New Norm

General Sentiment

The sentiment around working from home remains positive, with a three-day office week emerging as the standard. Most of our clients now offer and support hybrid working options and value the importance of their employees maintaining a healthy work/life balance.? The value of working from the office is not underestimated though and we are seeing more of our clients actively encouraging new and existing team members to have a presence in the office, recognising that face to face interactions enhance creativity and team building.? Many of our candidates are amenable to working from the office, recognising its value in terms of improving performance and morale.

Other Key Areas: ED&I and Sustainability

Equality, Diversity, and Inclusion (ED&I)

ED&I continues to be a significant focus for our clients. There is a strong push to create inclusive workplaces that support diversity in all forms. This focus not only helps attract a broader talent pool but also fosters a more innovative and collaborative work environment.??

Sustainability

Sustainability initiatives are becoming increasingly important. Firms are implementing environmentally friendly practices and sustainability policies to attract talent who prioritise corporate social responsibility. This trend reflects a growing awareness of the impact of business operations on the environment and society which has resulted in most clients putting in place ESR policies to minimise or reduce this impact.??

Candidate Motivations: Economic Climate and Job Security

Seeking Stability and Growth

In the current economic climate, candidates are primarily motivated by the search for stability and career progression. Uncertainty around bonuses, raises, and potential redundancies has driven many professionals to seek out firms that demonstrate profitability and offer clear career development opportunities and job security - with many professionals migrating away from industry roles and back to practice.

Competitor Incentives: Staying Ahead

Funding Development and Valuing Experience

Competitors are offering various incentives to attract and retain talent. Funding development programs, such as tax qualification pathways from associate to senior associate level, are particularly attractive. Interestingly, larger practices are starting to value experience over formal qualifications, with some promoting individuals to manager and senior manager positions based on their practical experience rather than formal tax qualifications.

Conclusion

Understanding the current landscape of the tax profession is essential for effective recruitment and retention. At AVTR, we stay informed about salary trends, bonus structures, work-from-home policies, and other key areas, enabling us to better navigate the competitive market. By emphasising stability, career development, and flexible working arrangements, we are well-equipped to help candidates secure the best opportunities and achieve their professional goals in 2024 and beyond.

Stay ahead in your career with us!

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