State of the Finance and Accounting Job Market in the San Francisco Bay Area: July 2024

The finance and accounting job market in the San Francisco Bay Area is experiencing a period of tentative recovery. After navigating the turbulent years from 2020 to 2023, we’re beginning to see some stability and positive momentum. However, the landscape remains complex and dynamic, especially for finance and accounting professionals working within venture capital-backed technology or life sciences companies, SMBs, or middle-market companies with IPO aspirations.

Current Market Trends

While the market's pace remains sluggish, there are encouraging signs of improvement. Layoffs have significantly subsided, and companies have found ways to sustain operations without raising additional capital in a challenging funding environment. Over the past six months, our search business (direct hire) has seen a 30% growth year over year, indicating companies’ increased appetite to hire and address long-delayed hiring needs, rather than signaling a rapid surge in demand.

The Balance of Power

The balance of power has shifted slightly toward employers, yet the most sought-after candidates remain in strong positions. Many top-tier professionals are gainfully employed and leverage their current roles to secure competitive offers. Employers must still present attractive financial packages and growth opportunities to entice these candidates to make a move.

Another trend is that hiring managers now expect candidates to meet all their qualifications, checking 10 out of 10 boxes. This perfectionist approach has contributed to slowness in hiring, as companies are hesitant to settle until they feel they have tested the market thoroughly. Consequently, it's not an ideal time for candidates to transition into entirely different roles without prior experience (e.g., accountants wanting to move into FP&A) because they may not meet all the required criteria.

In the San Francisco Bay Area, the hybrid work model has become the norm, with candidates showing increased flexibility toward in-office positions. Despite these shifts, employers still need to put their best foot forward to attract top talent in this evolving landscape.

Sector-Specific Observations

We aren’t seeing a surge in any specific sector we frequently serve. The market still feels bifurcated between the "haves and the have-nots." Larger, high-profile technology companies continue to drive most of the upward momentum in the stock market. Meanwhile, we’re excited to see some hot, up-and-coming companies experiencing explosive growth, reminiscent of years past and inspiring optimism about the potential reopening of IPO markets. Not surprisingly the bulk of these beacons of hope are in the AI space yet still illustrate the market's underlying potential.

Looking Back to Move Forward

When assessing the current state of the market, it’s helpful to compare it to 2019, a more “normal” year before the disruptions of the pandemic and the boom years that followed. While the overall market strength in 2024 appears to be 15 - 20% under 2019, there are encouraging signs of improvement compared to the challenging year of 2023. Companies are adapting to their new normal, focusing on conservative growth and strategic hiring to navigate the uncertainties of the current economic climate. As mundane tasks become increasingly automated, roles such as 'Product Manager' are evolving, offering finance and accounting professionals new opportunities to leverage their expertise in innovative ways.

Opportunities and Outlook

Despite the challenges, good opportunities exist for qualified finance and accounting professionals, and will continue to increase as summer ends and we head into the notoriously more robust hiring season in the fall. Companies are also continuing to invest in streamlining processes for greater efficiency, creating additional consulting opportunities.

While the immediate outlook remains cautious, we expect bigger growth years on the other side of 2024. The market is showing signs of life, and clients are demonstrating renewed confidence by opening up projects and headcount. For finance and accounting professionals in the Bay Area, this means staying adaptable, continuing to hone their skills, and being prepared to seize new opportunities as they arise.

Get in Touch

If you're intrigued by these market dynamics and considering a move or looking to optimize your current team, let’s chat. Our team is ready to help!

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