As the landscape of Mainland China’s business world evolves, companies operating in the area are looking to new models to maximise growth and profit. As this occurs, the perception of Accountancy & Finance departments is changing, and with this movement, a variety of roles are opening up, driving a requirement for top level candidates to fill them, according to Simon Lance, Managing Director at Hays Greater China.
“Five years ago Accountancy & Finance departments were back of office, bookkeeping roles, letting the business people know about profit and loss,” Simon says. “But now finance adds value, not just saying what is going on, but actually being involved in decision making, creating business for itself.”
In this new environment there are numerous positions in demand, though these differ for local and foreign based companies.
Chinese companies:
- Mergers & Acquisitions
- CFOs with IPO experience
International companies:
- Compliance
- Commercial Financial Planning & Analysis
“Chinese companies are in the process of growing themselves, but lack the patience to do so organically, with aims of up to 100 per cent annual growth. To facilitate this they are hiring CFOs with IPO experience and candidates with M&A, investment and fundraising experience across various markets. Those who are able to raise capital from both banks and private equity companies are high on the agenda.”
Conversely to this, MNCs operating in the area, more advanced in their developmental history, are recognising a greater necessity for consolidation, realising the need for profitability over growth, and are beginning to see Accountancy & Finance departments for the value they can add.
“In the last three to four years, the market has changed for western companies. They are for the most part solidifying their investment, and to do so they are upgrading their internal processes for leaner efficiencies. Here Accountancy & Finance departments need to become more business minded, developing more need for commercial FP&A roles,” Simon explains.
“Candidates in this area will find that their salary expectations can be dramatically higher than in others. Whereas most accountancy roles can expect to see a maximum of 20 per cent rise, those with business acumen and a commercial outlook may see above 35 per cent increases. Particularly strong candidates in niche areas who are willing to move quickly may find themselves the target of quite forceful headhunting campaigns.”
In the early years of the Mainland China Inc. boom, something of a wild west attitude was apparent, with a blind eye turned to dealing in the culturally accepted norms of bribery and corruption. This is no longer the case.
“Compliance is certainly a key area of concern, particularly for MNCs who have seen companies fall foul of regulations face major scandals,” Simon says. “While regulatory implementations are not necessarily the driver for this, the global headquarters for these companies have been alerted to the risk inherent in unethical practices. This means that organisations are looking to substantially augment compliance functions.”
For companies requiring candidates across the Accountancy & Finance areas, locating them is proving difficult. While there are plenty of individuals in the industry, there is a disparity between companies’ expectations and candidates’ abilities.
“There is a candidate pyramid in this sector, and at its foot there are those who have technical abilities, but lack the soft skills required to excel in the new commercial environment,” Simon continues. “In the second tier you have the above average candidates who will be able to command good roles, but in the top tier are those with the exemplary skills that every company wants. Candidates who meet companies’ exacting standards will find that they are able to exploit the market and receive multiple offers and counter offers, attaining promotion perhaps above their abilities.”
All of this means that the market for candidates of all levels is pretty strong in Mainland China for Accountancy & Finance specialists. It is just stronger for some than others.
“If you’re below average, you’ll still find a job, but you can’t expect the exceptional wages. If you’re average and good it's a good time regardless. If you’re good, then it’s an amazing time. For you the market is on fire.”
An overview of what other trends have been observed in Mainland China’s Accountancy & Finance sector can be viewed below.
- Thanks to the increased visibility of Accountancy & Finance roles, there are an increasing number of CFOs taking on board memberships at a regional and global level.
- While in the past companies considered the company name as sufficient to encourage candidates, now organisations wishing to compete for high-level candidates are having to turn to employer brand to give them the edge.
- Part of this branding is that companies are beginning to understand the evolution of candidate interview experience, and are now looking to engage through social media interaction, selling not only the title and career, but also the company experience, the line manager and the other intangible benefits that the company provides.
- With accreditations continuing to be of high importance, most candidates are upgrading qualifications, and in particular we are seeing finance directors at CFO level undertaking MBAs to augment their qualifications.
- Highly sought after candidates are being encouraged to leave present positions with golden handshakes intended to supplant year-end bonuses that they would have otherwise received from previous employers.
- With local companies looking to recruit from their more advanced international counterparts, candidate retention is increasingly important. Organisations are implementing more and more strategies that include three, five and 10 year inducements, in an attempt to retain employees in the long term.
To read the full Inside Story report of Accountancy & Finance, please click here.
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About Hays
Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2017 the Group employed 10,000 staff operating from 250 offices in 33 markets across 20 specialisms. For the year ended 30 June 2017:
– the Group reported net fees of £954.6 million and operating profit (pre-exceptional items) of £211.5 million;
– the Group placed around 70,000 candidates into permanent jobs and around 240,000 people into temporary assignments;
– 24% of Group net fees were generated in Asia Pacific, 49% in Continental Europe & RoW (CERoW) and 27% in the United Kingdom & Ireland;
– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;
– Hays operates in the following markets: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, Mainland China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA.