Press releaseThursday 28 August 2008

LESS THAN 5% OF ACCOUNTANCY CONTRACTORS WORK FOR ACCOUNTANCY FIRMS

• 77% think hourly rates will rise in next 12 months

Less than 5% of accountancy and finance contractors work for accountancy firms, despite the ongoing recruitment difficulties which many practices are experiencing, reveals research by giant group plc, the contractor services provider.

The survey by giant found that the largest number of accountancy and finance contractors work in industry & commerce (36%) with the second largest proportion in the public sector (34%). Investment banks and fund managers are the next heaviest users of accountancy contractors with 18% of the total.

Matthew Brown, Managing Director, giant group, comments: "Accountancy firms have been reluctant to utilise contractors, despite ongoing difficulties recruiting the right skills. Contractors represent a very cost effective means of plugging short-term skills gaps, which if left unfilled, can hinder firms' expansion plans."

"As well as having the right professional expertise, accountancy contractors have often worked in industry and commerce previously and can bring an unparalleled level of experience to an accountancy practice. In areas such as consultancy and M&A the type of hands-on experience contractors have can be particularly valuable. It’s usually quite difficult, especially for a mid-tier practice, to recruit someone with experience in industry on a permanent basis."

According to giant, the use of contractors in accountancy firms is expected to increase. 8% of contractors surveyed forecast more job opportunities in practice over the coming year.

The research also found that 77% of accountancy and finance contractors are predicting an increase in their income during the next 12 months, while just 4% are forecasting a decline in pay.

Matthew Brown says: "Accountancy contractors are confident of pay increases over the next 12 months, despite slowing economic growth. Demand for accountancy skills tends to be somewhat recession-proof, and together with the shortage of qualified accountants, upward pressure on pay for accountancy contractors shows no signs of easing."

The research by giant group also revealed that 86% of accountancy contractors spent less than 30 days between contracts over the last quarter. Only 4% spent more than 90 days out of work.

Matthew Brown says: "A 4% long term jobless rate is very low and compares favourably with other skills shortage occupations, such as IT, where 5.5% of contractors go more than 90 days without a contract."

Note: Established in 1992, giant group specialises in providing services to recruitment agencies, temporary workers, freelancers and contractors. The range of services include agency back office solutions from giant precision – timesheet management, billing, payroll, contract management, pre-employment and background checking, BACS disaster recovery – and giant umbrella payroll services where giant is the professional employer organisation employing and payrolling the temporary workers and contractors.

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