What the tax professionals can expect in the softening job market

With certain data indicating the job market is cooling off, you would think my job is slowing down. In fact, the opposite seems to be happening. Recruiters must work harder in a market like this. Primarily because we are sifting through more candidates to find “the one” our client is willing to hire. Companies and hiring managers realize that budgets are tight, and resources restrained, so they get pickier and move slower. This isn’t just true in my world, but in the overall job market.

Two years ago, everyone was so worried about having enough talent that they pulled the trigger knowing they may only be getting 5 of their desired 10 boxes checked. Now, 8 boxes seems to be the minimum to even get an interview. This is not a new phenomenon; it happens every time there is a hiring slowdown or concern about slower growth. It’s no different than how consumer spending is impacted when they fear their paycheck isn’t going as far as it previously was.

The most common symptoms I see are:

• Less appetite for signing bonuses or “extras”
• Reduced interest in out of state candidates
• Slower hiring and decision-making process
• Companies no longer offering massive pay increases
• Heightened levels of due diligence when hiring (reference checks, assessments, etc.)
• Increased focus on hard and soft skills and culture fit

What I haven’t noticed yet, is whether in-person vs remote work is being impacted. From my perspective there continues to be a slow, patient push to get employees back in the office; it will be interesting to see how the shifting power dynamics might impact this.

I estimate industry tax hiring to be down about 20-30% in Colorado and probably about that on a national basis. Certain markets, however, have been impacted differently. Tech still seems to be languishing in terms of hiring so markets like Northern California and Seattle have been harder hit. Markets with a diverse industry base seem to be fairing a bit better. Public accounting hiring is also down a bit, but the profession continues to have higher turnover rates so there always seems to be a steady need for people at all levels.

If you’re considering a job change, I would prepare for the process to take longer than usual. This is especially true for positions at the higher end of the ladder. I would take time to be on your “A” game – a well-prepared resume, well-honed interview skills, have references teed up and use your network – including a recruiter. If you need help with any of this there is a lot of info available online.

As always, the team here is glad to help you in whatever way we can. Whether that’s looking over your resume or offering guidance on salary expectations. Or maybe being your eyes and ears for the next career move. A lot of job changes are made offline without a job posting even being considered.

In the coming months, I will be talking about some of the changes to industry and public accounting tax groups that have happened over the past year and where we seem to have landed on salaries. I say landed, because for a while it felt like we were lost in space. For now, try to enjoy the rest of the summer. With a couple of big deadlines fast approaching, I know some of you are focused on your late October vacation.

To your continued success,

Jay McCauley
Executive Recruiter
jay.mccauley@oxfordtaxrecruiting.com
303-730-0100