You're reading: Accountant, auditors cautious as 2013 uncertainties approach

Caution and uncertainty, trends in Ukraine’s labor market this year, and are likely to persist in 2013, according to experts.

As a result of the sluggish economy, companies thought twice before hiring new employees or hiking wages. Reflecting the mood of the market, which drives demand for their services, many auditing and financial consulting companies have also frozen hiring.

“Our services are more in demand when the capital markets are growing, mergers and acquisitions deals are active,” said Natalia Samoilova, partner at Deloitte, one of the Big Four international auditing and accounting firms. But even in tough times the big auditing companies will survive as they are often hired to “restructure debts, or reorganize companies in order to decrease expenses,” Samoilova added.

Ukraine’s industrial production fell 1.4 percent in January-October 2012, mainly from lower demand for metallurgical products, one of the country’s major exports. ArcelorMittal KryviyRih, Ukraine’s largest steel plant, is considering a new wave of buyouts to compensate workers who resign to reduce the workforce, company management announced in December.

Plans for 2013 are still unclear for most firms, which would be ready to adjust their budgets if the economic situation changes, said Mariia Kovalenko, a senior advisor at Ernst & Young, another Big Four auditing company. Meanwhile, auditors themselves are somewhere in the middle.

Samoilova said salaries at Deloitte were increasing as a result of staff promotions, but those who remained in the same position did not see their paychecks rise. They wouldn’t reveal precise figures, though.

Human resources specialists estimate monthly salaries in the auditing sphere may vary from Hr 5,000-6,000 (about $610-730) for inexperienced workers in the regions to Hr 24,000-30,000 (about $3,000-3,600) for senior auditors in Kyiv.

“Relatively low salary rates are compensated by awards for a conducted audit, which is a common norm in auditing firms,” said Olga Kukharuk, researcher at the HeadHunter international recruiting web portal. She added that none of the Big Four companies announce salary rates in job postings, but foreign companies usually pay a 25-30 percent premium compared to Ukrainian auditing firms.

Samoilova of Deloitte said demand for tax consultants has increased significantly this year thanks to the adoption of a new Tax Code.

Another highly prized profession is accountancy. Accountants ranked fourth in terms of job demand this year after sales managers, IT specialists and advertisers, according to HeadHunter. Companies looking for accountants typically look for a solid education, three-four years of relevant experience and the ability to work fast with large amounts of data, offering in return from Hr 5,000-6,000 for ordinary specialists, and up to Hr 40,000 for chief accountants.

Human resources experts admit that people with experience at one of the Big Four usually have the biggest chances to receive the prestigious posts of financial directors – positions with average salaries of Hr 60,000, according to HeadHunter.

That’s no surprise as those employees are known for their diligence and ability to work long hours. “Work s very dynamic (with) professional and career growth every year, which is only possible, however, if a person works effectively and hard,” said Marina Zakharina, head of the HR department of Ernst & Young’s Ukrainian office.

Kyiv Post staff writer Oksana Grystenko can be reached at [email protected].