In January of 2000, Wall Street Journal
freelance writer Thomas Fitzgerald interviewed Paul Yroz to obtain
his perspective on the demand for tax professionals throughout
the country. The following is the article as published on April
4, 2000.
Demand for Tax Pros Hits an All-Time High
By Thomas J. Fitzgerald - A freelance writer for the
Wall Street Journal
Sparked by a hiring spree at large accounting
firms, demand for tax professionals is soaring, sending a ripple
effect throughout the tax profession, including corporate tax
departments and smaller CPA firms.
"The Big -Five firms are in a hiring frenzy,"
says Paul Yroz, President of Pro-Tax Executive Search, Inc.
a national tax-recruiting firm based in San Diego. "Candidates
are in high demand at all levels."
Corporate outsourcing, fueled by merger mania
is driving the demand at the large accounting firms. Companies
often outsource their tax departments for two to three years
after a merger, says Mr. Yroz. The large accounting firms frequently
hire their clients' former employees.
Another factor contributing to the rising demand
is globalization. As U.S. companies continue to expand, the
need for experts in overseas tax laws has increased. Other tax
professionals in demand include specialists in state and local
taxes and mergers and acquisitions.
The greatest need is for corporate generalists,
says Mike Burton, East Region Managing Partner of tax at Deloitte
& Touche Tohmatsu in Boston. These consultants handle client
relationships and coordinate the services of the firms' specialists.
Ideal Candidates
The skills needed for this type of position
at large accounting firms include creativity, innovation, entrepreneurship,
flexibility and teamwork says Mr. Burton.
Mr. Yroz, whose typical candidate works on the
corporate side of the ledger, says such professionals with broad
skills also are in high demand among his clients. Not satisfied
with candidates with only solid technical skills, employers
are "looking to hire people who are business-minded and
good communicators who can interact with high-level management,"
he says.
The big accounting firms also are seeking candidates
with a broader range of experience and skills to meet the growing
list of needs from large corporate clients.
Deloitte, for example, has been hiring lawyers,
engineers, MBAs, and masters of science in taxation with backgrounds
in such fields as financial planning and financial services,
says Mr. Burton.
Large accounting firms are also looking for ways to make public
accounting more attractive for tax professionals and address
long-term career concerns, says Mr. Yroz.
This trend contrasts sharply with the up or
out attitude that once prevailed at big accounting firms. "If
you had any shortcomings or limitations, they would sort of
counsel you out," says Mr. Yroz. Ironically, the big firms
now are hiring in record numbers from the corporate tax departments
where their former employees once fled, he says.
The hiring binge has put upward pressure on
salaries. Pay for mid-to upper-level professionals has risen
by 15% to 30% in the past two to three years, according to Mr.
Yroz.
"We call it a war for talent, and compensation
has to go up accordingly to attract the kind of talent that's
necessary," says Mr. Burton. His firm, which has 90,000
employees in 130 countries, hired about 1,300 tax professionals
in 1999, and expects to hire 20% more this year, according to
a firm spokeswoman.
"The Big Five are putting together comp
packages that are really hard for people in corporate tax to
turn away," Mr. Yroz says. As a result, corporate tax departments
are evaluating their compensation structures. "The ones
who aren't doing that are losing people," he says.
Smaller Firms
Smaller CPA firms that work for smaller corporations, nonprofits
and individuals are feeling the effects of rising salaries and
a tight market.
"The market is extremely tight," says
Harry Beeson, a partner at Romberg, Wilson and Beeson, a CPA
firm in Glendale, California with about 10 employees. The firm,
which tends to hire recent college graduates, interviewed four
candidates for two positions. "All of them turned us down
because they had better offers," he says.
The firm is reassessing its hiring strategy
and is considering offering signing bonuses to attract applicants.
"Ten or fifteen years ago, there would
always be a steady supply of tax professionals coming out of
the big firms," he says. "But now the big firms are
holding on to their people. It's very hard for small firms."
Another factor contributing to the tight market
is that fewer young professionals are entering the field, says
Mr. Yroz.
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