Alliance Resource Group About ARG
Alliance Resource Group is Southern California’s leading Finance and Accounting talent partner. We leverage deep connections within California’s business community to match top talent with some of the region’s most respected companies. Unique Discovery Process We go deep to understand both the companies we work with and the unique skills, experience and drivers of each candidate. Our approach eliminates inefficiencies from the hiring process and leads to greater employee engagement and retention. Unmatched Market Knowledge We understand business, especially from the CFO perspective. No other firm can match the depth of our financial recruiting expertise or our knowledge of Southern California’s talent community.
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Intelligent Hiring Strategies We don’t just recruit, we consult. We solve problems. We deliver intelligent strategies for hiring, and we help you work more efficiently. An Exceptional Experience At ARG, we’re not only your recruiter, we’re your partner. We provide a more collaborative, consultative, and strategic approach to hiring and are fully invested in your long-term success. ARG Differentiators • Deep Subject Matter Expertise in the Role and Office of the CFO • F&A Market Mastery • Exceptionally Talented Team and Team-Based Approach • Proven Performance • Unrivaled Retention Rates • Hundreds of Full-time and Interim Placements Per Year • Unmatched Client Service
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Contents
5 Welcome to the 2024 Salary Guide 8 Year in Review 10 Employment Outlook
13 Employee Trends 19 Industry Trends 25 How We Collected the Data 26 Salary Charts 30 Key Economic Data 31 Resources
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Welcome to the 2024 Salary Guide
For the past two years, our annual Salary Guides have focused on leadership during periods of uncertainty. We knew that the world after COVID, the Great Resignation and the Great Regret would be full of surprises. While unemployment remained at a historic low, rising inflation and global supply issues pointed to a probable recession. But as we entered the second half of 2023, unemployment continued its history-making trend, job creation broke expectations, and inflation rates dropped dramatically to near 3%. CFOs were more optimistic on side-stepping a recession, recalibrating their year-end projections and green-lighting projects that had been paused in anticipation of a full-blown downturn. With this improved outlook we are approaching 2024 with a new theme: “Moving Strategically Forward: Financial Leadership in an Era of Constant Change.” We are cautiously optimistic (emphasis on the caution) with the 21st edition of our Salary Guide. In the second half of 2023, the labor market finally began to normalize, quit rates fell to a two-year low and the Fed slowed and even paused increases in the target Federal
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Funds Rate — all indicators of a balancing economy and workforce. Looking to 2024, economists predict the volatility that dominated the U.S. economy during the pandemic will diminish with overall growth returning to more stable pre-pandemic rates by year-end. But what does this mean for Accounting and Finance professionals in 2024? While the labor market is softening, it remains persistently strong, and the competition for top talent in Accounting and Finance is hot. Employee demographics are changing, and the talent pool is shrinking. Although it’s time to return to the office, some people aren’t ready, and we’re facing a new AI frontier. One thing we’ve learned over the past two years is that things change — and sometimes very rapidly. Accounting and Finance professionals need a strategic and agile approach to leadership in an Era of Constant Change. As always, our Salary Guide is carefully curated with current data and high-quality insights to help you make strategic decisions for hiring and recruiting. We’ll discuss 2024 salary numbers and examine industry trends with cautious optimism. Our in-depth market knowledge, forecasting tools, and dependable benchmarks provide you the resources you need to remain competitive as we navigate the ever-changing Accounting and Finance landscape in Southern California.
Jennifer Hannigan CEO, Alliance Resource Group
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A Year in Review Job Growth and Labor Force Participation
The persistent labor shortage carried through the first half of 2023 when the national unemployment rate was 3.5% in March and 3.6% in June – record lows by any standard. Los Angeles came in at 5.3% and Orange County 3.4% at the end of Q1, then dipped even further to 4.8% and an absolute rock-bottom 3.2% respectively in June. Even as the Federal Reserve aggressively raised rates to tame inflation, the job market remained incredibly hot with decades-low unemployment levels. People were reentering the labor market, but we were still below pre-pandemic levels: Simply, there were more jobs than qualified people.
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Approaching the mid-year mark economists were no longer predicting a recession, and there were hopes of a soft landing, as reported by the New York Times. In Q3, the number of open U.S. jobs fell to the lowest level in more than two years, signaling a slowdown in the labor market. The August Job Opening and Labor Turnover Survey revealed a decrease in jobs, dropping from 9.16 million openings in June to 8.8 million open jobs in July. At the same time, the report showed a decline in the quit rate, which economists monitor closely. Higher quit rates depict climbing confidence in workers. These rates fell to 2.3%, the lowest since January 2021, pointing to a normalizing and rebalancing of the workforce and economy to pre-pandemic levels, as the fed continued to work toward bringing inflation back down to it’s 2% goal. While the labor market slowed in 2023, it was poised with sustainable and strong conditions — normally strong instead of abnormally strong . The demand for skilled workers still outnumbered supply, and the competition for talent remained fierce. To put this in another perspective, between April 2022 and April 2023 the United States gained an average of 345,427 jobs per month.
Compare that to 2010-2019, when the economy only added an average of 183,000 jobs a month.
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Employment Outlook The Continued Accounting and Finance Talent Shortage
The Accounting and Finance talent pool continues to shrink. While the labor market has cooled slightly, the shortage of Accounting and Finance professionals is affecting companies across all industries and sizes, but small to medium-sized organizations are impacted the most. The Wall Street Journal recently reported that many firms are experiencing higher levels of staff turnover, relying more on less experienced employees, and experiencing problems associated with the adoption of remote work policies during the pandemic. Further fueling the shortage are multi-generational workforce career transitions and exits. Baby-boomer retirement is colliding with millennials and Gen-Xers leaving the profession, and fewer college students are pursuing Accounting and Finance degrees.
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The numbers speak for themselves: • More than 300,000 U.S. accountants and auditors left their jobs between 2020 and 2022. • Open accounting and audit roles are the highest they’ve been since 2008. • Finance-related occupations are expected to grow 7% by 2031, resulting in 715,100 new jobs in the next decade. • The number of U.S. students who completed accounting degrees fell by 2.8% for bachelor’s and 8.4% for master’s in the 2019/2020 academic year. • 75% of baby-boomer accountants were near or at retirement by 2019. Since it is taking longer for companies to fill positions, some hiring managers are settling for less-qualified candidates. This often leads to lost productivity and burnout from other team players who might be covering extra work for inexperienced colleagues. The fierce competition for Accounting and Finance talent is not new, but some of these troubling trends require executives and HR teams to develop new strategies for retention and attracting talent. In planning for 2024, it may be a good time to evaluate your current Accounting and Finance team and structure. Many organizations are revising budgets and revisiting work programs and projects that had been put on hold the previous year. With the especially scarce Accounting and Finance talent supply in Southern California, you might need to add to your teams. If you’re not ready to add headcount, interim consultants can help fill the gap.
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Employee Trends A Focus on Retention and Engagement
As the Accounting and Finance landscape continues to experience constant change, from the talent shortage to remote work to the return to the office, less than one-third of your workforce may feel engaged in their work, as we reported in May. To help improve company culture and employee satisfaction, retention and engagement should be top priorities in your talent strategy. According to Harvard Business Review, employee engagement enhances performance, lessens burnout and leads to longer employee tenure. All of these can boost productivity while creating a future-focused environment. Consider the effects on your overall workforce — which are demonstrably positive when employees feel engaged. A recent Gallup Employee Engagement Survey found that highly engaged workforces can increase:
• • • • •
Productivity by 14%
Customer ratings by 10%
Sales by 18%
Profitability by 23%
Organizational participation by 13%
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Retention Strategies Some of the best retention strategies include top-down execution, with the C-suite being ready to endow managers with the training, expectation level and education they need in order to take the lead on employee engagement with their teams. It’s a vital commitment. As Gallup has discovered: “The manager or team leader … accounts for 70% of the variance in team engagement.” Another approach develops employees’ skills and applauds their wins. As we reported in the ARG Financial Salary Guide for 2023, professional development opportunities and employee recognition are mainstays for increased engagement. Focus professional development on the career aspirations of each employee, tying recognition to the person’s team and department to strengthen a connection with the organization. And seek out meaningful promotions you can offer when opportunities present themselves.
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When it comes to improving culture, every organization benefits from having a higher purpose. Harvard Business Review advises: “Employees have to see a connection between their day-to-day work and the organization’s greater purpose.” Especially since a sense of purpose is as desirable as a good paycheck for many employees. Cross-departmental connections present another retention strategy. These might be called networks or employee resource groups (ERGs). They are also de facto builders of diversity and inclusion, as they bring together employees with common interests or values, regardless of where they fall on the organization chart. These new avenues of camaraderie offer rewarding ways for employees to become invested in the success of their peers, and for this investment to be reciprocated. That’s a win for your organization.
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For new hires you want to attract in 2024, being able to show a high degree of employee engagement will be a powerful drawing card. And, as with the past few years, 2024 could be a period of great change. All the more reason to have a strong workforce at the ready. Periods of change also are the most important time to be hyper- communicative with your employees. Keep the team apprised of changes in the organization. Let them know how the company is
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doing and what plans the company has to weather any potential storm. If employees don’t know what’s going on, it’s human nature to imagine the worst. When things get tough, you need your best talent. Do not ease up on your retention strategies. It’s not the time to take away company lunches, annual parties, or any other perks that bolster company morale. It’s a small price to pay to hang on to your best team members.
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Industry Trends AI Opportunities and Risks
In the constantly evolving business world, artificial intelligence is perhaps one of the biggest trends driving change. The technology is quickly moving from the experimental to the operational, and CFOs are uniquely positioned to lead a broader organizational shift into the use of AI-powered tools. As stewards of the most important data in any organization, including operating costs and financial performance, CFOs are positioned to bring AI to the enterprise. As EY reports, many finance chiefs also serve as chief compliance officers, taking responsibility for financial and regulatory requirements. The role includes a wide range of repetitive and routine tasks ripe for disruption by AI. “The expectations of shareholders, regulators and audit committees have been increasing, specifically in the areas of financial and non-financial reporting, transparency, and governance. All of these functions can benefit from AI.” The benefits of implementing AI include increased efficiency, enhanced decision-making, talent and skills development, revenue growth, and operational efficiencies. However, according to Forbes, the opportunities of bringing AI to the enterprise also include critical considerations and risks, such as data security and privacy, ethical implications, regulatory compliance, cybersecurity, and algorithmic bias.
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The change AI brings to all facets of business is not only constant; it’s evolving rapidly. In facing this new era of finance, CFOs must be diligent in addressing the associated risks. For many other professionals across industries, there may be fear about the rapid change brought by AI — particularly in generative AI disrupting the workforce and displacing employees. In Accounting and Finance, we anticipate this technology will help augment daily routines and repetitive tasks. But humans will remain the most important and necessary stewards and decision- makers of this critical business function.
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Salary Expectations Adjust Current Compensation Levels to Keep Top Talent
Open job rates remain well above pre-pandemic levels, but the WSJ reports “Openings have fallen this year as interest rates rise and employers trim their hiring plans .” But what impact does the gradually cooling job market and slowing economy make on hiring and retention in Accounting and Finance? Very little. The job market in Southern California remains hot, and the shrinking talent pool we discussed in the Employment Outlook will drive competition in 2024. If your superstars have been with you for more than three years but have not received a raise, you need to adjust their compensation immediately. You should expect that your employees are being contacted by your competitors and other companies hungry for top talent. It is much less expensive to adjust a high-performing employee’s pay than to see them walk out, leaving you to find a replacement – most likely at a higher compensation level than the person who left. Moreover, 2024 might be an opportune time to hire talent. As we reported in our Q3 2023 Quarterly Barometer, we will continue to see a “rebalancing” of the job market.
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Enough time has passed since the days of “The Great Resignation” that many top players may be reconsidering moves they made based on big signing bonuses and those promised flexible work arrangements that have since been shelved. This is a great time for companies that value talent to begin to hire top talent who might not have been available previously — or who made impulse jumps during the hottest days of the War for Talent. Back-to-Office Mandates For a third consecutive year, one of the biggest conundrums organizations faced in Southern California was the requirement of in-office days. Remote or hybrid working arrangements had become one of the most sought-after benefits, and was a perk employees weren’t willing to give up.
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But the pendulum is swinging back to mandated in-office time in 2024 — for almost all industries. While flexible work did help raise employee satisfaction and reduce burnout during the pandemic, it also resulted in negative impacts on productivity, engagement and human resource management. In a series of studies over recent years, Gallup explored the importance of in-person interactions. From foraging friendships at work to higher performance and lower turnover, Gallup found that: • Human interaction is imperative for social and business success. • Virtual collaboration is less effective than in-person time. • The best way to maximize engagement and boost well-being is to establish standard onsite office days.
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Furthermore, NPR reports that “… there's evidence that fully remote workers encounter more friction when trying to convey information quickly.” With the pandemic behind us, one thing is clear, the return to work is necessary. In-office time increases the employee's connection to business, personal and professional values, purpose, and goals. The direct benefits include building a culture of support for all team members across all levels of the organization, increasing problem-solving, building interpersonal skills, driving motivation, improving communication, and achieving higher job satisfaction.
For Accounting and Finance, when it comes to in-office mandates, 2024 is the year to return. Full stop.
Amidst the talent shortage and softening labor market, the 2024 Alliance Resource Group Salary Guide is your North Star for developing return-to-work mandates, drafting new retention and hiring strategies, navigating the benefits and risks of AI and maintaining a competitive edge in this Era of Constant Change.
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How We Collected The Data Data and insights in the 2024 Salary Guide were gathered from a variety of reliable sources including the U.S. Bureau of Labor Statistics, Staffing Industry Analysts, local universities, online resources, and various studies published by large consulting firms. ARG executive search and placement activity, along with interviewing key financial/employment personnel, also contributed to this report. The content represents Alliance Resource Group’s interpretation and analysis of information generally available to the public and/or obtained from sources believed to be reliable. No representation or warranty (express or implied) is given as to the accuracy and completeness of the information contained in this publication.
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RESOURCE GROUP
Salary Guide Numbers Chief Financial Officer R evenue In Millions 2024 Compensation Range
2023 Bonus*
500+
$375,000 - $650,000 $300,000 - $500,000 $230,000 - $350,000 $210,000 - $275,000
60% 50% 40% 35%
100-500 50-100
0-50
Corporate Finance Experience/Title SVP/VP OF FINANCE
2024 Compensation Range
2023 Bonus*
$235,000 - $345,000 $160,000 - $250,000 $125,000 - $175,000 $95,000 - $130,000 $80,000 - $110,000 $70,000 - $85,000 $100,000 - $140,000 $130,000 - $170,000 $150,000 - $210,000
35% 25% 15% 10%
DIRECTOR MANAGER
SENIOR
1-3 YEARS TO 1 YEAR
7% 5%
FINANCE ASSOCIATE (M&A) FINANCE ASSOCIATE II (M&A) FINANCE ASSOCIATE III (M&A)
30%
125% 200%
CAO/Controller R evenue In Millions
2024 Compensation Range
2023 Bonus*
500+
$275,000 - $400,000 $200,000 - $350,000 $185,000 - $225,000 $150,000 - $210,000
40% 30% 25% 20%
100-500 50-100
0-50
Director of Accounting/Assistant Controller R evenue In Millions 2024 Compensation Range
2023 Bonus*
500+
$200,000 - $250,000 $165,000 - $215,000 $150,000 - $175,000 $140,000 - $160,000
25% 20% 15% 10%
100-500 50-100
0-50
26 Financial Salary Guide & Employment Outlook 2024 *Average bonus percentage paid in 2023
Financial/SEC Reporting Experience/Title
2024 Compensation Range
2023 Bonus*
DIRECTOR MANAGER
$160,000 - $240,000 $130,000 - $175,000 $110,000 - $135,000
20% 15% 10%
SENIOR
Revenue Accounting Experience/Title
2024 Compensation Range
2023 Bonus*
DIRECTOR MANAGER
$160,000 - $220,000 $120,000 - $165,000 $95,000 - $125,000
20% 15% 10%
SENIOR
Accounting Manager/Accounting Supervisor R evenue In Millions 2024 Compensation Range
2023 Bonus*
500+
$140,000 - $165,000 $130,000 - $155,000 $120,000 - $140,000 $115,000 - $130,000
15% 10% 10%
100-500 50-100
0-50
8%
Senior/Staff Accountant Experience/Title
2024 Compensation Range
2023 Bonus*
SENIOR
$90,000 - $125,000 $70,000 - $100,000 $60,000 - $75,000
10%
1-3 YEARS TO 1 YEAR
8% 5%
Cost Accountant Experience/Title DIRECTOR/ SENIOR MANAGER
2024 Compensation Range
2023 Bonus*
$160,000 - $225,000 $125,000 - $165,000 $100,000 - $130,000 $70,000 - $105,000 $65,000 - $80,000
20% 15% 10%
MANAGER
SENIOR
1-3 YEARS
5% 5%
ZERO TO 1 YEAR
*Average bonus percentage paid in 2023
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Public Accounting/Audit Experience/Title
2024 Compensation Range
2023 Bonus*
SENIOR MANAGER
$155,000 - $235,000 $120,000 - $160,000 $90,000 - $125,000 $75,000 - $95,000 $73,000 - $80,000
15% 10%
MANAGER
SENIOR
5% 5% 3%
1-3 YEARS TO 1 YEAR
Public Accounting/Tax Experience/Title
2024 Compensation Range
2023 Bonus*
SENIOR MANAGER
$155,000 - $240,000 $120,000 - $160,000 $95,000 - $125,000 $80,000 - $110,000 $75,000 - $83,000
15% 10%
MANAGER
SENIOR
5% 5% 3%
1-3 YEARS TO 1 YEAR
Accounts Payable/Accounts Receivable Experience/Title 2024Compensation Range
2023 Bonus*
DIRECTOR/MANAGER
$94,000 - $160,000 $73,000 - $100,000 $65,000 - $78,000 $52,000 - $62,000
15%
SUPERVISOR
5% 5% 2%
LEAD
CLERK
Payroll Experience/Title
2024 Compensation Range
2023 Bonus*
DIRECTOR/MANAGER
$115,000 - $160,000 $83,000 - $120,000 $52,000 - $73,000
15% 10%
SUPERVISOR
CLERK
7%
Credit Analysis/Collections Experience/Title
2024 Compensation Range
2023 Bonus*
DIRECTOR/MANAGER
$100,000 - $180,000 $83,000 - $105,000 $57,000 - $88,000 $47,000 - $62,000
20% 10%
SUPERVISOR
CREDIT ANALYST
5% 5%
CLERK
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Tax Experience/Title
2024 Compensation Range
2023 Bonus*
VP OF TAX DIRECTOR MANAGER
$240,000 - $400,000 $175,000 - $250,000 $120,000 - $180,000 $90,000 - $125,000 $70,000 - $90,000
30% 20% 15% 10%
SENIOR
STAFF
5%
Treasury Experience/Title TREASURER
2024 Compensation Range
2023 Bonus*
$210,000 - $320,000 $165,000 - $244,000
25% 20% 10% 10%
ASSISTANT TREASURER
CASH/TREASURY MANAGER $120,000 - $172,000 SENIOR TREASURY ANALYST $95,000 - $135,000
1-3 YEARS TO 1 YEAR
$70,000 - $100,000 $65,000 - $75,000
5% 2%
Internal Audit Experience/Title
2024 Compensation Range
2023 Bonus*
VP OF AUDIT
$215,000 - $340,000 $175,000 - $230,000 $125,000 - $175,000 $100,000 - $130,000 $70,000 - $100,000
30% 15% 10%
DIRECTOR MANAGER
SENIOR
8% 3%
STAFF
*Average bonus percentage paid in 2023
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Key Economic Data
Unemployment Rate
2019 3.5% 2.4% 4.0%
2020 6.7% 2.8% 11.0%
2021 5.7% 3.7% 5.6%
2022 3.5% 2.7% 4.4%
2023f
National
3.5% 3.6% 5.4%
Orange County
LA County
Labor Force Participation Rate 2019
2020 61.5% 60.1%
2021 61.9% 61.1%
2022 62.3% 62.2%
2023f 62.6% 62.3%
National California
63.2% 62.8%
Real GDP
2019
2020
2021
2022
2023f
Real GDP - Billions $
$19,090
$18,385 $19,427 $20,182
$20,386
Real GDP - Annual % Change
2.5%
-3.7%
5.7%
2.4%
1.0%
Inflation Measures
2019 2.3%
2020 1.9%
2021 3.4%
2022 8.0%
2023f
CPI - Annual % Change
3.0%
Interest Rates
2019 1.55% 4.75% 1.92% 3.73%
2020 0.08% 3.25% 0.93% 2.67% 2020 1,395 234.4 8.1% 10.6%
2021 0.10% 3.25% 1.45% 2.96% 2021 1,605 278.7 15.1% 18.9%
2022 4.10% 7.50% 3.60% 6.40%
2023f 5.25% 8.75% 4.20% 7.25%
Federal Funds Rate
Prime Rate
Treasury Bond, 10-Year
30-Year Mortgage
Housing Starts: US
2019 1,291
2022 1,357 294.3 -15.5%
2023f
Housing Starts (thousands)
1,452 308.3
Home Price Index (year 2000= 00) 212.0
Housing Starts - % Change Home Prices - % Change
13.0% -0.9%
7.0% 4.7%
5.6%
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Resources Alliance Resource Group articles curated to help you navigate the
2024 business landscape. ARG Quarterly Barometer
Beyond The Balance Sheet: CFOs As Drivers Of Company Growth Empower Your Career: The Benefits Of Becoming A Finance And Accounting Consultant Navigating The Accounting And Finance Talent Shortage Plan Career Transitions With Intent Pro Tips For Candidates: Why Using A Recruiter Can Be A Game Changer Q3 Labor And Economic Data: What Does This Mean For Socal Leaders?
The CFO As A Business Innovator The CFO’s Role In Talent Strategy
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Smarter Recruiting Contact us to learn more. www.allianceresourcegroup.com Southern California Headquarters 2525 Main Street, Suite 440 Irvine, CA 92614 I 949.250.1600
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