5 key recruitment trends shaping the tax market this year

The first quarter of the year has certainly flown by.

Now that busy tax season is behind us, I thought it would be a good time to reflect on what’s been happening in the recruitment market for tax roles in Public Practice.

1. More promotional hires are taking place in 2024

Last year, many firms wouldn’t take on promotional hires, instead favouring candidates who were already working at the level of role advertised.

This year, there has been a shift in attitude and more promotional hires are now taking place. Firms have been far more willing to engage in conversation with candidates looking to move for a promotion.

2. Hybrid working is back

There has been less of a focus on firms trying to implement days in the office compared with last year.

Many firms that tried mandating 5 days a week in the office are now having to re-introduce hybrid options due to pushback from employees and/or difficulties in attracting talent. The recent implementation of the Flexible Working Bill may also be influencing this shift.

Equity, Diversity & Inclusion continues to be a key focus

ED&I continues to be an area of investment for most Practices, although there is still a lot of work to be done, particularly for smaller firms.

Interestingly, some firms are refusing to work with suppliers who don't meet certain ED&I requirements.

An increase in external Partner hiring

There has been an increasing appetite to hire Partners externally to boost growth organically vs relying on external investments such as PE backing.

How a firm's growth is being funded and the way a firm is structured can hugely impact a senior Tax candidate's interest in the Practice.

Candidates can be very wary of PE backed firms as they tend to be associated with more aggressive growth targets and less autonomy over the direction of growth. This, in turn can put some candidates off from considering the opportunity.

Bonuses

Whether or not to offer a bonus has been a hot topic of discussion amongst hiring managers.

Would a candidate be swayed by a firm offering a more attractive bonus scheme, or by a stronger base salary?

Of course, the answer depends on the individual, but the decision is effectively dictated by how a firm remunerates across the board and potentially how they want to encourage growth.