Firstly, there are some important things to remember:

• This question is not illegal and is a perfectly understandable question for an interviewer to ask when the interviewer assumes that you would be happy with a small uplift on your current salary
• Most interviewers do not wish to negotiate with you as they are not good negotiators – they prefer HR or the agency to do this
• The employer has a budget and therefore knows specifically what salary can be considered for the role
• Both parties often feel that they shouldn’t divulge their expectations. Whilst being the first to “show your cards” can be seen as “weakening your negotiating power”, its is also a sign that you are not a secretive individual

The Professional Approach to Salary Questions

When asked about your current salary, it’s essential to approach the question with tact and professionalism. The question is often asked out of ignorance so your answer should be educational rather than confrontational. Here are some strategies to consider:

1. Redirect the Conversation: Instead of disclosing your current salary, steer the conversation towards your salary expectations based on the role and market standards. For instance, you could say, “I prefer to focus on the value I can bring to this role and what the market rate is for a position like this.”
2. Market Research: Equip yourself with data on industry standards for the role you’re applying for. Websites like Glassdoor, Payscale, and the Office for National Statistics (ONS) provide valuable insights.
3. Emphasise Your Skills and Experience: Highlight your qualifications and how they align with the job requirements. You could respond with, “My experience and skills in financial analysis and budgeting are well-aligned with this role, and I am confident that we can agree on a fair compensation that reflects this.”

What If They Ask You The Same Question Again

This is when alarm bells should start to ring. If your guidance towards your salary expectations does not alert them to the fact they have asked an irrelevant question, I would suggest a more clear and direct response. “Having spoken to my peers and looked at salaries on offer at other organisations, I realise that my current salary does not reflect my skills and attributes so am now looking to work with a business that can better reflect this so I am looking to earn

The Importance of Gender Pay Equality

Discussing salary in interviews also brings up the critical issue of gender pay equality. According to the Chartered Institute of Personnel and Development (CIPD), the gender pay gap in the UK’s finance sector remains a concern, with women earning, on average, 15% less than their male counterparts in 2023. By not disclosing your current salary, you help prevent perpetuating existing disparities. Instead, you push for compensation based on the role’s value and your qualifications, rather than previous earnings which might have been influenced by gender biases.

Power Dynamics in Salary Negotiation

Understanding the power dynamics in salary negotiations is crucial. Employers often hold more power in these discussions, and divulging your current salary can tip the balance further in their favour. Instead, focus on negotiating from a position of strength by:

1. Being Informed: Knowledge is power. Understand the company’s pay structure and the typical salary range for the position you’re applying for. This information can often be gleaned from job adverts, industry reports, and networking with peers.
2. Confidence in Your Worth: Be prepared to articulate your worth confidently. Frame your salary expectations in the context of the value you bring. For instance, “Based on my extensive experience in financial reporting and the improvements I’ve highlighted to you in my current position, I am seeking a salary in the range of £50,000 to £55,000.”
3. Flexibility and Negotiation: Show willingness to negotiate other benefits if salary discussions reach a stalemate. Benefits such as bonuses, flexible working arrangements, and professional development opportunities can be equally valuable.

Conclusion

Navigating salary questions in interviews can be challenging, but with the right approach, you can maintain professionalism while advocating for fair compensation. By redirecting the conversation towards your expectations and market standards, you protect your interests and support broader goals like gender pay equality. Remember, salary negotiations are an opportunity to establish your worth based on your skills and experience, not just past earnings. As middle managers in finance and accounting, leading by example in these discussions can contribute to a more equitable and transparent industry.

For more insights on career development and salary negotiations, stay tuned to our blog and follow our updates on LinkedIn. Let’s continue to strive for fairness and professionalism in all our career endeavours.

1. Excel as a Financial Analyst

One of the foundational steps toward becoming a CFO is excelling in roles such as a financial analyst. This involves a deep understanding of financial data, trend analysis, and the ability to communicate insights effectively. As a financial analyst, individuals can demonstrate their analytical prowess, a skill highly valued in the C-suite.

2. Specialise in Corporate Finance

Transitioning to roles in corporate finance is a strategic move. Involvement in and mergers and acquisitions (M&A) provides a holistic financial perspective and this can be gained in-house or within a financial consulting firm. Those who have gained their accounting qualification from the larger accounting firms can consider some time in the financial advisory, transaction services or corporate restructuring teams to gain this skillset.

3. Gain International Experience

In an increasingly globalised business environment, CFOs are often required to navigate international markets. Obtaining experience in international finance or working in diverse geographical locations enhances a candidate’s versatility. For most Brits, this is uncommon and uncomfortable but for those who push for these opportunities, the greater understanding of different regulatory environments and adapting to varied business cultures sets them apart from their peers as a global financial leader.

4. Develop Leadership and Management Skills

CFOs are not only financial experts but also effective leaders. Transitioning from purely technical roles to managerial positions, such as finance manager or director, allows accountants to hone their leadership skills. Building and leading high-performing teams is a crucial aspect of the CFO role.

5. Technical Accounting Knowledge

Where most aspiring CFO’s often fall down is their desire to stay away from the often perceived “boring” technical side of finance and accounting. Although as a CFO, you will likely have a strong Financial Controller or 3rd party advisor providing you with this technical info, experience of having prepared it yourself is often crucial to elevating yourself into the top spot. For those who qualified as accountants in audit, this is a step they often overlook. This experience can be gained as a first move out of practice or as a secondment much later on but do make sure you tick that box!

6. Pursue Advanced Education and Certifications

Furthering education through an MBA or obtaining certifications like the Chartered Financial Analyst (CFA) qualification can set candidates apart. These qualifications provide a broader business perspective and signal a commitment to continuous learning—a trait highly valued in executive roles.

7. Leverage Technology Skills

In the digital age, CFOs are expected to be tech-savvy. Developing skills in financial technology (FinTech), data analytics, and enterprise resource planning (ERP) systems positions accountants as forward-thinking financial leaders. The ability to harness technology for strategic financial decision-making is a valuable asset.

8. Network Strategically

Building a robust professional network is essential for career growth. Attend industry conferences, join professional organisations, and leverage online platforms like LinkedIn to connect with peers and mentors. Networking provides exposure to industry trends, potential opportunities, and insights from seasoned financial leaders. Networking is not about helping you secure your next move, its about securing the one after that, and the one after that …….

9. Showcase Business Acumen

CFOs are not just financial experts; they are also astute business strategists. Developing a deep understanding of the industry in which one works and staying informed about economic trends is crucial. Being able to align financial strategies with broader business goals positions an accountant for success in the CFO role.

10. Be Patient!

Being such a critical role but business owners, investors and exec teams, the CFO recruitment process can be long and often requires candidates to have been a proven CFO for other organisations. The best route to CFO is often done through your own network where individuals have seen your abilities and know that you will be a successful CFO without requiring you to demonstrate you have done the position for four other organisations previously. Bide your time and work with your current CFO to forge a strong relationship to put you in pole position for when they leave.

Conclusion

Becoming a CFO is a journey that involves strategic career choices, continuous learning, and a commitment to professional development.

As the financial landscape evolves, so do the opportunities for accountants to rise to the ranks of CFO. By making deliberate and strategic career choices, qualified accountants can chart a course toward the executive suite, contributing to the success and growth of their organisations.

Congratulations on nearing the completion of your 3-year training contract with one of the prestigious Big 4 Accountancy firms! As you approach the threshold of becoming a qualified chartered accountant, it’s essential to consider the various career paths available to you. In this blog post, we will provide insights into the different career choices you can explore and highlight the top five jobs that individuals have pursued after completing their training contracts in the UK market.

1. Audit and Assurance Roles: Audit and assurance roles are a common pathway for newly qualified chartered accountants. This career choice allows you to gain further expertise in financial reporting, internal controls, and risk management. Many individuals choose to progress within the Big 4 or other prominent accounting firms, building their experience and eventually taking on managerial or partner-level roles. This path offers a dynamic environment, exposure to diverse industries, and potential for career growth.
2. Financial Advisory Services: If you have a keen interest in finance and enjoy working on challenging projects, a career in financial advisory services might be ideal for you. This field encompasses areas such as mergers and acquisitions (M&A), transaction services, valuation, and corporate finance. Joining specialised teams within accounting firms or boutique advisory firms can provide you with exposure to complex transactions, strategic consulting, and financial due diligence.
3. Management Accounting and Financial Planning & Analysis: Management accounting and FP&A roles are a great fit for those who prefer working closely with organisations to drive financial decision-making. These positions involve budgeting, forecasting, analysing financial data, and providing insights to support business strategy. Many companies across various industries have in-house finance teams that offer excellent career prospects for qualified chartered accountants. This is an area Harcourt Matthews specialises in and can support – take a look at our current vacancies
4. Risk and Compliance: With increasing regulatory scrutiny, risk and compliance roles have become vital for organisations. As a qualified chartered accountant, you can specialize in areas such as internal audit, compliance management, or enterprise risk management. This field offers opportunities to work in corporations, financial institutions, or consultancy firms, helping clients navigate regulatory challenges and mitigate risks.
5. Financial Services and Investment Management: The financial services sector provides a vast array of opportunities for newly qualified chartered accountants. Roles in investment banking, asset management, private equity, or hedge funds can offer exposure to high-level financial analysis, deal structuring, and investment strategies. While these positions often require additional qualifications, such as the CFA (Chartered Financial Analyst) designation, they can be highly rewarding for those interested in the world of finance.

Conclusion: As you near the completion of your training contract and embark on your journey as a qualified chartered accountant, the career choices available to you are diverse and promising. Whether you choose to stay within the accounting profession, specialise in a particular area, or venture into finance-related roles, remember to assess your interests, skills, and long-term aspirations.

While the top five jobs highlighted in this blog provide a starting point for exploration, it’s essential to conduct thorough research, network with professionals in your desired fields, and seek guidance from mentors or career advisors. The UK market offers a multitude of possibilities for chartered accountants, and with careful planning, you can find a career path that aligns with your goals and ambitions.

Best of luck with your career journey, and congratulations again on reaching this significant milestone in your professional development!