Internal Audit |
Dec 2007 |
Jun 2008 |
Dec 2008 |
Jun 2009 |
Dec 2009 |
| New vacancies |
84 |
79 |
58 |
29 |
46 |
| Closing vacancies |
39 |
37 |
23 |
17 |
24 |
| Candidates registering |
312 |
356 |
242 |
226 |
274 |
| Defensive registrations |
17% |
19% |
28% |
23% |
19% |
| Overall salary increase |
12% |
12% |
11% |
11% |
10% |
In the second half of 2009, starting in September, the number of internal audit vacancies increased. This increase was against the most significant fall in demand for internal auditors during the last 20 years. What was essentially a collapse in demand encompassed all sectors of the economy and was replicated throughout the other geographic areas that Barclay Simpson covers: Europe, Middle East and Asia Pacific.
Vacancies
Whilst vacancies rose from 29 in the first half of the year to 46 in the second half, the number of vacancies was still almost 50% down on the equivalent period two years ago. The rise in demand when it came was more significant than the bald number would suggest and was loaded in the period between September and October. However, the increase in vacancy generation was not sustained and fell back in the final two months of the year. This trend emerges in the closing number of vacancies which at 24 are somewhat better than the 17 at June 2009 but not far removed from the 23 at the close of 2008. Equally the number of departments with vacancies fell from 28% in December 2008 to only 24% in December 2009, a multi-year low. On a more positive note, and something that is not always clear from the statistics, is the quality of the vacancies.
Whilst the number of vacancies did not change significantly during the course of the year, how determined a company is to fill the vacancy is an important qualitative factor. Companies are currently far more active and determined to fill their vacancies now than they were a year ago. They are prepared to interview and recruit internal auditors rather than simply meandering through a recruitment process and then failing to make a decision.
The budgeted number of internal auditors at 660 is only 1% down on 2008 as is the actual number of internal auditors employed. This confirms what we have maintained for a number of years, employment in internal auditing is more secure than in the wider economy. In the UK as a whole employment fell almost 2% during the comparable period.
| |
Dec 2008 |
Dec 2009 |
Change |
| Budgeted numbers employed |
667 |
660 |
-1% |
| Actual numbers employed |
644 |
636 |
-1% |
| Departments with vacancies |
28% |
24% |
-4% |
Registrations
The number of defensive candidate registrations has fallen throughout the year and in the second half of 2009 was down to 19%. This is a positive sign but does not accurately describe the low level of redundancies in internal auditing during the course of the last 18 months. Believing that your employment is under threat is not actually the same as losing your job. While many may have felt to be under threat of redundancy, the fear has often proven misplaced.
Salaries
The average salary increase achieved by internal auditors changing job was 10% during 2009, a multi-year low. Those companies that have recruited during 2009 have not felt compelled to offer significant increases. Further, as you will go on to read, it has been many of the smaller companies rather than the large multinational groups that have recruited. They generally offer lower salaries to their recruits, which otherwise redundant internal auditors have often been pleased to accept. |
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