With the release of our 2025 Financial Salary Guide and Employment Outlook, we reflect on our industry’s resilience and adaptability over the past year. The cautious optimism of 2024 has largely been validated and persists.
2024 has surpassed the expectations of many industry leaders, defying recession predictions. Hiring remained robust with most of our Southern California clients experiencing unexpected stability.
This positive trend seems poised to continue into the new year, with many of our partners anticipating growth and opportunity. Job creation has recently slowed, unemployment has slightly increased, and inflation is declining. The September interest rate cut exceeded expectations, and a mild slowdown is anticipated for Q4 2024.
Respected economic forecasts, including ITR Economics, suggest 2025 could be exceptionally strong. However, we remain cautiously optimistic, recognizing several variables:
- Geopolitical uncertainties, including U.S. elections and escalating conflict in the Middle East
- Ongoing inflation concerns
- Recent, larger-than-expected interest rate reductions
- Technological disruptions, from global outages to AI advancements
- Recent economic indicators, like August’s underwhelming jobs report and market volatility
These factors underscore the need for vigilance and adaptability. Our salary guide provides tools and insights to help Finance and Accounting leaders to navigate key hiring and retention trends in the coming year.
What We See For 2025
1. A More Balanced Labor Market for Accounting and Finance
While McKinsey is forecasting one of the tightest labor markets in the developed world, we have observed a noticeable shift toward a more balanced market in the Southern California Finance and Accounting sector. The frantic rush to secure talent that characterized previous years has begun to ease. Employers are demonstrating more patience and selectivity in their hiring processes, indicating a maturing of the post-pandemic labor market in our sector.
However, this equilibrium remains delicate, influenced by broader economic trends and demographic shifts. Coupled with the projected slowdown in population growth and an aging workforce, hiring managers should focus on innovating talent acquisition and retention strategies, as we reported earlier this year. Employers must balance their need for top-tier talent with a more measured, strategic approach to hiring.
2. Rehumanizing Work
One of the most significant challenges facing the Accounting and Finance sector is the continued high rate of professionals not entering or leaving the industry. This trend, which began during the “Great Resignation,” has shown little sign of abating. The reasons for this exodus are multifaceted, including:
- Attraction to industries perceived as more dynamic or innovative
- Lack of graduates entering the field
- Skills gaps caused by AI and other evolving technologies
- Pursuit of more fulfilling or purpose-driven careers
- Desire for better work-life balance
- Burnout from high-pressure work environments and long hours
In response to the dwindling workforce and high attrition rates, forward-thinking organizations are shifting toward more personalized, employee-centric retention strategies. This approach is often referred to as “rehumanizing work” as reported by Bain & Company and involves customizing career paths based on individual talents and aspirations.
By tailoring retention efforts to employees’ unique talents and goals, companies can create more engaging and fulfilling work environments, potentially reversing the trend of industry departures.
3. Upskilling and Reskilling for Technology Integration
Technology’s continuous evolution demands constant (and urgent) workforce development. As AI, machine learning, and advanced analytics permeate Finance and Accounting, professionals must evolve to stay relevant. Critical skill areas include:
- Data analysis and interpretation
- Mastery of AI-powered financial tools that streamline routine tasks
- Cybersecurity knowledge
- Strategic thinking in a tech-driven landscape
Upskilling your workforce gives you a competitive advantage, increases efficiency and productivity, helps manage risk, bolsters strategic value, and drives adaptability to change.
4. Cultivate a Hiring Culture
Forward-thinking companies are evolving beyond conventional recruitment to foster a hiring-centric culture to overcome the shrinking talent pool. This strategy encompasses:
- Transforming all staff into talent scouts
- Launching robust employee referral programs with compelling incentives
- Developing a resonant employer brand
- Optimizing hiring processes to capture top talent swiftly
- Nurturing connections with passive candidates and alumni
Embracing this approach allows organizations to leverage employee networks, broaden talent pools, and cultivate an engaged workforce actively invested in company growth.
5. Prioritizing Cybersecurity and Data Privacy
The digitalization of financial data has elevated cybersecurity and data privacy to critical concerns in Finance and Accounting:
- Cyber Risk Management: Finance professionals now play a key role in assessing and mitigating cyber risks, partnering closely with IT teams to safeguard sensitive financial data.
- Data Privacy Compliance: Finance and Accounting departments are increasingly responsible for adhering to diverse data privacy regulations, often collaborating with legal and IT sectors.
- Secure Financial Infrastructure: Implementing robust, secure financial systems and processes has become paramount for organizations across the board.
The intersection of finance and technology has made cybersecurity and data privacy indispensable components of modern financial operations. As threats evolve and regulations tighten, finance professionals must stay vigilant and adaptable.
Organizations that prioritize these areas not only protect their assets and reputation but also gain a competitive edge. By fostering a culture of security awareness and investing in robust systems, finance teams can confidently navigate the digital landscape, turning potential vulnerabilities into opportunities for innovation and trust-building with clients and stakeholders.
Download your copy of  Alliance Resource Group’s 2025 Financial Salary Guide and Employment Outlook and build a team that drives innovation, ensures compliance, and propels your organization to new heights in the evolving financial landscape.
