Compensation for accounting and finance professionals this year will rise slightly over 2001 levels, according to the just-released Robert Half and Accountemps 2002 Salary Guide.

Starting salaries for financial professionals in Canada are expected to increase by an average of 2.8% in 2002, compared to the 5.1% increase that was forecast this time last year. The annual salary survey is based on an analysis of the thousands of job orders managed by Robert Half and Accountemps’ Canadian offices.

“Average starting salaries for accounting and finance professionals in Canada will remain more stable in 2002 compared to recent years,” said Trevor Zigelstein, a regional manager for Robert Half International. “As a result of the current economic climate, businesses are hiring more cautiously. Many employers are screening candidates more intensely to ensure they have not only the ability to do the job but also the talent to help the organization achieve strategic business goals.”

Public accounting firms of all sizes continue to show strong demand for new talent. Starting salaries for public accountants are expected to increase an average of 3.4% in 2002. Among all job categories, first-year accountants at large public accounting firms will benefit from the greatest increase in base compensation. Starting salaries for these professionals are expected to rise an average of 10.2% over last year, to the range of $35,000 to $43,250 annually.

In corporate accounting, analysts and general accountants are expected to see the largest percentage increase in base compensation. Average starting salaries for analysts at companies of all sizes should increase an average of 6.5% and base compensation for general accountants at businesses of all sizes is predicted to increase by 4.8%. More specifically, analysts in managerial positions at large companies (more than $250 million in sales) should see base compensation rise 8.6%, to the range of $67,500 to $90,000 annually.

While overall increases in starting salaries are moderate compared to last year’s projections, some of the specialty areas most in demand should still experience notable gains, including payroll managers, first-year analysts and vice presidents of finance.

Demand for accounting and finance professionals is expected to be strongest in the health care, real estate and financial services industries.