LABOR REFORM - JOB MARKET EFFECT
One of the key changes of the reform is the extension of the probation period to 9 months for hourly employees and 1 year for employees qualifying as exempt professionals under federal law.
The one year probationary period may apply to many new hires in the accounting profession. While much discussion has been based on what is reasonable time for an employer to evaluate an employee to commit for a permanent position we would like to discuss what is the possible effect on the current job market and job offer negotiations for audit, tax, accounting and finance professionals which as many of you know at this point is a candidates job market.
We can start by looking at how accounting candidates negotiate on jurisdictions where employment is at will with many benefits not enforced by law similar to what will apply to many candidates on their first year of employment in Puerto Rico after the labor reform The one year probationary period may apply to many new hires in the accounting profession.
At these jurisdictions many benefits are negotiated by the candidates or included as policy by employers in competitive industries that want to hire the best talent. A "risk premium" is taking into account in negotiations when a candidate is changing jobs.
What is expected in Puerto Rico job market and job offers negotiations?
Although the long term effect of the labor reform in the job market for accountants is unknown Busy Season Staffing Solutions had started to see a change at negotiations. Since the labor reform was approved candidates are negotiating benefits and salary more aggressively. Some are making questions about how the labor reform would affect them before accepting a job offer, and then demanding that some of the key benefits are applied before it is required by law in addition to a salary increase. Note that as stated on the prior "salary expectations" newsletter, salary demand was happening since before the labor reform was approved.
Our expectation is that some employers specially audit firms will make the decision to keep many benefits even if not required by law in order to compete for top talent. For example there are US based firms that provide over 20 vacations days to employees at states where vacation time is not required by law. Some provides these benefits in Puerto Rico above the local law requirements. We already know that many of these firms will not make changes at least to their vacation and sick benefits in Puerto Rico since they want to keep attracting top talent.
From a candidates perspective we expect many professionals to negotiate benefits when changing jobs to a company that reduced benefits or changed the timing of applying benefits based on an extended probationary period by applying the labor reform.
What is the current state of the job market for accounting and audit?
Busy Season Staffing Solutions has noted that the pool of qualified candidates continue to decrease as many accounting related professionals migrate to the US mainland to take advantage of the strongest job market and salary increases since the great recession. At the same time local demand is increasing due in part to the busy season that started already (Audit firms demand), new job openings to comply with complex tax laws (private industry and audit firms demand) and new job openings at multinational companies operating in Puerto Rico who are benefiting from a strong US economy.
We consider it is important to provide you this information about what is happening on the job market for accounting professionals after the labor reform was approved. As in our prior newsletter Busy Season Staffing Solutions recommends that your company creates an action plan to take the necessary steps to recruit and retain top talent.
Busy Season Staffing Solutions can assist your company in the recruiting of professionals both for regular employee needs as to temporary staffing.
Contact us at 787-918-1890, [email protected] or using the employer request staffing assistance section.
The one year probationary period may apply to many new hires in the accounting profession. While much discussion has been based on what is reasonable time for an employer to evaluate an employee to commit for a permanent position we would like to discuss what is the possible effect on the current job market and job offer negotiations for audit, tax, accounting and finance professionals which as many of you know at this point is a candidates job market.
We can start by looking at how accounting candidates negotiate on jurisdictions where employment is at will with many benefits not enforced by law similar to what will apply to many candidates on their first year of employment in Puerto Rico after the labor reform The one year probationary period may apply to many new hires in the accounting profession.
At these jurisdictions many benefits are negotiated by the candidates or included as policy by employers in competitive industries that want to hire the best talent. A "risk premium" is taking into account in negotiations when a candidate is changing jobs.
What is expected in Puerto Rico job market and job offers negotiations?
Although the long term effect of the labor reform in the job market for accountants is unknown Busy Season Staffing Solutions had started to see a change at negotiations. Since the labor reform was approved candidates are negotiating benefits and salary more aggressively. Some are making questions about how the labor reform would affect them before accepting a job offer, and then demanding that some of the key benefits are applied before it is required by law in addition to a salary increase. Note that as stated on the prior "salary expectations" newsletter, salary demand was happening since before the labor reform was approved.
Our expectation is that some employers specially audit firms will make the decision to keep many benefits even if not required by law in order to compete for top talent. For example there are US based firms that provide over 20 vacations days to employees at states where vacation time is not required by law. Some provides these benefits in Puerto Rico above the local law requirements. We already know that many of these firms will not make changes at least to their vacation and sick benefits in Puerto Rico since they want to keep attracting top talent.
From a candidates perspective we expect many professionals to negotiate benefits when changing jobs to a company that reduced benefits or changed the timing of applying benefits based on an extended probationary period by applying the labor reform.
What is the current state of the job market for accounting and audit?
Busy Season Staffing Solutions has noted that the pool of qualified candidates continue to decrease as many accounting related professionals migrate to the US mainland to take advantage of the strongest job market and salary increases since the great recession. At the same time local demand is increasing due in part to the busy season that started already (Audit firms demand), new job openings to comply with complex tax laws (private industry and audit firms demand) and new job openings at multinational companies operating in Puerto Rico who are benefiting from a strong US economy.
We consider it is important to provide you this information about what is happening on the job market for accounting professionals after the labor reform was approved. As in our prior newsletter Busy Season Staffing Solutions recommends that your company creates an action plan to take the necessary steps to recruit and retain top talent.
Busy Season Staffing Solutions can assist your company in the recruiting of professionals both for regular employee needs as to temporary staffing.
Contact us at 787-918-1890, [email protected] or using the employer request staffing assistance section.
Disclaimer: The information presented above is for information purposes only and do not represent legal advice. Before making any decision you should consult your own legal advisor.