By Yang Huiwen

AMID the general downturn in the economy and staff clinging on to their jobs, the Big Four audit firms are adopting a more cautious approach and easing recruitment at the entry level.

This is in stark contrast to the economic boom times just a few years back, when the staff churn rate was high as these firms were losing talent to the more lucrative banking and finance industry.

Back in 2007, the Big Four firms hired aggressively to counter the attrition rates - some hired up to 300 graduates - and raised the starting pay by 20 per cent in a bid to attract more fresh graduates into the profession.

But since then, the salaries of fresh graduates joining the Big Four have remained unchanged at $2,400.

'Starting pay levels are not being reduced despite the current economic conditions,' said Mr Philip Lee, head of people, performance and culture at KPMG in Singapore.

Selected individuals with better academic results and leadership qualities are recognised and rewarded in accordance with their merit, he added.

But two of the Big Four - PricewaterhouseCoopers and Deloitte - have indicated that the starting pay of newbie auditors will be reviewed.

Deloitte is taking in about 180 fresh graduates this year, unchanged from last year.

But it is looking to review the starting pay, said Mr Philip Yuen, chief of operations at Deloitte Singapore.

PricewaterhouseCoopers human capital partner Deborah Ong said: 'We are still reviewing our salaries at the moment, and will continue to monitor market conditions closely.'

Industry experts say most offers to fresh graduates were made and committed last year, and recruitment in the months ahead will depend on the level of staff turnover as well as the economy.

Lower attrition rates among auditors may see firms scale back hiring.

'The overall number of staff we are recruiting may be reduced in tandem with our lower attrition rate,' said Mr Steven Phan, country managing partner at Ernst & Young.

He reckons that recruitment of local and overseas new graduates is set to drop by about 10 per cent this year as attrition rates have reduced by about half.

However, he reiterated that Ernst & Young continues to hire experienced talent in areas that are demanded by the business.

KPMG is taking in about 200 new recruits this year and plans to recruit another 200 new graduates next year.

The number is 'slightly fewer than in previous years', said Mr Lee.

Recruitment is also on for more senior positions, but the current job market allows the employer to be more selective.

'The current downturn presents opportunities for us to attract talent available in the market, so we continue to make strategic investments in hiring the best experienced talent where required,' said MrPhan.

Deloitte says it is still recruiting for 'niche market positions' such as tax and financial advisory services.

Ms Audrey Chan, associate director at finance recruitment firm Kerry Consulting, said hiring of fresh graduates on campus among accounting firms this year has not been cut back noticeably.

Instead, the cost-saving measures tend to be taken at the level of more experienced staff, she said.

'There is a general drive to contain costs wherever possible. Some firms are considering taking measures to manage their cost in the form of delay of promotions and salary increments,' said Ms Chan.

She added that the month of July is typically the increment and bonus period for the larger audit firms.

That said, accounting folk 'tend to be in fairly stable demand, boom or bust', she said, compared to their counterparts in the banking sector, which is undergoing major restructuring.

Mr Declan O'Sullivan, founder and director of Kerry Consulting, said recruitment volumes have come off significantly since November last year.

In particular, hiring in the banking sector 'hit a wall as many financial institutions had blanket hiring freezes', he said.

This article was first published in The Straits Times.