The accounting industry faces a conundrum. With a shortage of accountants, firms face big challenges in maintaining quality service and growing their businesses. A blend of factors like rigorous licensing prerequisites, changing work-life balance perspectives, and the digital revolution are all contributing to the changes.
These issues are not unique to our industry but strike a particularly acute note for accounting, a profession that safeguards financial stability. The mission ahead is crucial. We must attract proficient individuals and foster an environment for their growth and retention.
Changes in the Accounting Industry
As the accounting industry moves away from traditional practices, sourcing new talent has become a significant challenge. According to a December 2022 Wall Street Journal article, more than 300,000 U.S. accountants and auditors left their jobs during the Covid 19 pandemic, a drop of 17% from 2019. The human element, especially those proficient in leveraging new technologies while upholding the profession’s accuracy and professional standards, is increasingly hard to find.
Recent reports from the American Institute of CPAs (AICPA) show a noticeable decline in CPA exam candidates, indicating a further impending talent crisis. The number of accounting students graduating with a degree in the U.S. has dropped from 56,715 in 2015-2017 to 52,481 in 2019-2020, according to the 2021 Trends Report from the AICPA. This pattern raises serious questions about the appeal of the accounting profession among the younger generation and necessitates strategic actions to reverse this trend.
Failure to address this talent crunch will severely impact a firm’s ability to take on or retain clients, compromise service quality, and stress existing staff, potentially leading to even more burnout and attrition. Consequently, understanding the new expectations of the workforce and adapting practices to match them will separate successful firms from others.
Crucial to this transformation is the strategic engagement with students. Illuminating the prospects of an accounting career while providing tangible experiences through sponsorships, internships, and hands-on student programs can inspire early interest in the field, making it an attractive career choice.
The accounting profession does have an image problem. Simply put, the Millennials and Gen Zs are not willing to work the long hours that many firms have traditionally required. In order to attract and keep a happy and productive workforce, successful firms will have to find a way to offer their employees a better work-life balance.
Innovative Retention Strategies
Shandell Riley, TOA Global Executive Vice President of Talent, who recruits global accounting talent, emphasized that “Attracting top talent is just the beginning. We are committed to continuously defining and refining our recruitment, hiring, and onboarding processes. I believe it’s our investment in learning and development, coupled with our comprehensive engagement programs, that ensures our people stay longer and motivates them to grow their careers and find fulfillment in their work.”
A people-first approach in a hybrid work model is fundamental for retention. Flexibility in working hours, remote options, or even opportunities to work from different global locations can enhance a firm’s appeal and encourage talent retention.
Today’s workforce demands networking, learning, and mentorship opportunities to build an empowering and sustainable work environment. Understanding and accommodating the workforce’s desire for a healthy work-life balance is vital to attract and retain top talent.
