The Accounting Talent Crisis and How to Navigate It

Hi everyone,

The accounting industry is amidst a talent crisis. Anyone you ask has had problems with finding or recruiting top accounting talent.

Over the past few years, more than 300,000 accountants and auditors in the U.S. have left their jobs, a trend exacerbated by the pandemic's impact on work conditions and stress levels.

And, as indicated in our UK Accounting Industry report, the UK has incurred staff shortages of 330,000 since Brexit. The pipeline of new talent is shrinking, with fewer accounting graduates sitting for the CPA exam each year.

So, what's driving this crisis, and more importantly, how do we turn the tide?

For one, the profession's image problem. Accountants are often viewed as mere number crunchers, leading to lower starting salaries compared to other financial careers. The average salary for accountants stands at $77,250, while financial analysts and associates earn significantly more.

Now, with only 1% of mid-sized firms able to meet talent needs, CFO Dive reports more than half of these firms are offering a 14% hike in starting salaries.

But it doesn’t end with the pay.

High turnover rates, especially in larger firms, point to a systemic problem with work-life balance. Many professionals cite burnout and a lack of supportive workplace culture as key reasons for leaving the field. In fact, an ICPAS survey report showed that firms lose 1 out of 4 accountants every year due to burnouts.

There is a need to rethink our business models and organizational values. Attracting talent requires more than just competitive salaries. It takes creating a supportive environment that values work-life balance and offers meaningful career development opportunities.

One way firms can do this is by exploring unconventional staffing solutions such as outsourcing and remote work. A study by PwC found that 83% of employers say the shift to remote work has been successful. Why not build on this success and offer the flexibility that today’s workforce demands?

Then there’s also the need for recruiters to break old hiring habits. Diverse skills like data analytics and financial advisory are hot and need to be valued. By pivoting hiring practices around evolving skills and specializations, recruiters can secure top talent and long-term success for accountancy firms.

Lastly, diversity and inclusion are also critical to solving the talent crisis. Our profession still struggles with a lack of diversity, and it’s costing us. The AICPA Trends Report revealed that only 18% of accounting leaders are people of colour.

Diverse teams bring diverse perspectives, which leads to better problem-solving and innovation. Accounting firms need to actively promote inclusive hiring practices and create a welcoming workplace for all, for that’s how we can appeal to a broader talent pool and build stronger teams.

To know more about How Accounting Firms Can Attract and Retain Top Talent, read our blog and equip your business with the know-how needed to tackle the ongoing accounting talent crisis.

Until next time,

Arun

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