Accounting firms are facing a dual challenge: rising demand for skilled professionals and a shrinking talent pool. This predicament has not only intensified salary expectations but also reshaped the strategies firms must adopt to attract and retain top accounting talent.
Understanding the Talent Shortage
Accounting Today reported talent acquisition and staffing to be a leading issue facing the industry in 2024. Recent reports from the American Institute of CPAs (AICPA) highlight a critical issue: less than 1% of accounting and finance firms can meet their staffing needs adequately. This scarcity isn’t just a statistic but a pervasive reality impacting over 99% of firms in the sector. The result? Fierce competition among employers, leading to upward pressure on salaries as professionals wield greater bargaining power in the candidate-driven job market.
Factors Driving the Shortage
Several factors contribute to the tightening grip of the talent shortage. Demographic shifts such as the retirement wave among seasoned CPAs have depleted the pool of experienced professionals. Nearly 75% of the CPA workforce was estimated to reach retirement age by 2020, according to AICPA data. That’s a pretty staggering statistic.
The field has a high barrier to entry – requiring rigorous education, qualifications like the CPA exam, and continuous professional development. Despite the evolving nature of accounting roles, which now integrate cutting-edge technology and strategic business decision-making, the profession continues to battle a perception problem. Accounting’s reputation as lacking excitement or innovation persists, contrasting with the lucrative opportunities and broader appeal of tech and finance careers.
Impact on Compensation and Employment Trends
The talent crunch has prompted firms to reevaluate their compensation structures and workplace policies. There is a need to look beyond base salary to attract future talent. The push for competitive salaries, flexible work arrangements, parental leave and more comprehensive benefits has become more than an nice-to-have in attracting and retaining talent.
Adapting Strategies: Embracing Flexibility and Innovation
To thrive amidst these challenges, forward-thinking firms are exploring innovative solutions such as leveraging contract professionals to fill immediate skill gaps. This trend not only addresses immediate staffing needs but also provides flexibility in scaling operations and adapting to fluctuating demands.
And embracing technological advancements is crucial. Modern accounting roles increasingly require proficiency in data analytics, automation tools, and cloud-based solutions. Firms that invest in upskilling their workforce and integrating advanced technologies not only enhance operational efficiency but also appeal to tech-savvy jobseekers who may not have considered the field previously.
Looking Ahead
It’s time to proactively address the underlying causes of the talent shortage while reshaping recruitment and retention strategies. Cultivating a supportive and innovative workplace culture, offering competitive compensation packages, and promoting the diverse career paths available within accounting are essential steps toward building a resilient workforce.
Anthony Kelley leads the Finance and Accounting recruiting division at HireMinds. He offers a personalized candidate and client experience for all things money, from AP/AR and Staff Accountants all the way up to CFO’s.
Anthony’s expertise spans finance, corporate and technical accounting and he can offer guidance on the current market, compensation and benefits best practices, role descriptions and org structure.
When he is not tracking down and engaging top finance and accounting talent, he is home in Austin, TX being Dad to Hazel and Grayson.
Reach out to him today for more information on how he can help you recruit the best F&A talent. akelley@hireminds.com 818-564-1752