Last updated: 12 Aug 2024 12:00 Posted in:
Almost half of accountancy firms are being ‘significantly affected by an existential crisis’ when it comes to staffing issues, a global research study has concluded.
Consultants and outsourcing firm Advancetrack said its Accounting Talent Index “lays bare that firms across the globe are stricken by skills shortages”.
It added that “as practice leaders look to create a sustainable and profitable future, their talent resource strategy will need to be laser-focused”.
The first-ever Accounting Talent Index reveals that, of 280 senior practitioners interviewed, 74% said their firm is ‘significantly’ or ‘severely’ affected by a lack of skills.
The report found reasons for this ranged from more competition for talent from commerce firms to fewer people attending and graduating from university, as well as the effects of the Covid pandemic and an ageing workforce.
Vipul Sheth, MD of Advancetrack, said: “Our Accounting Talent Index shows how the acute lack of accountants has emerged as a critical bottleneck, and its impact has been nothing short of severe, impacting businesses, institutions and economies on a global scale.
“While the solutions are not exhaustive, or all yet identified, significant strides can be made by investing in the development of accounting talent, rethinking recruitment approaches, and promoting the essential role of accountants in supporting economic stability.”
As result of staff shortages three-quarters of the firms reported partner hours had increased, with 42% of cases showing an increase of more than 20%, or an extra day per week
Almost 90% of worldwide professionals stated that increased working hours are “significantly” harming their mental health, work life balance and stress levels.
It also revealed that the impact is hitting accountants at all levels – from staff to partners, with young employees in particular “voting with their feet”.
It said it estimates that around 300,000 accountants exited the profession between 2019 and 2022 in the US and this trend is mirrored across the UK and Australia.
The Accounting Talent Index also found a perception of accounting as a “demanding profession with unappealing long hours and high stress is a significant deterrent, compounded by an evolving job market where other professions may offer more attractive benefits, work-life balance, and perceived career fulfilment”.
DOWNLOAD ADVANCETRACK ACCOUNTING TALENT INDEX“While the solutions are not exhaustive, or all yet identified, significant strides can be made by investing in the development of accounting talent, rethinking recruitment approaches, and promoting the essential role of accountants in supporting economic stability.”
Vipul Sheth, Managing Director, Advancetrack