Why There Is a Talent Shortage in Accounting?
Вставка
- Опубліковано 21 лип 2024
- Join the accounting influencers conversation at one of our virtual speed networking events for influential leaders and professionals in the accounting, finance and tech world: accountinginfluencers.com/events
_________
On this episode of The Accounting Talent Podcast, host Rob Brown is joined by Jeff Phillips, CEO of Paget Business Services and founder of AccountingFly, to dive into the alarming talent shortage facing the accounting profession. Statistics reveal around 300,000 fewer accountants and auditors in the US over the past two years, a staggering 17% drop. The root cause? A weak value proposition from the profession, offering less attractive compensation, flexibility, and work-life balance compared to industries like tech. This perception is driving college students away from accounting towards seemingly greener pastures in investment banking, consulting, and tech firms.
Accounting firms face intense competition for talent, not just from each other but from aggressive employers in other sectors with enticing perks and career paths. However, there is hope. By rethinking their value propositions, exploring untapped talent pools like offshoring, remote work, freelancers, and developing innovative hiring/training approaches, firms can regain their appeal to the next generation of accountants. The profession's future hinges on its ability to revamp its employer branding and talent strategies.
"The accounting profession is not going to die, Rob. It's not going to wither on the vine. There is lots of talent out there and there are options and hope." - Jeff Phillips [00:00:27]
Key Takeaways:
1. There is a shortage of accounting talent, with around 300,000 fewer accountants and auditors in the United States over the last two years, representing a 17% loss. [00:11:50]
2. The accounting profession is facing a brand and value proposition problem, as the compensation, flexibility, and work-life balance are perceived as weak compared to other industries like tech. [00:04:30]
3. College students are choosing alternative career paths like investment banking, consulting, and tech companies, which are seen as more attractive than "boring old accounting." [00:14:55]
4. Accounting firms are not just competing with each other for talent but also with more aggressive employers in other industries, offering better perks and career paths. [00:16:50]
5. There are solutions and untapped talent pools that accounting firms can explore, such as offshoring, remote work, freelancers, and non-traditional hiring and training approaches. [00:20:30]
[00:02:50] - Discussing the value proposition of the accounting profession
[00:11:50] - Statistics on the accounting talent shortage
[00:14:55] - Reasons why fewer people are entering the accounting profession
[00:16:50] - Competition for talent from other industries
[00:20:30] - Solutions and untapped talent pools for accounting firms
[00:23:00] - Preview of upcoming topics on the Accounting Talent Podcast
_________
The Accounting Influencers Podcast is for accountants, bookkeepers, finance professionals and those who lead, work in, and serve them. Hosted by Rob Brown and special guests who are influential within their field, the podcast covers topics such as leadership, business growth, technology and automation, diversity and career development. Join the accounting influencers conversation at one of our virtual speed networking events for influential leaders and professionals in the accounting, finance and tech world:
accountinginfluencers.com/events - Розваги
“Cant give you experience if you don’t have experience” makes the degree completely useless. Took me two full years to finally land a job.
Critically think about what you just said. In order to move up the ranks of a position, many jobs will ask for a master's degree. The only way to get a master's degree is having a bachelor's degree. During your bachelor's degree, you should have used your university's network, internships, projects to stand out. Only 30% of companies have lifted the requirement of a bachelor's degree, and that doesn't actually prove it's being respected and consistently implemented in practice. Even during this difficult job market bachelor degree holders have a better employability chance than those without. So, no degrees with good ROI, which can be researched prior to getting a major, aren't useless. It's very much about strategic planning and using that degree effectively.
@@emilyau8023who paid you to say this?
@@airbound1779 common knowledge that college students who find internships and work experience before graduation are more likely to have a job. It shows that you are career driven and have goals. Not just coasting, it shows more maturity
I don't think the people who might be interested in accounting think it's boring. To everyone else, sure. But I think the long hours and low pay finally caught up with the old owners. It's just not worth it when there are so many other options.
I work in the tech field, and I'm thinking of switching to accounting because it has way more job stability than most other jobs. In certain companies, you can have great work life balance as an accountant. Plus, there's potential to become a CFO or financial manager. Yeah, sure, the tech industry pays well starting out, but none of that matters if your chance of getting laid off is higher and the 100+ technical interviews it takes to even land one is ridiculous. The number of different technologies and skills asked for us to know is even crazy. Yeah, I'd prefer the accounting industry.
I agree, accounting is not boring. Your firm can definitely affect your experience depending on how they show that they value their employees or not. I work at a firm that has zero staff appreciation. Nonexistent, not even a summer outing. Makes it difficult during busy times to stay motivated.
The game is changing. Accounting firms who don't appreciate their staff or don't embrace remote working options will definitely struggle in the labor market.
I'm starting my accounting journey this fall🎉🎉🎉 Before this I've been a pre-health student. I was going to do pharmacy school. I've work as a pharmacy technician for 3 years and I've seen enough. No more. No nursing, *HELL NO*. And the field of pharmacy is destroyed. Healthcare is not for me. Currently in an alternative role as a pharmacy technician and I work in an office. I love it. I want a job that emulates this environment forever or possibly offers remote work.
What would be attractive to my generation for this industry is if they had accountant salaries start at a particular state's middle class income for industry staff accountants. For firms, starters should be paid reasonably to their cost of living, and if they are working for long hours, pay overtime. If that happened, accounting would attract more people cause then there's stability and being middle class again. And no, in the U.S. 40k-60k is not enough to live comfortably in high cost of living states. Increase the pay, and it will speak to my generation.
I completely agree!
Exactly !
It is true that you work 60-80 hrs a week during quarter end and year end. They need to be honest about the hours. We are needed but it’s hard work and can be stressful. Also the month end quarter end and year end has no flexibility for time off.
As a aspiring Charted Accountant CA(SA) in the few years when I qualify I am looking to move abroad, I am from South Africa.
High stress, high hours, relatively low pay, but pay is almost irrelevant due to the first two factors. The best opportunity you'll find is a client poaching (rescuing) you from public accounting.
Public accounting can be wonderful but the profession doesn't help itself in telling enough success stories about a career in this field.
I thought this was a very interesting talk. I used to work at NetSuite, which is a tech company that hires a lot of former CPAs in all customer facing departments. It was not evident to me that having the CPA really made those roles more successful in sales, solution consulting, etc. since the job was not allowed to give accounting advice, only empathy. But it certainly helped those folks land the job. Hearing this interview also drew out the subconscious thought I had in considering a CPA - which was that I don’t really want to be a CPA, I just want to use it as additional credentialing. A bit like getting an MBA. I agree fully that if tech companies are recruiting CPAs, it would be hard for someone not to go down that road. Anyway, just some thoughts in agreement
That need to change is the salary. Increase the pay
They need to raise base salary to 300k
Not sure that will happen but raising starting salaries at least to compete with law and other grads would help.
The partners earning millions per year compared to the slave workers on a meager wage is a factor in people shunning an underpaying elitest business model such that accounting holds. If overtime is an exception and not the rule, is properly compensated, and life/work balance is respected, this may change the landscape of accounting.
The problem with all these professions is that there is a lack of willingness to train and mentor the new generation.
This is a great conversation and all, but you can't say a damn thing to convince me to work for a public firm again. I make more money and only work 40 hours a week. Public firms make all kinds of promises during the hiring process but don't keep them once you start. You could promise me a handstanding leprechaun on top of a free Friday, and it's still a hard "No" for me.
None of these clowns will hire people who just have a bachelor's degree. Credentialism and elitist gatekeeping is going to completely hollow out the industry.
You should hire Filipino CPAs remotely in the Philippines. This is what most CPA Firms in the US do. You'll get more Value, Increase the number of your Clients exponentially in exchange for low pay or cost of less than $1k per Filipino St@ff.
US Accountants??. N@h...
I'm not an accounting firm but yes, that's a solution many firms have used.
It’s a recipe for disaster. One of the largest issues with accounting is the rush to offshore everything. It’s a quality issue, I really wish you had explored that more honestly in your video.
It’s not the barriers to entry, it’s the stagnant pay which will only get worse with companies recklessly offshoring everything and trying to automate things without thinking it through. Just be honest.
You can outsource some accounting that requires local laws
Smart accountants start their own firms. Work for yourself.
Now is the time to get out of the profession. Run while you can. This is not going to change and will only get worse.
Why do you say that?
Now is the time to stay
@@madelineortiz6648 why?