Partner blog
Understanding – and acting upon – accounting’s skills shortage
05 Sept 2024
Written by AdvanceTrack
Understanding the depth of a problem is the first step towards solving it.
Advancetrack’s inaugural Accounting Talent Index, which includes a new study alongside analysis of external research, shows that of 280 senior practitioners interviewed, 74% said their firm is ‘significantly’ or ‘severely’ affected by a lack of skills.
The reasons for this shortage are many. From ‘more competition’ for talent from industry through to fewer people attending and graduating from university, the impact of the Covid pandemic, through to an ageing workforce.
Key findings include:
- Two-thirds of firms are struggling to take on more clients or bill more to existing clients, as they’re constrained by the inability to find enough – or the right – people.
- 74% said the talent shortage has ‘significantly’ worsened in the last three years.
- 48% said write-offs had increased since 2020, reflecting a difficulty in persuading clients to pay higher rates for what is perceived as low-value work.
- 81% said staff costs had increased ‘significantly’ or ‘moderately’ in the last three years.
- Partner working hours are increasing to cover workload.
- Accountants’ salaries have stagnated, in relation to other roles such as various types of analyst.
Vipul Sheth, MD of Advancetrack, says: “Our Accounting Talent Index, released today, 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.
A variety of methods have been attempted by accountancy practices to recruit and retain talent, our research found, including:
- Increase salaries (75&)
- Offer non-financial benefits (64%)
- Invest in training and development (58%)
- Offshoring (47%)
- Upgrade technology (39%)
“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 concludes.
Gain valuable industry insights, strategic recommendations and stay ahead of trends by downloading the Advancetrack Accounting Talent Index for free.
