The Finance & Accounting Talent Shortage in 2024
An Industry in Crisis
It's tax season again, and hiring managers are scrambling to find top finance and accounting talent to prepare for the upcoming tax rush. According to a recent article from GoingConcern, a resource for accountants, 95% of hiring managers in finance and accounting face difficulty locating skilled talent available for hire.
The accounting profession, in general, is facing severe talent shortages, and the situation is only expected to worsen in the coming years. Financial Times recently reported that "about three-quarters of CPAs are now at or near retirement age, and the pipeline looks threadbare.'"
Placing top finance and accounting talent is just half the problem; retaining them is another challenge.
After the expense of recruiting and hiring accountants, companies are faced with competitive forces trying to lure their new hires away. The appeal of promotions, salary offers, and other perks can quickly sway accountants to switch employers, and that's a problem for companies already struggling with talent shortages.
The Root Causes of the Talent Shortage
Several factors have led to the current talent shortage in finance and accounting.
Increased Demand
First and foremost, the demand for skilled professionals in this field has increased significantly. With globalization and technological advancements, businesses have become more complex, requiring a higher level of expertise in areas such as financial reporting, compliance, and data analysis. This has created a need for highly-trained professionals in finance and accounting roles.
The Pipeline Is Drying Up
Accounting has traditionally been seen as less glamorous than other financial career options, like investment banking or management consulting. As a result, fewer students are pursuing degrees in accounting and entering the workforce in this field.
Accountants are facing continuously increasing workloads and expertise requirements, making it a far less desirable career path for young finance students to want to pursue.
The Square Peg/Round Hole Syndrome
Another contributing factor to the talent shortage is the disconnect between what companies are looking for in candidates and what candidates can offer. Accounting professionals who are underutilized or not sufficiently challenged in their current roles often feel unfulfilled and may seek opportunities elsewhere.
Retirement Attrition
Lastly, the aging population of CPAs and finance professionals has contributed to the talent shortage. Many experienced professionals are reaching retirement age, leaving a significant gap in the workforce that is difficult to fill.
The Potential Impact on Businesses
The talent shortage in finance and accounting can have severe consequences for businesses of all sizes. With fewer skilled workers, companies may struggle to find qualified candidates for open positions, leading to longer hiring processes and potentially higher recruitment costs.
Moreover, the shortage of skilled professionals can also affect a company's ability to stay compliant with financial regulations, meet reporting deadlines, and make informed business decisions based on accurate financial data.
The lack of talent in finance and accounting can also hinder a company's growth potential. Without access to top-notch financial expertise, businesses may struggle to optimize their financial strategies and maximize growth opportunities.
Smaller companies are especially vulnerable to the shortage as more prominent companies have more resources to attract and retain talent. This can create an uneven playing field, leading to smaller businesses being at a tremendous disadvantage in terms of financial expertise, stability, and stakeholder accountability.
What Can Be Done?
Companies need to get creative with their hiring strategies to address the talent shortage in finance and accounting. This may include investing in training and development programs for current employees, offering competitive salaries and benefits packages to attract top talent, and partnering with colleges and universities to promote careers in accounting.
Throwing money at the problem does little to address the root causes of the shortage, so companies need to focus on creating a more attractive and appealing work environment for finance and accounting professionals.
Companies can also consider implementing flexible work arrangements, such as remote work options or flexible schedules, to appeal to a broader pool of candidates.
Furthermore, businesses should also focus on retaining their current employees by providing opportunities for career advancement and creating a positive work culture that values and supports their financial professionals.
Ultimately, it will take a collective effort from businesses, educational institutions, and professional organizations to address the talent shortage in finance and accounting.
The Talent Agency Solution
One often overlooked solution to the talent shortage in finance and accounting is partnering with a specialized talent agency. These agencies have access to an extensive network of skilled professionals and can help companies find the right fit for their specific needs.
Working with a talent agency can save businesses time and resources in hiring by handling tasks such as candidate screening and background checks.
By leveraging the expertise and resources of a talent agency, businesses can overcome the challenges of finding top finance and accounting talent and stay ahead in a competitive market.
An Oggi Talent Success Story
A local accounting firm faced a shortage of accountants to support their workload in Q1 of 2023 and beyond. They had never worked with a recruiting agency before, but their new Hiring Manager had been an Oggi client in a previous position.
After getting to know the firm and its needs, our placement team determined they didn't require CPA-level hires to handle the workload. We placed two accounting specialists in temporary-to-permanent positions using our extensive network of experienced accountants.
The firm retained the two new accountants who have since become CPAs, have taken on more responsibility, and enjoyed advancing their careers in a firm that aligns well with their career objectives and cultural desires.
At The EOD
The talent shortage in finance and accounting is a pressing issue that requires immediate attention from businesses of all sizes.
By understanding the root causes of this shortage, implementing effective hiring strategies, and considering alternative solutions such as partnering with a talent agency, companies can overcome this challenge and continue to thrive in the shifting sands of the finance and accounting world.
Oggi Talent is uniquely positioned to help businesses navigate the talent shortage in finance and accounting. With our extensive network of skilled professionals, our "People First" approach to recruiting, and our commitment to helping companies find the right fit for their needs, we can help you stay ahead in a competitive market.
Contact us today to learn more about how we can support your talent acquisition efforts!
FAQs
Q: Is the talent shortage in finance and accounting a temporary issue?
A: No, the talent shortage is expected to persist for the foreseeable future due to various factors such as an aging population, changes in technology and regulations, and a lack of interest in accounting careers among younger generations.
Q: How can flexible work arrangements help address the talent shortage?
A: Flexible work arrangements can help attract a wider pool of candidates who may prefer working remotely or having a flexible schedule. This can help companies tap into a larger pool of talent and potentially find the right fit for their needs.
Q: Will partnering with a talent agency guarantee finding the perfect candidate?
A: While no hiring strategy is foolproof, working with a specialized talent agency can greatly increase the chances of finding the right fit for your company. With their expertise and resources, a talent agency can help identify and connect you with top finance and accounting professionals who may not be actively seeking new opportunities but are open to the right opportunity when presented.
Q: How does Oggi Talent prioritize cultural fit in their recruiting process?
A: At Oggi Talent, we believe that cultural fit is just as important as technical skills and experience. That's why we take the time to get to know our clients and understand their company culture so we can find candidates who align with their values, goals, and work environment. This leads to better long-term matches and increased job satisfaction for both the candidate and the company. Overall, cultural fit is a key factor in our “People First” recruiting process.
Q: Does Oggi Talent only focus on placing CPAs?
A: No, we have a broad network of skilled finance and accounting professionals with various levels of experience and expertise. Whether you need a CPA, an accounting specialist, a BI expert, or an analyst, we can help you find the right fit for your company's needs.