The global marketplace, including the public practice sector, is grappling with a significant skills shortage. Businesses across all industries are facing challenges in filling open positions as the pool of qualified candidates shrinks.
This blog delves into the current state of the recruitment market within public practice, how it impacts auditors and tax professionals, and what the skills shortage might mean for the future of both employers and employees.
Impact of the Skills Shortage
A recent survey conducted by outsourcing experts Advancetrack revealed that 45% of accountancy firms are either severely or significantly impacted by these shortages. Furthermore, 74% of respondents noted that the talent shortfall has worsened considerably over the past three years, with 61% attributing this decline to the pandemic's effects on talent accessibility.
While this shortage poses difficulties for many firms, it presents a unique opportunity for job-seeking accountants.
As we have passed the midpoint of 2024, firms are going to great lengths to attract talent. Traditional recruitment tactics are no longer effective; companies are now positioning themselves as employee-centric and revamping their recruitment strategies to offer candidates the benefits and work environment they truly desire.
This shortage has created a divide between employers and employees, giving job seekers the upper hand in choosing firms that align with their values. This is particularly advantageous for accountants in public practice who are on the job hunt.
The Skills Shortage in Public Practice
The issue of understaffing in public practice isn't new—it’s been a growing concern for years, even before the pandemic. While the topic is widely discussed within the industry, pinpointing a single cause is challenging due to the many factors at play.
In January 2024, the Financial Times published an article highlighting that the “dire shortage of accountants” could be attributed to the lengthy and rigorous training required to become qualified. This explanation is plausible when considering the years of dedication and effort needed to achieve accounting certification.
Stephen Foley, Accounting Editor for the Financial Times, supported this theory, stating, “Fewer university students are enrolling in accountancy courses, and under current regulations, they need an additional year of study before they can qualify—a costly deterrent, particularly for those from diverse backgrounds.”
The unfortunate reality is that the current recruitment climate in public practice has fostered a culture of overpromising and underdelivering. Firms are making grand offers to attract talent, but many candidates feel misled when employers fail to fulfil their promises.
In a bid to retain existing staff, many firms are committing to enhancing employee benefits—whether it’s through salary increases or improved perks. However, these promises often fall short, setting expectations that employers struggle to meet.
Staff resignations, particularly from long-standing employees, can destabilise entire departments. When a respected colleague leaves, it can cause others to question their job satisfaction and whether better opportunities exist elsewhere. Therefore, firms must invest in nurturing and retaining their teams. Unfortunately, this isn’t always the case.
Auditor Case Study
Auditors are among the most sought-after professionals in public practice. Firms understand the value of experienced auditors and will go to great lengths to retain staff who can ensure their audit functions run smoothly.
While a career in audit can be financially rewarding, it’s also demanding, with a challenging balance between risk and reward. The role requires a specialised skill set and often involves on-site work, which can be difficult for those seeking a better work-life balance.
Both Longer and Deborah O’Neill, Labor Committee Chairman, agreed that “the once sought-after and secure career path of auditing no longer holds the same appeal as it did in the past,” largely due to the profession’s high-risk nature.
O’Neill further explained that the auditor staffing crisis is exacerbated by the “low pay of junior auditors compared to the substantial earnings of Partners at large auditing firms.”
Despite the government's acknowledgement of the audit skills shortage, some firms are still not taking sufficient steps to support professionals in this field.
Navigating the Skills Shortage While Job Hunting
The skills shortage in public practice has created a challenging landscape for accountants, particularly those at the junior level. The current environment, marked by high demand for skilled professionals and a dwindling supply of qualified candidates, can be daunting. For many junior accountants, the uncertainty and pressures of the industry may even lead them to question their career choices.
However, it's crucial to maintain perspective during these times. Despite the challenges, a career in accountancy remains one of the most rewarding paths one can take, both professionally and personally. The role of an accountant goes far beyond numbers and spreadsheets; it's about providing essential financial guidance that impacts the lives of individuals, families, and businesses in profound ways.
For junior staff, the initial years in public practice can be particularly challenging.
The demands of the job, coupled with the competitive nature of the industry, can create a steep learning curve. However, these early challenges should be viewed as opportunities for growth and development. The skills and experience gained during this time are invaluable and can set the foundation for a successful and impactful career.
Moreover, the current skills shortage can actually work to the advantage of junior accountants. With firms eager to attract and retain talent, there is greater flexibility and opportunity for negotiating better working conditions, salaries, and career advancement. Junior accountants who are proactive in their job search and willing to leverage their skills will find that they have more power than they might have initially realised.
In conclusion, while the current skills shortage and the challenges it brings may be daunting, they also present unique opportunities for growth and success.
The public practice sector is currently grappling with a significant skills shortage, leading to fierce competition for qualified professionals. This shortage, exacerbated by the pandemic and complex training requirements, has created opportunities for job seekers, while firms struggle to attract and retain talent in an increasingly challenging recruitment environment.
By embracing the challenges of the profession and taking proactive steps to navigate the job market, accountants at all levels can find rewarding careers that offer both professional fulfilment and personal satisfaction.