how accounting firms are handling the staff shortage

two women having business discussion in front of laptop; wall of windows in background

some creativity may be in order.

by 卡塔尔世界杯常规比赛时间 research

rare is the cpa firm that has no problem finding, hiring and retaining professionals in accountancy. those that don’t have a problem are either not hiring or are paying plenty with packages that include higher than average salaries, the option to work remotely, stock option plans and other benefits.

more: the future of fees | as private equity closes in, firms seek new answers to staffing problems | when staffing falls short, clients get culled | how accounting firms are dealing with retirement | next five years are critical for accounting firms | staffing turnover’s down, but why? | what’s your firm worth? private equity wants to know | the new pipeline: outsourcing and offshoring | is this the last year of accounting’s golden age?
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several of the top-notch consultants who contributed observations to the 2024 rosenberg national survey of cpa firm statistics not only noted the problem but shared some of the solutions that firms are applying.

more in-house ed

gale crosley, at crosley company, foresees no improvement at the source of the problem – a lack of interest in the profession.

“universities will continue to be slow in turning out students who are well equipped to work in this changing environment,” crosley predicts. “this will put pressure on firms to increase focus on new-hire training.”

carl george, at carl george advisory llc, agrees that practices need to put more emphasis on training. one reason is the obvious need to keep up with ever-accelerating changes in technology.

the other is the quality of recent graduates.

george says that firms need to “supplement education and training especially for newer staff who were in school during the pandemic (some have expressed that the university education provided during this period has been described as below par due to the circumstances).”

higher pay

marc rosenberg, of rosenberg associates fame, sees no short-term end to the reduced number of accounting majors. he says the shortage is forcing firms to develop creative, innovative strategies for finding people, such as outsourcing and hiring non-accounting majors to supplement entry-level accounting grads.

and then he says, “finally, we are beginning to see some firms address the embarrassing situation for our profession where starting salaries for accounting staff, once one of the highest of any undergraduate major, have failed to keep pace with other business disciplines. utterly shocking.”

michelle golden river, at fore llc, agrees that firms aren’t offering enough pay to attract would-be hires to the profession. but she doesn’t think the average firm’s revenue will allow attractive salaries. to compete with related professions, she says, accounting firms will need to adopt non-time-based pricing models that effectively raise their rates.

allan koltin, of koltin consulting, says 2024 is seeing “a handful of  firms breaking out of the pack and substantially raising starting salaries for new accountants in a way never seen before.” he cites a recent e&y announcement on staff salaries.

he warns, however, of a domino effect as higher starting salaries impact salaries all the way up to the big boss at the top. firms that are “uber profitable” will have an easier time with this, he says, but in the “war for talent,” other firms will need to find a way to pay more to attract and keep talent.

rigorous retention

angie grissom, at the rainmaker companies, emphasizes retention more than attraction. she calls for a greater emphasis on succession planning and the management of existing talent.

“we have already seen firms implement esops to attract and retain top talent,” grissom writes. “leadership training, mentoring, and faster promotion to partner ranks will be key strategies to address talent shortages. firm culture and employee retention and wellness strategies will continue to take center stage.”

summary

so there are solutions to the seemingly insoluble problem of staff shortages. to summarize:

  • initiatives to attract students into the profession
  • higher salaries and better benefits
  • more in-house education
  • more focus on retention
  • better succession planning

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