Skills shortages ease but hiring challenges remain

This article was current at the time of publication.

Finding the best people for your public practice is still difficult although pressures on skill shortages are easing marginally, says Andrew Brushfield, Director China and Australia for recruitment agency Robert Half.

The company’s 2024 Salary Guide found the jobs market remains tight for leading professionals, defined by a battle for talent amid skills shortages and a continuing historically low unemployment rate. 

In fact, 75 per cent of business leaders are concerned about their ability to both attract and retain valued employees.

Hays’ 2024 Salary Guide also found challenging hiring conditions for accountancy practices seeking growth even in a stalling economy.

In the next 12 months, its survey revealed, 69 per cent of accounting and finance employees are looking or planning to look for a new job.

Stuart Martin, National Accounting and Finance lead for Hays Australia, says: “While the pendulum has shifted back …, candidates still have the power.”

Hays found 24 per cent of employers believe the impact of skills shortages has intensified in the past 12 months while 22 per cent feel it has eased. More than half (54 per cent) believe it has remained the same.

Adding to the hiring conundrum, Morgan McKinley’s 2024 Salary Guide reports that a scarcity of top talent has resulted in base salary hikes of about 16 per cent, which is good news for employees but a sobering statistic for public practices dealing with the increased costs of running a firm. 

However, the news isn’t all bleak. Recruiters believe small firms can still compete against larger concerns for the skilled employees they need by differentiating themselves in the market. The key is understanding what employees are looking for now.

Recruitment is about more than money 

Heavy workloads, limited opportunities for career progression, non-competitive pay, poor work-life balance and dissatisfaction with the culture are all factors likely to drive staff and candidates to another firm.

“By addressing some of these issues, especially for Millennials, small practices can have an advantage in the job market,” says Brushfield. 

“Wellness programs that encompass mental health, a study or training policy, and a healthy company culture all matter. Addressing burnout is also key, with accountants constantly under pressure in a job with no finish line. Good employers acknowledge this and put policies in place to support and retain staff.”

Adds Brushfield: “Salaries are always important but quite often there is more to a decision to accept a position than dollars and cents.”

Robert Half’s survey found finance and accounting firms were planning an average salary increase for staff of 6.4 per cent while Hays found employees’ expectations that salaries should increase above 6 per cent was more than double.

While the cost of living was cited by 64 per cent of finance and accounting professionals looking for a new position, other non-financial motivations were not far behind, says Martin. These include lack of promotional opportunities (60 per cent), poor management style/workplace culture (both 59 per cent), and negative mental health and wellbeing impacts (58 per cent).

Martin says while a pay rise is the most important career factor for 68 per cent of employees in the year ahead, an employer’s brand or reputation was the best way organisations could retain staff. 

Learning and promotion pathways, diversity and environmental, social and governance (ESG) policies are also vital if firms want to attract the right talent.

“Team culture is crucial, with 84 per cent of employees citing this as the most important factor,” he says. A clear employee value proposition is key for businesses. “Staff are also looking for increased collaboration.”

Offering career progression opportunities was named in the top three items accounting and finance talent wanted in the Morgan McKinley survey. A speedy hiring process was also key.

Flexible working essential

As a society, not just as accountants, we are looking for better work/life balance, says Martin. 

“One of the issues candidates are curious about is what does overtime look like; or will I have to work extra hours.”

He says 75 per cent of employees demand flexible working in a new role, while 92 per cent said a hybrid mode is their preferred way of working. 

“If you’re not offering that as a public practice, you are going to struggle to attract and retain talent,” he says. 

Says Brushfield: “Work flexibility pre-COVID didn’t really exist. Now companies want people to come back to the office, but employees prefer not to, certainly not five days a week.”

All recruiters found flexible working patterns to be a key driver in attracting and retaining talent. If hybrid working is here to stay, it’s even more important for employers to invest in team bonding and communication, something that links closely with a successful firm culture.

Most in-demand skill sets and sectors 

New skill sets and mindsets are required as companies focus not only on attracting tech savvy employees but improving efficiencies in the wake of new technology, says Brushfield. 

“Like every industry, accounting is becoming more and more tech based,” he says. 

The most in-demand technical skills, as found by Robert Half, include:

• Interpretation of accounting standards, both local and international
• Financial modelling
• Business intelligence tools (TM1, Power BI, and Tableau)
• Enterprise Resource Planning (ERP) systems
• CPA qualification 

The most desirable soft skills, according to the Hays survey, include:

• Communication
• Teamwork
• Problem solving 
• Adaptability 
• Detail-oriented

Overall, the Hays survey found that the most in-demand accounting employee needed to be hands-on, adaptable and in the intermediate tier.