With more and more accountants qualifying each year, you might be wondering why there’s a skills shortage impacting accounting. In fact, according to ACCA’s latest pass rates (for exams completed in December 2023), 4,500 accountants passed their final ACCA exams, achieving affiliate status. That’s 20% more than the same exam period of 2022.
So, where are these newly qualified candidates and how can your firm attract them?
The world of accounting is at a crossroads. With the rapid evolution of financial technologies and a generational shift in the workforce, accounting firms continue to grapple with a skills shortage. Whilst there are some signals that a shift in the market is on the horizon, one example being the slowing rate in the rise of starting salaries as reported by the REC in January 2024, there remains a scarcity of candidates.
The skills shortage is often attributed to the pandemic, but the root cause stems back much further with serious challenges impacting the industry’s growth and efficiency for several years prior. Yes, the great resignation associated with the pandemic compounded the issues facing accounting, but there’s more to it. To know the solution, you first need to understand the full extent of the problem.
The candidate-driven market in accounting is multifaceted, stemming from rapid technological advancements and changing workforce demographics. The digital transformation of financial processes has widened the gap between traditional accounting roles and the industry’s emerging needs, and as seasoned professionals retire, there’s a noticeable gap in the transfer of knowledge to younger generations.
How can firms attract skilled candidates when top talent is thin on the ground?
To bridge the skills gap and position your firm as an employer of choice, you must embrace an innovative and holistic approach to recruitment and retention. We’ve previously shared many talent attraction strategies to combat the hiring crisis, but here are some of the top tactics that can make a significant impact:
Promote a culture of continuous learning: Encourage and facilitate continuous professional development. Investing in training programs and offering tuition reimbursement for certifications can help employees stay abreast of industry trends and technological advancements.
Create clear career pathways: Transparent career progression opportunities can motivate employees and attract ambitious professionals. Mentorship programs and leadership training can also empower employees and foster a sense of loyalty.
Offer competitive compensation and benefits: Attractive salary packages, comprehensive health benefits, retirement plans, and perks such as flexible working hours and remote work options can distinguish your firm from competitors.
Foster an inclusive and diverse work environment: A workplace that values diversity and inclusivity not only enriches the organisational culture but also broadens the talent pool. Initiatives that support work-life balance, mental health, and community engagement can further enhance your firm’s appeal.
Engage with education institutions: Building relationships with universities and professional accounting organisations can help tap into emerging talent early. Internship programs and scholarships can serve as a pipeline for fresh talent aligned with your firm’s future needs
Looking at the ACCA pass rates also helps to paint a picture of the skillsets on offer with newly qualified candidates. There are some areas of accounting that have consistently low pass rates, whilst other disciplines have fluctuated. For example, the ACCA’s Advanced Taxation exam saw its average pass rate rise by 10% from December 2022 to December 2023. Could this demonstrate a focus being put on training in the specialist area of taxation?
Another exam topic that has seen a greater pass rate year-on-year is Business & Technology, with a 6% rise. It’s no surprise that student accountants are placing emphasis on this area of expertise in a bid to keep at the forefront of the ever evolving sector.
Despite the range of lucrative opportunities associated with audit and assurance, this specialism has maintained a consistent average pass rate year-on-year with just a 1% increase. Perhaps highlighting the complexity of the discipline, ACCA’s audit exams have the lowest pass rates. In fact, the professional body’s Advanced Audit and Assurance exam has held the lowest pass rate year on year with just 32% in 2022 and 34% in 2023.
Here at Public Practice Recruitment Ltd, we use our established presence to gain high level intelligence of the market to better understand the landscape that both candidates and firms are navigating. This, along with two decades of expertise in placing accountants in practice across the UK, perfectly positions us to provide guidance on the best ways to approach accounting recruitment in 2024.
Is your firm struggling to find talented accountants? Even the most established firms are facing the same challenges, but you can tap into an extensive network of candidates, bank of second-to-none market knowledge, and save yourself the time and hassle by partnering with us.
Gone are the days when you could post a job advert and be inundated with top talent. Firms must evolve as the market does. It’s time to rethink your recruitment strategy, and we’re here to help. Whether you have live vacancies to fill, or you’d benefit from some expert recruitment advice, contact the team today.
