Chartered accounting firms from Brisbane to Johannesburg, from Toronto to London have been faced for the last few years with a significantly diminished talent pool. A worldwide shortage of accountants has been evident since about 2002 with the most critical need being for CAs/CPAs with 3-5 years’ experience. What sparked this problem and how are firms in Australia, New Zealand and, indeed, worldwide, solving it?
Too much change, too fast
In most countries, including Australia and New Zealand, the scarcity of accountants came about for a number of reasons. For one thing there were not enough candidates in the pipeline in the early 2000s. That may be because the accounting curriculum hadn’t kept pace; many of the IT tools so familiar to young people today were not reflected in it. The profession itself has continued until lately to be more conservative and reserved. Savvy marketing strategies like the Institute of Chartered Accountants of Canada’s mass-media promotion, The CA Advantage, are only starting to make an appearance.
Substantial changes in accounting itself increased demand for qualified accountants during this same period of low-supply: Buoyant economies gave birth to more companies; the passage in 2002 of the US Sarbanes-Oxley legislation imposed new compliance regulations on a wide-range of companies (labeled “the accounting full-employment act” by the Head of one US College of Business), and the global roll-out of the International Financial Reporting Standards.
Finally, today’s young accountant is anything but typical. She/he isn’t contemplating a lifelong career with one firm. Many CAs/CPAs complete their training and head overseas for international experience. Others leave public practice after their training for a job in commerce where the pay is better, the work day isn’t as long, and the climb to management can be faster.
This was the decision Melbourne, Australia native, Linda Lee made. The prospect of traveling and living in the UK was exciting enough to give up a job offer in public practice in her hometown. And the loss for the firm is ongoing: Even if Linda returns to Melbourne in a couple of years, her time away from the Australian GAAP and the IFRS will making hiring her back into public accounting problematic.
Accountant as super star?
A sign-on bonus to join an accounting firm? Not unheard of these days. In some service areas like Business Advisory where the competition for staff is very stiff, enterprising firms are taking this cue from industry and sports high-rollers. Those with more modest means are increasing salary levels, paying for professional development, and concentrating on work-life balance. Tele-work, more flexible hours and other family-friendly work arrangements are increasingly the norm.
Mobility is another lure. Membership in a global network of independent accounting firms enables many employers to promise an international assignment early in the career. Internal mobility (i.e., climbing the career ladder) has also been simplified to a degree. Partnerships can be earned sooner than in previous years. If you are an Auditor with a yen for cross-training in Corporate Services, that’s also possible these days.
One interesting marketing strategy used by the larger firms is the creation of “Alumni” programs often including a “members-only” section on the firm’s website. Although aimed at enticing former employees back (especially if the firm has trained them), they can also be a great source for referrals.
“Beyond the sea, somewhere waiting for me…”
International recruiting is easier for some accounting firms than for others. The Big 4 and larger mid-tier firms are often able to fill vacancies by seconding someone temporarily from another part of the world. When it comes to filling permanent spots, the decision to hire “from away” is often difficult.
Experience in Australia and New Zealand, particularly in areas such as Tax, precludes hiring a Canadian and vice versa. In a field like Audit where skills are more transportable, there is still some resistance to hiring from outside the country. The concern can centre on the candidate’s communication skills; many accounting jobs are client-facing and the accountant’s comfort in English is paramount. In others, training can be an issue. The Institutes of Chartered Accountants in the Commonwealth countries only recognize each other’s credentials (Australia also recognizes the USA, Hong Kong, South Africa and Zimbabwe). Candidates from other countries must have their credentials assessed and are required to sit Australia Tax and Company Law exams.
Public Accounting is your oyster
Experienced CAs/CPAs interested in moving to a bigger firm, getting back into public practice after a stint in business, and those returning to Australia or New Zealand from an international adventure can look forward to high demand for their talent. For those with strong technical skills, knowledge of the new IFRS, public practice experience in not-too-distant past, the accounting world is your oyster. Care to sample what’s on offer?
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