The Profession Problem in Accounting: Beyond the Pipeline
September 09, 2024
By Jessica L. Levin, DBA, CMP, CAE, DES
The accounting industry frequently laments a “pipeline problem,” attributing it to a deficiency of new talent entering the profession. However, the genuine concern extends beyond a scarcity of candidates; it encompasses the profession’s antiquated practices and entrenched cultural norms. It’s high time to address these fundamental issues head-on.
The Myth of the 55-Hour Week
The belief that working 55 hours is considered a “reduced” schedule is a significant obstacle. This outdated mindset originated when long hours were seen as a necessary sacrifice. However, today’s expectations are different. Recent graduates prioritize work-life balance and mental well-being. Industries that adapt to these changing values will need help to attract and retain talent. This issue is wider than the younger generation, though. Even experienced CPAs experience decreased productivity after several hours. Humans are not designed to work in front of a computer all day.
The “We Worked Crazy Hours” Mentality
Countless experienced professionals take pride in the long, demanding hours they endured early in their careers. However, glorifying past hardships as a benchmark for new talent is counterproductive. Instead, we should prioritize creating a supportive and balanced work environment that fosters productivity and job satisfaction.
Struggles With Hybrid Work
The accounting industry faces a pivotal moment when introducing the hybrid work model. The pandemic hastened the transition to remote work, but many firms are still reluctant to embrace this change fully. Flexibility is no longer just an added benefit; it has become necessary. While firms have made progress by adapting out of necessity, they still face challenges with training in a hybrid environment. Establishing comprehensive hybrid work policies catering to the firm’s and its employees’ needs is crucial. Face-to-face interaction is invaluable, but it should be carefully planned and purposeful to maximize its benefits.
Disconnect Between Academia and Reality
The education provided by universities often needs to fully meet the practical requirements of working in accounting firms. While academic programs emphasize technical expertise and theoretical knowledge, they frequently overlook the essential hands-on experience and interpersonal skills needed in the profession. To bridge this gap, universities and firms should collaborate to provide a more comprehensive education that integrates real-world applications, prioritizes soft skills and offers insights into the dynamic industry landscape. Firms are equally responsible for working with the educational system to ensure the profession is attractive and favorably positioned in an academic setting.
Lack of Diversity and Inclusion
The accounting profession needs help with diversity and inclusion. Historically, the industry has been dominated by a homogenous demographic, which can limit perspectives and hinder innovation. Efforts to attract a more diverse talent pool often fail due to entrenched biases and inadequate support systems for underrepresented groups. To effectively tackle the profession’s challenges, firms must focus on creating an inclusive culture that values and supports diversity in all its forms.
Outdated Career Progression Models
The traditional career progression models in accounting firms often need to be more flexible and follow a strict hierarchy, providing little room for individuals to create their career paths. This uniform approach may be disheartening for those who desire diverse experiences and opportunities for growth. Upgrading these models to permit cross-department moves, experiences in different roles and personalized career development plans can make the profession more appealing to new talent.
Emphasis on Compliance Over Advisory
The accounting profession has historically been centered on compliance work, such as audits, tax filings and regulatory adherence. However, the importance of advisory services is increasing as businesses require strategic guidance to navigate intricate financial environments. Firms that do not adapt to offering more advisory services risk becoming obsolete. Prioritizing advisory roles can also attract talent interested in a more dynamic and impactful career.
Rethinking Firm Structures
Firms also need to reevaluate their structural models, considering whether a corporate structure might be more effective than traditional partnerships. Corporate structures can offer greater flexibility, scalability and growth opportunities, making firms more competitive and appealing to new talent. While fostering a sense of ownership among partners, partnerships can sometimes be too rigid and slow to adapt to the changing business environment.
Eight Ways to Address the Profession Problem
To tackle these issues, we must:
1. Redefine Work Hours:
It’s essential to shift the focus from hours worked to outcomes achieved. Implement realistic and sustainable work hours that promote work-life balance.
2. Modernize the Work Culture:
We must abandon the “we worked crazy hours” mentality and instead foster a culture of support, mentorship and well-being.
3. Embrace Hybrid Work:
It is essential to develop and implement policies that support hybrid work arrangements. Ensure employees have the tools and resources to succeed in remote and in-office environments. Progress has been made, but firms need help with training and learning in a hybrid environment and planning meaningful and productive face-to-face interactions.
4. Enhance Academic Collaboration:
It is important to work with universities to bridge the gap between education and practice. It is crucial to provide students with practical experience and a clear understanding of what to expect in the profession.
5. Foster Diversity and Inclusion:
Committing to creating an inclusive culture that supports and values diversity is essential. Implement robust diversity initiatives and support systems to attract and retain talent from diverse backgrounds.
6. Modernize Career Progression:
Develop flexible career progression models that allow for personalized career paths, lateral moves and cross-functional experiences.
7. Shift Towards Advisory Services:
Emphasize the importance of advisory roles. Train and encourage accountants to develop skills in strategic advisory services to meet evolving client needs.
8. Re-evaluate Firm Structures:
Consider whether a corporate structure might offer more flexibility, scalability and growth opportunities compared to traditional partnerships. The accounting industry’s pipeline problem clearly indicates underlying challenges. To effectively tackle this issue, we must embrace modern work models and establish more robust partnerships between academia and the industry. This approach will help us create an environment that can attract and retain top talent.
You can learn what the ASCPA is doing to connect with accounting students at www.ascpa.com/student.