Advancetrack issues five action points to alleviate crisis – incorporating flexible working, better career development opportunities, and embracing technology and innovation
New stats have laid bare the mental health emergency facing global accountancy – with increased working hours and reduced salaries both impacting professionals and putting off those interested in a career in the sector.
According to Advancetrack’s industry-leading Accounting Talent Index, 88% of worldwide professionals say increased working hours caused by an ‘existential’ skills shortages are ‘significantly’ harming their mental health, work life balance and stress levels. A third (33%) described that harm as ‘severe’.
The report from the global accountancy outsourcing specialists showed the impact is hitting accountants at all levels – from staff to partners, with young employees in particular ‘voting with their feet’. It estimates 300,000 accountants exited the profession between 2019 and 2022 in the US and this trend is mirrored across the UK and Australia.
And with accountants’ salaries stagnating or even dropping compared with other professions, Vipul Sheth, MD of Advancetrack, is calling for urgent action.
He said: “The Accounting Talent Index shows we face a perfect storm: It seems it’s never been harder to be a partner of an accountancy firm – and it’s never been less appealing to join the profession.
“The root cause seems to be the ever-widening chasm between demand and supply of talent in major economies like the U.K., U.S. and Australia.
“What we need now is a concerted effort to stop the rot, with the sector’s biggest firms leading by example. We’ve developed five action points we’ll be urging organisations across the sector to embrace, regardless of their size or geography.”
Advancetrack’s five action points to alleviate the crisis are as follows:
Build better solutions to promote work-life balance: Offer flexible work arrangements and mental health support, including hybrid and remote work options and designated mental health days. Whilst hybrid and remote work is seen as good for many things, a sense of belonging also means that a core part of the working week should also be with colleagues to foster a positive work environment which helps employees’ mental well-being.
Define and build better career development opportunities: Manage workloads effectively by hiring additional staff and utilising automation tools, as well as providing continuous education, professional development, and leadership training.
Create a positive work environment: Foster a positive and inclusive culture through recognition programs and supportive work environments.
Offer competitive compensation and incentives: Ensure competitive salaries and provide performance-based bonuses. Offer financial incentives and opportunities for career advancement.
Utilise technology and innovation: Integrate automation tools and advanced analytics to streamline processes and enhance efficiency. Seek supporting measures, like outsourcing, to help the pressures facing the workforce.
It was last month revealed in the Accounting Talent Index almost half of firms (45%) worldwide are being “severely” or “significantly” affected by the skills shortage.
The index, which surveyed firms across continents, estimated the figure to scale to hundreds of thousands of firms, with 74% reporting the problem to be significantly worse than three years ago.
It also showed the perception of accounting as a demanding profession with unappealing long hours and high stress is a significant deterrent, compounded by an evolving job market where other professions may offer more attractive benefits, work-life balance, and perceived career fulfilment.
For 25- to 29-year-olds, the median salary for accountants dropped by around 6% between 2016 and 2022. Conversely, professions such as data analysts (13%), management analysts (7%) and marketing analysts (6%) all saw significant increases.
And three-quarters of the firms who responded reported partner hours had increased and, in 42% of cases, by more than 20% – an extra day per week.
Advancetrack’s calls come after ICAEW charity Caba recently published similar analysis of mental health in the accounting profession across the UK. That report said more than half (56%) of accountants are suffering with stress and burnout, with workload, long hours and complexity cited as the main reasons.
Vipul Sheth added: “These findings are deeply concerning, but sadly not a shock to those who know the sector well.
“These conditions not only threaten the wellbeing of professionals but also risk exacerbating already severe talent retention challenges within the industry.
“Urgent action is needed to address these systemic issues and prioritise mental health support across all levels of accounting.” Findings from The Accounting Talent Index will be discussed in detail at Advancetrack’s gbX Sydney 2024 event on August 24. To request a copy of the report, visit the Advancetrack website here
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