This is why so many accountants are transitioning away
Photo by Volkan Olmez on Unsplash
Tax and accounting firms find it challenging these days to retain their professionals. The issue might get out of hand as accountants, especially the younger ones, are increasingly dissatisfied with their jobs and choose to quit.
Although an accounting degree is a unique and robust tool to succeed long-term in the business environment, people in this field seem not to share the same opinion. According to The Wall Street Journal, over 300,000 US accounting professionals and auditors have resigned in the last two years, and the next generation of accountants isn’t likely to fill the gap. Moreover, recruiters state that these individuals often embark on jobs in technology and finance. Some leading reasons for their departure relate to the accounting firms’ inability to provide more luring salaries and reduce workloads. We’ll explore in this article the hidden reasons behind this movement – if we can call it that – and how companies could motivate their employees to stay.
Let’s get into it!
Unsatisfactory pay and benefits
A competitive salary is one of the driving forces behind your employees’ satisfaction and productivity. Younger employees, in particular, are seeking more satisfying wages, and if the firms they’re working for fail to provide them with fair pay and benefits, they’re likely to leave and move into other jobs. For instance, students expect to make more money upfront than the regular accounting company pays. As a result, they’ll transition to other industries, among which the most sought-after are tech and banking.
While wages vary by market and position, the median salary for an accountant is approximately $60,000, which, compared to that for an attorney, i.e., $120,000, is relatively low. This may lead to confusion among these professionals, who’ll likely find their abilities are underappreciated and in demand outside the accounting industry.
Unbalanced workloads
The work of an accountant is often full of tasks and deadlines, and this could contribute to ever-increasing tiredness among these professionals. A recent report states that 98 percent of accountants feel stressed about their jobs. Some might think that stress comes with the profession. But it shouldn’t be the profession. This colossal percentage makes accounting one of the most nerve-racking industries to work in.
The daily grind of financial reporting and bookkeeping is not only repetitive but also tedious. So, it’s easy for accountants to feel burned out and stuck in a rut. The overwhelming workload is also often accompanied by overtime hours, especially during the busy tax period. This leads us to conclude that the average work week for an accounting professional is turning from 47 to more than 50 hours. In the worst of cases, workers would be so caught up in the grind that they’ll develop feelings of burnout. No one ever wants to follow a path that’s everything but fulfilling, so some will leave their job as soon as they find themselves stuck, while others will quit after months of being victims of overwork.
In this regard, employers can promote a more flexible workload, mitigate bottlenecks, and, if the case, allow for remote work. Some middle market firms have embraced a 40-hour work week during the tax period, about half of what’s typically done during the busy season. But mental well-being is much more meaningful than a perfect turnover, so this measure should come as no surprise. Giving the possibility to work remotely and addressing the culture are also recommended practices to retain top accounting talent. Suppose the workforce consists of millennials – millennial parents forced to watch over a sick child. What is to be done in this case? Offering remote work.
Lack of career development
If accountants feel their career vision is not achievable, chances are that they take steps and change something about it. And rightly so, since each dreams of working for a company that aligns with their idea of development. So, if you run an accounting firm and wonder how to retain your top talent, you should start by evaluating workers’ needs thoroughly and dedicate adequate training to develop your team. Sometimes, it’s not the company that fails to motivate employees but the poor management or lack of development resources. Your responsibility as an employer is to promote a supportive development and learning culture so that every staff member feels they belong there. Training is an excellent tool in this sense, but you can also organize meetings or events in which you discuss the diverse ideas your accountants might have in mind. Consider also collaborating with a professional keynote speaker from CMISpeakers.com who can communicate your development plans and reinforce workers’ belief that they can thrive at your firm.
Not being challenged enough in their actual role
Repetitive work often leads individuals to think they stagnate in their actual position. The same is true for accountants who will stop perceiving their career as something rewarding but rather as a burden that provides them with no purpose. More often than not, employees feeling stuck in a rut are inclined to search for new challenges and opportunities just because they need to change something about their professional life. If you’re confronting the same problem with your workers, it’s time to take action. Consider giving them the option to advance and develop their skills and, once and for all, eliminate the stigma that accounting is in its last years of existence because of emerging technologies.
Lack of the tools and support needed to perform their job proficiently
Technology isn’t here to make accounting disappear but rather to ease the work of the professionals in this field. Simply put, if you’re the owner of an accounting firm, you should give your accountants access to the right tools and systems so that they won’t feel stuck in repetitive work. Some tech that can help your firm reach new heights include accounting software, a Customer Relationship Management (CRM) tool, a document management tool, an email provider, a convenient payroll tool, and a tax preparation tool.
Accounting professionals are indeed leaving, but with the proper support and practices, firms could motivate them to keep doing their best.
