The accounting industry in the UK is experiencing a talent crunch, with a shortage of skilled accountants impacting firms across the country. The demand for qualified professionals is on the rise, driven by a growing economy and evolving financial landscapes.
According to ACCA’s Global Talent Trends Survey 2023, the shortage of talent is due to a combination of factors, including high employee mobility with 44% of respondents expecting to change roles in the next 12 months, inflation-driven wage demands, and increasing concerns over burnout.
Specific regions in the UK, like Manchester and Nottingham, are experiencing more acute talent shortages, with a low number of applicants for accounting roles. This suggests that the crunch is not uniform across the country but more pronounced in certain areas
While some accounting firms may not believe that technology plays a significant role in attracting and retaining talent, the evidence tells a different story.
In a competitive job market, where candidates have multiple options available to them, firms that embrace technology have a distinct advantage. Young professionals, especially from the millennial and Gen Z cohorts, value tech-savvy employers and view access to state-of-the-art tools as a selling point.
The incorporation of advanced technologies like AI, machine learning, and data analytics in accounting is appealing to a younger generation of professionals. These technologies are reshaping what it means to be an accountant, moving the role beyond traditional bookkeeping and auditing into more strategic, analytical, and advisory capacities. This evolution is attracting individuals who are interested in technology and its application in business contexts.
Automation, for example, is a prime example of how technology can enhance the attraction and retention of talent. Young professionals often prioritize work-life balance, and automation can eliminate mundane tasks, freeing up time for more exciting and meaningful work. Tools like OfficeMojo by CPA Site Solutions, designed to automate client reminders and communications, reduce administrative burdens and allow accountants to focus on higher-value activities.
Changing face of accounting
The role of accountants is changing due to technology, and this is making the profession more attractive to those who seek dynamic and evolving careers.
The shift towards technology-intensive roles is creating opportunities for accountants to engage in more value-added activities, such as strategic planning and decision support, rather than routine tasks.
This aspect of technology integration is appealing to individuals looking for careers that offer growth, challenge, and the opportunity to be at the forefront of business innovation.
The impact of technology on employee retention
In addition to attracting talent, technology also plays a crucial role in employee retention. The next generation of professionals wants to work for modern firms that embrace change and invest in new tools to serve clients. Firms that fail to keep up with technological advancements risk losing their top talent to competitors who offer a more tech-forward environment.
Employee consultation is key in this regard. Engaging with employees who understand and value technology and seeking their input on implementing new systems sends a strong message that the firm values and appreciates their expertise.
By involving employees in the decision-making process, firms can foster a sense of ownership and create a culture of continuous improvement, which is essential for talent retention.
Similarly, the integration of technology in accounting is also pushing for enhanced learning and skill development, which can be a strong draw for talent. Prospective accountants are now required to have a blend of accounting, finance, and technological skills. This multidisciplinary approach to professional development is attracting individuals who are interested in a more holistic and comprehensive career path that combines different areas of expertise
Overcoming resistance to adoption
Implementing new technology can be met with resistance, especially in firms that are strapped for time and resources. However, the benefits of embracing technology far outweigh the initial challenges.
Building technology into the hiring narrative and showcasing the firm’s commitment to staying current can be a powerful way to attract and retain employees while saving time and streamlining processes in the long run.
To address the resistance to technology adoption, firms should prioritize employee training and provide ongoing support. By equipping staff with the necessary skills and knowledge to effectively utilise new tools, firms can alleviate any concerns and empower employees to embrace technological advancements.
Additionally, fostering a culture of learning and innovation can create a positive environment where employees feel encouraged to explore and experiment with new technologies.