Is it true that the accounting field is under pressure? Do they really face burnout? Do you think labour shortage in accounting firms creates trouble and chaotic situations in the accounting industry? While discussing more on these areas, one of the exciting aspects is salary boost is the major change in the accounting industry due to labour shortage. Salary increment is a widely accepted put forth by the industries to overcome the issue up to a level. The industry is hiring temporary candidates driven by employment opportunities, as the need for more employees in the accounting firm.
Over the past years, there has been difficulty in searching for skilled labourers, with a provocation accelerating the dropout of many seekers due to the Covid- 19 pandemic. Due to the retirement of baby boomers, labour numbers shrank in 2020. The financial and accounting divisions of the company are agonized by the understaffing as these sectors were responsible for managing financial operations, internal controls and financial reporting. With the decrease in employment and increase in vacancies, companies’ are forced to hike the salary in order to drive recruitment. With the decrease in employment and the increase in openings, businesses are forced to raise wages to drive recruitment.
Why is there a labour shortage?
In the world of a competitive job market, accounting and finance find way more highly competitive. Accounting jobs have their own difficulties and tactics to be concerned about. Besides the pandemic, the major factors influencing the skills of workers in the accounting firm include:
1. Gig Economy
A gig economy is being characterized by the upcoming characterization of the labour market to remote work bases. The benefits of freelance work include the freedom to live on your terms without the restrictions of a salaried position. Outsourced accounting solutions are increasingly being used in businesses, especially for bookkeeping and payroll services that are low-margin. With this kind of arrangement, they have the privilege of controlling the cost and resources. The gig economy brings out in-house accounting opportunities for accounting professionals.
2. Remote Workers
There have been substantial changes in the field of employment with the evolution of remote working-based practices over the past few years. Both small and large-scale industries try to comprise remote work into their business models. Remote work helps employers enhance and retain their talent. Outsourced accounting solutions can resolve the shortage of jobs in accounting firms.
3. Millennial Workforce
By 2025, three-fourths of the work environment will likely revolve around the millennial workforce. These millennial generations differ vastly in terms of ideas as well as technology. Millennials highly prioritize the remote working strategy, which significantly improves the scope of joining the firm.
The traditional method of a 9 to 5 work base is slowly diminishing with the advancement of technology. Betterment in the technological field enhances the employers to work to their full potential even in the absence of physical location. Working in a virtual place helps people to better connect and collaborate with ideas. With the help of wi-fi, and can work despite the environment they are present in; they can even connect with their peers around the world.
5. Flexible Working Arrangements
Flexibility has become an issue of concern not only to millennials but also extended to several other working mothers. In order to be able to maintain a healthy work-life balance as well as to fulfil family responsibilities, these flexibility requirements have become crucial. According to the data, 73% of the employees prefer these flexible arrangements to meet their work satisfaction, and 67% of the small business is also tying up in providing these flexible arrangements among their departments.
How to overcome this deficiency?
‘The Great Resignation’ that led to the shortage of accountants can be estimated on the basis of root cause reasons. The pandemic Covid – 19 and the retirement of the late 90s’ created a void that cannot be filled with technology. There are a few steps taken by several businesses in order to resolve their shortage; they are :
With fewer accountants in a firm, it would raise the issue of the tremendous workload put on them. The installation of accounting software finds a way to resolve this solution; the pressure exerted on them can be reduced.
2. Outsourced Accountants
Many companies and businesses rely on third-party agents on the basis of certain acknowledgements. Hiring a freelance accountant is a very cost-effective method without putting the duty on additional workers.
3. Temporary Hire
Hiring freshers come with an advantage in getting the pure load of work enthusiasm and certain other benefits. Offering jobs to aspirant accounting interns who have hands-on work experience and training can reduce the workload.
4. Increase in Wage
As the number of people decreases, the workload, as well as the salary package, also gradually increases. The increase in wages results in the need for more employees in the accounting firm.
It may be difficult to run a company with a minimal amount of staff in the accounting branch, where the heart and soul of the company rely on these branches. Companies go in search of partnering with other businesses and provide staffing that helps run the company.
Labour shortage would not be the downfall of the accounting industry or accounting career. The false rumour that is captured in everyone’s mind is that the possibility of getting a job in the accounting field is difficult. Do not realize that your accounting career will go in vain because out there is always a need for more employees in the accounting firm. But the time has reached to prove this statement wrong as there exist plenty of opportunities that one can choose from.
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