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With fewer college students and graduates turning to the accounting profession for careers as older accountants are retiring en masse, a troubling staffing shortage has developed in the space. Firms are now getting creative in their recruiting efforts and are looking to hire candidates with nontraditional backgrounds.
A recent report from the Institute of Internal Auditors' Internal Audit Foundation, in partnership with Big Four firm Deloitte, surveyed audit managers and educators and found that more than half (58%) have hired a recent college grad for an entry-level staff position within the past five years. Of the 42% of respondents who indicated their internal audit function hadn't hired any recent college grads, more than half (58%) said they preferred to hire internal auditors with prior experience.
According to the report, internships seem to be the most promising way to fill the talent pipeline. Colleges and universities with students completing internships are more likely to place graduates in the internal audit profession. Among survey respondents who offer internships, 74% said their programs are designed to encourage future employment within the internal audit function.
"The need for new skills in areas such as data analytics, cybersecurity, and artificial intelligence will require casting a wider net to find new internal auditors," the report noted. "However, hiring habits are hard to break. Even as hiring managers acknowledge the changing skill sets for auditors of the future, eight in 10 still identify accounting as the preferred area of study for new hires."
Read more: Pittsburgh Steelers team with CAQ to recruit accounting students
The Indiana CPA Educational Foundation surveyed students at 11 Indiana universities and colleges to get their perspective on career development in accounting. Salary is a top driver for going into accounting and staying in the profession, along with job security, but student respondents also put high value on personal fulfillment and growth opportunities, as well as diversity. While 84% of the respondents indicated that working in an environment that's welcoming to people of all races, ethnicities and backgrounds is important, diversity was ranked higher in importance among non-white respondents.
For firms struggling to connect the dots between their hiring needs and the available talent pool, many are starting to consider widening their search to consider untraditional candidates. For example, Jim Boomer, the CEO of Boomer Consulting, suggests reviewing tasks at your firm to determine which do not need to be completed by a CPA.
Firms can broaden their search to include candidates with diverse backgrounds and skill sets, including technology, project management, data analytics, marketing, HR, and people with experience in the firms' niche industries. This approach alleviates the pressure on CPAs and introduces fresh perspectives and competencies into the firm.
Read more: Recruiting and retention in accounting: 'We've got a lot of work to do'
"The accounting profession presents a significant opportunity to engage and attract the younger generation by offering diverse career pathways and opportunities for advancement," Richard Kopelman, CEO and managing partner of Atlanta-based Top 100 Firm Aprio, recently told Accounting Today's Daniel Hood. "Addressing challenges such as integration and synergy after mergers, talent development and retention focusing on diversity, equity, inclusion and belonging, and market differentiation and client retention are essential for firms to capitalize on this opportunity entirely. By effectively managing these aspects, accounting firms can position themselves as industry leaders capable of delivering exceptional value to clients while nurturing a culture of growth, inclusivity and excellence within the organization."
Read more about the staffing crisis in accounting and how firms are addressing the challenges.
