Tax leaders are concentrating on recruiting and training new and existing talent this year, while emphasizing personal development and health and wellness in order to attract and retain good people, according to a new survey.
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Acquiring top talent is an important area of investment for the majority of respondents. In general, the need for tax professionals and administrative support far outweighed the need for data scientists, financial analysts, and IT support, with 64% indicating they intend to hire tax professionals in the coming year, with an average headcount increase of 6.6. Meanwhile, more than half (55%) of the more than 30 firms surveyed said they expect to add an average of one or two people to their IT support staff.
“At the start of 2021, tax professionals emerged from COVID-19 lockdowns in survival mode, still working to acclimate to remote work and the industry-wide shifts the pandemic left in its wake,” said Thomson Reuters Tax and Accounting president Elizabeth Beastrom in a statement. “Now, as another year comes to a close, we’re seeing tax leaders redefining what is important to the continued growth of industry. Placing an emphasis on hiring and supporting the right talent, streamlining processes and leveraging technology to increase productivity, and upping services that provide greater value to the client, the tax industry is poised to see major growth and success on the backswing of the ongoing pandemic.”
Many firms plan to prioritize technology skills such as enterprise resource planning and tax software and data analysis, for new and incoming personnel, along with the ability to stay current with changes to Tax Code and communication skills, above others. In firms with over 30 employees, investing in new tax technologies is the preferred route to greater efficiency. For leaders in larger firms, new analytics tools and auditing technologies are at the top of their technological wish list, followed by new practice-management tools, accounting software, and general improvements in the firm’s basic IT infrastructure and technical support. Respondents cited the creation of tax-specific workflows, new tax technology, and better training as top priorities as they head into the New Year.
Firms and their employees have been struggling with work-life balance during the pandemic. During tax season, nearly one-third (32%) of workers who logged 50 to 70 hours per week reported experiencing health issues at least some of the time. Tax leaders are looking at these industry-wide burdens on health and wellbeing and exploring ways to alleviate the stress.
“Tax season per se isn’t necessarily the culprit behind ill health, but because people who said they work 50 or more hours the rest of the year reported almost identical levels of illness,” said the report. “Further, those who work 30 to 50 hours per week and those who put in 50 to 70 hours experienced roughly the same number of health issues, with 6% saying that full-time hours almost always had a negative impact on their health, and roughly one-third saying it occasionally affected them. During tax season or not, the only cohort that reported relatively few health-related performance issues were those who worked less than 30 hours per week, with 83% of these part-timers saying they seldom or never have health issues that affect their performance, and only 3% reported a constant or recurring health issue related to work.”
An overwhelming majority (95%) of the firms surveyed indicated their clients would like to get more tax planning, business and financial advice. A growing area of interest is environmental, social and governance reporting, and close to half (46%) of respondents indicated their firm’s approach to ESG was important to them, with 20% saying it was “very important.” Women and technology innovators were more likely to place importance on their firm’s approach to ESG, with their main concerns being the firm’s ability to work with ESG clients, its efforts to reduce waste in areas such as paper and energy, and its community involvement and sustainability.
