Technology and staffing issues have changed dramatically over the last two years. So, what can firms expect when it comes to hiring and staff management in 2022 and beyond?
Vaco, a global talent solutions firm, recently published four accounting and finance hiring trends that will impact companies in 2022. These are detailed in a new eBook, “Data + Trends for the Accounting and Finance Hiring Market,” covering the recruiting and hiring landscape as well as current challenges and helpful tips for organizations. The trends include the realities of hybrid work, employee resignations, compensation and candidate scarcities.
As noted in the eBook, based on data from the U.S. Bureau of Labor Statistics (BLS), among other sources, in August 2021, the number of available jobs outpaced the number of unemployed American workers by about one million. The number of unemployed persons per job opening fell to just 0.8, capping a trend in candidate scarcity that has been building since January. The financial sector had the lowest unemployment rate of any sector in the U.S. at just 3.2%, leaving virtually every company facing issues of hiring, retention, employee burnout and inadequate expertise for finance and accounting.
Vaco, which provides consulting, contract and direct hire solutions in the areas of accounting and finance, technology and operations, has noted these four key trends impacting the accounting and finance talent market and how companies can respond:
- Trend 1: Accounting and finance professionals have widely embraced remote and hybrid work. For many candidates, flexible work options are a key differentiator among employers, so it’s important for companies to offer remote and hybrid work if they want to compete. (Page 9 in the eBook)
- Trend 2: Multiple accounting and finance-heavy industries are seeing record rates of employee turnover. The financial activities, professional and business services, and finance and insurance sectors all experienced 20-year highs in employee quits in April 2021, indicating that historically stable and mature companies need to retool their benefits and interview processes for finding and retaining top talent. (Page 11 in the eBook)
- Trend 3: Salaries for accounting and finance professionals are increasing quickly. With fewer applicants and greater competition, companies are being outbid for top candidates at all employment levels, so paying competitive salaries is a must to attract and keep top talent. (Page 13 in the eBook)
- Trend 4: The pandemic impacted the number of accounting students sitting for the CPA exam. Many accounting majors halted their studies during the pandemic, delaying entry into the job market by a year or more, while many graduates delayed taking the CPA exam. Companies should consider up-scaling compensation and benefits accordingly or adjust job requirements, like rethinking the need for CPA certification, to address this market gap. (Page 16 in the eBook)
“With year-end upon us and tax season around the corner, companies need skilled accounting and finance talent to meet crucial deadlines,” said Frances Moreno, co-founder and managing partner of Vaco in Los Angeles. “At Vaco, we know that there is no ‘business as usual’ when it comes to hiring or contracting top candidates – and retaining the professionals you have. There’s never been a more critical time for companies to evaluate their compensation plans, benefit packages, hiring process, and above all, culture and investment in people.”
Download Vaco’s eBook, “Data + Trends for the Accounting and Finance Hiring Market,” for more tips and information to help propel your organization.