Rebuilding the Accounting Profession: Solutions for Attracting and Retaining Talent

We previously explored the reasons behind the global accounting talent crisis, examining how the profession lost over 300,000 accountants in the US alone between 2019 and 2021, and how Australia faces a critical shortage of nearly 10,000 accountants annually. Now it's time to look forward and address the crucial question: what can the industry do to reverse this trend and make accounting an attractive career choice once again?

The accounting profession in Australia faces a critical crossroads. With vacancy fill rates below 67% for key accounting roles, the industry needs more than just quick fixes – it needs a complete reimagining of how it attracts and retains talent. While technology solutions offer temporary relief, long-term sustainability requires fundamental changes in how the profession operates and presents itself to potential candidates.

Enhancing the Employee Value Proposition (EVP)

The first step in addressing the talent crisis is creating a compelling EVP that speaks to modern workforce expectations. According to recently published reports, accounting professionals are primarily driven by salary, work-life balance, and career development opportunities.

Competitive remuneration is critical - with junior accountants in Australia now commanding starting salaries between $65,000 and $85,000, and experienced professionals earning well over $120,000 annually. However, money alone isn't enough. Modern accounting firms need to offer comprehensive benefits packages that reflect the underlying needs of an evolving workforce including:

• Flexible working arrangements: Millennials and Gen Z’s who make up an increasing percentage of accounting professionals, view flexibility as a fundamental right rather than a perk. This shift was accelerated by the pandemic and the rapid development of technology, with 83% of surveyed employees now considering workplace flexibility as "very important" in job satisfaction. A 2023 survey by the Australian HR Institute (AHRI) found that work-life balance (77%), better retention rates (62%) and easier recruitment (61%), were the three most perceived benefits of hybrid work.

• Clear career progression: Today's accounting professionals want transparency around their career trajectory and the specific steps needed to advance. Without clear progression pathways, firms risk losing talent to competitors or other industries entirely - surveys show that 15% of accountants who left their roles cited lack of career development as a primary factor. Among the Big Four accounting firms, concern over stagnated job roles has become increasingly prominent. Many professionals convey that senior positions are limited and progression is an unlikely reality for the majority. Severely competitive environments have led to frustration and scepticism about the viability of advancing within these firms.

• Professional development: According to the Illinois Certified Public Accountants Society (ICPAS) 2023 Retention Report, 27% of accounting professionals left their jobs because of lack of development opportunities. Continuous professional development isn't just about maintaining certifications either – it's about staying relevant. The concept of upskilling and reskilling has gained more prominence in an era of rapid technological innovation, AI, and evolving regulations. Young professionals, in particular, recognise the need to continuously learn and adapt to stay competitive in the market as they grow their career.

• Mental health support: The accounting profession has traditionally been associated with high stress levels, particularly during tax season and audit periods. The pandemic exacerbated this as accountants were under enormous pressure to help businesses pull through uncertain times. A 2022 survey of Chartered Accountants Australia & New Zealand (CA ANZ) members found that an alarming 59% were experiencing deteriorating mental health. The 2024 Work Outlook Report by the AHRI found the  biggest drivers of employee stress are cost-of-living pressures (42%), excessive workload (32%) and poor work-life balance (28%).

• Additional leave: New research has suggested that 58% of employees value additional leave options over higher pay when accepting a promotion or choosing between similar job offers. This shift reflects a broader trend where professionals value the ability to take time off and manage their personal commitments alongside their work responsibilities. Firms that offer additional leave options may find themselves more attractive to potential hires, as work-life balance becomes a key factor in job satisfaction and retention.
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Medium and Long Term Strategies to Tackle the Shortage

While amping up the employee value proposition will help retain and attract accounting professionals already in the industry, we need to look beyond immediate solutions and tackle the bigger issue — the critical lack of talent within the profession. This requires sustained, strategic initiatives that will take time, resources and effort to implement. The industry needs to fundamentally reimagine how it develops and nurtures talent, from early education through to professional development. According to CPA Australia, the number of students completing bachelor-level and above programs in accounting had almost halved in the decade to 2020 to just 2,278 a year, highlighting the urgent need for systemic change in how we build and maintain our talent pipeline.

To address this challenge, the industry must focus on several key areas, including early career pipeline development, industry rebranding, professional development academies, and cultural transformation programs:

Early Career Pipeline Development

• Partner with universities to modernise accounting curricula
• Establish paid internship programs that provide meaningful work experience
• Create mentorship programs connecting students with experienced professionals
• Offer scholarship programs targeting high-potential accounting students
• Develop "earn while you learn" programs combining work and study
  
  

Industry Rebranding Initiatives

• Highlight the profession's evolution beyond traditional number-crunching
• Showcase technology integration and innovation in modern accounting
• Promote success stories of young accountants in dynamic roles
• Emphasise the profession's role in sustainability and social impact
• Create targeted marketing campaigns for Gen Z and younger millennials
  
  

Professional Development Academies

• Establish in-house training programs for specialised skills
• Create accelerated pathways to leadership positions
• Develop cross-functional rotation programs
• Offer subsidised professional certifications
• Build partnerships with technology providers for technical training

Cultural Transformation Programs

• Implement reverse mentoring programs pairing junior and senior staff
• Foster inclusive workplace environments
• Create innovation labs for process improvement
• Establish well-being programs and mental health support
• Develop social impact initiatives that resonate with younger professionals
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Addressing the profession's talent shortage, requires collaboration between educational institutions, professional bodies, and accounting firms. These initiatives may take years to yield results, but they are essential for creating a sustainable future for the accounting profession.

Strategic Offshoring as Part of the Solution

While implementing these long-term strategies is crucial for the industry's future, many Australian companies need immediate solutions to their accounting talent challenges. Strategic offshoring through specialised platforms like Teamified offers a practical pathway to maintain high-quality accounting services while managing costs effectively.

Teamified's approach goes beyond traditional offshoring models by focusing on building integrated, high-performing teams. Our extensive network of qualified accounting professionals from regions like India, the Philippines, and Sri Lanka provides Australian businesses with access to experienced talent at significantly reduced costs - typically 40-65% lower than local market rates.

What sets this solution apart is the comprehensive support structure:

• Rigorous vetting of accounting professionals
• Streamlined onboarding processes
• Centralised HR management
• Performance monitoring and development
• Complete payroll and compliance management

For Australian businesses, this means they can:

• Quickly access qualified accounting talent
• Maintain service quality while managing costs
• Scale their accounting teams flexibly
• Reinvest cost savings into local talent development
• Focus on strategic growth initiatives
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Most importantly, strategic offshoring through Teamified can work hand-in-hand with local talent strategies. The cost efficiencies gained can provide businesses with the financial flexibility to invest in more long-term solutions - from improving local EVPs to developing graduate programs and implementing new technologies.

Why AI Isn't the Complete Solution

As AI and automation become increasingly popular as potential solutions to the talent shortage, it’s important to remember that these technologies can only complement, not replace, human accountants. While they are undoubtedly valuable tools, they're not the answer to the talent shortage. Here's why:

1. Critical Analysis and Complex Decisions:

• AI excels at pattern recognition and data processing but cannot replicate human judgement in nuanced scenarios.
• Tax strategy optimisation requires understanding client-specific contexts and business goals.
• Risk assessments need human insight to evaluate qualitative factors and emerging trends.
• Professional scepticism and ethical reasoning remain uniquely human capabilities.
  
  

2. Regulatory Navigation and Compliance

• Australia's dynamic regulatory landscape requires interpretation of principles, not just rules.
• Upcoming climate reporting requirements (2025) demand professionals who can:some text
  • Translate regulations into practical implementation steps
  • Exercise judgement on materiality and disclosure requirements
  • Adapt existing systems to new compliance frameworks
    
    

3. Client Partnership and Trust

• Successful accounting services rest on understanding client needs and business contexts
• Complex advisory discussions require emotional intelligence and relationship building
• Clients seek trusted advisors who can provide personalised guidance and reassurance
  
  

4. Strategic Value Creation

• As AI handles routine tasks, accountants focus on higher-value services:some text
  • Business strategy development
  • Performance improvement initiatives
  • Growth opportunity identification
  • Risk management frameworks
• This evolution demands professionals who combine technical expertise with business acumen
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Looking Forward

The solution to Australia's accounting talent shortage lies in a multi-faceted approach that combines:

• Immediate actions: Competitive salaries, flexible working arrangements, and technology adoption
• Medium-term initiatives: Training programs, culture change, and pipeline development
• Long-term strategies: Industry rebranding and educational partnerships
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Success in rebuilding the profession requires commitment from industry leaders, professional bodies, and educational institutions. Firms that adapt quickly to these changing dynamics will be better positioned to attract and retain talent in an increasingly competitive market.

The accounting profession isn't dying – it's evolving. Those who recognise and embrace this evolution, investing in their people and culture while leveraging technology appropriately, will thrive in the new landscape of professional services.

To learn more about how Teamified can support your specific business needs, connect with our global talent experts for customised solutions.