The current predicament in the accounting field: A Fresh Approach is Needed for Attracting Gen Z Talent
Headline: The Long-Term Accounting Talent Crunch Among Gen Z: Breaking Down the Causes and Solutions
Author: Matt Wood, Global Head of Finance and Accounting Outsourcing at Personiv
As Gen Z enters the workforce, they're causing ripples in traditional industries, pushing for innovation and technology to better fit their lifestyles and mindset. While this is shaking up some workplaces, it's a different story for accounting – where Gen Z has largely avoided careers, albeit with some signs of changing interest among undergraduates [Enrichment: Changing perceptions of the accounting profession].
Between 2016 and 2020, the number of U.S. college graduates earning accounting degrees slumped 17%. Over the next two years, there was an additional 8% drop in accounting bachelor's degrees awarded. The trend continues with fewer students earning master's degrees in accounting and taking the CPA exam [Enrichment: Smaller talent pipeline]. This leaves the industry facing a daunting challenge: the ongoing accounting talent shortage, with more than 80% of organizations surveyed in 2024 agreeing this is an issue [Enrichment: Talent shortage statistics]. The Bureau of Labor Statistics adds its weight, projecting 6% growth in accounting and auditing job openings through 2033, at a time when many in the profession are retiring or changing careers [Enrichment: Industry demand].
The talent shortage is taking a toll on both employees and organizations. Employees are experiencing increased burnout, triggering higher turnover, leading to a vicious cycle [Enrichment: Workload and staffing pressures]. To understand why Gen Z isn't flocking to accounting, let's take a closer look at some factors:
- College costs and debt wariness
- Strict CPA requirements
- Perception of accounting as a narrow career path
- Competition from other fields that offer better pay, work-life balance, and growth opportunities
To draw in Gen Z talent and retain existing employees, organizations should:
- Promote accounting's stability and universal demand: Stressing that every business in every industry needs accounting skills can help show Gen Z the long-term benefits of a career in accounting.
- Highlight career development opportunities: Discussing the diverse sectors accounting can launch you in can excite Gen Z about the limitless potential of the career path.
- Talk about technology: Frame accounting as tech-savvy, using AI, automation, and other tools to make work dynamic and attractive to younger professionals.
- Optimize the workload: Use outsourcing to alleviate work-life balance concerns and free in-house employees to focus on projects with more value.
- Provide meaningful professional development and growth opportunities: Continuous learning and upskilling not only appeal to Gen Z but also help retain them long-term.
Shifting the narrative, embracing technology, and fostering career growth are key to attracting the smaller pool of new graduates and keeping existing employees engaged. By addressing these pain points and adapting to Gen Z's preferences, the industry might just manage to turn the decline around.
Stay tuned for more on navigating the long-term talent crunch in the accounting industry. Subscribe to our daily newsletter to keep up-to-date on accounting trends and strategy.
References:
[1] AccountingWeb. (2023). Gen Z’s impact on the accounting industry. Retrieved from [https://www.accountingweb.com/special-reports/young-talent/gen-zs-impact-on-the-accounting-industry] Accessed on 15 February 2023.
[2] Journal of Accountancy. (2023). CPA licensure changes affecting our websites and accounting talent. Retrieved from [https://www.journalofaccountancy.com/many-states-alter-accounting-exam-requirements-keeping-applicants-waiting/] Accessed on 15 February 2023.
[3] Fitzpatrick, M. (2022). Accounting role outsourcing drops 25% YoY despite lingering talent issues. Retrieved from [https://www.accountingtoday.com/news/accounting-role-outsourcing-drops-25-yoy-despite-lingering-talent-issues] Accessed on 15 February 2023.
[4] Fortune. (2023). The Quiet Crack-Up. Retrieved from [https://fortune.com/work/2023/01/05/the-quiet-crack-up-anxiety-is-soaring-and-employees-cant-take-it-anymore-leadership-bonuses/] Accessed on 15 February 2023.
[5] The Balance Careers [https://www.thebalancecareers.com/why-is-accounting-a-good-career-choice-2060215] Retrieved on 15 February 2023.
- To pique the interest of Gen Z in accounting, it's crucial to emphasize the stable demand for finance options in various industries, as every business requires accounting skills to ensure capital growth.
- Highlighting the diverse career paths that are open to those in the accounting field can help make it more attractive to Gen Z, showcasing the potential for profit-making opportunities and personal development.
- Leveraging technology in accounting can make the profession more appealing to Gen Z, who seek dynamic and tech-savvy work environments, using tools like AI and automation.
- Emphasizing margin for growth and self-development in accounting can encourage Gen Z to pursue this career, as they prioritize expansive career options and work-life balance.
- By promoting education-and-self-development within the accounting industry, organizations can retain Gen Z talent, as they value continuous learning and upskilling as key elements for long-term engagement.
- In addressing the financial risks posed by the accounting talent shortage, organizations must adapt to Gen Z's preferences, focusing on promoting the stability and benefits of a career in accounting to ensure a steady influx of talent in the future.
