As we continue to experience the impact of the COVID-19 pandemic, one of the most notable changes the accounting and finance sectors face is the lack of talent. As a result, the demand for candidates in the finance and accounting job market has increased tremendously over the past year, contributing to a tight labor market.
In this blog post, we will detail the current state of the accounting and finance industry—from candidate expectations, the lack of talent in the market, and how companies are reacting.
Remote and Hybrid Work Is Expected
One of the most significant impacts the pandemic has had on the finance and accounting job market is the widespread change in attitude as to where employees want to work. During the pandemic, the workforce shifted from mostly an in-office workforce to almost all the clients we serve offering some form of remote work option for their finance and accounting teams. Remote work is proven to increase employee happiness and productivity in companies, which is why it has become such a popular trend in today’s workforce.
With candidates now accustomed to working remotely and expecting it in their next job, many companies are adjusting their policies to accommodate the current job market. For example, it is now standard practice for businesses to offer flexible work schedules that allow employees to work from home or schedule the hours when an employee needs to be in the office.
The Desperate Need for Accounting and Finance Talent
Like most industries, the accounting and finance sectors are experiencing all-time high employee turnover rates and have been since early to mid-2021. The finance and accounting job market is tight due to top talent leaving for higher-salary positions, baby boomers retiring in waves, and increased client demand to support their growth and stay compliant with ever-changing GAAP standards.
As a result, companies have to invest more in employee training and professional development to ensure they hold onto their top talent. In today’s market, it is not uncommon for companies to invest in a combination of training and pay incentives. Since there is such a talent shortage, companies should be looking to provide extra training to employees who are already performing well and are eager to upskill.
As Demand for Accounting and Finance Talent Increases, So Do Salary Expectations
Aside from investing more resources into training, many have noticed that salaries have also increased over the past year. If companies want to retain their top talent, they should proactively offer pay competitive to today’s job market. If someone on your team leaves for any reason, you will inevitably pay more to replace them, and oftentimes for someone with less experience and certainly with less company/department knowledge.
The increase in salaries for accounting and finance professionals will likely continue as the demand for talent persists, making it essential for companies to stay ahead of the curve. With a shortage of talent already in today’s marketplace, companies will have difficulty attracting top talent if they are not paying competitive rates or offering the expected benefits from today’s candidates.
Candidates Are Placing Emphasis on Growth Opportunities, Culture, and Flexibility
Many companies have started offering more competitive benefits to accommodate the demands and expectations of candidates. In a job seekers’ market, candidates now want to be a part of a company where their work and lifestyle are balanced, which means companies need to step up and provide the best benefits to their employees. Many employers are giving employees flexibility when they take off for vacation, remote work options, and more.
Businesses are also looking to adapt their internal culture to better suit the needs of their employees, especially younger talent. The finance and accounting job market is much tighter than it was a year ago, and some preferred culture aspects candidates seek out are:
- Diversity and Inclusion Initiatives
- Opportunities for Growth
- Workplace Involvement
- Communication and Transparency
- Approachable Leaders
Are You Seeking Talented Accounting and Finance Candidates in 2022?
When it comes to navigating the murky waters of the finance and accounting job market, you want to make sure you’re working with the best. At BVOH, 70% of our team has a finance or accounting background, and they are ready and eager to scale out your accounting and finance teams. Contact BVOH today to discover your next top performer.
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