Many CPA Firms Say Now is the Time to Upgrade Talent
With tax season behind them, many CPA firms are taking a step back, evaluating their state of business…and upgrading talent. The war for talent will not be quelled by the economic downturn – especially in the accounting industry. Attracting the best employees to support the company’s growth remains the top internal concern for Finance Chiefs, according to CFO.com. The report argues that the economic turmoil presents a great opportunity to attract good people as a great deal of talent is thrown into the job market. Moreover, a separate report in The McKinsey Quarterly argues that right now companies should actually emphasize the focus on talent – even amid cost-cutting efforts – to position themselves to succeed and grow once economic conditions improve.
A.E. Feldman, reports that typically this time of year accounting firms take steps to recruit talent. The executive search firm is already seeing an uptick in accounting jobs at Big 4 firms. The firm’s President, Mitch Feldman, says, “With tax season now behind us, our accounting firm and corporate clients are now putting their orders in to expand their practices and upgrade their talent.” Feldman adds that upgrading talent enables firms to be more competitive. “When you are out there doing business development it’s the edge that closes the deal,” he says.
Now as firms go through this process of upgrading their ranks, A.E. Feldman’s CEO, Carol Schwam, adds that accounting and tax professionals should take this opportunity to improve their skill sets and boost their marketability. A.E. Feldman notes that firms are showing interest in professionals who can help their companies reduce inefficiencies and enhance profitability. The positions most in demand include staff and senior accountants and credit and collections specialists. Current opportunities include, tax manager jobs, international tax jobs, and business valuation jobs. According to Schwam, “We continue to need good tax people in all areas including SALT, Federal and International, Forensic/Litigation and Real Estate.”
A Buyer’s Market for Talent
The economic downturn presents an opportunity for stable companies to attract good people as the job market becomes saturated with a great deal of talent, according to CFO.com. The report states that five years ago finance, in particular, was hard-pressed to find all the qualified people it needs. The Sarbanes-Oxley Act, in particular, stoked demand for professionals with accounting expertise.
Today, the national unemployment rate has reached 8.5%, according to The Department of Labor. Many economists expect it will continue to rise. And it may seem as though the very economic forces that have made so many job candidates available would also impede most companies from hiring them. CFO.com argues, however, that all companies (even those conducting their own layoffs) should keep an eye out for potential new hires. One example of this trend is David Bronson, CFO of PSS World Medical, a $2 billion medical equipment distributor and services provider. CFO.com quotes Bronson as saying, “We see an opportunity in this economic climate to improve our bench and upgrade our talent - not only in finance, but across the board.”
The accounting industry, in particular, remains poised for growth over the next several years, and right now a number of CPA firms are looking to take advantage of the current opportunity to upgrade talent. In fact, the Bureau of Labor Statistics states the employment of accountants and auditors is expected to grow at least 18% by 2016 (faster than the average rate of growth for all other occupations) thanks to changing financial laws, corporate governance regulations, and increased accountability for protecting an organization’s stakeholders. Now, with tax season behind them, CPA firms are looking to upgrade their ranks, notes A.E. Feldman.
Looking Ahead…
Downturns place companies’ talent strategies at risk, according to The McKinsey Quarterly. The Journal argues that as deteriorating performance forces increasingly aggressive job cuts, it’s easy to inadvertently lose valuable contributors and damage morale along with the company’s reputation among potential employees. The report goes on to say that companies should actually emphasize the focus on talent amid cost-cutting efforts to “intelligently strengthen the value proposition they offer current and potential employees and position themselves strongly for growth when economic conditions improve.” In short, despite the current recession, companies should approach talent acquisition with a longer-term view.
Employers can also maintain their attractiveness to internal and external talent by using cost-cutting efforts as an opportunity to redesign jobs (including an employee’s level of responsibility, degree of autonomy, and span of control) so that they become more engaging for the people undertaking them, adds McKinsey. Essentially, companies will benefit from focusing on creating jobs that will attract and retain talent at the outset of downsizing efforts.
McKinsey also notes that companies should bring additional strategic considerations to the decisions, namely assessing which types of talent drive business value today and which will drive it in the foreseeable future. A recent report published by global management consulting firm, Accenture, echoes this view.
“A downturn presents an opportunity to upgrade human capital and tailor it more closely to the needs of a future operating model,” states Accenture. The firm adds that companies with the resources to invest in new skills and capabilities now will be better positioned for the upturn.
Looking beyond the downturn when it comes to upgrading talent is also a key message in research presented by Deloitte & Touche – Ireland. The research states that, “For the intelligent organization, strategic planning beyond the downturn is essential.” The report argues that now is the time for companies to assess their employee talent pools and have the courage to invest in stronger talent to remain one step ahead of the competition.
Barry Salzberg, CEO of Deloitte, says his company has no plans to change its recent course, which includes aggressive recruitment and training, according to CFO.com. The report adds that firms that wait until the economy recovers to recruit top talent will be competing with every other company that waited until conditions improved. By then, these firms could be facing an overall decline in the quality of talent available. CFO.com concludes, “In a buyer’s market you buy.” Companies that realize this may go a long way toward winning the war for talent.
Are you a CPA or working in Accounting? If you want to grow your career or discuss your company’s talent needs, contact A.E. Feldman’s President, Mitch Feldman today.
