According to data from the Bureau of Labor Statistics, the U.S. job market has seen a decline in both job openings and employee resignations in recent months.
While this may seem like good news for employers, it doesn’t necessarily translate to easier hiring or retention for CPA firms. Many firms still need help filling open positions and retaining their existing talent despite the overall downward trend in job mobility.
The Growing Need for Talent Amidst a Tight Labor Market
Finding qualified professionals is expected to become even more difficult as CPA firms aim to expand their teams in the coming months. 66% of hiring managers in finance and accounting are looking to fill new positions. In comparison, 32% are focused on replacing staff in vacated roles.
However, there’s a potential obstacle on the horizon: a significant number of finance and accounting professionals are actively seeking new job opportunities. 41% of these professionals are job hunting or plan to start soon. This means that while CPA firms work hard to grow their teams, they may simultaneously face the challenge of losing existing employees.
Addressing Pay Dissatisfaction: A Key to Retention
One of the main reasons finance and accounting professionals are looking to change jobs is the pursuit of higher salaries. Over half (55%) of industry workers cite better compensation as their top motivation for seeking a new role. Although this figure is slightly lower than earlier in 2023, it still represents a significant portion of the workforce who believe they can earn more elsewhere.
In an economy still grappling with the aftereffects of the pandemic, compensation has become a focal point for many professionals. As employers rely heavily on their top talent to navigate staffing shortages, ensuring these critical employees are adequately compensated is crucial.
Now is the time for CPA firms to review their salary structures and ensure they are competitive, especially for difficult-to-fill roles that require specialized skills.
Enhancing Benefits and Perks to Stay Competitive
Beyond salary, benefits, and perks play a significant role in attracting and retaining talent. Finance and accounting professionals seek new jobs to secure better benefits. This presents a challenge for CPA firms, particularly smaller ones, that may need help competing with larger organizations’ more generous packages.
However, CPA firms have strengths they can leverage.
For example, offering opportunities for professional growth and leadership development can particularly appeal to Millennial workers. Research on the multigenerational workforce shows that Millennials value autonomy and the chance to take on new challenges. By fostering a continuous learning and development culture, CPA firms can offer meaningful incentives beyond traditional benefits.
The Demand for Remote Work and Flexibility
Remote work remains a top priority for many professionals, with 34% of finance and accounting workers citing it as a critical factor in their job search. The pandemic has permanently shifted perspectives on remote work, with many employees finding they can be just as productive—if not more so—when working from home.
Insisting on a full-time return to the office could be detrimental to hiring and retention efforts and overall employee morale. Even if your CPA firm cannot offer complete remote work, providing flexible arrangements can help retain current staff and attract new talent. This is especially important for younger workers, like those in Generation Z, who prioritize flexibility more than any other generation.
As CPA firms navigate the challenges of 2024, they must focus on competitive compensation, enhanced benefits, and flexible work arrangements to attract and retain top talent.
