Pressure on accounting firms is mounting as the search for staff becomes more difficult and the fallout from the pandemic sees accountants looking for different working patterns. Jim Scott, MD for accountancy at IRIS Software Group, considers how to improve retention levels
The tables have turned, and employers are the ones wringing their hands as they watch workers eye up the exits. Tellingly, pay is not the main reason people are jumping ship. However, this shock to the labour market represents a real threat to global recovery.
Research by KPMG and the Recruitment & Employment Confederation shows appointments to permanent roles hit a record high in August, as a sharp decline in candidates for jobs drove increases in pay. Pay at accounting firms has jumped to record levels, with Deloitte’s 691 partners receiving more than £1m each on average in the past year.
The upshot is accounting firms are competing over and poaching the best available candidates, with a similar picture in management consultancy, law, finance and technology. However, by failing to understand what employees are running from, and what they are attracted to, accountants are putting their firms at risk.
