ACCA’s latest report calls for a concerted effort to address long-standing talent challenges
Dubai, UAE; April 17, 2024: Major challenges that the audit profession faces in attracting and retaining talent are set out in the latest report by ACCA & CAANZ. A survey conducted by accountancy bodies ACCA (the Association of Chartered Certified Accountants) and Chartered Accountants Australia and New Zealand (CA ANZ), supported by a series of global roundtables, revealed persistent challenges facing the auditing profession in its battle to attract and retain talent, implying declining numbers entering the audit profession.
Insights from more than 6,500 finance professionals across the globe revealed a sector whose workforce is demanding flexible working and equitable remuneration in the face of increasing concerns about individuals’ work-life balance.
Antonis Diolas, head of Audit and Assurance, ACCA and author of the report Attract, Engage, Retain: Insights and Recommendations for Audit Talent Success, said: “A compelling insight from our study highlights the absence of a commonly understood and unified purpose within the audit profession. This not only inhibits prospective candidates from entering the profession in the first place, but also hinders current professionals from recognising how their work generates value.”
More than half of the survey respondents were Gen Y/Millennials aged 25-42, with 37% current auditors, 33% former auditors, and the rest considering audit as a future career.
While audit firms are implementing initiatives to address concerns, the persistence of the core issues signals the need for transformative change. For instance, the survey revealed enthusiasm for sustainability reporting and assurance among both existing audit professionals and potential entrants to the profession. This presents a unique talent attraction opportunity for audit firms to capitalise.
Fazeela Gopalani, Head of Eurasia and Middle East, ACCA, said: “The cost of meeting pay rise demands, together with the many job opportunities available to professional accountants, means that attracting and retaining audit talent presents a huge ongoing challenge for employers. It’s unsurprising that the number of respondents planning to move away from their organisations globally is high, at 54% again this year. However, with 82% of respondents in the Middle East saying that a strong diversity and inclusivity culture is a key factor in choosing an employer, there’s a real opportunity for audit firms who are strong in this area to differentiate themselves in a competitive market.”
Five themes emerged from the research to solve the current crisis:
Work-life balance is the key issue: unsupportive workplace cultures need to be addressed, with more emphasis on supportive working environments which recognise personal needs and wellbeing.
Fair remuneration: intensive workloads during the peak audit season must be remunerated and if not addressed could further impact the attraction and retention of talent in the future.
Career ladder and variety of work: the traditional career ladder is unappealing to young audit professionals. Firms need to look to develop a ‘career lattice’, to offer a greater variety of roles and to work to accommodate auditors’ preferences and outside interests.
Sustainability assurance and reporting: this work is seen as purpose driven and offers a clear hope for the audit profession with 48% of non-auditors saying such work could tempt them to join the profession and 40% of auditors saying such a career could tempt them to stay.
Embrace technology to remain relevant: those considering entering the profession wish to embrace advanced technologies. While the Big Four and mid-tier firms can fulfil that wish that small firms are lagging. Bridging the technology gap is a strategic imperative for the profession.
The report recommends that new entrants experience advanced technologies from the outset. The opportunity for exposure and training in cutting edge technologies is a major drawcard for early career professionals, and it is this cohort with a fresh perspective and true digital nativity where many bright ideas for the future of auditing may spring.
Gopalani added: ‘Audits serve as the backbone of financial reliability, ensuring accuracy and transparency while building trust and accountability. With robust audit practices, businesses not only thrive but also attract investment, bolstering the stability of capital markets and contributing to a prosperous economic future for all.’
Communicating this message so that it resonates with prospective and existing audit professionals should lead to positive outcomes in talent attraction and retention.
