With a national unemployment rate of 3.7%, the lowest in almost 20 years, it is no secret we are in a candidate-driven job market. Thanks to a booming economy and labor shortages for specialized roles in the accounting and finance sector, the unemployment rate for accountants and auditors has fallen to a historic low of 1.7% - less than half of the national average1. As a result, top accounting talent is in high demand and filling open positions with qualified candidates has become an industry-wide difficulty.
Historically, competitive wages and a benefits package were enough to attract and retain high-caliber talent. As the demographic of the workplace shifts, with Millennials projected to make up 75% of the global workforce by 20252, the expectations from prospective employees are changing rapidly. A study released earlier this year by EY Newsroom showed “69% of respondents would leave their current position for a similar role at an organization recognized as a leader in innovation, signaling that a company’s brand recognition as an innovator is now a key factor in the escalating war for talent."3 Despite this fact, the same survey found that only “26% of entry-level employees believe their company fosters a culture of innovation, compared to over half (57%) of senior executives."3 Resolving this innovation disconnect will play a major role in the retention of tomorrow’s top talent and drive business growth.
Here are four ways to promote innovation and transform your corporate culture:
(1) Embrace Disruption — Digital technology like cloud computing, artificial intelligence, and the distributed ledger has changed the landscape of the accounting industry and left many firms wondering if they are ready for the future. In order to keep pace, you must invest in your most valuable resource: your people. By providing opportunities for continuing education and supporting the development of emerging skill sets, you allow your employees to remain relevant and future-focused.
(2) Collaborate and Communicate — Your employees want to feel connected to their colleagues and the company’s mission. Providing internal channels for employees to freely share ideas inspires creative thinking, while sidestepping the approval complexity that can inhibit positive change. Implementing the use of a collaboration tool, such as Slack or Skype, enables organizational transparency and provides a platform for reinforcing your firm’s innovation strategy.
(3) Celebrate the Wins - While attracting the best talent depends on your firm being perceived as innovative, retaining it demands empowerment at all levels. This means you must actively promote your innovative programs both internally and externally to enjoy the reputational benefits. Highlighting successes on social media will improve your public perception and recognizing individual achievements will encourage the development of groundbreaking ideas and build team camaraderie.
(4) Learn from the Losses — Candid acknowledgement of negative outcomes allows you to highlight learning opportunities and improve best practices. With the proper response, every failure can put your firm one step closer to success. Maintaining a tolerance for failure is crucial for building trust, preserving the free flow of information, and developing a culture of innovation.
Attracting and retaining the top talent in 2019 (and beyond!) is a necessity for the survival of your firm in this highly competitive business climate. Developing brand recognition as an innovator in the accounting industry depends on making deliberate changes to your organizational mindset, embracing transformational technologies, and ensuring the well-being of your employees lies at the heart of every business decision. As you work to ignite innovation across your firm, always remember this: technology is a tool and people are the conduit to success.
Katie Thomas, CPA [Photo Credit: RobbyG Photography]
Katie Thomas, CPA
About the Author:
Katie Thomas, CPA, is a cloud architect, systems integrator, and technology advisor for professionals in the accounting industry. Katie empowers firms of all sizes to thrive in the age of digital disruption through agile process development and the strategic implementation of intelligent software solutions.
Katie has helped businesses worldwide foster an innovative corporate culture and deliver exceptional client service through the adoption of emerging technologies. A rigorous approach to planning and execution promotes consistent, sustainable growth while avoiding the short-term pitfalls typically associated with organizational change.
References:
1 Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Accountants and Auditors.
2 Donston-Miller, Debra. “Workforce 2020: What You Need to Know Now.” Forbes, Forbes Magazine, 31 Jan. 2018.
3 “US Workers Report ‘Innovation Disconnect’ between Executive and Junior-Level Staff.” EY Newsroom, 10 Apr. 2018.
Note: EY refers to the global organization made up of one or m ore of the member firms of Ernst & Young Global Limited each of which is a separate legal entity.