Talent Management
As the accounting profession grapples with a widening skills gap, tax practice leaders must adapt their strategies to build and maintain strong, capable teams in an increasingly competitive market. This pressure increases.
The Salary Conundrum
At the heart of the talent shortage lies a stark reality: wage disparities between accounting and other business sectors are driving potential candidates away from tax and accounting roles. Accounting Today's recent salary survey paints a sobering picture. Entry-level staff in accounting earn an average of $65,000 annually, with senior team members making around $88,000 per year. It's not until reaching managerial positions that salaries breach six figures, averaging $106,000 in small firms and $121,000 in larger organizations.
For tax practice managers, this wage gap presents a significant hurdle. The allure of higher salaries in technology and finance sectors is proving too tempting for many talented individuals, leaving tax practices struggling to attract and retain skilled professionals.
Technology: Double-Edged Sword
In response to staffing shortages, many firms are turning to artificial intelligence and automation to handle routine tasks. While this technological shift offers increased efficiency, it creates a new dilemma for managers. How can they integrate AI without eliminating crucial learning opportunities for new hires? The challenge lies in redefining entry-level positions to remain appealing when many routine tasks are automated.
Shagun Malhotra, CEO of Skystem, suggests a paradigm shift in accounting education and certifications. By incorporating more technology-focused content into curricula, the profession could become more attractive to tech-savvy graduates. This approach not only makes the field more appealing but also better prepares new hires for the evolving landscape of tax practice.
Burnout and Work-Life Balance
The talent shortage often translates to increased workloads for existing staff, leading to burnout and high turnover rates. Elizabeth Beastrom, president of Thomson Reuters Tax & Accounting, pointedly observes that professionals have been asked to do too much with too few resources for far too long.
Progressive tax practice managers are addressing this issue head-on by implementing flexible work arrangements, investing in wellness programs, and ensuring realistic workload distribution, especially during the grueling tax season. The key is to use technology not just for efficiency, but as a tool to reduce unnecessary stress and improve work-life balance.
Industry Volatility and Skill Diversification
Recent layoffs at major firms like RSM US, PwC, and FreshBooks underscore the volatile nature of the industry. While these cuts primarily affected consulting and tech roles, they serve as a wake-up call for tax practice managers. The focus now is on diversifying skill sets within tax teams and concentrating on high-value services that are less likely to be automated or outsourced.
Charting the Path Forward
In this challenging environment, forward-thinking tax practice managers are adopting multifaceted strategies to attract and retain talent. While matching tech sector salaries might be out of reach, creative compensation packages that include performance bonuses, profit-sharing, or equity options are becoming more common.
The integration of technology is being approached with a new perspective. Rather than using AI and automation to replace staff, innovative managers are leveraging these tools to enhance their team's capabilities, freeing up time for higher-value work that requires human insight and expertise.
Investment in professional development has taken center stage. Ongoing training and education, particularly in emerging technologies and advisory services, are no longer perks but necessities. This commitment to growth not only improves team capabilities but also signals to potential hires that the practice is invested in their long-term success.
Culture, too, has become a crucial differentiator. Workplaces that genuinely value work-life balance, flexibility, and personal growth are finding it easier to attract and retain top talent. Strong mentorship programs are being established to help new hires envision clear career paths within tax practice, combating the perception that the field lacks long-term prospects.
Collaboration with educational institutions is emerging as a key strategy. By partnering with local universities to shape curricula and create internship opportunities, tax practice managers are ensuring a pipeline of well-prepared candidates who are excited about the possibilities in the field.
In this new era, the most successful tax practices will be those led by managers who can navigate these choppy waters, creating environments where talent doesn't just survive, but thrives. The future of tax practice is being shaped today, and it's the innovative, adaptable managers who will lead the way.
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
Subscribe to the TPN Newsletter!
Like what you're reading?
Subscribe to our FREE newsletter and we'll deliver content like this directly to your inbox.