Over the past few years, the workforce has experienced significant upheaval. Take, for example, the recent Great Resignation or the Quiet Quitting movement. While some industries were impacted more than others, the accounting industry is now the one in the midst of an alarming talent crisis.
A recent study from FloQast and the University of Georgia – Controller’s Guidebook: The Great Recalibration – The Role of Technology in Retaining and Recruiting Accountants—revealed that the accounting industry is experiencing a “Great Recalibration”—a time in which accountants are rethinking how much of their time and energy their work should require of them and, as a result, leaving their jobs in droves.
There are several factors contributing to this accounting recruitment and retention trend but one stands out more than others: technology.
The Current State of the Industry
As it currently stands, the accounting industry is due for a serious shake up. According to FloQast’s study, about half of accountants (53%) are not entirely sure that they will be with their current employer by this time next year and even further, of that group, 65% aren’t sure they will still be accountants in two to three years.
Perhaps the biggest reason for this shift away from accounting is that many professionals are struggling to maintain a sustainable work-life balance which, in turn, leads to burnout. In fact, FloQast’s previous Controller’s Guidebook highlighted the extent of burnout accountants are experiencing, with 99% of accountants reporting burnout.
In “Controller’s Guidebook: The Great Recalibration”, FloQast found that more than 60% of accountants report struggling with an imbalance between work and life, and 61% doubt that they can complete the work they’ve been assigned. Despite this, 65% are eager to take on a more strategic role in their organization.
This combination of struggle and aspiration is driving higher levels of burnout and is quickly becoming the root cause of this Great Recalibration.
It’s clear that the current state of the accounting industry is preventing accountants from getting the most out of their jobs—they want to be engaged and many would like a reason to not leave the industry altogether—but existing workflows, processes and systems are making it far too difficult to maintain a healthy and sustainable balance.
How Employers Can Retain Employees
As the accounting industry continues to struggle with retention and recruitment, employers would be wise to consider ways to support their existing employees and attract new ones. According to “Controller’s Guidebook: The Great Recalibration,” the key is fulfillment.
ulfillment comes from accountants believing their work is meaningful and important. It’s the fuel that keeps them going and makes them love what they do. Additionally, fulfillment is directly related to whether an accountant will stay in their job. When a sense of fulfillment is high, accountants are almost five times more likely to stay with their current employer than when fulfillment is just average. They’re also more than 12 times more likely to stay compared to someone with low fulfillment.
This need for fulfillment puts responsibility on employers to be proactive in implementing processes and systems that restore and maintain accountant’s satisfaction levels. The No. 1 way to do this is through technology.
For accountants, technology is perhaps the most critical factor in job satisfaction as it helps them do their jobs quickly, efficiently, accurately, and easily. This reliance on technology is somewhat new to the accounting industry—63% of accountants say the level of importance they place on tech has changed over the past two to three years.
However, in today’s world, it’s critical—96% say they are somewhat likely to consider accounting technology use in future jobs.
Even further, the type of technology used can make or break attrition rates. “Controller’s Guidebook: The Great Recalibration” found that accountants who work with an integrated technology solution—one designed with the needs of the accounting end users in mind—have an 80% chance of staying in their job. These workers say their tech stack is a reason their job is easier whereas those who don’t work with integrated systems often note the complexity of their systems and have to identify workarounds to get their job done.
It’s clear that, for employers to recruit and retain employees, they need to have a much greater focus on technology—specifically integrated technology that can better support and enhance employees' sense of fulfillment.
Technology Can Help You Survive the Great Recalibration
The Great Recalibration has revolutionized the role of technology in accounting and changed how accountants think about their careers. If companies want to remain competitive and continue attracting and retaining talent, despite this recalibration, they must look to integrated technology solutions.
By making the right investments in technology today, companies can get on the path to future-proofing the organization and ensuring they’re one step ahead of the competition in the war for top talent.
Mike Whitmire is co-founder and CEO of FloQast, a leading provider of close management software created by accountants for accountants.
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