What's next for solving the talent crisis?

By Jessica Salerno-Shumaker, OSCPA senior content manager

Workforce development isn’t just about developing talent, it’s also about driving the accounting profession forward.

“As we think about workforce development through the lens of the profession, we're really thinking about how we help prepare professionals or workers with the skills necessary for the types of jobs that they're encountering today, but more importantly, for the type of work that we know is going to be a huge part of the future,” said Scott Wiley, CAE, OSCPA president & CEO.

Wiley and a number of other business experts gathered recently to discuss how the talent crisis is affecting the profession. Their conversation is featured in the State of Business podcast's special Workforce Development series, which is available for download now.

In 2021, there was a 17% drop in employed accountants and auditors from a 2019 peak, according to a Bloomberg Tax analysis. Deloitte ranks the talent shortage among the top challenges that are expected to influence or disrupt businesses this year.

Wiley noted that the workforce development conversation can be complex, but it’s essential to address for the profession to remain competitive in today’s business environment.

Growing the pipeline

The exodus of accountants is already upon us, with 75% of AICPA members becoming eligible for retirement in 2020.

Though high school classes are a great way to expose students to accounting while they consider what path to pursue in college, the class content teachers are sharing with students often perpetuates the same tired myths about the profession.

“A lot of them are afraid; they think accounting is so hard,” said Nicole Snider, teacher at Hoover High School in North Canton. “They think accounting is boring and coming into it there are all these myths.”

Snider teaches financial and honors accounting, and she partners with The Ohio CPA Foundation to bring in guest speakers to show the wide variety of paths possible with an accounting degree. She said she’s constantly telling her classes the possibilities that accounting can bring, otherwise students might revert to their previous misconceptions. Classes that show the true value and opportunity of accounting career options are critical to the profession's sustainability.

Changing the perception of accounting is essential to building the pipeline, said John Jones, president & CEO of HOPE Toledo, a 501(c)(3) organization that helps children obtain high-quality early childhood education through pre-K and post-secondary training in college or trade schools.

“This is a long-term approach to solving a crisis that's been going on for a bit of time,” Jones said. “This is not something that just happened overnight. And therefore, it's not going to be solved overnight.”

Jones said many young people are open to what their future profession could be, but not enough are exposed to accounting to consider it a viable career. And although early exposure is important, Jones said if that doesn’t happen, “I don’t think all hope is lost if we don’t get to them in junior high. I think there’s opportunity when students enter the post-secondary arena.”

Continuing to recruit underrepresented students is also valuable, as in 2019, an AICPA survey found that only 2% of CPAs are African American, and only 1% of partners at CPA firms are African American.

“There has to be a shift,” said Alyson Fieldman, owner of consultancy firm Rock It Results. “The question is, how is the shift going to happen? And with the current generation retiring, and firms, in many cases, lacking strong succession plans, there's going to be a huge crisis.”

Upskill and reskill

While there is serious pressure to build the accounting pipeline, Crosby said there is also a critical need to upscale and reskill the current workforce. The rapidly changing business environment demands that professionals at all levels develop adaptable skills or risk becoming irrelevant.

“Your career doesn't stay static, and it doesn't stay the same,” said Tracie Miller, program chair of MS and BS accounting at Franklin University. “The business environment is constantly changing. Workforce development ensures that you have all the skills you need to be ready for the ever-changing business environment.”

One area that offers plenty of opportunity for the profession is technology, and Miller said it’s risky to opt out of it. In today’s competitive professional environment, it means accountants will be “left out of solving business problems.”

“There is going to be some other profession that comes in to solve those business problems for us,” she said.

Another area that Miller said will be essential for the profession is data analytics, especially in terms of automation and visualization. She said accountants should also lean into ESG as more businesses look into the impact ESG factors can make.

Jason Weigand, senior director for North America Tax for Proctor & Gamble, said the skills necessary to succeed today have evolved, and it’s the responsibility of everyone in the profession to upskill accordingly.

“Knowing how to do the technical bits of accounting are important,” said Jason Weigand, senior director for North America Tax for Proctor & Gamble. “But it’s about knowing how to do that in a way that is efficient, such as using modern technology to analyze big datasets. That is becoming increasingly important in all aspects of what we do.”

Weigand mentioned effective communication as being crucial for skill development. And while public accounting firms search for top talent, industries are on the lookout as well. He said P&G is aware of the talent dearth in the profession and is not immune to the intense competition for accountants and CPAs.

A collaborative effort

This issue has simply become too large for any one entity to tackle on its own. That’s why OSCPA has been making strides to act as a convener to gather those in the profession together to solve this problem as a collective group, holding a Town Hall at Columbus State Community College in March dedicated to the issue and an event on Sept. 28 & 29 centered on an Ohio-specific Accounting Talent Action Plan.

“We have this ecosystem that OSCPA is in the middle of, and we are able to serve as a hub to bring alignment where there have previously been individual efforts,” said Tiffany Crosby, CPA, chief learning officer at OSCPA. “We can facilitate access to resources, some of which employers or other individuals or stakeholders within this pipeline may not be aware of. And there is incredible value in that. And that will accelerate our ability to address the talent crisis for the profession.”

Listen to the podcast “The State of Business” wherever you get your podcasts to hear more from profession experts and what’s being done by OSCPA and other collaborative groups to solve the crisis.

Jessica Salerno-Shumaker is the senior content manager at OSCPA.