How CPA Firms Can Compete for Top Talent in the Year Ahead

CPA firm leaders outlining staffing plans for the coming year can’t help but worry if they will hit their hiring goals. This concern is not misplaced: Research for the 2024 Salary Guide From Robert Half found that organizations in both public and corporate accounting are grappling with an accountant shortage. Employers in both camps are trying multiple strategies — and often competing fiercely with each other — to attract and retain top talent.

Without question, the finance and accounting profession has some significant talent challenges. As I noted in an earlier post, 95% of hiring managers in finance and accounting surveyed by Robert Half said they find it challenging to locate skilled candidates available for hire. And unemployment rates for in-demand roles, like accountants and auditors, are typically well below the national average.

CPA firms are bearing the brunt of other trends, too, like the dwindling population of college students graduating with accounting degrees. On top of the reduced pipeline for entry-level talent, firms often struggle to keep experienced talent on their bench. Robert Half’s Salary Guide explains that corporate employers tend to have an edge in securing these professionals because they offer more manageable workloads and the opportunity to maintain a better work-life balance.

As a CPA firm leader, you may wonder how the talent crunch in finance and accounting will impact your organization’s ability to grow in the year ahead and keep pace with clients’ needs. As you formulate a strategy to help position your firm as an employer of choice, consider trends not only in your industry and local market, but also the national stage. Doing so can provide perspective on what leading employers across the country are facing in their efforts to hire and retain skilled talent.

With that in mind, here are four dynamics to be aware of in the U.S. hiring landscape for the near term, and likely, for the year ahead, based on Robert Half’s research and other data:

1. Workers want to earn more, and they won’t hesitate to ask for a raise

In a recent survey, more than half of U.S. workers (55%) told Robert Half that their motivation for seeking a new job now, or soon, is a higher salary. In the finance and accounting profession, the same percentage of workers said that compensation was their main reason for launching a job search.

Separate research we conducted found that two-thirds (63%) of U.S. workers plan to ask for a raise before the end of this year. And if they don’t get one? About one-third said they’d look for a new job.

While higher inflation is a top factor for many professionals requesting a raise, solid percentages of respondents noted that they sought higher compensation because they were being asked to take on more responsibilities, or they felt underpaid after benchmarking their salary against market rates.

The message here, for CPA firm leaders, is to confirm that you’re providing competitive compensation to your team. And if you know an employee is deserving of a raise, or if you have asked a staff member to take on more duties, be proactive about increasing their pay. Don’t wait for them to come to you. (You might also want to consider re-recruiting your MVPs and making a salary bump part of that process.)

2. Businesses are prepared to increase starting salaries to secure top talent

If you’re looking for more evidence of employers’ hiring and retention challenges, look no further than the most recent Job Openings and Labor Turnover Summary from the Bureau of Labor Statistics (BLS). The agency reports that there were 9.6 million open roles in the United States on the last business day of August. That’s a sharp increase from the 8.8 million roles the BLS reported in July. Meanwhile, 3.6 million workers also quit their jobs voluntarily in August.

Seeing as a candidate-driven market is likely to persist, and skilled talent for many roles will remain hard to come by, many companies are already gearing up to compete effectively for top candidates in the year ahead. Based on Robert Half’s research for our latest Salary Guide, 51% of employers are prepared to increase starting salaries in 2024 to attract highly skilled workers.

So, if your firm needs to hire in-demand talent soon, be ready to make generous offers to your top picks. And don’t just think about salary — consider perks and benefits, too. About half of the employers that we surveyed (46%) told us they’re stepping up these offerings, too. (The top benefit that works want, according to our research? Health insurance. The top perk? Flexible work schedules.)

3. Salary transparency offers a hiring advantage

In-demand candidates know they have options in the current hiring market, so you can be assured that they don’t want to do a protracted dance with an employer over how much compensation they can expect to earn for a job. In fact, well over half of the workers (57%) that Robert Half surveyed on this topic said they would take themselves out of consideration for a role if salary ranges weren’t provided upon request.

Being transparent with salary information benefits employers, too. Six in 10 hiring managers we surveyed for the 2024 Salary Guide reported that including salary information in job postings helps their business to attract qualified candidates — and 83% of managers told us they include salary ranges in their job postings. Also, 60% of employers said that being transparent about pay provides them with an edge against competitors vying for the same talent.

These are just some trends for CPA firm leaders to keep top of mind as they look to expand their teams in the months or year ahead. One additional insight that could prove useful: Our research shows many workers are still keen to work remotely. Sixty-one percent of professionals we surveyed told us they’re more likely to apply for jobs that offer a remote or hybrid option. In the finance and accounting profession, specifically, that figure is slightly higher: 65%.

So, if you can offer remote or hybrid work arrangements, along with an attractive salary and a solid array of perks and benefits, there’s a good chance your firm will become a magnet for skilled talent. Keep in mind you may need to push the envelope a bit on your offerings to secure top professionals, but it’s an investment that’s likely to deliver strong returns to your business for the long term.

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Steve Saah is the executive director of the finance and accounting permanent placement practice at Robert Half, the world’s first and largest specialized financial talent solutions service. The company has more than 300 locations worldwide. He is responsible for leading U.S. operations, based in the Washington, D.C., metropolitan area. He was named executive director in 2017, previously serving as director of permanent placement services.

Saah has been with the company since 1998, where he started as a recruiting manager, following a career as an internal auditor and assistant controller. He is a noted expert, author and presenter on career, management and hiring trends, particularly those affecting the accounting and finance fields. Saah earned a finance degree from Virginia Tech.