Just as CEOs are struggling to cope
with the need for increased corporate
accounting compliance resulting from a deluge of complex regulations, the task
has been made even more difficult by a
shortage of experienced accounting professionals. While businesses and accounting firms scramble to fill many newly created jobs, baby boomers are starting to exit
the workplace, creating an increasing gap
between supply and demand for seasoned
accounting practitioners.
“CEOs need to know that they aren’t just
competing with other companies for the
necessary talent — they are competing with
CPA firms,” says Joyce Salter, a senior manager in the Audit and Business Advisory
Services Group at Haskell & White LLP.
As evidence of the problem’s severity, a
recent survey conducted by the American
Institute of Certified Public Accountants
revealed that “finding and retaining qualified staff” was the top issue among 35,000
participating CPA firms. Companies in a
wide range of industries certainly will have
experienced this shortage as well.
Smart Business spoke with Salter about
how CEOs can compete for talent when
experienced accounting professionals are
receiving multiple offers as they seek new
opportunities.
Why is there such a demand for experienced
accounting professionals?
The biggest contributing factor is the governmental regulatory requirements
imposed by the Sarbanes-Oxley Act of
2002 (SOX). In particular, Section 404 of
SOX imposes a significant increase in the
internal and external financial reporting
requirements by public companies.
Most public companies, especially the
smaller ones, don’t possess the internal
resources to handle compliance with
Section 404. Therefore, businesses must hire
new staff or retain outside consultants. In
either case, these professionals are the same
people that public accounting firms are
attempting to recruit to handle the added
external audit requirements, as well as the
waterfall effect of new rules spilling over to
private companies and not-for-profits.
What are the best sources for candidates?
Executives can turn to familiar sources
for candidates, such as executive search
firms. However, those recruiting services
can come at a fairly hefty price. Being a
CPA, I always suggest that CEOs look at
the cost-benefit of using search firms.
A more cost-effective solution is to build a
pipeline of candidate referral sources from
among former employees, current colleagues and friends. Who better to provide a
referral than someone you already know?
With all of the competition in today’s marketplace, it is critical to develop creative,
alternative sources for recruitment.
Accounting industry professional associations provide fertile ground for new talent.
Also, don’t overlook college students —
they are tomorrow’s business leaders. Start
planting seeds now to build your company’s reputation as a premier employer by
maintaining an active presence on college
campuses.
What are the top reasons that candidates
might decline an offer?
First, they might decline if your offer is
not competitive with the marketplace. Do
your homework and know what the competition is offering before you draft and
extend your offer.
Second, a candidate might decline if he or
she is unfamiliar with your company or its
brand. In addition to ongoing marketing
activities, be sure to communicate the
advantages of your company throughout
the courting and interviewing process.
Companies that are effective at recruiting
have finely crafted value propositions and
well-honed branding.
Finally, your offer may be declined if the
candidate doesn’t feel that his or her needs
are being met. Recruiting is a highly personal business. Find out what is driving the
candidate from his or her current position.
What can I do to make certain that my company is viewed as an employer of choice?
The individuals you are recruiting likely
have worked in the accounting profession
for up to 10 years and have a pretty good
idea of what they want in an employer.
Achieving better work-life balance often
tops the list of desired attributes, so integrate this concept into your operating philosophy as much as possible.
Another major consideration for experienced candidates is career progression. I
can’t overemphasize the value of having a
formal career-planning process in place
and introducing candidates to prospective
co-workers who have ascended in the
organization.
Have serious candidates meet with several employees at various levels in the company. This benefits both the candidate and the
company, as it allows both sides to evaluate
the interpersonal chemistry and the ‘fit.’
Lastly, actively demonstrate that you care
about the candidate’s decision. Little things
do count, so don’t be afraid to send that
basket of flowers.
JOYCE SALTER, CPA, is a senior manager in the Audit and
Business Advisory Services Group at Haskell & White LLP in
Irvine. One of the largest independently owned accounting and
business advisory firms in Orange County, Haskell & White provides a full complement of tax, accounting and auditing services
to public and private middle-market companies. Reach Salter at
[email protected] or (949) 450-6200.