For quite some time now, industry experts have been warning us of an impending shortage of skilled and experienced accounting and financial professionals. Actually, it may be here already. In fact, more and more managers and financial executives are finding it increasingly difficult to recruit and retain top talent.
Scrambling to fill open positions with more than just ‘warm bodies,’ corporate accounting and finance departments, as well as public accounting firms, are facing an even greater challenge: how to lessen the workload and stress levels so their key employees don’t hit the exits. The numbers don’t lie:
- One in five accountants at large CPA firms left their job last year, up an astounding 17% over the previous year!
- Total turnover of CFOs at Fortune 500 companies rose 23% in 2005!
- As many as one in four junior auditors at PricewaterhouseCoopers quits annually!
While there are countless other similarly alarming statistics, the root of the problem lies in a few key issues. It goes back to the fact that there are simply fewer experienced accounting and financial professionals in the workforce. And, thanks to an overabundance of available jobs, these unproven workers are being asked to do even more work – under more demanding conditions. The result is an unprecedented level of employee burnout.
Fortunately, Ajilon Finance has taken a closer look at the causes of the talent shortage and subsequent employee burnout. Through our exploration, we have developed the following tips to help you create a work environment in which you can hold on to (and motivate) top-notch accounting and financial talent in any environment.
where did all the talent go?
In 2003, the job market pendulum began to swing back in favor of the worker. At the same time, we saw several significant trends emerge in the accounting and finance sector:
- The passage of the Sarbanes-Oxley act a year earlier forced employers to ramp up hiring of accounting, finance and audit professionals to unprecedented levels in order to comply with new accounting and reporting regulations
- After SOX, boards and investors alike began demanding that their own companies increase focus on financial reporting and ethical business practices
- The large Baby Boomer population is getting closer to retirement age – 60% of CPAs are over 40 years old as compared to just 47% only 10 years earlier
On the heels of a recession, a jobless recovery began shaping up where companies simply grew by increasing worker productivity and not headcount. In 2005, 20% of the American workforce worked 49+ hours a week. It was just a matter of time before employees began to feel the effects.
extinguishing the burnout in your accounting and finance department.
According to the American Institute of Stress, 75% of workers now describe their job as “Stressful.” Do you know where your employees stand? Do you know what parts of their job produce the greatest strains on them? Determining the main areas of anxiety for your department will help you formulate a solid plan to combat it.
To help you and your employees cope with the above-average stress levels that accounting and finance professionals are experiencing these days, we have identified several causes of employee burnout as well as their recommended remedies.
» the problem: time constraints and long days.
As you know, the demands placed on today’s accounting and financial professionals are substantial. Many say achieving even a moderate level of work-life balance is near impossible due to the long days and simple lack of personnel to share in the workload. A recent poll showed 50% of U.S. workers categorized their workload as “too heavy.”
the solution: As a manager, help prioritize and organize projects for your department to minimize wasted time and efforts. Most importantly, show your commitment to increasing headcount as the strains on your department become greater. No matter how well you compensate your staff, they will eventually burn out and look for a career opportunity that allows them greater flexibility and a better work-life balance.
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» the problem: budgeting and forecasting.
You are certainly aware of how critical the budgeting and forecasting time of year is to your department. In addition to the long days and heavy demands, the process can feel extremely intimidating.
the solution: Budgeting and forecasting can be made less stressful if you inform your staff of all key deadlines and deliverables up front – during a staff meeting, for instance. Also consider mapping out a detailed project plan to help everyone see the complete picture and so they can measure their progress throughout the process.
» the problem: GL balancing and month-end close.
These are business critical tasks that will never go away, so any efficiencies that can be created will save your employees significant time and effort.
the solution: Ask yourself these key questions: Can the process be automated? Can you better plan out the month-end close tasks and deliverables? The time and stress that can be reduced around these functions means happier employees, lower turnover, greater productivity and better business results.
» the problem: new guidelines and SEC requirements.
Our profession was founded on intricate rules and regulations – they’re here to stay and will only become more challenging to comprehend as tax, corporate governance and reporting laws continue to evolve. Your role as a manager is to know these inside and out and to help your staff understand them.
the solution: Assist your employees in learning as much as possible about current accounting laws and regulations. Subscribe to trade publications and offer to send staff for extra training and learning. Encourage them to read up on your company’s – and competitors – 10-K reports. They will improve themselves professionally and be better equipped to interpret and understand the law.
» the problem: technology upgrades and integrations.
This can perhaps cause the greatest amount of stress to employees across all levels of an organization. Technology is never perfect and the last thing your team needs is a complete breakdown and loss of data and transactions.
the solution: If your company is faced with a major technology upgrade, know how these changes will impact the work of your staff from the outset. Be sure your employees learn the latest software as quickly as possible and make sure adequate training is provided to all. Most importantly, make sure you have a manual plan in place to run in tandem while the integration occurs. If you prepare your department well, you reduce the prospect for stress and extra work.
act now – employees won’t be standing by.
The labor shortage is only going to increase in the coming years as aging workers retire. In addition, any potential increase in enrollment in accounting programs will take years to yield new and experienced employees. Still, there’s no reason to panic. Start taking the necessary steps to help ease the huge workload placed on your team’s shoulders by creating efficiencies and reducing project stress levels. You may even want to try to make the mundane work fun by establishing performance and productivity goals and offering extra days off for a job well done. If you head off the causes of employee burnout now, you will stay productive and hold on to your top employees for years to come.
Want to learn more about workplace stress and burnout? Contact your local Ajilon Finance representative at 1.866 GO AJILON or at www.ajilonfinance.com. They know the challenges facing accounting and finance leaders today and can offer sound advice and strategies to help you and your company move up in the world.®
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