Accounting firms and the accounting profession are grappling with an ongoing staffing crisis. While options like offshoring and subcontracting provide short-term relief, they may not be sustainable, especially for audit practices. The commoditization of audits has led to reluctance from companies to pay higher fees, limiting firms’ ability to subcontract work or enhance employee compensation. Recruiting new audit staff is challenging, with various underlying factors contributing to the overall decrease in accountants.
Currently, accounting firms are heavily relying on human resource and recruiting functions to address the shortage crisis. Despite efforts such as increased benefits, attractive 401K plans, and additional fringe benefits, the shortage persists.
It is imperative to move beyond traditional human resource solutions and adopt an organizational development perspective to tackle this shortage. To break free from the perpetual resource crisis, a shift in the way audit teams operate is necessary.
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