[SINGAPORE] The International Federation of Accountants (Ifac) is leading a global study that aims to measure the attractiveness of the accounting profession, assess talent retention, and understand the reasons behind attrition in the sector.
Work on the study began nine months ago and preliminary results are expected in the second half of this year, said Ifac chief executive officer Lee White in an interview with The Business Times.
The study, which will survey accountants around the world, is conducted in partnership with the Global Public Policy Committee – a forum comprising the six largest international accounting networks: BDO, Deloitte, EY, Grant Thornton, KPMG and PwC.
To that end, Ifac will tap its network of more than 180 professional accountancy organisations across over 140 jurisdictions.
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The study comes amid a persistent global talent crunch in accounting, driven by an ageing workforce, smaller incoming cohorts, and attrition.
The US accounting industry has lost about 340,000 workers since the Covid-19 pandemic, bringing headcount to levels last seen in 2010, Bloomberg reported in March last year.
In Singapore, cohort sizes for accountancy degree courses in the city-state’s autonomous universities have fallen more than 10 per cent since 2018. Fewer students are also selecting accountancy as their first-choice degree.
In response to whether long hours and burnout – often cited by accountants as reasons for leaving – contribute to the shortage, White acknowledged that there are “high demands” and “pressure” on professionals.
He explained: “But what we’ve got to understand a little bit more is, how do people feel about that pressure, and is it a pressure that is there at particular times of the year?
“Is the pressure somewhat eased now that we’ve gone to more of a hybrid working (model)? Or are those changes in work patterns actually adding more to the pressure?”
The global study aims to provide data that gives a “clear sense” of these issues, and improve understanding of the mental well-being of accounting professionals.
The data will then be analysed to help “shape a better narrative” around the accounting profession, or to “dispel myths” that have taken root over time – such as the perception that the profession is boring, he added.
Green standards
Another key priority for Ifac is to build on what White sees as “good progress” in expanding sustainability reporting and assurance efforts.
“Different jurisdictions are moving at different rates, and governments and regulators are looking for guidance from professional accountants as to how (to) set up their frameworks for this type of reporting and assurance,” he said.
In March, Ifac updated its International Education Standards to include sustainability competence in the initial training of accountants – setting a new baseline for global education and training programmes.
These steps are crucial, he noted, as they equip accountants with the skills to ride the “momentum of sustainability”, and advise clients on adapting to changing business practices.
They also help the profession to articulate a “sense of purpose” – a narrative that could appeal to younger entrants.
“I think we’ve got a great story to tell as professional accountants, but perhaps we’re not telling it as well as we need to,” he added.
