# Why is Accounting Coming Up Short When It Comes To New Hires? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-17 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Finance Leaders Worried: UK Skills Shortages in 2022 Meta Description: Discover the growing concerns of UK finance leaders regarding the talent shortage in 2022 and the challenges faced in hiring new talent in a post-pandemic URL: https://financedigest.com/why-is-accounting-coming-up-short-when-it-comes-to-new-hireshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1217453658-1736815006101-compressed.jpg) _![Laurent Charpentier, CEO at Yooz](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/yoozlaurent-headshot-1736815006125-compressed.jpg)_ _Laurent Charpentier, CEO at_ [_Yooz_](https://www.getyooz.com/en-gb/) Global skills shortages and a post-pandemic power shift in employee vs employer demands have created a recipe for disaster. 57% of UK finance leaders are concerned about issues surrounding the hiring of new talent in 2022, [recent research has shown](https://www.getyooz.com/en-gb/whitepaper-survey-the-state-of-automation-in-finance-2022). Finding people with the necessary skills (40%) is the biggest concern now – more so than wage demands (39%) and flexible/home working preferences (37%). Skills shortages aren’t mutually exclusive to the accounting industry, but there are growing fears that a lack of new and existing talent could put companies under regulatory pressure as well as financial. So what can businesses do, if anything, to plug the skills gap and [hire new talent](https://www.financedigest.com/5-steps-hiring-top-talent-youre-just-start.html "5 steps to hiring top talent when you’re just a start-up ")? **Out with the old, but where’s the new?** There are several different elements which have rocked the finance workforce, combining to create the [perfect storm](https://www.financedigest.com/the-perfect-storm-of-growth-and-success-for-the-restech-market.html "The Perfect Storm of Growth and Success for the ResTech Market") of labour shortages. While replacing senior [accountants reaching the retirement mark is a constant challenge for businesses](https://www.financedigest.com/5-simple-ways-to-prevent-a-data-breach-from-putting-your-accountancy-practice-out-of-business.html "5 Simple ways to prevent a data breach from putting your accountancy practice out of business"), the bigger problem now is that there’s a shrinking pool of talent coming through to hand over the mantle to. The race for new talent has never been so competitive. Businesses within the accounting industry are [already understaffed by 22%](https://www.rebusrecruitment.co.uk/what-are-the-key-accountancy-recruiting-trends-in-2022/#:~:text=Companies%20in%20the%20accountancy%20industry,likely%20to%20consider%20a%20move.), while inflation and the cost of living are leading to candidates demanding higher wages, better perks, and more flexibility. The situation is also leading to issues within the current workforce, with labour shortages leaving [accounting teams](https://www.financedigest.com/what-can-accountants-learn-from-great-britains-olympic-team.html "What can accountants learn from Great Britain’s Olympic team?") feeling burnt out at long hours and a growing to-do list. As a result, staff in the [sector are more likely to consider a move elsewhere in the hope](https://www.financedigest.com/decline-in-german-services-sector-eases-raising-hopes-for-milder-recession-pmi.html "Decline in German services sector eases, raising hopes for milder recession -PMI") that the grass is greener on the other side. [Keeping hold of a productive workforce while ensuring new talent comes through is seeing businesses](https://www.financedigest.com/how-business-leaders-can-adapt-or-replace-covid-related-perks-to-the-post-pandemic-world-while-keeping-employees-on-side.html "How business leaders can adapt or replace Covid related perks to the post-pandemic world while keeping employees on-side") fight a battle on both fronts. But even during an [economic downturn](https://www.financedigest.com/logitech-q4-sales-plunge-22-as-economic-downturn-worries-weigh.html "Logitech Q4 sales plunge 22% as economic downturn worries weigh"), the work doesn’t stop. **[Businesses face](https://www.financedigest.com/overcoming-challenges-faced-by-women-in-business.html "Overcoming challenges faced by women in business") several issues** But the skills [shortage facing](https://www.financedigest.com/britain-facing-tomatoes-shortage-after-overseas-harvests-disrupted.html "Britain facing tomatoes shortage after overseas harvests disrupted") businesses isn’t purely about resources. That [40% of finance leaders said they are struggling to find people with the right skills](https://www.getyooz.com/en-gb/whitepaper-survey-the-state-of-automation-in-finance-2022) is worrying to say the least.  Aas more staff leave and new hires are delayed, and new skilled workers become harder to find, compliance, security, and financial issues all become a [greater risk](https://www.financedigest.com/brexit-the-risks-to-the-city-and-fintech-have-never-been-greater.html "BREXIT: THE RISKS TO THE CITY AND FINTECH HAVE NEVER BEEN GREATER"). Wage demands (39%) will always be a top challenge, especially with the [cost of living](https://www.financedigest.com/five-cost-of-living-trends-expected-in-2023.html "Five cost of living trends expected in 2023") crisis, but other challenges also threaten to increase costs for businesses. 37% of finance leaders said that [flexible working](https://www.financedigest.com/the-flexible-working-revolution-is-here-so-why-arent-you-tracking-expenses-on-the-go.html "‘The flexible working revolution is here – so why aren’t you tracking expenses on the go?’") preferences were providing to be a challenge right now, as was the ability to provide the appropriate technology for their department (34%). IT [costs need to be incurred now in order to get over any productivity problems later](https://www.financedigest.com/cost-of-living-crisis-prompts-buy-now-pay-later-warning-from-uks-fca.html "Cost-of-living crisis prompts ‘buy now, pay later’ warning from UK’s FCA"). The [issues of increased costs and a lack](https://www.financedigest.com/the-lack-of-female-leaders-and-how-to-tackle-this-issue.html "The lack of female leaders and how to tackle this issue") of skills are linked, but this also means they can be solved together. For example, although specialist software is now needed to comply with regulations such as Making [Tax Digital](https://www.financedigest.com/self-employed-taxpayers-and-making-tax-digital.html "Self-employed taxpayers and Making Tax Digital") (MTD), the costs and skills needed to run such systems are minimal. In fact, by making sure tax submissions are 100% accurate and leaving staff free to get on with other jobs, the return on investment can be realised almost instantly. Because as the workload for [accounting staff and the number of invoices received](https://www.financedigest.com/a-new-vision-for-the-accounts-receivable-department.html "A new vision for the accounts receivable department") increases, security often becomes an afterthought – something that also isn’t helped as new faces and new processes come on board. [Businesses need to constantly review and refresh their security practices](https://www.financedigest.com/6-practical-tips-for-starting-an-online-business.html "6 Practical Tips for Starting an Online Business") as well as their tech stack, or risk significantly increasing the chances of fraud. **Your new colleague may be a robot** As an increasing number of businesses find themselves lost in the recruitment carnage, more and more are [asking themselves what they can do to make the most of what they have right now – such as investing](https://www.financedigest.com/questions-to-ask-yourself-before-purchasing-an-investment-property.html "Questions To Ask Yourself Before Purchasing An Investment Property") more in their current staff as well as new forms of productivity. Indeed, there’s no time to waste with rising energy prices and operating costs skyrocket for [small businesses](https://www.financedigest.com/10-dirty-tricks-for-small-businesses-to-watch-out-for-when-negotiating.html "10 dirty tricks for Small Businesses to watch out for when negotiating"). Having one eye on [cash flow](https://www.financedigest.com/should-your-business-reconsider-invoice-financing-top-tips-on-why-reappraising-this-method-liberates-business-cash-flow.html "Should your business reconsider invoice financing? Top tips on why reappraising this method liberates business cash flow") has become more important than ever, while even large enterprises are having to reconfigure their priorities and tighten purse strings. Because no matter the situation, [invoices still need](https://www.financedigest.com/why-businesses-need-to-shift-their-e-invoicing-approach-from-local-and-tactical-to-scalable-and-strategic.html "Why businesses need to shift their e-invoicing approach – from local and tactical to scalable and strategic") to be paid. It’s this realisation which is directing the attention of finance [leaders once again to new tech](https://www.financedigest.com/top-7-new-tech-trends-for-2023-and-how-it-leaders-can-prepare-for-them.html "Top 7 New Tech Trends for 2023 and How IT Leaders Can Prepare for Them") solutions. For staff experiencing burnout, what better way to deal with the constant, [growing flow of invoices than to have a system](https://www.financedigest.com/traffic-management-systems-growing-at-a-cagr-of-22-5-for-2022-28.html "Traffic Management Systems growing at a CAGR of 22.5% for 2022 – 28") that can automatically pick them up for you? Something that doesn’t require months of training and can be brought up to speed on the task at hand within 24 hours. [69% of decision-makers are planning on adopting intelligent automation into their businesses](https://www.automation.com/en-us/articles/august-2022/69-percent-business-leaders-intelligent-automation), directly as a result of inflation, rising costs, and struggles to hire new employees. [Automation within the accounting](https://www.financedigest.com/5-common-mistakes-around-accounts-payable-automation.html "5 Common Mistakes Around Accounts Payable Automation") department isn’t new, but it’s certainly taken on an important role to solve a modern-day challenges. Once thought of as a threat to our jobs, [automated technology](https://www.financedigest.com/being-nimble-and-responsive-in-banking-and-business-has-arrived-thanks-to-accounting-automation-technologies.html "Being Nimble and Responsive in Banking and Business Has Arrived, Thanks to Accounting Automation Technologies") may actually be the key to improving them. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---