Accounting professionals are facing a ‘mental health emergency’, according to an industry tracker.
Advancetrack, which compiles the Accounting Talent Index, found that almost nine in 10 (88%) accountants report stress or “significant” harm to their wellbeing.
Most cite the reasons for high stress levels as increased working hours and reduced salaries after the profession suffered an exodus of talent. A third said the impact on their mental health was severe.
A number of firms have made redundancies in recent months, including KPMG cutting 200 jobs in the UK. PwC recently announced it would curtail its summer working hours arrangement that allowed staff to finish at lunchtime on Friday.
Advancetrack also revealed that stress is hitting accountancy professionals at all levels, from junior staff to partners. Young employees in particular are voting with their feet, it said, with hundreds of thousands leaving the profession in the UK, Australia and the US.
Accountancy
Earlier this year, the company reported that 45% of firms globally were being severely or significantly affected by a skills shortage in accounting, with three-quarters saying the problem is worse than three years ago.
Vipul Sheth, managing director of Advancetrack, said urgent action is needed to make the profession more appealing, given it seems to bear out perceptions that it is stressful and employees must work long hours.
“We face a perfect storm: It seems it’s never been harder to be a partner of an accountancy firm – and it’s never been less appealing to join the profession,” he said.
“The root cause seems to be the ever-widening chasm between demand and supply of talent in major economies like the UK, US and Australia.”
Major employers in the sector need to “lead by example”, added Sheth. The company has made a number of recommendations as to how firms can turn the tide.
These include offering flexible work arrangements and mental health support so employees can achieve a better balance between work and their home lives; better defining career development opportunities; using automation so employees can manage their workloads more effectively; and offering competitive compensation and incentives.
It is also important to create a positive and inclusive work environment through recognition programs, the company suggested.
For 25- to 29-year-olds, the median salary for accountants dropped by around 6% between 2016 and 2022, the company pointed out. Three-quarters of companies in Advancetrack’s index said partner hours had increased, and in 42% of cases this was by more than 20%.
Sheth added: “These findings are deeply concerning, but sadly not a shock to those who know the sector well.
“These conditions not only threaten the wellbeing of professionals but also risk exacerbating already severe talent retention challenges within the industry.”
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