How to close the widening skills gaps in accountancy

The accountancy sector is undergoing a quiet revolution. A digital transformation has brought new skills into the mainstream, and the likes of data analysts, product managers, and coders are now in high demand across the industry. New research published by Multiverse shows the pace of change. More than four in five (83%) people working in accounting believe jobs in the industry will be significantly impacted by the ongoing digital transformation, and over two thirds (68%) see the pace of change increasing. However, as digital and data skills become more and more vital to the day to day running of a business, and as AI and machine learning reshape the internal operations of a company, existing staff feel unprepared and the market for new talent is found wanting. More and more talent is being fought over in a smaller and smaller pond: universities alone don’t produce enough data scientists to staff the UK’s leading tech companies, let alone to meet the swell in demand from financial services firms. These skills gaps are only set to widen, and every firm needs to work out what its strategy is for tackling it head on and making sure their business can deliver. From working with accountancy firms across the country, we know there are four big opportunities that need to be grasped. First, they need to invest in retaining and upskilling programmes. These are a clear-cut way to increase efficiency and improve employee engagement and retention. In our research, we found over a third of those working in accounting (36%) expected to leave the sector in the next five years. And in financial services more broadly, 63% fear their colleagues without advanced data and digital skills will be made redundant in the future. So while drawing in talent is important, organisations also need to focus on reskilling employees. Programmes exist to do just this, and firms should offer them to support development and growth in their people. Second, entry-level training programmes need to be targeted at areas with the greatest skills gaps. As accountants are now required to be fluent in digital skills, those at the start of their career need to be brought in early and trained in-house. Our research found huge support across the sector for apprenticeship programmes. And the likes of a Deloitte, an Evelyn Partners, a Saffery Champness, or a smaller business aren’t limited to just accounting apprentices, but can benefit from apprentices who are delivering wider digital and data skills too. Third, firms across the financial services industry should tap into their unspent Apprenticeship Levy and reinvest this into training opportunities to reskill staff. Over 40% of those working in accounting agree that the main benefit apprenticeships could bring to the industry is helping to reskill existing employees. With over £3billion of Apprenticeship Levy funds going unspent in the UK, there is a pot of cash waiting to be used to reskill existing talent at a reduced cost to businesses. Fourth, accountants need to align their talent strategy with their skills strategy. Too often, businesses focus far too much on the present. If firms forecast their future skills needs, they will be far more prepared and have a more comprehensive recruitment and retraining scheme. Achieving this doesn’t necessarily mean a huge lift on the part of the business. Simply holding regular audits of employees’ existing skills would make businesses more prepared for the changing needs of their industry. As the accountancy sector grapples with the challenges of digital transformation and the rise of new skills and new skills gaps, there may not be one silver bullet that will futureproof the industry - but these levers can have a big impact.