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The UK accountancy industry has been facing a significant skills shortage that’s been building for some years. In 2020, Hays Accounting and Finance shared that nearly 73% of employers in the finance and accounting sector said they had experienced some form of skills shortage and one in five companies admitted that they don’t have the talent needed to achieve business objectives.
More recently, research from the Financial Reporting Council (FRC) revealed capacity constraints, recruitment, and retention challenges, as the main obstacles for smaller firms looking to expand in this area.
International students and the talent pipeline
When there is a skills shortage one of the first places to look is at the pipeline of talent coming through, which is part-fuelled by both UK and international students. This has taken a knock in recent years due to changes following Brexit impacting the number of international students coming to study in the UK. EU students are no longer able to enter the UK under the EU Settlement Scheme, meaning they need to have proof of English language, obtain a student visa like non-EU students, and showcase sufficient funds to cover the expense of living in the UK.
EU student fees in the UK also increased substantially after Brexit, which led to a steady decline in the number of EU students applying to UK universities. According to the UCAS End of Cycle Report 2022, the number of EU students starting undergraduate courses at UK universities in 2021/22 was down by 50% compared to the previous year.
Qualifications need to be recognised globally
International talent doesn’t have to just come from students studying in UK universities. In an increasingly global world – where remote working opens the door to not only the talent pool on your doorstep, but the talent pool globally – it’s completely possible to harness skilled talent from overseas.
This is where it’s increasingly important that qualifications and designations such as Accounting Technicians, are recognised and understood across markets. It’s only then that productivity and skills can be seamlessly utilised with confidence. If someone has gained their qualifications in the EU and wants to work in the UK and contribute to the economy, their qualifications need to be recognised over here, as does any professional membership. Otherwise, we’re essentially asking knowledgeable and experienced professionals to disregard the work they’ve put in and start again. It wastes talent and makes no sense.
The same goes for international students who choose to study in the UK. If they are educated here, but not given the opportunity to then contribute to the workforce, we’re at a real risk of ‘brain drain’ – where knowledge and skills that are gained here, can’t then be utilised, losing their contribution to the economy.
What the telecoms industry can teach us
The key to harnessing overseas talent is doing this in a way that sits well with everybody and reduces the risk of damaging the reputation of our industry. The telecoms industry provides a great case study for us to learn from. Outsourcing call centres to overseas hugely accelerated in the 1990’s, leading to vast numbers of consumers feeling frustrated with perceived poor service from people unfamiliar with the customer base, struggling with contextualised language and the lack of personalisation. Although this route was more cost-effective at point of purchase, it more than cost businesses in lost consumer trust and brand damage, due to poor service.
Equally this highlighted the skill set required to offer positive customer service and experiences, and I saw firsthand the value of engaging a professional call centre partner, who presented themselves in line with my company’s values and brand. In a world where service expectations are high and customer loyalty is hard won, the previous trend has more latterly been reversed, aided by the adoption of technology.
The same standards need to be maintained, regardless of where your team are based. We do a lot of work in Botswana, helping people access skills and training. Not only does this bolster employment and help to superpower their economy, they also still meet the same rigorous standards that we expect from individuals training here in the UK.
Plugging gaps with AI
The rise of Artificial Intelligence (AI) will no doubt impact the skills needs in the future and help to plug gaps, particularly through the automation of repetitive tasks such as data entry and invoice processing, freeing up humans to develop their skills in more complex areas. Firms such as Ernst & Young and PricewaterhouseCoopers are deploying AI tech in their auditing and financial review procedures to identify irregular transactions.
It’s still early days with AI but adapting to emerging tech isn’t a new thing; we’ve had similar with other software developments. In the 90’s we were told spreadsheets would put accountants out of jobs, but they actually just enhanced their ability to focus on the bigger picture, as did the introduction of accounting software. Tech can be scary; it’s new and different but embraced properly it can be harnessed and empower us to develop even more impactful roles and careers.
Enabling talent – whether that’s home-grown or from overseas – to be harnessed, is what the focus needs to be on. Ensuring pathways are in place to help international students to not only study here but then work here, adapting to AI and how this can be best deployed to bolster the sector and developing overseas talent so it firmly matches and complements our standards will all help build a strong pipeline of future talent and ensure our sector is well equipped to help the economy thrive.”
For further information please visit https://www.aat.org.uk/
