Talent shortage among accounting staff continues to persist in many parts of the world including Southeast Asia, with the issue being most felt by small accounting firms that struggle to compete with the big accounting firms: KPMG, PwC, Ernst & Young, and Deloitte.
A Gartner survey of finance function employees revealed that 84% of finance employees asked have less engagement and less interest in going above and beyond than their peers and other functions.
Shannon Cole, a Gartner Finance practice senior director analyst, notes that one of the biggest surprises of the study was the attitude of employees in the finance team, saying “traditionally, the finance and accounting roles include an expectation of working nights and weekends to meet quarterly reporting deadlines, as an example.”
For this reason, it is important then to dig deep and find out what can be of help to cultivate and retain talent within the finance function.
The evolution
To be able to harness and maximise talent, it is important that finance leaders understand the changes happening.
Kanruthai Somchitrmool, manager of Commerce Finance at Robert Walters Thailand says businesses and organisations have undergone significant changes to improve efficiency and reduce costs following the COVID-19 pandemic, which resulted in the adoption of a matrix structure.
“This trend is particularly prominent among global multinational companies operating in Southeast Asia,” says Somchitrmool. “As a result, new regional offices and hubs have been established, leading to a demand for accounting professionals in business partnering roles.”
Meanwhile, Michele Manabat, manager for Accounting & Finance at Robert Walters Philippines, observes that foreign companies increasingly turn to the country as a prime location to recruit skilled accounting and finance professionals at the consultancy level.
“With the appeal of remote work possibilities and attractive compensation packages, these companies gain a competitive edge over organisations that prefer on-site work arrangements,” Manabat says.
However, she views that this transition poses challenges in terms of attracting and retaining talent due to the significant shift in work arrangements and compensation structures.
Digital transformation
Manabat says digital transformation has also been a key focus in the past few years, with firms adopting cloud-based accounting systems, automation, and data analytics tools to streamline processes and improve efficiency.
This view is echoed by Melvin Yong, senior manager of Accounting & Finance at Robert Walters Malaysia, who says that companies are increasingly adopting digital accounting processes to replace traditional paper-based methods.
“This shift not only improves efficiency but also presents new opportunities for growth and advancement,” Yong says.
He adds that businesses often anticipate fluctuations in costs due to various factors such as inflation, changes in raw material prices, labour costs, regulatory requirements, and market dynamics.
“Accountants can grasp this opportunity to actively engage in business operations meetings and assume the role of a strategic business partner, offering insightful advice to key stakeholders,” Yong says.
With the recent changes in Malaysia’s accounting procedures and regulations, such as service tax and e-invoicing, Yong believes that accountants should stay updated with the latest changes and be prepared to implement these in their company to ensure a seamless run.
Manabat, meanwhile, points out that there has been a notable enhancement in commercial finance, with roles increasingly pivoting towards strategic finance and finance business partnering.
“Professionals now closely collaborate with various departments, evaluating project profitability and crafting business cases to optimise company/portfolio profitability,” says Manabat. “There is also a rising demand for IC (Internal Control) roles, particularly Finance Analyst positions, with career progression often leading to regional roles in commercial finance.”
Employees vs employers
In terms of work preferences, Yong observes that there is a growing divide between employees and employers.
“While employees often favour the flexibility and convenience of remote work, employers are pushing for a return to the office.”
Yong explains that this difference in opinion can have significant implications, which can potentially lead to existing employees seeking employment elsewhere if their preferences are not aligned with their current company's direction.
Additionally, companies may face challenges in attracting top talent if there are discrepancies in this area, particularly if remote work is a high priority for the candidate when considering job offers.
A specific need
Somchitrmool believes that there is a specific need for accounting professionals who have experience in working in regional positions and shared-services environments.
“These individuals are valued for their ability to navigate the complexities of operating in multiple countries and coordinating financial processes across different locations,” Somchitrmool points out.
She adds that accounting professionals who have a proven track record in leading systems integration or implementation projects are highly sought after.
“With businesses undergoing digital transformations, there is a requirement for professionals who can successfully implement new accounting systems and integrate them seamlessly with existing processes.”
Overall, Somchitrmool believes the demand for accounting professionals with these skill sets is a response to the evolving needs of post-pandemic businesses, as they strive for operational efficiency and effectiveness in the Southeast Asia region.
Manabat, on the other hand, thinks that there is a growing need for deeper financial analysis expertise, saying that organising seminars and training sessions for current finance teams, especially seasoned professionals, is essential for keeping them abreast of market dynamics.
She stresses that what was previously considered advantageous skills are now regarded as fundamental requirements.
“There is a growing demand for project management and stakeholder management skills as companies strive to enhance efficiency and productivity,” Manabat says. “As a result, accountants need to enhance their competencies in these areas through upskilling.”
Manabat adds that regulatory changes have also impacted the accounting profession, requiring accountants to stay updated and ensure compliance with new guidelines.
‘No longer enough’
Given the rapidly evolving accounting arena in the region, Somchitrmool thinks functional skills alone are no longer enough.
“Soft skills, particularly business partnering and agility, have become essential for accounting professionals to thrive in this market.”
The Robert Walters Thailand commerce finance manager believes that by developing effective communication, collaboration, and adaptability, professionals can position themselves as strategic partners and contribute to overall business success.
“As the accounting landscape continues to evolve, investing in these soft skills will be key to staying competitive and seizing new opportunities in the region,” Somchitrmool explains.
Meanwhile, Yong believes that as business partnering remains a core trait in the finance department, soft skills and the ability to convey complex finance terms into simpler terms is crucial.
“Training on new technology and regulations should be provided to small and mid-sized companies to ensure that their finance teams are equipped with the necessary knowledge and skills they need to navigate the evolving landscape.”
Challenges ahead
With commercial finance poised for significant growth, Manabat believes that accountants should be prepared, as experience or background in financial analysis likely becoming integral to job descriptions.
“As numerous startup companies establish operations in the Philippines, demand for accountants well-versed in Philippine Taxation and government compliance will surge,” she says.
Meanwhile, Somchitrmool says accountants must adapt their roles to become true business partners while effectively managing change and compliance.
In this age of digital transformation, it is important that accounting professionals find the right balance between business needs and accounting requirements, as they provide valuable insights and contribute to strategic decision-making.
Somchitrmool says accountants must embrace technology, continuous learning, and adaptability to thrive in this evolving landscape to position themselves as indispensable assets to their organisations in the digital transformation era.
Retaining talent
Manabat believes that one important factor in retaining talent within the accountancy profession is flexible work arrangements as candidates are increasingly seeking flexible work setups that allow for improved work-life balance.
This is especially true in the post-pandemic era, where remote job opportunities are highly desirable. “Companies that offer hybrid work setups are preferred, provided that employees reside near the company's location.”
Manabat thinks that this arrangement allows employees to enjoy the flexibility of remote work while still having the option to work in the office as needed.
Another factor that can help retain employees is the provision of performance bonuses. Manabat explains that by providing bonuses based on performance, companies not only attract new talent but also encourage existing employees to remain loyal. This strategy incentivises exceptional performance and fosters a sense of loyalty and commitment to the company.
Lastly, offering health benefits for dependents is important, particularly among young professionals. Comprehensive health benefits are highly valued, not just for themselves but also for their parents, especially in the wake of the pandemic.
“Providing HMO coverage for dependents can be a significant draw for employees and contribute to their decision to stay with the company.”
Meanwhile, for Yong, talent retention within the accountancy profession relies on the stability of the company in terms of business plans and cash flow is crucial. He says that clear directions from the management regarding the company's vision and business processes are vital.
The management must also remain focused on these directions and avoid abrupt changes whenever possible.
Additionally, offering attractive remuneration through annual increments and performance bonuses is essential. Yong also points out that providing opportunities for professionals to rotate roles and functions within the division enhances job satisfaction and promotes talent retention.
Being valuable assets
While factors such as competitive compensation, career development opportunities, work-life balance, recognition, and rewards are important for talent retention in the accounting profession, Somchitrmool believes the cultivation of specific soft skills is equally critical for success in the evolving business environment.
“By focusing on enhancing communication, embracing business partnering, nurturing critical thinking, fostering adaptability and agility, strengthening analytical skills, mastering time management and organisation, and upholding ethical conduct, accounting professionals can position themselves as valuable assets and thrive in their careers.”
Kanruthai Somchitrmool, Robert Walters Thailand
She points out that employers should prioritise soft skills development through training programs, mentorship initiatives, and continuous professional development to ensure the long-term success and retention of their accounting talent.
