HOUSTON & MONTVALE, N.J.--(BUSINESS WIRE)--Entry-level management accounting and finance employees don’t have many of the skills organizations say are needed, according to research released today by the Competency CrisisTM initiative. The research, performed by APQC (The American Productivity and Quality Center) and IMA (Institute of Management Accountants), also suggests that organizations have elevated and expanded the skill requirements for finance positions in particular, and entry-level roles in general.
This research surveyed professionals working in the finance and HR/recruitment functions on the state of entry-level management accounting and finance talent in the United States and around the world. The survey examined the skills gaps, as well as their causes and consequences, and best practices for solving these problems. To view the full report, visit http://competencycrisis.org/apqc-research/.
Among Largest Gaps Are Skills Not Traditionally Considered Entry-Level
Leadership and change management were among the competencies with the largest gaps, lending credence to the perception that entry-level job requirements have become more sophisticated, while the skills possessed by work force entrants match more traditional expectations. The survey also found that deficiencies existed in both technical and non-technical skill areas.
Consequences of the Gaps
Nearly all organizations participating in the survey face challenges in hiring entry-level management accounting and finance professionals. Nearly half of participants are experiencing increased time to fill entry-level management accounting and finance positions, while roughly one-third of respondents are hiring less-qualified candidates to fill entry-level management accounting and finance positions.
“Businesses will face increased recruiting costs, reduced productivity, and diminished work quality as a result of the Competency Crisis,” says Ben Mulling, spokesperson for the Competency Crisis community and CFO of Tente Casters Inc. “Employers count on management accountants and finance professionals as strategic business advisors, so skills gaps of this magnitude are extremely damaging to that relationship and to business performance as a whole. It’s the responsibility of every stakeholder to resolve this—individuals, employers and educators included.”
In addition to negatively affecting the performance and budgets of the finance function, entry-level hiring challenges may also be taking a toll on employee satisfaction. Under one-third of mid-career management accounting and finance professionals and only one-quarter of entry-level professionals are somewhat or extremely satisfied with their jobs, compared to about half of senior management accounting and finance professionals.
Finding and Acting on a Solution
“CFOs and corporate controllers may be too far removed from entry-level hiring dynamics to sense they have a problem brewing. Senior finance leaders ought to start asking questions about the care and feeding of the finance talent pipeline,” says Mary Driscoll, senior research fellow at APQC.
Resolving the Competency Crisis may involve building partnerships between organizations and educational institutions, as well as between finance and HR. For example, the lack of HR influence may limit the ability of finance to fully appreciate the magnitude of the Competency Crisis and its consequences, as well as the ability of finance to identify and implement effective solutions.
“There are no quick fixes to this Competency Crisis, only multifaceted solutions requiring collaboration from many different stakeholders,” Driscoll says. “Cooperative efforts must seek to increase awareness and availability of career paths for finance professionals within participating organizations, and organizations must also fuel the talent pipeline through professional association- and company-provided career development. Only through such partnerships and continuing initiatives will there be sufficient guidance for individuals, as they progress from new hires through to mid-career.”
About The Competency Crisis
The Competency CrisisTM community was created in 2013 to unite accounting and finance professionals, HR and recruiting professionals, students, employers, academics, and others to examine the skills gap in management accounting and finance, through the lens of each stakeholder group. Its mission is to encourage collaboration, spur action, and build a community dedicated to resolving the serious crisis of competency present in the profession. For more information, visit www.competencycrisis.org.
The Competency Crisis website and its supporting platforms were developed by nonprofit organization IMA® (the Institute of Management Accountants), the association of accountants and financial professionals in business. IMA is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) program, continuing education, networking and advocacy of the highest ethical business practices. IMA has a global network of more than 70,000 members in 140 countries and 300 professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe and Middle East/Africa. For more information about IMA, please visit www.imanet.org.
About APQC
APQC is a member-based nonprofit and one of the leading proponents of benchmarking and best practice business research. Working with more than 500 organizations worldwide in all industries, APQC focuses on providing organizations with the information they need to work smarter, faster, and with confidence. Every day we uncover the processes and practices that push organizations from good to great. Visit us at www.apqc.org and learn how you can make best practices your practices.