Accounting is a field that dates hundreds – if not thousands – of years. As a result, many employers may assume that there will always be an influx of new accounting professionals to meet their business needs. However, there’s evidence that an accounting degree is losing its luster, leading to far fewer young adults pursuing accounting careers.
The number of accounting graduates – at the Bachelor’s or Master’s level – declined by 7.4 percent during the 2021-2022 academic year compared to the year prior. That marks the single biggest drop since the 1994-1995 academic year.
For employers, that’s problematic, as it signals a potential long-term issue with finding academic talent. That’s particularly true since a decline has been occurring since 2016, and the downward trend could continue.
Here’s a look at why accounting degrees have lost their luster, as well as what employers can do to find the accounting talent they require.
Why Accounting Degrees Have Lost Their Luster
Low Salaries and Stagnant Pay
When students begin considering majors, future earnings potential is often part of the equation. Overall, accounting degrees aren’t associated with high salaries, particularly when compared to what’s available through other industries, like technology. Additionally, wages have stagnated to a greater degree in the accounting field than many others. A lack of upward movement limits long-term earning potential, and that pushes students away from the field.
Educational Requirements
While a traditional Bachelor’s degree typically requires 120 credit hours in college, the landscape for accounting professionals is different. Generally, they need 150 credit hours to secure a certified public accountant (CPA) license, which equates to an additional year of schooling.
Along with a longer timeline, that extra year of higher education comes with a price tag. As a result, students may find other options more suitable from both a time and financial perspective.
How Employers Can Find Qualified Accounting Candidates
With fewer accounting graduates, employers will have a harder time finding the qualified candidates they need to fill accounting roles. Fortunately, there are steps they can take to increase their access to talent.
Using a wider variety of sourcing techniques is typically the best way to begin. Expanding beyond company careers web pages and large job boards is a critical part of the equation. Consider exploring niche job boards to tap into more talent. Additionally, engage with local colleges to identify candidates or increase interest in the field.
Offering educational benefits to employees can also help. With this, you may be able to offset the expense associated with earning the required degree, which may make pursuing a degree in accounting more viable in the eyes of existing team members without higher education.
Finally, partnering with a staffing firm is a wise choice. Recruitment agencies maintain robust talent databases brimming with exceptional candidates. Additionally, the recruiters have expertise both in recruitment and candidate engagement, making it far easier to attract the top talent your company needs to thrive.
