Navigating the talent challenge: where should your people priorities lie over the next 12 months?
The expertise and skills of people underpin the success of virtually every organisation. Yet ongoing skills shortages are often preventing today’s organisations from accessing the vital people they need to innovate and grow.
ACCA’s inaugural 2023 Global Talent Trends Survey highlights some of the most pressing people challenges faced by employers globally, including in the UK. It shows that financial professionals are on the move, confident that there are opportunities to get new roles which will progress their careers, and at the same time better fit their personal lives.
From an employers point of view, the study highlights the challenges in attracting, retaining and motivating their people. So, what should they focus on?
The survey, reflecting the views of more than 8,400 professional accountants across 148 countries, identifies seven key themes for employers to consider as they plan their workforce strategies for the next 12 months and beyond:
- Wage pressures. High rates of inflation in markets around the world are effectively reducing real wages. As a result, remuneration is a major concern for financial professionals across the world and in most sectors. This leaves employers in the unenviable position of having to balance the wage demands of their talent with the need to keep their cost base under control.
- Hybrid working. While the new era of hybrid working appeared to be ushered in following the outbreak of the Covid-19 pandemic, the reality is a more nuanced picture. Over 87% of respondents to ACCA’s research said they would like to work remotely for at least one day a week. The data reveals that the UK and Ireland are leading the way in the adoption of hybrid working, with 64% and 69% respectively working in this way. But globally, there is much further opportunity across the profession to transition to hybrid working practices.
Some employees cited concerns about remote working, with almost half (47%) of our global survey suggesting that they find team collaboration harder when they work remotely. Furthermore, a third (34%) claimed to be disengaged from their managers when working from home. Making hybrid-working practices more effective in the future will be a critical imperative for employers.
Nevertheless, the data found that finance professionals working in hybrid roles appeared to be happier at work than those working full time in the office. This is likely to have positive implications for their productivity.
- Burnout. The pressures of the pandemic have taken their toll on workers around the world. An overwhelming majority of respondents to the research (88%) said they wanted a better work-life balance, with men more likely to express this desire than women. Three in five (61%) respondents to the survey admitted that their mentalhealth suffers because of work pressures, although the UK fares better in this regard with a lower, albeit still alarming, figure of 54%.
- Professional mobility. Today’s employees don’t expect to stay in their job for life – or even for the next two years. In fact, they are keeping a constant eye out for the next opportunity, whether that’s inside – or outside – their current organisation. Our research found that in the UK more than a third of respondents (36%) expect to move to their next role within the next 12 months, rising to more than two-thirds (58%) over the next two years. This finding presents both opportunities and risks to employers. While workforce mobility brings the advantage of fresh perspectives, it can also result in operational disruption and the loss of vital knowledge.
- Technology skills concern. Technology is crucial for enabling organisations to thrive into the future and respondents recognise how it empowers them to add value. Yet many employees don’t believe they have the skills to take advantage of the powerful tools being made available to them. Globally, over four-fifths (86%) want more training support on technology from their employers.
- Social mobility. A lack of social mobility is an ongoing issue in many industries and professions, including finance. While almost 70% of global respondents to the research thought their organisational culture was inclusive, almost half of respondents globally (49%) indicated that a low socio-economic background was a barrier to career progression within their organisation – this figure is a lower but still high 32% for UK respondents.
- Career security. Although employees are benefiting from professional mobility, they still value the career security that professions like accountancy can provide. For example, accountancy is seen as a smart choice in terms of the skills, prospects and rewards it offers, as well as its ability to support cross-sectoral and international mobility. Another plus of a career in accountancy is that it enables employees to have a positive impact on the world. Over two-thirds (69%) of global respondents to the ACCA research agreed that accountants will play a bigger part in helping organisations to address sustainability and climate issues in the future.
The economic outlook for this year remains highly uncertain. At the same time, working practices are still evolving and the world continues to change at pace, with new technologies emerging all the time.
To prosper in this volatile environment, organisations need talented workforces more than ever. What’s more, they need them to be happy, healthy, productive and equipped with critical skills.
The research shows that the top three ‘attraction’ factors that will allow employers to attract and retain good staff are career and learning opportunities, remuneration, and work life balance. These are challenging times for employers of professionals, but hopefully these findings will provide useful insights as we look ahead to 2023.
To learn more about the ACCA research, visit accaglobal.com/talenttrends2023