Dubin & Lee Blog

Saundra 
 
 
 
Good points on why there is a talent shortage in accounting & finance. 
 
 
 
From my experience, the reason companies are facing talent shortages in this area is because they do not prepare and live by a talent plan. CFOs are not proactive in managing their talent - they do not plan for growth, they do not plan for people leaving, they do not plan for succession. Many CFOs manage their talent using hope. And as you know, hope is not a strategy. 
 
 
 
Proactive talent planning by a CFO will cause less headaches and less shortages, and provide an environment where people on the team are happy, motivated and committeed. 
 
 
 
Sounds simple. 
 
 
 
If it's so simple, how often have you seen it Saundra? 
 
 
 
Regards, 
 
 
 
Samuel 
 
 
 
Samuel Dergel, CPA, CA, CPC 
 
Dergel CFO Search & Consulting 
 
http://blog.dergelcfo.com

Saundra: 
I don't know how sincere employers are when they say they have labor shortages. I presume they are artificially created by employer filters. 
 
Experience: 
 
-Most finance people do not have Big 4 experience and being an auditor does not make you qualified to operated the business their client is in. Most auditors and Big 4 alumni I worked with were not the brightest tools in the shed; yet the market presumes competence, preference and a premium for their services. 
 
Seniority: 
 
-Most of the people who were cut in auditing and finance from 2008-2011 were people with CPA's, MBA, had many years of experience, were competent and were growing in their fields. They probably were making a lot of money, which leads to the next point. 
 
Clients do not want to pay: 
 
-They do not negotiate down the price of premium fine dining when they take their friends, or spouses out; yet they feel it is acceptable to low-ball highly educated and competent candidates. Such bad faith, and exploitative practices are just asking for future turnover(over 50% will leave their employers as soon as the employment recovery takes hold). 
 
-Many; including myself have retreated to MBA school, are licensing up, and going on to DBA & PhDs; where we then expect to make even more money that the money they currently refuse to pay. This is the market/employers making. High priced talent, with confidence, and self respect will never commit the anathema by taking a lower salary: 
 
-Employers are under no obligation, and probably will not base up your cut in future prosperous years as a token of their appreciation. 
-If you take a lesser salary; it will be implied not as a 'sacrifice', but rather an inference that you were overpaid and didn't deserve that higher salary. This will have negative effects throughout your career as employers typically pay the 'person' and not the position which breaks out a formula (Base x 1.xx). It's better to not work...go back to school and base up your old salary with the new found education and C 'credentials'.  
 
Recruiters are biased by design 
-They have a vendor relationship with the client/boss. They are subservient and adopt the attitude and characteristics of their clients.  
-They can never be on 'the job seeker's side'; just like the saying that 'HR is not your friend'. These groups can't be as the 'loyalty' lies in the direction of the money flow.  
-Now some do, but most do not have the gravitas to get the client and job seeker at a table where their influence can mediate a happy medium for both.  
-I have witnessed in this market when I dipped my toe in; that employers want everything their way; which is a disastrous principle if I applied to my marriage and friendships; and certainly so if applied to any business relationship!  
 
I hope they understand that they are hiring on an employee they will have a relationship with them??

I'm currently searching for a CFO / Controller position yet even though I have over 25 years of experience because I'm not a CPA, I'm not even considered for some positions yet I can run rings around the new CFO where I used to work regarding the day to day operations but he is a CPA.

Thank you for clarifying what I have been thinking. 
A persons experience and flexibility doesn't seem to enter into the equation without being a CPA.  
Sad...

Thanks for taking this opportunity to discuss this, I feel fervently about this and I like learning about this subject. Most finance people do not have Big 4 experience and being an auditor does not make you qualified to operated the business their client is in.If possible, as you gain information, please update this blog with more information.This will have negative effects throughout your career as employers typically pay the 'person' and not the position which breaks out a formula..I have found it really useful

I'm surprise there is shortage of Accounting/Finance staff, all companies are looking for people with Big 4 experience. They are not willing to employ entry-level and train, all demanding CPA, so many years of experience, and a whole lots of others. I'm a recent MBA Finance graduate with working experience of over 10 years, with 9 years with IRS outside the US. I have been applying for even entry-level position but not even one phone call. If companies are not prepared to train up and coming, then how do they expect to fill those accounting/ finance positions? I don't believe there is shortage of any staff. Check linkedin and see for yourself the number of people out there looking, some with what companies are looking for but are not being empolyed by these same companies. At least as one comment above who has the right experience but lacks CPA. That is another issue CPA, everything is CPA now. Let companies try to hire entry-levels and train and there would be no more shortage if it's true.

These positions are hard to fill due to the strict and sometimes extensive job descriptions that many companies are writing these days. It appears that they are looking for "pug 'n play" accounting and finance professionals. I know there are many of us high quality professionals that are out there looking for our next career, however, it is very hard to get pass the HR and resume filters. Loosen some of the less essential requirements and employers will see an uptick in this segment of the employment market. 

I think much of the disconnect is in how the job descriptions are written. Employers look for a skill set that matches their unique requirements (such as experience with a specific enterprise software system, billing system, accounting system, etc) and may write-up their job description such that they potentially rule out candidates who may be well-qualified, but not experienced with their particular flavor of tools. 
 
I've found that it is best to start with defining what background and skill-set is needed for the position and then drill down from there. If I need a financial analyst, I don't necessarily need to require the candidate to be a cpa. If I need a Controller, I'll want to see previous controller experience and an accounting degree, etc. If I need an A/P clerk, I'll ask for A/P experience and not necessarily say (e.g.): "A/P experience with Oracle software", etc. 
 
I know on one level that seems obvious, but I am often surprised how much is thrown at accounting candidates in job descriptions: "Must have CPA, MBA, accounting degree, experience with Lawson accounting software, etc" - and all for a position which may not need all of that. 
 
Also remember: accountants are much more "black and white" than, say, sales people and they will read those job descriptions literally. Other vocations may be more willing to assume "I can do that job" or "my experience works just fine for those requirements". In accounting and finance, it's much more black and white.

I find that many times the hiring authority has no idea what they really want. They think they know how to handle accounting, so they come at hiring or replacing CFO's with an "expert" viewpoint. Unfortunately, most times this "expertise" gets in the way of hiring the person they really need.  
 
A strong CFO will call it the way they see it, and many times the COO, President, Chair of the Board, does not want to believe what they are being told. That is because the COO, President, Chair, believes it reflects badly on them. As a result, excellent CFOs will leave in frustration, as they cannot get anywhere. 
 
This is not true of all corporations (for profit or not for profit), but I am amazed at how many times I see that scenerio play out.

I like it Patricia..."'expertise' gets in the way of hiring the person they really need"

Being an expert or professional in terms of the financial industry is a tough and arduous task. Like CPAs who continually study the market and make many calculations and analysis on the financial market.