For years now, you’ve seen article after article detail the global war for talent.
You’ve seen phrases like “attrition”, “sourcing and selection”, and “retention”. The party line is that, across professional services – but in accounting in particular – the demand for qualified, hireable accounting practitioners simply out-strips supply.
But then the Big Four firms began to face a wave of challenges, precipitated by:
- Excessive recruitment during the surge that followed Covid-19
- Budget reductions and workforce downsizing across international branches
- Brand harm due to audit controversies and independence issues
TALENT SCUFFLES
And when big firms stopped poaching from each other like it was a contact sport, mid-tier firms began scrabbling for, and winning, the residual human capital.
But what about the smaller firms? Well, smaller firms continue to face an uphill battle. They remain largely invisible to the best candidates – because most Gen Z professionals want flexibility, purpose and career acceleration but they expect excellent salaries, benefits and work-life perks.
(At Ledger Capital Partners, we see this as a massive opportunity. Read on for more…)
SOUTH AFRICA
South Africa is feeling the pinch too, of course. But, contrary to perceptions of a sluggish talent pipeline, data actually indicates a steady influx of new professionals.
As of December 2024, SAICA reported approximately 20,395 members and associates under the age of 35[1], although challenges persist in ensuring that these entrants progress through the rigorous qualification process[2].
A major issue is bandwidth. With HR teams inside accounting firms stretched to capacity, they’re forced to play catch up instead of focusing on actionable strategies to attract, develop and retain talent in a highly competitive market.
HR STRATEGIES
These strategies may include:
1. Solid Employer Branding
A compelling employer value proposition (EVP) serves to highlight career growth, mentorship, flexible work, tech-forward operations and meaningful impact.
2. Acquisition Modernisation
Data-driven recruitment uses AI and analytics to target, track and refine hiring strategies. Firms can also invest in bursaries, internships and returnship programmes[3] to diversify talent pools and address transformation goals.
3. Retention-Focused Rewards
Adjusting pay to reflect market value reduces poaching risk; flexible benefits personalise the employee experience; and employee equity schemes, profit-sharing and structured bonuses for retention serve as long-term incentives.
4. Entrenched Career Pathing
Structured, transparent career ladders are fast tracks for high performers, especially with on-demand learning and formal coaching/mentoring programmes.
IN SUMMARY
Private equity investment, when done right, offers accounting firms more than just funds. In recent years, firms with access to capital have outperformed peers in retention, training investment, and productivity growth by measurable margins.
When PE-backed firms can invest in learning and development, structured career paths and talent acquisition strategies that are predictive, not reactive, they’re positioned to compete, not merely survive
At Ledger Capital Partners, we think of it like this: Without capital, HR is often a support function. But with capital, HR becomes a growth engine.
[1] SAICA Membership Statistics 2024: Saica Web PR Storage
[2] SAICA’s Plans to Improve 14% Pass Rate: Moneyweb
[3] Returnship programmes are structured re-entry pathways for mid-career professionals who’ve taken an extended break from the workforce for reasons like caregiving, relocation or personal circumstances.
