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Multiplier's White Paper Reveals Strategies for Overcoming the Accountant Shortage
NEW YORK, Aug. 22, 2024 /PRNewswire/ -- As over 75% of Certified Public Accountants (CPAs) reached retirement age in 2019 and fewer recruits are entering the field due to demanding education and work experience requirements, the talent gap is widening—the US is lacking 340,000 accountants alone. In response, Multiplier, the global employment platform, examined how US-based companies are utilizing its Employer of Record (EOR) software to recruit accountants from international markets. The findings highlight a fourfold increase in the demand for accountants from US-based companies between Q1 2022 and Q1 2024.
Surge in international recruitment
Multiplier's data reveals a significant shift towards international recruitment, with the number of accounting positions facilitated via its platform surging in recent quarters. While this shift towards international hiring is evident across industries, the US has been the largest contributor to Multiplier's international hires, accounting for 80% of the accounting positions filled through the platform in recent years.
"Multiplier is dedicated to supporting businesses through this challenging period of talent shortages. Our latest study showcases the significant benefits of global talent acquisition, from skill diversification to cost savings," said Sagar Khatri, CEO of Multiplier. "We are proud to be at the forefront of this shift, helping companies secure the expertise they need to continue their growth."
Emphasis on skill-based hiring
Businesses are prioritizing skills over location, increasingly hiring accountants from Asian countries. Multiplier data shows that 68% of these hires are from the Philippines, while 18% come from India. This strategic move addresses the immediate skills gap while also offering substantial cost-saving opportunities. In fact, with accountants in North America commanding nearly five times the wages of their counterparts in Asia, hiring from Asia allows companies to reduce overhead without sacrificing expertise.
Demographic shifts in hiring
The inclination towards skill is also reflected in companies' growing willingness to train younger talent. Since 2023, the percentage of accountants under 30 has increased from 4% to nearly 24%, indicating a shift towards skills-based hiring. Notably, accountants hired through Multiplier in North America are predominantly in the 25–35 age group, with 90% of hires being under 35. In contrast, nearly half of the accountants hired in Asia are 35 or older. This demographic difference highlights the broader range of experience available internationally, often at a lower cost.
Deciding between permanent employees and temporary contractors
As companies seek sustainable solutions, there is a preference for hiring permanent accountants over independent contractors. This is highlighted by the fact that the percentage of full-time accountant hires through Multiplier is nearly double that of freelance hires. Companies can thereby benefit from the long-term benefits of having a dedicated employee who understands their business without paying high hourly rates to a contractor.
To effectively navigate the accountant shortage, businesses must adapt their hiring strategies, focusing on younger talent, embracing global recruitment, and reassessing contract types. Multiplier's platform facilitates these changes by providing seamless access to a worldwide talent pool without the need for setting up local entities or managing complex compliance issues. Click here to download the whitepaper.
You can find the press kit here.
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About Multiplier
Multiplier is a global employment platform for HR leaders and professionals who need an easy, fast, and cost-effective way to onboard, pay, and manage the best global talent across 150+ countries. Through best-in-class global payroll, EOR and compliance technology, person-to-person support, and hyper-local employee benefits, Multiplier empowers its customers to connect with the best talent and build a world of limitless opportunity.
