As the shortage of Certified Public Accountants (CPAs) continues to widen, with over 75% reaching retirement age and a shortfall of 340,000 accountants in the US, Multiplier’s latest findings shed light on a significant trend: the surge in international recruitment. Multiplier, a global employment platform, has observed a fourfold increase in the demand for accountants from US-based companies between Q1 2022 and Q1 2024.
- Surge in International Recruitment:
- Increased Demand: The demand for accountants facilitated through Multiplier’s platform has surged, with US companies contributing 80% of these international hires.
- Global Shift: This shift towards international hiring is not only prevalent across industries but also highlights the growing reliance on global talent to fill crucial roles.
- Emphasis on Skill-Based Hiring:
- Skill Over Location: Companies are focusing on skills rather than location, with 68% of international hires coming from the Philippines and 18% from India.
- Cost Savings: Hiring from Asia offers significant cost advantages, with Asian accountants earning nearly five times less than their North American counterparts, allowing companies to manage overheads effectively.
- Demographic Shifts in Hiring:
- Younger Talent: Since 2023, the proportion of accountants under 30 has increased from 4% to nearly 24%, reflecting a shift towards skills-based hiring.
- Experience Range: Accountants hired in North America are predominantly aged 25–35, whereas nearly half of those hired in Asia are 35 or older, highlighting the diverse experience available internationally.
- Permanent Employees vs. Contractors:
- Preference for Permanency: Companies show a preference for hiring permanent accountants over temporary contractors, with full-time hires through Multiplier being nearly double that of freelance hires.
- Long-Term Benefits: Employing permanent staff ensures continuity and a deep understanding of the business, while avoiding high hourly rates associated with contractors.
To effectively address the accountant shortage, businesses need to adapt by focusing on skill-based hiring, embracing global recruitment, and considering the benefits of permanent employees over temporary contractors. Multiplier’s platform offers a streamlined solution for accessing a global talent pool, simplifying the recruitment process without the complexities of local compliance issues.
