On this episode of The Accounting Talent Podcast, host Rob Brown is joined by Jeff Phillips, CEO of Padgett Business Services and founder of AccountingFly, wherein they delve into the concept of "talent stacks" for accounting firms. Jeff explains how a talent stack is an integrated system that firms can use to efficiently and reliably deliver value to their clients by creatively combining different types of talent assets.

The discussion revolves around the ongoing talent crisis in the accounting industry, characterized by more job opportunities than qualified candidates. Jeff posits that the traditional approach to hiring is no longer sufficient and advocates for firms to embrace creative staffing solutions, including remote hiring, freelancers, and outsourcing.

Jeff highlights the significant advantages of remote hiring, citing statistics from his company, AccountingFly, which specializes in placing remote CPAs in firms across the United States. He emphasizes the cost-effectiveness, faster hiring timelines, and access to a broader talent pool that remote hiring offers.

Additionally, Jeff stresses the importance of incorporating freelance and interim talent into the talent stack, enabling firms to tap into the growing gig economy and address specific project needs or busy seasons without committing to full-time hires.

Lastly, Jeff explores the concept of outsourcing and offshoring, particularly leveraging talent from countries like India, the Philippines, and Mexico, where firms can access skilled and trained talent at a significantly lower cost.

5 Key Takeaways:

• The talent crisis in accounting is real, with more job opportunities than qualified candidates, forcing firms to explore creative staffing solutions. [03:30]
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• Building a "talent stack" by combining different types of talent assets, such as remote hires, freelancers, and outsourced teams, can help firms deliver value efficiently and reliably. [01:00]

• Remote hiring offers significant advantages, including faster hiring timelines, access to a broader talent pool, and potential cost savings. [06:00]

• Incorporating freelance and interim talent into the talent stack allows firms to address specific project needs or busy seasons without committing to full-time hires. [11:00]

• Outsourcing and offshoring to countries like India, the Philippines, and Mexico can provide firms with access to skilled and trained talent at a lower cost. [16:30]

Quotes:

"The war for talent is over, and the talent won." "If you're not addressing freelance and interim as part of your recruitment strategy, you can't win the race for talent because you're leaving candidates an opportunity on the table."

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ACCOUNTINGFLY. Connecting employers with top U.S.-based accounting talent through a variety of services including dedicated searches, Always-On Recruiting, and freelance placements for seasonal or temporary needs. They specialize in remote accounting recruitment, recognizing early on the significant advantages that remote work offers to employers, job-seekers, and their own operations. They pride themselves on their track record of matching the right candidates with the right opportunities and building a robust team of industry experts. Additionally, their partnership with Going...

Host Rob Brown is joined by Sue Coffey, CEO of Public Accounting at the American Institute of CPAs (AICPA), and Lexy Kessler, Partner at Aprio and Chair of the AICPA's National Pipeline Advisory Group (NPAG). They look into the alarming talent shortage facing the accounting profession and the potential solutions proposed by the NPAG.

Lexy and Sue discuss the overwhelming evidence pointing to a significant talent pipeline issue in accounting, including declining enrolment in accounting programs, fewer students pursuing the CPA credential, and challenges in retaining young professionals in their first five years of employment. But can the profession overcome this challenge? Rob, Sue, and Lexy explore the root causes, such as the profession's perceived image, the cost and time commitment of education, and the need for evolving business models at accounting firms.

The NPAG's findings underscore the urgency of addressing the talent pipeline issue collaboratively, involving stakeholders from academia, regulators, state societies, and the profession itself. Sue and Lexy share their optimism that by implementing the recommended solutions, the accounting profession can overcome this challenge and attract the talent required to thrive in an ever-evolving business landscape.

"We are a profession that communities, businesses, and economies need, and we just need to address our talent shortages and adapt." - Sue Coffey, [00:40]

"It's not just Debits and credits to that point. It's really about the business person piece of it and the different scenarios and the strategy behind the numbers as well. So there's much more to it than, than processing or, or producing a product and that's it. It's much, much more than that." - Lexy Kessler, [16:47]

Key Takeaways:

The accounting profession is struggling with a talent pipeline shortage, but it's not "withering on the vine" as some suggest. - Sue Coffey, [00:31]

Improving storytelling and celebrating the profession's impact is crucial to attract younger generations. - Lexy Kessler, [01:44]

The cost and time commitment of education, especially for socioeconomically disadvantaged students, is a significant barrier to entry. - Sue Coffey, 10:58]

Firms need to evolve their business models to provide a better experience for young professionals in their first five years, addressing issues like excessive hours and meaningful work assignments. - Sue Coffey, [11:46]

Modernizing the CPA licensure process is a long-term goal to ensure the profession remains sustainable and relevant in the future. - Lexy Kessler, [27:53]

You can watch this episode and more on our YouTube Channel

https://youtu.be/JaLe1nq9lk4

Join the Accounting Influencers community and get invitations to our international speed networking events to build your personal brand and network in the accounting, finance and tech world: https://www.linkedin.com/company/accountinginfluencers

Thanks to our sponsors:

ACCOUNTINGFLY. Connecting employers with top U.S.-based accounting talent through a variety of services including dedicated searches, Always-On Recruiting, and freelance placements for seasonal or temporary needs. They specialize in remote accounting recruitment, recognizing early on the significant advantages that remote work offers to employers, job-seekers, and their own operations. They pride themselves on their track record of matching the right candidates with the right opportunities and building a robust team of industry experts. Additionally, their partnership with Going Concern—an esteemed source for accounting news and insights—further enhances their ability to stay on the cutting edge of remote recruiting by tapping into a natural pipeline of job seekers.

If you'd like to sponsor the show and...

Welcome to the Accounting Talent Podcast, dropping every Thursday to accounting professionals, finance specialists, software vendors, tech providers and influencers in the accountancy, CPA and bookkeeping space. To participate in our international virtual speed networking events for the accounting community, go to https://accountinginfluencers.com/events and book your place at the next gathering. Great to build your personal brand and make valuable industry connections.

On this episode of The Accounting Talent Podcast, host Rob Brown is joined by Jeff Phillips, CEO of Padgett Tax & Accounting Franchise and founder of AccountingFly, sharing thoughts about the alarming talent shortage facing the accounting profession and Jeff's concept of the "talent stack" as a potential solution.

The concept of a "talent stack" as the new organizational model for accounting firms. With accounting talent becoming increasingly scarce, firms need to rethink how they acquire, manage, and retain top talent. The talent stack philosophy focuses on sourcing talent globally, leveraging remote workers, freelancers, and offshore resources to fill essential roles predictably and reliably.

By adopting a talent stack mindset, accounting firms can overcome hiring challenges, access global talent pools cost-effectively, and build sustainable operations for the future. Don't miss this insightful discussion providing innovative strategies for firms to attract and retain the skilled professionals they need to drive growth and success in a rapidly evolving industry landscape.

“Culture, process, systems, and excellence are absolutely available inside companies where some of the people work in the headquarters. And some of the people don't, it's not easy, but the case I'll make to you is this. If you make this adjustment, you can win.” - Jeff Phillips

Key Takeaways:

1. The accounting profession was complacent in how it dealt with talent, and there's a reckoning happening now due to hiring challenges. [01:55]

2. College students are comparing accounting to fields like investment banking, consulting, and tech companies, which are outcompeting accounting for talent. [02:45]

3. The "talent stack" reimagines the organizational chart by identifying diverse talent sources (local, remote, freelance, offshore) at every level. [04:10]

4. Firms can tap into global talent pools, increase profit margins through cost arbitrage, and fill critical roles faster by finding the best fit. [07:20]

5. Integrating remote teams requires building a strong culture, values, processes and systems, supplemented with in-person engagement. [14:30]

You can watch this episode and more on our YouTube Channel

https://www.youtube.com/watch?v=EN5xAzK9cW8

Join the Accounting Influencers community and get invitations to our international speed networking events to build your personal brand and network in the accounting, finance and tech world: https://www.linkedin.com/company/accountinginfluencers

Thanks to our sponsors:

ACCOUNTINGFLY. Accountingfly connects employers with top U.S.-based accounting talent through a variety of services including dedicated searches, Always-On Recruiting, and freelance placements for seasonal or temporary needs. They specialize in remote accounting recruitment, recognizing early on the significant advantages that remote work offers to employers, job-seekers, and their own operations. They pride themselves on their track record of matching the right candidates with the right opportunities and building a robust team of industry experts. Additionally, their partnership with Going Concern—an esteemed source for accounting news and...