‘Partner model accountants must be overhauled: young people do not want to work for years to have to buy in for a lot of money’

The accountancy sector is struggling with an aging population and a staff shortage, but the partner model that should bind employees is no longer sufficient. There is less enthusiasm among people in their twenties for the partnership, which involves years of buffalo and a lot of money.

ING economists write this in a report. Accountants between the ages of 30 and 35 still have enough enthusiasm to become a partner. They prefer to do this as quickly as possible, according to interviews among the professional group. But it’s a different story among people in their twenties: they feel less inclined to become a partner. For today’s twenty-somethings, financial incentives and/or partnership status are less important and more in need of a better work-life balance. For that reason, young accountants are less willing to work many hours. The lack of this balance among accountancy firms is an important reason for leaving the sector, according to research by NBA Young Professionals. The long working days as a partner are also not compatible with the good work-life balance that women value. They leave the organization early. In the Big Four (Deloitte, EY, PwC and KPMG) less than 20 percent of partners are women, while the call for diversity in society is increasing. In addition, the need for independence among accountants is growing. Nearly half would like a career as an independent accountant, instead of putting in many hours to eventually become a partner, according to a survey among accountancy students by The Accountables. The number of self-employed among accountants has increased by 40 percent in ten years and this is expected to increase further. Young people don’t want to get into debt for partnership

Also read: These are the 3 most important negotiating points when applying for jobs – and the difference between men and women.

In addition to the many hours of work, the money involved in the partnership is also an obstacle. To become a partner you have to buy in. The purchase value is based on goodwill, which consists of the value of the share in the company. Young people don’t feel like going into debt for a partnership. Meanwhile, the aging population among accountants is increasing. In 2020, almost half were 45 years and older and this will increase in the coming years. At the same time, the share of accountants up to 45 years of age fell from 64 to 55 percent in ten years. The sector is also struggling with a shortage of personnel and is causing a brake on growth for one in four organisations. According to the economists at ING, accountancy organizations should offer more customization and, for example, something other than just the usual partnership process.This should ensure binding and a less high turnover. In addition, employment conditions can play a role, offering a better work-life balance, more autonomy and more variety in work. According to ING, offices that keep everything the same will have a hard time due to a lack of new influx. Read more about accounting:

Also read: 19 questions to ask during a job interview, according to the boss of a top recruiter.

  • Are partners at accountants and law firms entrepreneurs or employees? Lawsuit for lucrative BV construction of top earners
  • Shortage of accountants can cause problems when auditing companies’ annual accounts, ING warns
  • Entrepreneurs threaten to have to repay NOW support due to large backlogs with accountants.
Author: Jobly