Help really, really wanted 

By Brandon Pope, CPA 

Frustrating, surprising and hopeless are all words used to describe today’s talent market. It’s no secret the market for good talent is tighter than it’s ever been. Another year of an inverted relationship between the decreasing number of accounting graduates and the increasing talent needs across almost all industries highlights an ominous reality for hiring managers looking for a reprieve from this candidate-driven environment: The talent market isn’t changing any time soon. 

It’s not all bad news, though — you’re not alone, and misery loves company. But in all seriousness, companies and firms are finding an effective way to overcome the woes of today’s talent market: professional recruiters. You may be (or someone at your company is) a business-savvy hiring manager who has worked with recruiters in the past and needs best practices in the process. Or you may be wary of reaching out to a professional search firm. Regardless, your organization can benefit from understanding what professional recruiters bring to the table, what to expect when working with them, and what makes paying for their services a smart investment. 

Why is it so hard to find good talent? 

It’s a simple question with a bit more complicated answer. Hiring managers find themselves in a candidate-driven market that’s fueled largely by two factors: low unemployment and increased talent needs. Regarding the general economic outlook, as of June 2022 the current U.S. unemployment rate was 3.6%; Virginia’s rate was even lower at 2.7% (as of July 2022). 

CPAs face an additional factor in the gloomy market perspective: Many studies show that at a collegiate level, hiring needs aren’t going away — but accounting graduates are. The AICPA’s recent 2021 Trends Report noted that, “of firms that hired one or more accounting graduates in 2020, 74% expect to hire the same number or more in 2022 as compared with 2021. Eighty-nine percent of all U.S. CPA firms expect to have the same number or more CPAs on staff in 2022 in comparison with 2021.” 

Further, a recent PwC Pulse Survey of CFOs and finance leaders found that “83% of respondents indicated hiring and retaining talent is very important to growth.” The same CFOs indicated a lack of optimism that talent shortages will ease by the end of 2022: Only 23% think that’s likely, compared with 31% of all executives. 

Remote work has also affected the current talent market. Since the beginning of the pandemic in 2020, an unprecedented number of companies have shifted their workforce to remote accommodations. Many of those companies have benefited from increased productivity, lowered business costs, and reduced turnover. 

However, some companies who either refuse to accept remote work or struggle to implement remote accommodations have fallen prey to their own employees lured away by higher paying, remote roles. Many of those same companies will handle the search for talent independently and post local ads, hoping to find a quick remedy to their need. However, much to their dismay, these ads largely only attract “active” job seekers who regularly check job postings, while the talent many managers are looking to hire are more “passive” in their search — wanting to only be made aware of opportunities that fit their personal criteria, such as jobs that could be provided by a professional recruiter they’ve connected with to advocate on their behalf. 

What does a recruiter do, exactly? 

Professional recruiting firms offer many valuable services, but many companies don’t fully understand their daily activities and responsibilities. The process usually starts with an initial outreach to a client, whether that’s through a valued referral, a database compiled over years of actively networking with accounting talent, or a targeted contact. 

After establishing the qualifications for a particular recruiting assignment, recruiters identify prospects to inquire about their background, interest in a new opportunity, qualifications, technical expertise in specialized industries, accomplishments, financial expectations, and career goals. More in-depth interview questions are usually conducted to further assess the candidate’s qualifications and overall suitability regarding the client’s expectations and to ensure a long-term match. After this interview and with the permission of the candidate, the candidate’s background and résumé are submitted to the client for review. 

Other candidate-related duties include reference checks, résumé formatting, client interview preparation and debriefing, as well as post-placement check-ins. Many recruiters also maintain active schedules outside the office, attending different networking and community service events. 

Specifying the type of role is important 

Recruiters often engage in both traditional direct hire services — hiring a full-time controller, say — and also interim project consulting. Many companies initially want to hire a candidate to be their own full-time employee, but if an independent search is unsuccessful, it’s imperative to choose another route. Hiring and firing is an expensive cost of doing business, and there are many benefits to project consulting. 

Clients can engage recruiters on projects in seasons of excessive demand and when they need specific expertise, which is a tremendous value. Seasonal or project-based recruitment doesn’t overburden or burn out employees during peak times, allows them to access specialty skills on an as-needed basis, supports the company’s growth, and gives project professionals an opportunity to contribute in a way that fits their lifestyles. There are many talented workers who enjoy project consulting and seek out different opportunities throughout the year. 

Recruiting firms’ consultants benefit, too, as project work gives them high work-life balance on engagements that are meaningful for clients. Sometimes that leads to positions with companies they serve, and sometimes they will find positions through the traditional direct hire process if they decide that is best for their career. Often, the compensation, flexibility and variety of experiences that project work provides is attractive to candidates and fits meaningful portions of their professional experience. 

Though hiring remains strong, the increased use of consulting and interim solutions will continue. The pandemic created more choices for professionals, and now more than ever, those professionals are choosing the idea of flexibility and balance. When help is needed immediately, regardless of services needed, many recruiters recognize the last thing hiring managers want is a steady stream of semi-qualified candidates waiting to devour their time. Many recruiters work to turn ordinary searches into extraordinary experiences. 

What clients can expect from recruiters 

Chances are, many accounting and finance professionals have been contacted by numerous recruiting firms in the past, and hiring managers may not be familiar with what recruiters bring to the table. However, it’s critical to an organization’s success that they select and work with the right firm. 

Many recruiters claim to know what hiring managers are looking for, but the value of actual first-hand accounting and finance experience is undisputable. Strong recruiting teams should have recruiters with backgrounds as industry veterans from premier CPA firms and Fortune 500 companies. Good recruiters will seek to thoroughly understand a company’s need and, while they will always remain respectful and supportive, they will also provide clear and realistic expectations. For example, a company may ask a recruiter for a former Big 4 CPA with 10 years of experience for a role that is completely onsite and a compensation package that is significantly below market average. A recruiter will provide realistic feedback to the client to manage their expectations. 

With the market as hot as it is, it might be expected that recruiters are working on many different roles simultaneously, and that’s true. It’s important to ask recruiters how a particular role can get the most attention. 

Further, many recruiting firms offer two types of searches: contingent and retained. Clients opt for contingency searches when speed is key. It’s a quick and affordable way to gain access to a vast network of talented professionals. To streamline the process, contingency search recruiters often rely on a carefully cultivated and curated pool of candidates. From there, they select the most qualified candidates for the position. While exclusivity may provide greater attention for a particular role, some hiring managers may opt to work with multiple search firms to augment their overall recruiting efforts. It’s both respectful and professionally courteous for hiring managers to be transparent about their intentions throughout the search process and let recruiters know if multiple firms are working on the hire. 

In a retained executive search process, however, the search firm operates on an exclusive basis — they’re the only team conducting the search, and their goal is to procure and present the very best candidate for the company. Retained search is a high-touch and comprehensive process that includes detailed client and cultural interviews, original candidate research, and extensive outreach, as well as screenings, assessments, background checks, and negotiations. Retained executive search professionals work in consultation with clients to develop a mutually agreeable search methodology and strategy. 

Confidentiality is also a critical expectation to develop early in the recruiting process. While some companies have positions they want any and all professionals to be made aware of, some roles are more sensitive in nature. Recruiters are frequently asked to help on searches for positions that are currently occupied but soon-to-be empty, whether voluntarily or involuntarily. Given these types of circumstances, discretion can be very important, so hiring managers should be sure to discuss any issues in early conversations. 

Expectations don’t just go one way. Hiring managers should be prepared to provide recruiters with timely responses, thorough answers to qualifying questions, and adherence to any non-solicitation outside the scope of a particular agreement. 

It’s equally important to look for what a prospective recruiter doesn’t do as well. The horror stories hiring managers have of some recruiters can be hard to comprehend. Characteristics that may describe a bad recruiter include a lack of candidate consent/confidentiality (job seekers beware: make sure express approval is given before your information is sent anywhere), no follow-up communication after an initial call or meeting, a combination of overpromising and underdelivering, as well as an overall mismanagement of expectations. Finally, clients can expect that recruiters will negotiate a rate for their services. While a retained search professional may be paid a pre-arranged fee up front, the price for a direct hire is usually negotiated as a percentage of that hire’s salary. A consultant hired through a professional recruiting firm is usually billed by the hour and the recruiter retains a portion of the hourly rate. 

How companies can benefit from recruiters 

While many companies say their employees are their most valuable asset and consequently, finding good talent is inherently critical, some hiring managers need more convincing of what justifies the cost of utilizing recruiters. 

American businessman Harvey Mackay once famously said: “Time is free, but it’s priceless. You can’t own it, but you can use it. You can’t keep it, but you can spend it. Once you’ve lost it you can never get it back.” Simply, time is money. CPAs and professional services firms know it best through the billable hour. Hiring managers’ time is best suited focusing on operating and growing their business, not going through numerous job applications, reviewing résumés, interviewing countless individuals, continuously writing follow up emails, and answering calls. Engaging with people consistently all day, every day is not only time-intensive, it’s also exhausting. Many accounting and finance professionals don’t like the idea of networking, let alone dedicating their days to maintaining high energy levels and interacting with prospective candidates. 

Companies can also find solace in their recruiter’s hiring decisions when a guarantee is in place. Many recruiting firms note if the hired candidate resigns or is terminated during the initially agreed-upon timeframe, a replacement will be made without any additional fee. 

As mentioned above, many recruiters are industry experts and have valued relationships with candidates predicated on trust. Candidates seek out recruiters’ advice on what companies’ cultures are like and overall market information, and they look for someone who can advocate on their behalf to find a genuine match. Some candidates appear to be technically competent and seem like a perfect fit on paper. However, good recruiters know that a good culture fit is imperative for both the candidate and company’s long-term success. The easiest and most effective way to gain access to the niche skillsets, specialized backgrounds, and passive talent pool is through professional recruiters. 

While the current talent market shows no sign of improving, not all is lost. When faced with increased talent needs, hiring managers have a decision to make. Will they burden their current staff and continue taking on additional responsibilities of finding the right solution on their own, or will they recognize the valued services that professional recruiters offer? The stakes are high and stakeholders, decision makers, and supporting staff have all made it clear: Help is wanted; help is really, really wanted. 

Brandon Pope, CPA, is a senior director of accounting and finance at Vaco, LLC. He helps Virginia clients with their accounting and finance talent solutions needs. He previously spent 5+ years as an auditor for the public accounting firms Keiter and Deloitte. He currently sits on several VSCPA committees, including the Young Professionals Advisory Council, VSCPA PAC Board of Trustees, and Scholarship Committee.