The Pennsylvania Institute of CPAs (PICPA) has released a new report on Feb. 25 addressing the growing challenge of recruiting and retaining talent in the accounting industry.

As firms face an ongoing accountant shortage, according to Accounting Today the report provides insights into how firms are structuring compensation, adapting benefits and adjusting hiring strategies to stay competitive. 

One of the key takeaways is that salary alone is no longer enough to attract top talent. PICPA CEO Jennifer Cryder emphasized that firms must adopt holistic compensation strategies that include flexible work arrangements, comprehensive benefits and clear career development pathways.

The report found that while 48.3% of firms experienced improved staff retention, 24.1% saw a decline, indicating inconsistencies in retention efforts. Salaries have also seen graduate growth, with an average increase of 8% in June 2024, up from 5% the previous year. 

To remain competitive, firms are prioritizing benefits, with 88.5% offering medical insurance, 80.8% providing dental coverage and 73.1% including vision insurance. Flexible work remains a major focus, with 80% of firms allowing flex hours and 76.9% offering year-round remote or hybrid options.