Talent Survey Report_Edit.indd - ACCA

28 Pages·2013·2.54 MB·English

Talent Attraction and
Retention in Thai Audit Practices
ACKNOWLEDGEMENTS

SEC and ACCA would like to extend their appreciation
to the participating accounting firms and survey
participants for taking time to provide their views.
DISCLAIMERS
The information contained in this publication is
provided for general purposes only. While every
effort has been made to ensure that the information
is accurate and up to date at the time of going
to press, SEC and ACCA accept no responsibility
for any loss which may arise from information
contained in this publication.
Quotes from participants may be paraphrased. No
part of this publication may be reproduced, in any
format, without prior written permission of SEC and
ACCA.
© ACCA, SEC April 2013
ABOUT SEC ABOUT ACCA

SEC (The Securities and Exchange Commission, Thailand) ACCA (the Association of Chartered Certified
supervises and develops the Thai capital market as an Accountants) is the global body for professional
independent state agency. The SEC was established accountants. We aim to offer business-relevant,
first-choice qualifications to people of application,
under the Securities and Exchange Act B.E. 2535
ability and ambition around the world who seek
(1992), with the mission to ensure efficiency, fairness,
a rewarding career in accountancy, finance and
transparency, and integrity in the Thai capital market.
management.
To achieve this and create confidence for investors,
the SEC closely monitors and inspects individuals and
We support our 154,000 members and 432,000
entities under its supervision. To ensure investors have
students in 170 countries, helping them to develop
adequate protection and receive accurate and sufficient successful careers in accounting and business,
information for making decisions, as well as to enhance and equipping them with the skills required by
the quality of financial reporting. employers.
We work through a network of 83 offices
and centres and more than 8,500 Approved
Employers worldwide, who provide high standards
of employee learning and development.
Through our public interest remit, we promote
the appropriate regulation of accounting. We
also conduct relevant research to ensure that
the reputation and influence of the accountancy
profession continues to grow, proving its public
value in society.
Contents
Background and Objectives ..........................................................1
Approach ....................................................................................2
Key Findings ............................................................................3-4
Survey Finding – Details ..........................................................5-18
Career Satisfaction ....................................................................5
Key Attraction and Retention Factors ......................................6-10
Top Initiatives .........................................................................11
Moving Out .......................................................................12-13
Overseas Opportunities .......................................................14-15
Becoming A Partner ...........................................................16-18
Suggested Action Plans .........................................................19-20
Conclusion ................................................................................21
Background and Objectives
Working in an accounting firm has long been seen as providing an excellent start to an accounting professional’s
career because it provides extensive market-relevant experience, broad-based training and exposure. normal
attrition through the rank is expected as those who believe they have acquired sufficient experience will move on
to the next phase of their career, their next employment. Concerns arise when turnover becomes too fast to the
extent that audit engagements become inadequately staffed at each level. The engagement teams may then find
themselves not delivering at their optimal level and, as a result, audit quality suffers.
The key to human resource management is that it costs considerably more to replace and train a new employee
than to retain an existing one, especially in accounting firms where the accumulation of audit experience and
knowledge are critical to enhance the audit quality. Therefore, attraction and retention of top quality talent is
vital to an accounting practice’s ability to improve audit quality and manage risk. It is therefore crucial to review
the effectiveness of the firm’s talent attraction and retention strategies, and to assess if they are aligned with
the demands and aspirations of the very individuals those strategies are targeted at.
This talent attraction and retention survey covers the Big Four accounting firms and four other medium-sized
accounting firms (‘mid-tier’ firms) in Thailand. The survey findings have been analysed in total, as well as based on
the respondents’ employee grades, gender, and whether they were from one of the Big Four or mid-tier firms.
This report flags out material variances between different categories of respondents for further discussion.
Hopefully, the survey results provide insights to the key attraction/ retention and push factors affecting the
professional staff as well as highlight areas for improvement.
In the long run, the SEC and ACCA believe that the survey findings and recommendations will help affirm or
redirect firms’ present focus, and enhance their attraction and retention strategies.
TAlEnT SuRvEy REPORT BACKgROund And OBjECTIvES 1
Approach
In december 2012, ACCA conducted an online survey to investigate the views of audit staff employed in
accounting practices in Thailand. The survey is also aligned with ACCA’s global initiatives on assessing and
enhancing audit value. Similar surveys have already been carried out in Singapore and Malaysia by ACCA
in collaboration with the audit regulators in those markets, and provide valuable cross-border comparisons with
the Thailand findings.
Employees of 8 accounting firms were invited by the SEC to participate in the survey: deloitte Touche Tohmatsu
jaiyos Audit Company limited, dharmniti Auditing Company limited, d I A International Auditing Company
limited, dr. virach and Associates Company limited, Ernst & young Office Company limited, KPMg Phoomchai
Audit Company limited, Office of Pitisevi, and PricewaterhouseCoopers ABAS Company limited.
In total, the survey received 1,364 responses, representing approximately 43% of the total audit staff strength
from the 8 accounting firms.
PrOFilE OF rESPOnDEnTS
Grade % Years Worked in Audit %
junior Associate 28% less than 1 year 21%
Associate 21% 1 to 2 years 21%
Senior 22% 2 to 3 years 11%
Assistant Manager 9% 3 to 5 years 14%
Manager 12% 5 to 10 years 20%
Senior Manager / director 8% More than 10 years 13%
Gender %
Male 29%
Female 71%
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Key Findings
The key findings from the survey are as follows:
Satisfaction
49% Only 49% of the respondents were satisfied with their
current career in external audit. The proportion was
higher for more senior staff (58%) (defined as those
holding the position of ‘senior’ and above) compared
to junior staff (40%). A lower proportion of staff from
Only 49% Of the respOndents expressed Big Four firms (46%) was satisfied with their current
satisfactiOn with their current career career compared to staff from mid-tier firms (57%).
chOice in external audit There was no significant difference in the proportion
between male and female respondents.
Should I stay or should I go?
54% of the respondents intend to leave their role in 54%
external audit in their current firm within 4 years. A
Certified Public Accountant (CPA) candidate in Thailand
is required to have three years of audit working experience
to qualify for professional membership. Overall, 80%
54% Of the respOndents intend tO leave
of the respondents felt that their superiors will make a
their rOle in external audit within 4 years
genuine effort to understand their concerns and will try
to retain them if they decide to leave. The percentage
rose to 87% at the managerial level.
JOB SECUriTY AnD TEAm COllABOrATiOn & SUPPOrT
Pull factors:
job security, accelerated learning, career progression opportunities, high future earning potential and the
prestige of working for a renowned firm were identified as key retention and attraction factors of a career in
external audit. In addition, a significant number of respondents highlighted that the sense of comradeship shared
among their colleagues, support from immediate superiors and flexible working hours have provided them with
stronger incentives to stay in the profession.
COmPEnSATiOnS AnD BEnEFiTS VS EFFOrTS inPUT
Push factors:
The main factors which most survey respondents were unsatisfied with were compensations and benefits,
especially those relating to balance between effort put into work and the compensation for that effort.
Respondents also reported the challenge of maintaining work-life balance, especially with their heavy
workloads aggravated by inadequate allocation of resources in terms of timing, human resource and budget.
This consequently leads to work overload and dissatisfaction among employees, and contributes to unreasonable
deadlines, given the limited number of staff available for each audit engagement. Some participants
highlighted the lack of experienced staff and inappropriate work delegated. Others believed that the compensation
and benefit packages did not match their efforts.
TAlEnT SuRvEy REPORT KEy FIndIngS 3
Key Findings
Sole audit practice vs. multidisciplinary firm
58%
According to the survey findings, the value of a multi-
disciplinary accounting firm is essential for audit staff as
majority of the survey respondents are more interested in
working in a multidisciplinary firm. 58% of respondents
may either not have joined, stayed as long as they had,
58% Of respOndents said they might have
or might have made a different career choice if their
recOnsidered jOining Or staying On if
current firm had been an ‘audit-only’ practice (one that
their current firm was sOlely an
does not have separate divisions for taxation, corporate
audit-practice.
finance, and so on).
63%
Top initiatives
Survey participants identified the top initiatives their
firms have implemented to enhance the attractiveness of
the audit profession. According to the survey, the top 3
initiatives are: flexible working hours (63%), sabbatical 63% Of the respOndents identified flexible
leave to pursue other interests (58%) and sponsorship hOurs as One Of the tOp initiatives their
/ subsidies for further professional qualifications (27%). firms have implemented
International mobility
Majority of the survey respondents (75%) welcomed the
75% overseas secondment opportunities, mainly because
it was viewed as a value-add to their professional
exposures. junior staff showed greater interest in
joining the mobility program than managers and
directors. Only 17% of the participants believed they
75% Of the respOndents wOuld like tO be have a very good or good chance of getting an approval
sent On an Overseas secOndment given if they submit an application for overseas secondment
the OppOrtunity due to the limited opportunities available and lack of
transparent selection criteria. Therefore, facilitating
more openings would help improve job satisfaction and
retention rates, and at the same time, cultivate a more
diverse workforce.
Partnership:
20% of the respondents had clear aspirations for the
partnership, with a marked increase in proportion for
the mid-tier firms’ respondents (30%). For respondents
who did not intend to pursue partnership, there were
noticeable differences in the reasons given by the
20%
different genders. Female respondents were more likely
to doubt their abilities to step up to the challenge of
becoming a partner (53% compared to 40% male)
and were concerned about the work pressure that
accompanies the partner’s role (75% compared to 64% Only 20% Of respOndents wOuld like tO be
male). It is also noteworthy that while the majority a partner
of the respondents believed someone who has the
aptitude and the will to persevere will be able to make
it to partnership in reasonable time, 24% disagreed,
citing the limited availability of partner positions, lack
of transparent admission criteria, and workplace politics
as factors.
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Survey Findings – Details
Satisfaction with current career choice in external audit
Career Satisfaction
The survey measured the level of satisfaction among auditors (apart from partners) relating to their current career.
49% of the respondents were satisfied; 12% dissatisfied; and 39% were neutral (Figure 1).
Figure 1 Overall, how satisfied are you with your career choice in external audit?
Total 1 11 39 40 9
0% 100%
Very dissatisfied 1 2 3 4 Very satisfied 5
A further analysis of the results based on the demographics of the respondents showed no significant difference in
satisfaction between female and male respondents. However, a lower proportion of staff from Big Four firms (46%) were
satisfied with their current career compared to staff from mid-tier firms (57%).
In addition, a significantly lower proportion of junior staff (defined as those who hold the position of “associate”
or equivalent) were satisfied with their careers in external audit compared to their superiors (40% against 58%),
Base: Total (1362)
and proportion of respondents satisfied with their careers further increased to 71% for managers and above. This
Q. Overall, how satisfied are you with your current career choice in external audit?
suggests that job satisfaction becomes enhanced with greater responsibilities and increased scope of work as one
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rises through the ranks, though another possible interpretation is that the younger workforce demands more from
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their careers and are not as easily satisfied.
The satisfaction ratings are consistent with the survey results regarding how long audit staff intended to stay in
audit. At associates level, about 84% of respondents indicated a desire to leave within 4 years, compared to a
much lower 26% for senior and above. On an overall basis, 54% of all respondents would like to leave within 4
years (Figure 2). One of the reasons could be that CPA candidates in Thailand must have at least 3 years work
experience in the audit field to qualify for the professional qualification. Those who stay beyond the qualifying
period are more likely to have developed keen interests in the audit profession and hence have plans to stay longer.
A follow-on question to assess the respondents’ confidence about whether they would leave within their intended
timeframe (based on the market conditions and other factors) showed that 84% were convinced that they will be
able to do so.
An encouraging finding was that about 80% of the respondents felt that their superiors would make a genuine
effort to understand their concerns and try their best to retain them when they decide to leave. However, there were
interesting questions raised, such as: “Why is there still high turnover in this industry despite the fact that superiors
make a sincere effort to understand their staff’s concerns?” “Is it because the firm’s initiatives do not fully address
the staff’s concerns?” Other respondents shared the perception that high turnover is common in the industry; that
audit staff are easily replaceable; superiors do not value their staff because they are too junior; and superiors do
not actively act on the problems highlighted.
Figure 2 HoHwow m muucchh l olonnggeer rw woouulldd yyoouu lliikKeE to t os tsatya iyn iinn teexrtnearln aaul daiut dinit t hine tchuer rceunrtr feirnmt ?firm?
Less than 1 year 5
1 to 2 years 14
3 to 4 years 35
5 to 6 years 15
7 to 10 years 14
More than 10 years 17
0 10 20 30 40 50 60 70 80 90 100
Base: Total (1364)
TAlEnT SuRvEy REPORT Q. How much longer would you likeS tou stRayv inE iynt eFrnIanl adudIint ing thSe c–u rdrenEt TfirAmI?lS 5
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Key Attraction and Retention Factors
On a scale of 1 to 5, respondents to KEY ATTrACTiOn AnD rETEnTiOn FACTOrS:
the survey were asked to BASiC nEEDS AnD DEVElOPmEnT
• rate the importance of a set of
Figure 3 How important are the following factors to you? Thinking
‘basic needs and development’
Key Attarbaocutito yno aunr dc uRrreetnetn tciaorne eFra icnt oerxste: rBnaasl iacu Ndiete, dhso wa nsda tDisefiveedl oaprem ent
factors and a separate set of
you with these factors? (On the scale of 5)
‘work culture’ factors, and then
• indicate the degree of satisfaction Nice to have Key retention factors
they presently derive from their
career in external audit relating
to those factors.
e) Prestige of working for Job security
The resulting scores helped to cor 4.0 a 'branded' firm Steep learning
s curve
identify the main ‘retention’ and e Opportunities for career
‘push’ factors associated with an ag 3.8 progression
r Structured training
external audit career (Figure 3) ve programme
a High future earning
and (Figure 4). n ( 3.6 potential
o
cti Regular
sfa 3.4 pefrefeodrmbaacnkce pBaecnkeafigtse Compensation that
Sati Short-term overseas comwmoernks eufrfoatrets with
3.2 work opportunities
3.0 Long-term overseas work opportunities
3.3 3.5 3.7 3.9 4.1 4.3
Lower priority Major push factors
Importance (average score)
note: Cut-off points for defining the quadrants are based on total average
Base : All respondents who answered the questions
Q How important are the following to you? Thinking about your current career in external audit, how satisfied are you with the following?
KEY ATTrACTiOn AnD rETEnTiOn FACTOrS:
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WOrK CUlTUrE
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Figure 4 How impKoretyan At tatrrae ctthioe nfo allnodw iRnegt efancttioorns Ftoa cyotour?s T: hWinokrikn gC uabltouurte
your career in external audit, how satisfied are you with these
factors? (On the scale of 5)
Nice to have Key retention factors
3.9 Team collaboration
Consistency of actions and support
e) with firm's culture
r
o
sc 3.7 Transparency on Support from
e how to get admitted immediate superiors
g to partnership Flexible working
a hours
er 3.5 Reasonable deadline
v Recognition from imposed by immediate superiors
a
n ( senior management Equitable allocation of
o 3.3 Low level of office Reasonable deadline work across the team
cti politics imposed externally
a
sf Adequate resource
ati 3.1 allocated to my
S engagements
Work-life balance
2.9
3.7 3.9 4.1 4.3
Lower priority Major push factors
Importance (average score)
note: Cut-off points for defining the quadrants are based on total average
Base : All respondents who answered the questions
Q. How important are the following to you? Thinking about your current career in external audit, how satisfied are you with the following?
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