About 3,00,000 accountants have already quit their jobs with no intentions of returning to the accounting industry – it is a known affair now. However, the talent shortage and the lack of inclination to be in the industry are beyond the accounting professionals at the entry and mid-senior levels. It steeps through the layers and impacts the leaders too. Many senior accountants and leaders feel like they are stuck in a rut. The burnout culture is stronger than ever now. There are so many factors – rapid advancement of technology, a shift in the working atmosphere in the post-pandemic era, increasing dependence on accountants, and very demanding deadlines are some of them.
When accounting leaders are constantly unhappy, it impacts those around them too. While accountants in management positions struggle to put their best foot forward at work every day, the people around them complain of a boss who is low on energy, indecisive, fails to impact change, provides little support, and fails to get things done.
What is making these leaders so unhappy?
There is no doubt in the fact that accounting is an important profession. All industries, irrespective of their size, need accountants. So, technically speaking, accounting should be a rewarding career choice. However, the factors that contribute to discontent are often less spoken. Let us understand the reality:
- The technological uphill:
Technology has revolutionized many industries and accounting is no exception. Senior leaders are introduced to new challenges every day. They have a pressure to transform digitally. Implementing new technologies has a learning curve, often a steep one. Many senior leaders are not from this generation and they have a tough time adapting. Leaders are expected to oversee the integration of new systems which is time-consuming and challenging for not-so-tech-savvy.
They also face the challenge of balancing innovation with traditional accounting practices. While new tech is key to staying ahead of the competition, there is also a need to maintain the integrity of established processes. This constant need to maintain the balance can create internal conflicts and stress, leading to overall dissatisfaction.
- The blurring work-life balance:
In the world of accounting, the lack of work-life balance has been causing a significant impact, especially among the senior leadership. The job is demanding in nature and it often encroaches on personal time, leading to a high burnout rate. Senior leaders are compelled to extend their hours, including weekends and holidays, to meet the approaching deadlines, and manage the constant talent shortage and crises. The nature of work leads to chronic fatigue, lack of personal time, and overall unhappiness.
These blurred lines between the personal and professional leave them with little time to nurture their personal aspect. Senior leadership teams may find it challenging to spend quality time with their friends and family, leading to a sense of isolation and disconnection. This lack of personal fulfillment can significantly contribute to the overall dissatisfaction. ‘
- The burden of regulatory changes:
This is one of the most undermined aspects impacting the senior leadership teams is the rapid pace of regulatory changes. Senior leaders in accounting need to adapt to new regulations and compliance standards. This is overwhelming and adds to the burnout. State and central regulatory bodies frequently update their standards and introduce new guidelines. Senior leaders are responsible for ensuring that the firms or departments comply with these changes, requiring a lot of time and resources. The pressure to stay compliant can overshadow other strategic needs, leading to stagnation.
With the need to comply with the regulatory changes, comes the responsibility of being accountable. Senior leaders can be held responsible for compliance failures, which can have a severe impact. The scrutiny can create a high-stress environment, contributing to overall dissatisfaction.
- Limited growth opportunities:
While getting to the top can seem exciting and thrilling, once you are there, it is stagnant. There are very few opportunities for personal and professional growth at the top levels. Once senior leaders reach a certain level in their careers, the opportunities to grow, further diminish. There is a constant sense of career stagnation that can lead to unfulfillment and dissatisfaction. In the initial stages of the career, it is fairly easy to develop new skills, but as leaders continue to grow it can get challenging. The demands of their roles often leave little time for professional development, leading to an added sense of frustration.
Tips to deal with unhappy accounting leaders:
There is no doubt in the fact that the accounting fraternity is losing on some of the great minds of the industry. While some of the issues like long work hours need a nuanced approach, some things can be addressed in a jiffy. Here are some tips to make things better for unhappy leaders and the accounting firm owners and the corporate leaders have a lot to do with it:
Prioritize constant learning and development:
No matter what stage of your career you might be in, continuous learning is important to maintain the enthusiasm and urge to grow. Leaders of small, medium and large organizations should invest in professional development through advanced courses, certifications, networking opportunities, etc. This not only helps them stay updated with the latest trends and technologies but also provides a sense of achievement.
- Set a dedicated time each month for professional development
- Spot areas of interest or skill gaps and pursue relevant courses
- Encourage senior leaders to participate in industry conferences and networking events to exchange ideas and stay inspired.
Promote work-life balance initiatives:
We live fast and complex lives and burnout is an integral part. Our employees’ mental and physical health should be our responsibility and supporting flexibility is important. Instead of promoting a toxic culture and penalizing people for taking time off, encourage them to get away and recharge.
- Introduce the charm of remote work and flexible work-from-home options
- Encourage leaders to take vacations, unplug from work, or simply step away during breaks
- Provide ample resources to manage stress, wellness programs, and mental health support
Delegate and empower teams
The sense of frustration and burnout increases when leaders do not have the free hand to delegate work among their teammates and end up taking on excess load. Team leaders and managers should be empowered to focus on strategic initiatives and personal growth. This also helps foster a sense of trust and collaboration.
- Identify tasks and assign them to team members based on their caliber
- Provide adequate training and resources to ensure team members can handle the delegated tasks
- Build a culture of trust and autonomy, where team members feel powerful to make decisions.
Encourage mindfulness across all levels:
Employees spend about 8-9 hours daily at their workplace, and for senior accounting leaders, it is way more. By incorporating mindfulness and stress-reduction techniques into the daily routine can help senior leaders manage stress and maintain mental well-being. Practices such as meditation, yoga, and mindfulness exercises can help reduce stress.
- Offer mindfulness and stress-management workshops and sessions
- Create a designated quiet space in the office for relaxation and breakouts
- Encourage leaders to include short breaks and mindfulness in their daily schedules
Understanding the misery behind unhappy leaders in accounting – End Note
The unhappiness among the leaders in accounting is a multi-faceted aspect. These factors are fueled by many factors and need careful consideration by the firm owners and the members of the senior leadership have a huge role to play in ensuring they are mentally well. For this, the root cause of the misery needs to be identified and eliminated. One of the other ways to reduce the pressure off of the senior leaders is through outsourcing.
To know how outsourcing can help, write to us at connect@finsmartaccounting.com.
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
