The Rise of Contractors: How Candidate Shortages Are Shaping Public Practice Firms

In the world of public practice, accounting and auditing firms have traditionally relied on full-time employees to deliver their services. However, a significant shift is occurring as more firms are turning to contractors to bridge the gap caused by candidate shortages. This trend is not only reshaping the way these firms operate but also opening up new opportunities for skilled professionals seeking flexible work arrangements. In this article, we will explore why an increasing number of public practice firms are utilising contractors and how this shift is transforming the industry.

Escalating Candidate Shortages

One of the primary reasons for the surge in contractors within public practice firms is the candidate shortage that has plagued the industry for several years. The demand for skilled accountants and auditors has consistently outpaced the supply of qualified candidates, leading firms to seek alternative solutions. As a result, contractors, with their specialised skills and the ability to start working quickly, have become an attractive option.

Flexibility and Scalability

Contractors offer public practice firms a level of flexibility and scalability that is often not possible with traditional employees. Firms can bring in contractors for specific projects or during peak seasons, and then reduce their workforce when the workload decreases. This allows firms to adapt to changing client needs without the long-term commitment of hiring full-time staff. In a dynamic industry where client demands can vary greatly, this flexibility is invaluable.

Cost-Effective Solutions

Hiring contractors can also be a cost-effective solution for public practice firms. While the hourly rates for contractors may be higher than the salaries of full-time employees, firms can save significantly on employee benefits, such as sick leave and paid time off. Additionally, contractors do not require extensive onboarding and training, reducing the time and resources needed to get them up to speed.

Access to Specialised Skills

Contractors often bring highly specialised skills and experience to the table. Public practice firms can leverage these skills for specific projects or complex client needs. For example, a firm may hire a contractor with expertise in forensic accounting for a fraud investigation or a tax specialist for a complex client with intricate tax issues. This access to specialised talent can enhance a firm's reputation and client satisfaction.

Geographic Diversity

The rise of remote work has also contributed to the increasing use of contractors in public practice firms. With technology enabling professionals to work from virtually anywhere, firms can tap into a broader talent pool while still remaining ‘on shore’. They are no longer restricted to hiring talent from within their immediate geographic location, allowing them to find the best candidates regardless of their physical location.

Work-Life Balance

Contract work offers professionals a greater degree of control over their work-life balance. Many skilled accountants and auditors are drawn to contracting because it allows them to choose when and where they work. This lifestyle appeals to individuals seeking greater autonomy and the ability to balance work with personal commitments.

The adoption of contractors by public practice firms is a response to the ongoing candidate shortages and the changing dynamics of the accounting and auditing industry. This shift offers benefits to both firms and contractors. Firms gain flexibility, access to specialised skills, cost-effective solutions, and the ability to tap into a broader talent pool. Meanwhile, contractors enjoy greater work-life balance and the opportunity to work on diverse projects.

As the industry continues to evolve, public practice firms are likely to rely more heavily on contractors to meet their staffing needs. This trend is not just a reaction to shortages but also a reflection of the changing nature of work in the modern world. As contractors become integral to the industry, the accounting and auditing field will continue to adapt to these new ways of working.