Accounting firms in Virginia have been upping their entry-level salaries and benefits to attract staff as the nationwide hiring shortage continues.
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The VSCPA surveyed CPAs in Virginia in November and December 2022, but similar results would likely be found in other states as far as employers increasing entry-level pay to entice young staff. Participants in the survey included public accounting firms and accountants working in corporate finance and the government and nonprofit sectors.
The findings included the mean and median salaries at all levels of employment, including breakdowns by geographic region, and investigated other issues related to benefits like paid leave and insurance. Other questions asked respondents about remote work, outsourcing and offshoring solutions, and turnover.
"The results are clear — firms are doing everything in their power to attract talent and explore innovative solutions to reduce employee stress," said VSCPA president and CEO Stephanie Peters in a statement. "We've heard from leaders since the pandemic began that firm capacity challenges are their biggest concern, and the survey shows they are increasing base salaries and offering more benefits to compete with private industry — even at the expense of partner salary increases."
The survey found that since 2020, newer accountants have seen the greatest salary growth. That includes growth of 15.5% for entry-level accountants, 13.5% for second level, and 10.7% for third level. First-year managers' salaries grew 12.7%, and senior managers 13.9%.
Support positions in CPA firms also experienced large salary increases. Notably, finance and IT positions saw growth of 34.5% and 21.8%, respectively, with HR at 12.5%.
On the other hand, partners saw minimal salary increases. CPA firm leaders began upping the pay of lower-level staff while flatlining their own salaries, which only saw a 0.5% bump.
More firms are supporting aspiring CPAs, as well. The number of CPA firms providing professional license and credential support increased 12% over 2020, and tuition assistance grew 11%.
Outsourced accounting services are ballooning. Since 2020, the number of firms offering outsourced accounting and/or bookkeeping services has increased 20%.
In addition, one-fifth of public accounting firms are offshoring. Currently, 20% of the respondents said they are already offshoring certain work internationally, and 17% are exploring the approach. The numbers are far lower in the other sectors, with 90% of corporate finance respondents and 95% of government and nonprofit respondents not having tried it or still planning to explore it.
