Poor graduate retention blamed for accounting staff shortages

Analysts have warned that accountancy's staffing shortage could worsen significantly over the next two years, blaming the problem largely on poor graduate retention.

According to research by CareersinAudit.com, nearly a third of accounting professionals predict that graduates will pursue a career in the industry for two years or less after qualifying, Accounting Web reports.

In addition, only 27% of graduate employees are expected to remain in the profession for more than five years.

Most cited salaries as the main culprit, with 76% of those surveyed suggesting that graduate starting salaries - at an average of £23,000 - are not good enough to attract the best people.

'If young people don't hear that accountancy offers travel, qualifications, client contact and an opportunity to get to the heart of business, the stereotype of accountancy as spreadsheets and isolation will only gain ground,' Max Williamson, Director of CareersinAudit.com, stated.

Like IT, accounting tends to be perceived as dull among undergraduates, which can deter them from entering the profession.