Currently, the UK accounting sector is experiencing several notable trends in graduate recruitment.
These trends in graduate recruitment include a slowdown in the UK labour market overall, a reduction in the number of graduates hired by the big accounting companies, and a growing reliance on school leavers in the sector.
We will examine these trends in more detail and how they affect UK accounting graduates’ careers.
Reduced Graduate Recruitment by Major Firms
The Big Four accounting firms, KPMG, PwC, Deloitte, and EY, have reduced their graduate recruitment by approximately 1,000 graduates, school leavers, and apprentices in the last year. This recruitment reduction is part of a cost-cutting exercise. For example, KPMG hired 33% fewer graduates and apprentices. In addition, the firm reduced its workforce by 1,266 employees, mostly outside of official redundancy processes. Similar reductions were implemented at Deloitte, PwC, and EY. This downturn is attributed to rising inflation and interest rates, which have led to decreased demand for expensive corporate advice. This decrease has affected workload and prompted staffing reductions.
Shift towards school leaver recruitment
In response to a widening skills gap, UK accountancy firms are increasingly focusing on recruiting school leavers without university degrees. They aim to tap into a broader and more diverse talent pool. For example, Grant Thornton UK has more than doubled the number of trainees joining its school leaver programme in the last year. This approach reflects a shift towards valuing potential and diverse perspectives over traditional academic qualifications.
Increased use of AI in recruitment
The use of artificial intelligence (AI) in recruitment processes is increasing. A survey by the Institute of Student Employers found that 21% of employers are using AI in selection and assessment. This figure has risen from 9% in 2022. AI tools are being used to improve the efficiency and speed of recruitment, though they also raise concerns about the authenticity of candidate assessments.
Return to in-person interviews
In contradiction to the increased use of AI in many elements of the recruitment process, some firms are reinstating in-person interviews for their graduate and apprenticeship programmes. For instance, Deloitte has returned to face-to-face interviews in response to concerns about cheating in virtual assessments. This move marks a shift from the fully online recruitment process adopted during the pandemic, emphasising the benefits of in-person interactions for candidates.
Impact of economic factors on recruitment
Economic factors, including recent tax increases, have led to a slowdown in the UK’s labour market. A survey by the Recruitment and Employment Confederation revealed a significant decline in staff demand, with the monthly index of staff demand dropping to 42.8, the lowest since August 2020. This has resulted in fewer entry-level opportunities and increased competition among graduates for available positions. This situation does not just apply to the accounting sector, but it significantly impacts accounting graduates.
These trends represent a significant shift in the UK accounting sector’s approach to graduate recruitment. This shift is influenced by economic pressures, technological advancements, and a strategic focus on diversifying talent pools.
The post Trends in Graduate Recruitment in Accounting in the UK appeared first on Accountancy Recruit.