Press Release

Hong Kong Association of Registered Public Interest Entity Auditors Limited (PIEAA) Addresses Severe Shortage of Accounting Professionals in the Hong Kong SAR

19 July 2023

Hong Kong, – The recent survey conducted by The Hong Kong Association of Registered Public Interest Entity Auditors Limited (PIEAA) found that Hong Kong accounting firms are facing severe talent shortage, over 30% of surveyed companies experienced a 20% shortage of staff, and 63% of them are actively hiring.  Though most of the respondents would continue pursuing their career in accounting industry, those who had less experience may leave within 24 months.

The survey was conducted between October 2022 and February 2023, over 313 of accounting practitioners and students were surveyed.  The survey report highlights a growing shortage of professional accountants, shedding light on significant challenges facing the industry and the potential implications for the future success of the Hong Kong Special Administrative Region (HKSAR).

"Younger generation maybe reluctant to join the profession in view of the work load, work hours and working environment. According to the survey findings, young practitioners or accounting students expected from their prospective employers were work life balance, follow by career development, pay and bonus, reasonable work hours, and support from superiors, in particular, 61% of surveyed students weighted work life balance is very important, which ranked the top among all the expectations on prospective employer (see table 1).  It is the time for accounting firms to review their remuneration package, for example giving young practitioners a realistic expectation of accounting work, flexible employment models such as part time or project-based employment contract,”  said Clement Chan Kam-wing, Chairman of PIEAA.

Table 1: Rating of expectation on employers by students

The survey indicated that a significant shift in the gender balance, with females now representing the dominant gender in the profession.  This transformation reflects a significant departure from the profession's historical norms and opens new opportunities for women in accounting.

“In the foreseeable future, women will become the majority of the work force in accounting professions.  To cope with this demographic change, accounting firms can consider formulating gender-friendly employment policies to support working parents, flexible working hours and remote working arrangements will definitely encourage accounting professions with children pursuing their career in the industry,” Clement commented.

The survey highlights the evolving perception of the required skillsets in the accounting and auditing sectors.  Communication and people skills now rank highest in terms of importance, followed by financial reporting.  Notably, the importance of digitisation and data analytics is more pronounced among the older demographic.

“It is vital for companies to bring digital and AI technology into the practices of accounting and auditing to attract millennials into the profession, in order to ease the pressure caused by the talent shortage,” Clement said.

“The shortage of professional accountants in Hong Kong poses a significant challenge for both the industry, the audit profession and the overall economic landscape.  PIEAA calls for immediate attention from the Government to address this pressing issue including considering importing of auditors from overseas.  By recognising the changing dynamics of the accounting profession, raising awareness about the industry's opportunities, and attracting young talent, we can ensure a sustainable and prosperous future for the HKSAR.” Clement concluded.