In a world where the nature of work is rapidly evolving, the accounting industry finds itself at a crossroads. As remote work, alternative arrangements, and AI automation become increasingly prevalent, firms must adapt to stay competitive and attract top talent.
In episode 380 of The Accounting Podcast, hosts Blake Oliver and David Leary explore the shifting dynamics of work in the accounting industry and discuss how firms can navigate this uncharted territory to create a more flexible, balanced, and fulfilling work environment.
Navigating the Salary Landscape: Remote, Hybrid, and In-Office Work
A recent study by ZipRecruiter sheds light on the salary disparities between remote, hybrid, and in-office workers.
David shares the findings: “Fully in-office workers average $82,000 on average. Hybrid workers average $60,000 on average. So basically, it’s almost $22,000 less than in office. Fully remote workers get about $75,000 on average. So, in the office, you’re making more; fully remote you’re making more. But if you’re kind of hybrid, not making as much.”
The study also suggests that high-performing staff prefer remote work and can command higher salaries. This trend underscores the need for the accounting industry to adapt to the changing preferences of top talent and remain competitive in attracting and retaining skilled professionals.
H&R Block’s Successful Transition to Permanent Remote Work
The shift towards remote work is not just a theoretical concept; it’s a reality many companies already embrace.
H&R Block’s experience provides valuable insights into how a major player in the accounting industry successfully transitioned to permanent remote work. As the company continued to grow, they hired corporate employees who were fully remote. It quickly became apparent that high-performing staff preferred remote work.
Jeff Jones, H&R Block’s CEO, put it simply: “There isn’t a good reason why we would do that. There’s just no reason to have a required to come back to office policy.”
H&R Block’s experience demonstrates that even large, established companies can adopt remote work and benefit from focusing on outcomes rather than micromanaging employee time and location.
The Productivity Puzzle: Debunking Myths About Remote Work
One of the most common concerns about remote work is its impact on productivity.
However, as Blake points out, “Studies on remote work productivity suggest that it is generally a net zero impact. While there may be some inefficiencies with remote work, these are offset by increased employee satisfaction and the elimination of commute times.”
It’s important to recognize that the true cost of requiring employees to work in the office extends beyond the walls of the workplace. Expenses like gas, car depreciation, and the additional cost of living close to the office can add up quickly for employees.
By offering remote work options, firms can help their staff save money and reduce stress, leading to a happier, more productive workforce.
The Four-Day Workweek: Challenging Traditional Work Arrangements
In addition to remote work, alternative work arrangements like the four-day workweek are gaining traction.
Blake notes, “In the UK, a pilot involving 61 organizations implementing a four-day workweek found that 89% continued with the model after a year, with many making it permanent. The study reported positive impacts on staff well-being, lower turnover, and easier recruitment.”
The success of four-day workweeks in other industries raises questions about the accounting industry’s traditional approach to work, particularly during busy seasons. Many firms still require staff to work weekends during peak periods despite evidence suggesting that alternative arrangements can lead to better employee and firm outcomes.
The future of work in accounting is not a distant concept; it’s already here. As the industry faces unprecedented change and disruption, it’s clear that the traditional ways of working are no longer sufficient. To thrive in this new era, accounting firms and professionals must embrace the opportunities of remote work and alternative work arrangements. For all the details, listen to episode 380 of The Accounting Podcast.