Staff exodus hits audit firms
ZIMBABWE has been hit by a severe brain drain of auditors which has alarmed the market with the auditing of the 2021 financial results under threat as the professionals are leaving in droves seeking greener pastures, businessdigest has established.
The situation, which has been worsened by remote working brought about by the Covid-19 pandemic, has been characterised by numerous resignations as the accountants opt to work for international organisations that are paying competitive salaries and offer flexible working hours.
An International Labour Organisation (ILO) report noted that an unbalanced rebound of the global economy across different sectors and changes in the composition of aggregate demand were among the reasons causing shifts in the labour demand pattern.
According to sources, Zimbabweans audit firms have been hard hit over the past two to three months with nearly all trainees who have completed their articles resigning to join international firms.
The audit clerks who are doing international audits are earning starting salaries of US$3 000 which is paid in cash compared to the paltry figure of US$300 paid locally.
“This has huge ramifications for the accounting profession. Is industry and commerce prepared to match salaries if they want to employ articled accountants? Is the industry willing and able to pay audit firms? We are all confused and hoping that this development personally benefits us,” an industry source said.
Head of human resources at BDO Zimbabwe Chartered Accountants Tapuwa Mutemachani wrote on her LinkedIn account saying the “tsunami” (brain drain) which happened overnight has resulted in what used to be an employer's market making a “360 degree” turn.
“Anyone that is in the same industry as myself in Zimbabwe (ie Audit, Risk and Advisory) can attest that remote working for international players has hit the industry in a big way. The ‘great resignations’ are occurring right before our eyes, daily, as staff are resigning and opting to work for international organisations that are providing them with remote working opportunities, better USD salaries, better work-life balance, flexibility of work, etc. It's time to relook the very definition of people management.
“We can no longer afford to be arrogant in our hiring processes, dismissive of our staff's feelings and emotions and rigid in our operations. We must start opening up lines of communication, breaking down silos, adopting flexible working arrangements, paying attention and making adjustments necessary to issues of worklife balance and general mental health.
“We can no longer afford to continue with the mentality that our employees ‘need us’..." she said.
Institute of Chartered Accountants of Zimbabwe (Icaz) technical manager Owen Mavengere told businessdigest that the institute was aware that there has been an increase in remote working and recruitment.
“Global mobility has been increased by technology and one does not need to physically travel but can work from anywhere. Cross-border movement of Icaz members has always occurred, especially given that our qualification is widely accepted internationally. These are the realities of the global market we operate in.
“Audit firms have the requisite recruitment strategies and training structures to be able to continue to function in spite of any movements of staff which may result in some transitional challenges,” he said.
Mavengere believes that audit firms will be able to deliver despite the challenges.
“It is, however, important to note that our labour market is being impacted in a disruptive manner and we need to respond to the changing dynamics," he said.