More and more employers are turning to casual or temporary workers to fill their staffing needs. While this trend, known as casualization, has those who vote in favor and those who think is bad news for the industry, we believe the issue is more complex and we need to take into account what it’s happening in the job market.
Casualization can have both benefits for accounting firms such as flexibility and adaptability to growing workflow, and challenges like high turnover rates and low company steam. On the other hand, job seekers might see the opportunity to work simultaneously with different clients and learn from various industries, while others might be threatened by uncertainty.
In this post, we'll explore the advantages and disadvantages of casualization in the accounting industry, as well as best practices for managing casual workers while remaining competitive in today's market.
What Does Casualization Mean?
Casualization is a trend in which employers increasingly rely on casual or temporary workers rather than hiring full-time, permanent employees. Casual workers are typically employed on a short-term basis, often on a part-time or irregular schedule, without the benefits and job security of full-time employees.
Casualization is driven by a variety of factors, including the desire of employers to reduce labor costs, increase flexibility in the workplace, and respond more quickly to changes in demand.
While many would say this is a bad thing, casualization itself shouldn’t be a cause for concern if it is driven by choice. In this blog, we’ve already assessed the topic of the accounting professional shortage and how it is affecting accounting firms' staffing. The truth is, casualization is not only a trend pushed by companies but also by some workers, especially those coming from offshore, seeking flexible work arrangements, nomadic, and freelancing opportunities.
Benefits of Casualization in Accounting Firms
Flexibility
One of the primary advantages of hiring casual workers is increased flexibility to fit demand. Accounting firms that employ casual workers can quickly adapt to recurrent workload changes such as tax season or managing on-time clients.
Reduce costs
Casualization is obviously cost-effective, as casual workers do not receive the same benefits and job security as full-time employees. But this comes with a cost. Hiring casual workers can lead to higher turnover rates and lower employee morale, as casual workers may not feel as invested in the company or their work.
Work-life balance
Casualization could offer job seekers an opportunity, especially in today's society where work-life balance is increasingly valued. There are individuals in the job market who may not be able to commit to full-time employment due to family responsibilities or lifestyle circumstances. For these workers, flexible casual jobs can be an ideal solution.
>> Ready to start hiring? Fill out the form and one of Vintti's account executives will contact you within 24 hours.
Challenges of Casualization in Accounting Firms
Noncompliance with labor laws
There is also the risk of noncompliance with labor laws, as casual workers may not receive the same protections as full-time employees. Accounting firms must ensure that they are following all applicable laws and regulations when hiring and managing casual workers.
Not everyone can afford to be a freelancer
Not everyone has the luxury of choosing when and what they work on. Without addressing these concerns, there is a risk of people slipping through the cracks. Casualization poses challenges such as a lack of wage security, limited bargaining power for wage increases, and restricted access to leave. These challenges can have significant societal implications.
Strategies for Managing Casualization in Accounting Firms
To reap the benefits of casualization while minimizing the challenges, accounting firms can adopt several best practices. First and foremost, it's important to establish clear communication and expectations with casual workers from the outset. This includes providing them with a detailed job description, outlining their rights and responsibilities, and setting clear performance metrics.
Your firm should also provide training and professional development opportunities to casual workers, to help them improve their skills and feel more invested in their work. Using technology and automation can help streamline processes and improve productivity, allowing accounting firms to make the most of their casual workers' time and skills.
Finally, it's important for accounting firms to maintain a positive workplace culture and foster strong relationships with all employees, including casual workers. This can involve offering perks and incentives to casual workers, such as access to company events or professional development opportunities. Additionally, we recommend keeping an open mind in order to give your casual employees the opportunity to access more permanent arrangements and keep your best talent close.
Finding the balance
Casualization is a trend that is here to stay, and accounting firms must adapt to remain competitive in the marketplace. By adopting best practices for managing casual workers, accounting firms can enjoy the benefits of increased flexibility and cost savings, while minimizing the challenges of turnover and noncompliance with labor laws. Ultimately, the key to success in a casualized workforce is to maintain a positive workplace culture and provide all employees with the support and resources they need to succeed.
However, it's essential to approach casualization with moderation and consideration for the industry and job roles involved. While opinions on the trend are divided, taking a balanced approach can ensure that everyone benefits from its advantages without suffering its drawbacks.
>> Ready to start hiring? Fill out the form and one of Vintti's account executives will contact you within 24 hours.
Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
References
B. (2019, June 19). Is The Increasing Casualisation Of The Workforce A Good Thing? - BenchOn. BenchOn. https://www.benchon.com/2019/06/19/is-the-increasing-casualisation-of-the-workforce-a-good-thing/
