PHILADELPHIA, PA — The Pennsylvania Institute of Certified Public Accountants (PICPA) has released its 2025 Insights report, “Workforce Transformation and Talent Management Strategies,” addressing the evolving challenges within the accounting profession. The report provides a strategic guide for firms navigating staffing shortages, shifting business models, and the growing need for advanced skills.
The report highlights a critical disconnect between future staffing needs and current talent availability. While 75% of firm leaders anticipate requiring the same or more staff to meet demand, 52% expect their firms to downsize by at least 20% within the next five years. Jennifer Cryder, PICPA’s CEO, noted that “standing still is no longer an option,” emphasizing the need for purposeful action to adapt to workforce changes.
One of the central themes of the report is the inadequacy of the traditional “pyramid” staffing model. To address this, PICPA introduces the “Inverted Pentagon” framework, which focuses on precise entry-level hiring, greater upskilling efforts, and retaining junior and mid-level staff in specialized roles.
Challenges impeding transformation are also identified. Over half of surveyed firms (53%) admit they have taken minimal action to tackle workforce changes, and 71% only offer basic or no training programs. Additionally, 47% cite insufficient resources for transformation efforts, while 43% mention financial constraints as key barriers.
To overcome these challenges, the report recommends building capabilities in high-demand areas such as financial data analytics, technology tools like artificial intelligence, and cloud-based platforms. These skills are critical, as 53% of firm leaders identified financial data analytics and visualization as priority areas for entry-level staff development.
The report’s actionable advice is framed around the “6 Ps” of transformation, which include Precision hiring, Proactive retention, Practical technology use, Practice area focus, Pricing expertise, and People acceleration. Together, these strategies aim to modernize accounting operations without losing the trusted adviser role CPAs are known for.
“This is a moment for transformational action,” Cryder stated. “Our hope is to equip accounting firms with the right tools and resources to adapt, while maintaining their core values and the high-value work they deliver.”
By addressing these pressing issues, the 2025 Insights report underscores the steps necessary to ensure the accounting profession’s resilience and relevance in a rapidly changing world.
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