As we head towards the fourth quarter of 2024, the accountancy and finance profession is in a period of transition, with economic pressures, technological advancements, and evolving employee expectations emerging as key themes. Our annual Global Talent Trends Survey for 2024 highlights significant shifts in how organisations in the region manage human resources, with a strong emphasis on talent attraction, retention, and development in an increasingly competitive landscape.

Over 9,889 finance professionals from 157 countries were asked about the concerns they held about the future of their work. Across the Middle East, over 270 finance professionals responded from a broad range of sectors and the results reveal both the short and long-term challenges the profession is dealing with. 

One of the most prominent trends in the Middle East’s accounting industry is the impact of inflation on wage dynamics. According to the report, inflation’s effect on real wages is a major concern, with 33% of finance professionals in the region identifying it as a top issue. This concern mirrors global trends, where inflation pressures have led to heightened wage demands from employees, both during recruitment and in ongoing employment situations. In fact, 29% of respondents in the Middle East cited remuneration as a leading reason for moving to a different organisation, second only to better career opportunities (38%). This trend underscores the critical importance for HR departments to regularly review and adjust compensation packages to remain competitive and retain top talent.

However, it’s not just about offering higher salaries; the broader economic context, including concerns over a potential global downturn, adds additional challenges. Although only 26% of Middle East respondents are worried that an economic downturn might reduce job opportunities, HR strategies need to be refined, offering not only competitive pay but also career development opportunities that resonate with the broader aspirations of employees.

The report also reveals that 57% of professionals in the region believe work pressures are harming their mental health, and an overwhelming 70% are calling for more support from their organisations in managing these challenges. This data highlights a significant gap between employee needs and organisational responses, with over half of the respondents feeling that their employers do not prioritise mental health adequately.

The mental health challenge: Addressing employee well-being in accounting

The implications of burnout extend beyond individual wellbeing; they are directly linked to job satisfaction and retention. Inadequate career development opportunities have been identified as the primary work-related concern for 34% of respondents, while better opportunities elsewhere are the foremost reason for considering a move. This link suggests that employees who feel supported in their career growth and mental health are more likely to remain loyal to their organisations. HR departments must, therefore, place a strong emphasis on creating supportive work environments that address these issues head-on. 

Implementing flexible working arrangements, offering mental health resources, and ensuring that employees have clear paths for career advancement are critical strategies. Moreover, promoting a culture of openness where mental health is discussed and prioritised can help minimise burnout and enhance overall employee satisfaction.

Office vs. Remote: The debate on work models in the Middle East

Despite global shifts towards remote and hybrid working models, the Middle East accounting industry remains largely office-based. 78% of professionals in the region are fully office-based, with only 23% working in hybrid or fully remote arrangements.

The preference for office-based work in the Middle East could be attributed to various factors, including cultural norms, organisational infrastructure, and concerns about productivity. However, this model may not align with the desires of the workforce, as many respondents expressed a preference for more flexible working arrangements. In fact, over half of the professionals surveyed believe they would be more productive working remotely.

For HR leaders, this presents both a challenge and an opportunity. While maintaining office-based work may be the norm for some, there is a clear demand for greater flexibility.

Organisations that can successfully integrate hybrid or remote work options are likely to see increased job satisfaction, which in turn can lead to higher retention rates.

Additionally, offering flexible work arrangements can make an organisation more attractive to international talent, which is particularly important in a region where the competition for skilled professionals is fierce.

Embracing technology: Navigating the challenges and opportunities in accounting

One of the most intriguing themes that is reshaping the accounting industry is technology. Technology is reshaping the accounting industry at an unprecedented pace, and while it offers significant opportunities for enhanced productivity and value creation, it also brings about considerable challenges, and concerns. 

This duality, where technology is both empowering and intimidating, presents a complex scenario for HR professionals. On one hand, there is a clear need to embrace technology to stay competitive. On the other, there is an equally pressing need to manage the fears and anxieties that come with technological disruption. 

In the Middle East, 83% of accounting professionals view artificial intelligence (AI) and other technological advancements as tools that can help them add more value to their organisations. However, there is a palpable sense of unease regarding the rapid pace of technological change, with 52% of respondents feeling overwhelmed by it and 49% expressing concerns specifically about the impact of AI on their jobs.

Training and development are key areas where HR can make a significant impact. Our report highlights that 92% of Middle East respondents would like more training on technology provided by their employers. This statistic underscores the importance of continuous learning and upskilling as central components of HR strategy. By investing in training programs that equip employees with the necessary skills to navigate the evolving technological landscape, organisations can harness the full potential of technological advancements.

Furthermore, addressing the concerns about job displacement is important. Being transparent, with clear communication and understanding is vital. HR leaders should work closely with other departments to identify roles that may be impacted by AI and develop strategies for reskilling or redeploying affected employees. By doing so, organisations can position themselves as forward-thinking employers who are committed to their workforce’s long-term success.

Diversity and inclusion: A growing priority in the Middle East

The final key theme that we see emerging from this thought-provoking report is diversity and inclusion (D&I). A subject that is becoming increasingly important in the global HR agenda, there is a growing emphasis on inclusive practices worldwide. As organisations in the Middle East continue to expand, there is a growing need to cultivate environments where diversity is celebrated and inclusion is a priority. This includes not only gender and cultural diversity but also diversity of thought and experience, which can drive innovation and better decision-making. HR strategies should, therefore, be geared towards creating inclusive workplaces where all employees feel valued and have equal opportunities to succeed.

Moreover, in a region where expatriate workers make up a significant portion of the workforce, cultural sensitivity and adaptability are crucial. HR leaders should ensure that their policies and practices are inclusive and respectful of the diverse backgrounds and perspectives that employees bring to the table. This not only enhances employee engagement, but also strengthens the organisation’s reputation as an employer of choice in a competitive market.

Cultivating a culture of well-being is essential for attracting and retaining top talent. As mental health issues become more prevalent, organisations that take proactive steps to support their employees’ well-being will have a competitive advantage. This includes not only implementing policies that promote work-life balance but also providing resources and support systems that address mental health concerns.

The talent challenge: Attracting and retaining top talent in a competitive market

The shortage of talent and cost of meeting pay rise demands, together with the many job opportunities available to professional accountants, means that attracting and retaining talent presents a huge ongoing challenge for employers. 

Therefore it’s unsurprising that the number of respondents planning to move away from their organisations globally is high. However, with 82% of respondents in the Middle East saying that a strong diversity and inclusivity culture is a key factor in choosing an employer, there’s a real opportunity for employers who are strong in this area to differentiate themselves in a competitive market.

Looking ahead, the future of HR in the Middle East’s accounting industry will be shaped by how effectively organisations can adapt to the evolving landscape. There is a clear need for organisations to be more agile in their talent management approaches. This includes being responsive to economic shifts, technological advancements, and changing employee expectations. HR leaders must adopt a forward-looking mindset, anticipating trends and preparing their organisations to meet future challenges head-on.