KEY CHALLENGES IN ACCESSING TOP FINANCE AND ACCOUNTING TALENT IN SRI LANKA

 Overview

This decade has proven exceptionally challenging for the Sri Lankan economy. The impact of terrorist attacks, the COVID-19 pandemic, and political instability have taken a toll on various sectors, including the education system. Prolonged exam delays and obstacles in remote education have disrupted academic progress for many students, delaying their academic achievements.

Additionally, the economic crisis has led to an increased migration rate among professionals and students pursuing better education and career opportunities abroad. This talent drain has contributed to a significant shortage of skilled workers, particularly within the finance and accounting sectors. (Abayasekara, 2021)

Essential Academic Qualifications for Sri Lanka's Finance and Accounting Industry

In Sri Lanka, qualifications for finance and accounting roles typically align with global standards, and several professional certifications and degrees are recognized and valued by employers. Here are the main academic qualifications and certifications commonly required in Sri Lanka’s finance and accounting sector (Perera, et al., 2021)

1. Bachelor’s degree Eg: BBA and BA Degrees with Jayawardenapura, Colombo, and Peradeniya.

1. Professional accounting qualifications such as Chartered Accountants, AAT(SL), CIMA, and ACCA.

1. Postgraduate degrees and MBA.

1. Other relevant certifications like Chartered Financial Analyst, Certified Public Accountant, and Diploma in Taxation.

1. Skills in accounting software like Quickbooks Sage SAP also give an advantage to the accounting and finance sector.

Challenges of Finding Talent Groups for Recruitment in Sri Lanka

Sri Lanka's economic downturn has significantly impacted the job market, creating unique challenges for recruiters. Key issues include:

• Talent Drain and Skill Shortages: Economic instability has led to increased emigration of skilled professionals, particularly in IT, finance, and healthcare. Additionally, many fresh graduates lack the practical skills needed for immediate employment.
• Rising Compensation Expectations: Inflation and currency depreciation have forced candidates to demand higher salaries and benefits to maintain their standard of living.
• Intense Competition for Talent: With fewer qualified candidates available, organizations are facing fierce competition to attract and retain top talent.
• Budgetary Constraints: Economic pressures have limited recruitment budgets, making it difficult to invest in hiring strategies and talent development programs.

To overcome these challenges, recruiters must adapt their strategies to attract and retain top talent in a competitive market.

Talent Acquisition theories when in a crisis

There are 2 primary theories that can be applied when recruiting. Those theories address candidates' primary concerns such as security stability and motivation.

 Maslow’s Theory (Maslow, 1943)

Relevance During a Crisis: In times of uncertainty, candidates are often focused on stability, security, and meeting basic needs over aspirational career growth.

Applying to Talen Acquisition:

·        Highlight Job Security: Emphasize the stability and resilience of the organization, as well as its commitment to employee welfare during challenging times.

·        Focus on Safety and Health Measures: If the crisis involves health risks (e.g., a pandemic), TA can showcase the organization’s commitment to safe working environments and work-life balance.

·        Supportive Benefits: Make sure candidates understand the support systems in place, such as healthcare, mental health support, flexible work arrangements, or financial assistance

Herzberg’s Two-Factor Theory (Herzberg, Mausner, & Snyderman, 1959)

Relevance During a Crisis: When the workforce is under stress, hygiene factors become more crucial, as dissatisfaction often stems from issues like pay, job stability, and work environment.

Applying to Talent Acquisition:

·        Emphasize Hygiene Factors: Candidates in a crisis will prioritize stable salaries, strong benefits, and flexibility. Highlighting these aspects in job offers can reduce their anxiety and attract them to the organization.

·        Offer Motivators for Retention and Morale: During crises, motivation can dip. Showcasing opportunities for recognition, development, or leadership roles helps keep morale high, which is important for hiring and retaining talent in turbulent times.

How to Overcome Challenges of Finding Talent Groups for Recruitment in Sri Lanka

Build Strong Partnerships: Collaborate with universities, industry bodies, and professional associations to source talent and stay updated on industry trends.

Expand Your Talent Pool: Explore regional talent and offer flexible work arrangements to attract skilled professionals beyond major cities.

Elevate Your Employer Brand: Highlight unique selling points, emphasize career growth, and leverage social media to attract top talent.

Invest in Skill Development: Create in-house training programs and partner with skill development initiatives to upskill your workforce.

Tap into the Sri Lankan Diaspora: Engage with Sri Lankan expatriates and target global job fairs to attract experienced professionals.

Partner with Specialized Recruitment Agencies: Utilize niche agencies to access pre-vetted candidates and fill temporary roles.

Embrace Diversity and Inclusion: Widen your hiring criteria and implement inclusive policies to attract a diverse talent pool.

Leverage Employee Referrals: Encourage employee referrals and offer incentives to attract like-minded talent.

Streamline Your Hiring Process: Optimize your hiring process to be efficient and responsive to attract top talent.

Conclusion

Sri Lanka's finance and accounting sectors are grappling with a severe talent shortage due to economic instability and the exodus of skilled professionals. The recent financial crisis has exacerbated this issue, driving many experienced workers to seek opportunities abroad. Despite high demand, companies face challenges in attracting and retaining talent due to limited resources and the rising expectations of candidates.

To address these challenges, organizations must prioritize job security, stability, and motivation. By building strong employer brands, implementing innovative recruitment strategies, and offering competitive compensation and benefits packages, companies can attract and retain top talent. Additionally, fostering a positive work environment, providing opportunities for professional development, and embracing flexible work arrangements can help attract and retain a diverse pool of skilled professionals.

References

Abayasekara, A. (2021, June 21). Building a Crisis-Resilient Education System in Sri Lanka. Retrieved from www.development.asia.com: https://development.asia/insight/building-crisis-resilient-education-system-sri-lanka

Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The Motivation to Work. New York: John Wiley & Sons.

Maslow, A. H. (1943). Psychological Review. A Theory of Human Motivation, 50.

Perera, J., Perera, U., Guruge, N., Sundaramoorthi , S., Madavika, N., & Weerarathna, R. (2021). Accounting Education towards Sustainable Labour Markets in Sri Lanka, 48.