The 2023 Global Tax Market Assessment webinar shares insights on the challenges and trends shaping the tax profession. 2023 is a year of uncertainty, with several factors contributing to a complex landscape for tax departments. We covered key topics including OECD Pillar 1/2 implementation, the potential EY split, economic recession concerns, baby boomer retirements, and ongoing supply and demand issues in the tax talent market. Here are the main takeaways from our presentation:
OECD Pillar 1/2 Uncertainty:
Companies need to assess if they have the internal skills to handle potential changes.
Options include hiring permanently, using interim help from Big 4 or staffing firms, or training existing staff.
Companies that have prepared need to focus on retaining their talent.
Potential EY Split Impact:
Could lead to increased shortage of US tax professionals.
May increase cost of training and retention as firms try to keep talent.
Companies should focus on building their employment brand to attract/retain talent.
Economic Recession Impact:
Unlike past recessions, may not provide relief in hiring/retention due to ongoing talent shortages.
Tax leaders need to be proactive in communicating with leadership about potential impacts.
Focus on development strategies for top performers.
Baby Boomer Exodus:
Projected to lose 2/3 of #1 and #2 tax roles in next 4 years.
Not enough Gen X to fill gaps, so millennials advancing faster.
Need to focus on development and succession planning now.
Supply and Demand Issues:
Key factors: captive labor pool, boomer retirements, Gen X shortage, spinoffs creating new departments, remote work.
Strategies: focus on retention, benchmark compensation, be flexible in hiring, use contractors.
High Demand Areas:
International tax, tax accounting, transfer pricing, audit defense
Growing demand in state/local and indirect tax due to retirements
Specialty areas like motor fuels tax seeing increased demand
In this webinar, we emphasized the need for tax leaders to be proactive, flexible, and strategic in addressing these challenges through succession planning, development, creative resourcing, and strong communication with leadership.
