This report analyzes survey responses from about 250 top tax leaders in corporate tax departments across the U.S. Key takeaways include:
- Hiring Expectations: 61% of tax departments plan to hire in 2024, the lowest since 2019. However, the report suggests actual hiring may be higher due to unexpected turnover and other factors.
- Compensation Concerns: 55% of tax leaders believe their teams are under-compensated. This, coupled with expected salary inflation, highlights the need to align compensation with market standards.
- Critical Functional Areas: Tax Accounting, Tax Technology, and Tax Planning are the top three areas for hiring in 2024.
- Budget Impacts: 54% of tax leaders expect reductions in consulting budgets, while 41% anticipate potential hiring freezes.
- Retirement Impact: Despite 77% of respondents not expecting retirements to affect their function, data suggests baby boomers still hold a significant portion of top tax positions.
- Talent Acquisition Strategies: The report recommends several strategies including compensation benchmarking, strategic workforce planning, budget optimization, and knowledge transfer initiatives.
- Market Dynamics: The report emphasizes the challenges of a tight labor market, especially for critical roles, due to factors like the captive labor pool in tax and low numbers of accounting graduates.
The report stresses the need for tax departments to be proactive and agile in their hiring and retention strategies to navigate the complexities of the 2024 tax hiring landscape.
