Commenting on the partnership model for accounting, Connect Financial Service Brokers chief executive Paul Tynan said Millennials, together with generations X and Y, are already “besieged” with the burden of debt.
As a result they have no capacity to entertain the idea of business ownership, and the partnership model is less appealing than it was to generations past.
“In this environment, new industry entrants are only seeking a stress-free employment situation as they focus on servicing and reducing their mounting debt, and simply don’t want to take on any further financial commitments such as becoming a business owner,” said Mr Tynan.
“This issue, together with a lack of partner alignment to sustainable growth, incoherent decision-making processes and different partner succession planning time horizons, has seen some firms move away from the equity partnership model to a corporate business framework,” he added.
Last week, recruitment firm Hays flagged flagged similar struggles for accounting graduates, saying although they typically have a strong educational foundation, there often lack the necessary skills to succeed in a modern workplace.
In particular, a lack of practical work experience is a significant barrier to employment.
“Accountancy jobs are an example where degrees, and even further professional qualifications, remain relevant. In this industry employers continue to ask for degree-qualified candidates since they value the solid technical foundation such graduates possess,” David Cawley, regional director at Hays, told AccountantsDaily.