While digital skills are becoming increasingly important, attracting and retaining talent with these skills already in their toolkit is a struggle for tax functions the world over. Tax functions must secure employees with these in-demand skills. But the competition is tough because other industries – banking, insurance, brokerage, manufacturing and more – have a head start.
Retrofitting for the future
Leading organizations must look at the workforce of today and prepare it for tomorrow. That means in-house learning and development programs have to keep pace with the changing demands on talent. This is achievable through partnering with external technology-driven Learning and Development (L&D) organizations in areas of needed expertise.
As an alternative to that kind of learning-focused partnership, businesses can consider external support for tax solutions and services. Tax is taken care of in that instance, letting organizations take care of their core business.
“We’re seeing more and more companies exploring the options … ‘should we be build, buy or a combination of the two,”’ says Travis Fox, EY Global and US Global Tax Platform Business Leader. “Leading organizations want to maximize value while enduring cost pressures to do more with less. They’re facing the challenge of maintaining the investments needed to meet the demand of rapid legislative changes; to maintain digital readiness; and to attract, train and retain the right talent.”
‘Should we build, buy or a combination of the two?’ Leading organizations want to maximize value while enduring cost pressures to do more with less.
Layering in-demand skills atop current employees’ existing experience yields benefits. But doing so effectively is a resource- and time-intensive undertaking, and it’s often nothing short of a tax talent overhaul. Also, if career paths that include these skills aren’t clearly delineated, people are likely to leave for another employer where they can get these skills (often while getting better compensation).
Plug ’n’ play well with others
To supplement emerging competencies, companies should consider teaming with external vendors or accessing a contingent workforce to provide much-needed support.
Because external vendors have made considerable investments in the necessary talent and technology, companies don’t bear that financial burden. Instead, they realize immediate value by dipping into the third party’s digital wellspring.
To supplement emerging competencies, companies should consider teaming with external vendors or accessing a contingent workforce to provide much-needed support.
In this way, tax organizations are primed to meet the demands of today’s digital business environment while staying on the leading edge of change.
By taking a proactive approach to the shift in core competencies, tax leaders will not only address the pressing need to fill the skills gap but also position their organizations to seize opportunities to come.
Summary
The importance of traditional tax skills is waning, while expertise in digital analysis and process improvement is increasing. If these changes are here to stay – and all signs point in that direction – organizations must quickly address this skills gap.
