Every economy faces the usual trends of boom and recession; however, the current situation is continually deteriorating, going towards a much severe state of depression. Unfortunately, there is a global crisis and that no one country's economy is worse off but the whole world economy is facing a drastic downturn. Swift and bold actions need to be taken to tackle this weakening economic position; as quoted by Mr. Barack H. Obama, the newly elected President of the USA, in his inaugural speech. But the point of concern is how did this situation arise in the first place and what is this term, "the credit crunch"? Most importantly, I am much more concerned about how will this impact the role and position of the modern accountant, more specifically in terms of the newly emerging "talent crunch".
With major corporate collapses, relating to global investment and banking companies such as 'Lehman Brothers', and 'Bear Stearns', the world has witnessed a dramatic decline in its economy. Likewise, stakeholders have lost a great deal of confidence in the performance of similar institutions and so stock exchange or capital markets all around the globe are facing a crashing situation. Most people believe that accountants are responsible for this menace either directly or indirectly. They may be right in thinking so because such companies going bankrupt is a result of following inappropriate policies and key governance failures. Those charged with governance are held responsible for pursuing improper corporate governance policies. One major reason for such corporate collapses relating to these banking companies was their unsuitable lending decisions; not taking into account the creditworthiness of their customers properly, resulting in large losses, which ultimately is a huge flaw in their corporate governance procedures. As a result, such banks are forced to file for bankruptcy when they encounter liquidity issues to fulfill their obligations. It is easy as it seems to blame accountants for all this but they can also make the economy of the world bloom once again.
This recessionary period and the credit crunch have given rise to a new phenomenon known as the 'talent crunch'. Every now and then, we hear the news that some company has undergone major corporate restructuring thereby making its staff redundant in order to reduce their cost burden. Therefore, for accountants especially, the jobs market is under the influence of fierce competition and those who are already employed are also finding it difficult to maintain their positions. In such situations, only those who are really competent and can demonstrate their capabilities are likely to succeed. The key is to make yourself more marketable and attractive to potential employers, leaving them no choice but to hire you, no matter the cost. Every skill and experience counts, whether it be from any sector of work, as far as its relevance to potential employment can be displayed. Employers nowadays are looking for that certain X-factor in a potential recruit. You need to explain to the employer how useful you can be despite the current credit crunch. The severe state of competition in the jobs market now requires one's CV to be more luring to potential employers. Leadership skills are also important and any experience demonstrating such aptitudes are always worthy of mentioning in a CV. All in all, a CV nevertheless, shall truly mention the attributes of the candidate, but at the same time it should make the candidate unique in some way in the eyes of the employer, thereby reflecting that charisma that employers are looking for. The recipe of securing a worthwhile job is to literally sell you to a potential employer, through an appealing CV.
The world has witnessed a global meltdown, which resulted in the credit crunch and consequently, other economic issues such as unemployment in the form of redundancies, closure of certain industries etc. The modern day accountant is in the best position to tackle this menace as he/she is equipped with the required knowledge and expertise. Accountants those who are also responsible for the governance of companies, are obliged to adopt appropriate corporate governance policies and procedures, implement a sound system of internal controls and carry out a thorough assessment of risk surrounding their enterprise. Secondly, in this fiercely competitive jobs market, accountants need not just to say they are competent for a particular post, but to demonstrate precisely how they are. Every experience counts, especially an international one! The past role should be relevant to the position being applied to, or at least relate to it so that a prospective employer can see clearly if he/she can utilize your skills beneficially and most importantly, to add value to the business.
The economic recession is gripping and every economy is getting under its deadly clutches. But the skills and expertise of the modern day accountant are strong enough to handle such pressures and are capable of assisting him/her in surviving the CRUNCH!.....and even in bringing the economy to its proper glory again.
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