Essay: Preferences of employers in relation to expectations of accounting graduates

The current environment beset with numerous changes due to globalization, heightened competition, numerous amounts of transactions, technological advance, increasing growth of knowledge makes the role of accountant as a “bean counter”. This reality renders accounting as a key discipline because it functions as the “language of business” (Burritt and Tingey –Holyoak 2011).
Presently, accountants are regarded as professionals with a sense of leadership, able to manage a team and to exercise rigorous and transparent judgment in various situations (Jones & Abraham, 2009). They are regarded as “generalists with special knowledge” or “knowledge specialists” (Jackling and De Lange, 2009).
The accountant does not only perform as a routine and related compliance work as in the past. He can also act as an adviser and consultant and even become a business partner. Due to the expanding role of accountants employers and recruiters require varied range of competencies and qualities among accounting graduates (Wells et al., 2009).
Many Accounting graduates who join the labor market are found to lack readiness in coping to the work environment and handle their job responsibilities (Ngoo et al., 2015). This is because many students are still learning the 201th century in the 21st century. Employers in the 21st century are looking for a different kind of skills-set. Both employers and educators have been calling business and accounting teachers to teach and students to acquire creativity and innovation skills; collaboration skills; information management skills; critical thinking   and problem solving skills; effective use of technology skills; communication skills; cultural awareness skills; and life-long learning skills (Beers, n.d.). .
This is a study which seeks to establish the preferences of employers in general relating to their expectations of accounting graduates in terms of accounting knowledge, personal qualities, and general work related skills.  It is deemed that the findings will help accounting educators and academic institutions offer accounting studies in local schools which incorporate employer expectations in the accounting curriculum.  This will better prepare accounting graduates to enter the profession and at the same time meet the demands of the workplace.
Review of Related Literature
Due to the evolving functions of accountants arising from crucial changes   in both business and non-business entities brought about by widespread globalization and intense competitiveness, gaps exist between the accounting competencies obtained by graduates from educational institutions and those needed by industries. Consequently, schools must consistently keep abreast of the changing needs of the world economy to make their course offerings relevant (Abdul, 2013).
More recent findings suggest that employers are seeking graduates who possess a diverse range of nontechnical skills (Klibi & Oussii, 2013). Skills are particular learned activities that differ largely in terms of complexity. Skills describe what kind of abilities a worker must possess in order to accomplish a required task or duty
Competitive pressures and technology evolution have led to expectations that accounting graduates prove additional skills to suit to new challenges (Bowden et al., 2000). These skills in higher education accounting programs have been suggested as a way to provide accountants more flexibility and adaptability given the continuous evolution of the labor market (Daff et al., 2012).
Evidences reveal a growing list of accounting graduate skills considered vital by employers.  For instance, integrating ethical behavior as part of accounting competencies is found to be indispensable because of the increasing accounting scandals in almost all types of organizations (De Lange, 2009).
Dixon, et al.  (2010) assert that accountants aside from technical skills they must also possess “generic” or “soft” skills such as communication, working under pressure and problem solving. This was further claimed by Abayadeera and Watty (2014) by declaring that there is lack of emphasis on generic skills, accounting education cannot develop competent graduates for employability fit for global careers.  However, it seems that accounting students are generally unaware of the new skills expected for future accountants in this highly changeable worldwide business context.
Generic skills are abilities that can be used and applied across a variety of occupational domain and applied to in a number of different situations.  They are not specific to work in a particular occupation or industry. Gagné referred to them as “domain-independent knowledge.” Some of them are communicating, problem solving, patience, purpose, persistence and courage. Other terms used of generic skills are non-technical skills, capabilities, key competencies and attributes.
Technical skills, on the other hand are abilities required to do specialized tasks. They are related to mechanical, IT, mathematical and scientific activities. Accounting technical skills include journalizing financial transactions, accomplishing and reconciling financial statements. .   These accounting skills are necessary for accurate documenting of financial reports and formulation of courses of action for the company.
Jackling and de Lange (2009) stated that generic skills are now developed along with technical skills. Since most of tasks usually performed by accountants are computerized, generic competencies are now given more importance by employers. Studies show that employers prioritize on generic skills above technical skills (Jackling & de Lange, 2009).
According to IFAC (2002) “professional skills, technical and functional skills consist of general skills as well as skills specific to accountancy. They include: (a) numeracy (mathematical and statistical applications) and IT proficiency; (b) decision modeling and risk analysis; (c) measurement; (d) reporting; and (e) compliance with legislative and regulatory requirements. These skills are critical because they “enable the   professional accountant to make successful use of the knowledge gained through education” (IFAC, 2002).
The research by Bui and Porter’s (2010) found that big firms placed little importance on technical skills but more on skills such as oral presentation, writing, analytical and thinking skills. Small to medium scale firms placed more value on technical skills along with interpersonal attributes.
The level of the qualification possessed by the graduates depends up on the knowledge and skills the graduates have learned during their studies. . Kermis and Kermis (2010) stated that “leading accounting researchers and partners in major public accounting firms have increasingly called for adjusting accounting education to reflect the realities of the current work environment”.
Recently, the accounting education worldwide has been the subject of much debate. Several researchers argue that accounting graduates are ill-equipped to begin professional practice. Previous studies found that university graduates did not possess the skills and attributes that employers were expecting (Low et al., 2013). Albrecht & Sack (2010) claimed that the expectation gap between education and practice is growing. Some studies by Bui & Porter (2010).attributed this gap to lack of generic skills possessed by accounting graduates, which results in the lack of work preparedness among accounting graduates.  They suggested that in order to produce job-ready graduates, it is important for higher education to keep updating their curriculum in accordance with current business practice.
Awareness and knowledge of the set of skill demands of employers is therefore vital according to Hodges and Burchell, 2003 as cited in Tanaka and Sithole, 2015). Thus, it is necessary that needed skills and abilities by prospective employers are to be included in the current curriculum. Kermis and Kermis (2010) asserted that researchers and partners in public accounting firms have insisted in modifying accounting education to reflect the modern work environment.
Recognizing the urgency to produce accounting graduates who are work ready, many universities have taken action by including non-technical skills in their accounting curriculum (Bunney and Therry, 2011). However, the core content of most accounting courses remains to be centered on technical skills accentuating on applying accounting concepts to a different replicated circumstances.
Chung and Yet (2009) argued that graduates possess good skills and attributes are highly valued by employers would definitely succeed their way into the labor market. Towards meeting the requirement by industry, the changes have to be implemented in accounting education.
Therefore, the challenge for accounting education is to build graduate attributes within and across the accounting education programs to meet the expectations of employers of the 21st century expectations of entry-level accountants (Cory & Pruske, 2012).
Employers in Australia were found to evaluate “generic attributes” such as team skills, leadership and verbal communication rather than technical skills (Jackling and De Lange, 2009).  Similarly, the research conducted by Botes (2009) revealed that in South Africa, technical skills ranked fifth least important skills while verbal communication skills were fifth most important.
Tempone et al. (2012) confirmed that a group of five least learning outcomes for Bachelor and Masters Degree in accounting are ability to exercise judgment, communication skills, teamwork, self-management and discipline. He stressed that although  technical skills are the main requirements, employers also prefer graduates equipped with communication and presentation skills as well as teamwork and self-management traits. However, Kavanagh and Dreman (2008) asserted that employers prioritize on three most important attributes namely, analytical/problem-solving skills, business awareness, life experience and fundamental accounting skills.
Similarly, a study on the employers’ general expectations of entry-level accountants in terms of accounting knowledge, personal qualities and general work related skills.   Thatong (2016) claimed that collaboration, communication, problem solving and good technological skills are among the top desired general skills. In terms of personal qualities, integrity and ethics, organization of work and handling of tight schedules, and response to clients in a timely and friendly manner are the top ones employers sought after. Most seek after accounting knowledge includes a good understanding of accounting principles, accounting standards, and the ability to prepare accounting analyses and financial reports
Tan, Folwer and Hawkes (2004) expanded employability skills required of accountant by claiming that the most important behavioral skills considered by employers are teamwork, positive outlook and proficiency in communication. This implies that the role of accountants is altered from being “backroom number crunchers” to business specialists.
The results of a survey results by Sithole and Tanaka (2015) established that written communication as well as reporting skills coupled with computing techniques are demanded by thirty-five accounting employers. With regards to technological skills, they indicated that while students must be trained in word-processing and communication software, graduates need competencies in accounting packages and spreadsheet competencies for entry-level employment.
Uy (2016) declared that in the Philippines similar to the U.S., accounting curricula mainly prepares the graduates to hurdle the certified public accountants (CPA) board examinations and a career in public accounting. However, unlike the U.S. operations of Philippine universities and colleagues regulated by the Commission Higher Education (CHED) and the profession by a government body under the Professional Regulatory Commission, the Board of Accountancy (BOA). CHED issues the accounting program standards and guidelines while BOA issues the syllabus for the entry-level professional examinations called the Certified Public Accountant Licensure Examinations.
According to a survey of the Asian Development Bank, accounting graduates in the Philippines have lots of job opportunities because of the degree they have finished but having   hard times finding a regular job. Accounting job opportunities can be classified into four categories: Book keeper, accounting clerk, and Certified Public Accountant (CPA).
A paper by Mabuhay (2016)  examines the levels of competencies and readiness of Philippine accountancy students for the implementation of the ASEAN Economic Community in 2015 showed that their inadequacy of skills eagerness to learn and positive attitudes toward learning situations specified in lifelong learning techniques, key transition knowledge and skills. Some of the possible jobs of accountants are: Chartered accountants, financial and accounting technicians, taxation experts, accounts, wages clerks and bookkeepers.
One of the problems of accountants in getting employed after graduation in the Philippines is meeting the job requirements that an organization requires of applicants for a job (Refozar & Del Mundo,  2013).  Specifically, most graduates in Financial and Management Accounting encounter job mismatch between the competencies learned in school and the needs of the industry making the graduates unfit for the jobs available in the labor market. Job mismatch occurs when the applicants do not have the needed skills or qualities necessary for the work (Jasa & Corpuz, 2013). Accounting students face a jobs-skills mismatch wherein the training of jobseekers simply does not match the requirements of the companies looking for people to fill their vacancies.
Accountants are fast becoming important source for future leaders in business and therefore they need a wider range of skills outside the technical competence required by the profession. As a result, employers are seeking accounting graduates who are equipped with technical skills and more significantly generic or non-technical skills. However, many researches showed that a gap is created between the accounting competencies of graduates produced by schools and the requirements of the employers. This situation motivated the researcher to examine the skills required by selected employers of accountants at Clark Development Corporation which is considered as one of the major source of employment in Pampanga and the surrounding provinces.