Labour Market: Research Data, Statistics, Information (Essay Sample)

Accounting Profession and the Banking Industry in Australia
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Accounting Profession and the Banking Industry in Australia
Introduction
Labor markets have been changing recently due to different trends being realized in the labor market. Issues like the gig economy, rising incidences of part time jobs, self-employment, underemployment and youth unemployment has changed the design and nature of the labor market. Somasundaram (2017) argues that the Australian labor market has been described as being on an encouraging as compared to other European and western world countries. However, the Australian Bureau of Statistics has reported different trends in part time and full-time employment have been characterizing as zig zag in nature due to the back and forth switching of employment trends in the country.
Accounting forms one of the largest occupations in the country with the job market experiencing a shortage of skilled accountants with the filed reporting an unemployment rate of 4.5% (Australian Workforce and Productiviy Agency, 2016). This is because the field offers a wide range of jobs that fall within its field. However, the field has been experiencing different trends that are caused by changes in the economy both locally and globally. This document highlights trends in the accounting field with an emphasis in the banking sector.
Trends in the accounting industry
Trends in the accounting field can be traced to the early accounting practices and the current practices that exist today. Accounting is known as the core of any business operation. The language of accounting has undergone several transformations due to advances in technology. According to Elliott (2006) the principles of accounting used in the past and the ones used today have not changed but the tools have changed to accommodate the complexity of data being managed today as compared in the past. Enterprise Resource Planning (ERP) solutions were invented as a way of enabling accountant and organizations to manage large chunks of data that they deal with. This allowed accountants to merge financial data from different departments and functional units within an organization and make financial decisions to the organization.
The Australian accounting profession has been hit by an influx of foreign students while on the other hand Australians are slowly deserting this field. Researchers have argued that the accounting field will face several changes in the next few decades CITATION Edm14 \l 1033 (Tadros & Agnes King, 2014). The first game changer is the use of sophisticate technology to enhance the traditional working. This includes use of software and programs to perform accounting tasks. Secondly, the increased globalization which will lead to outsourcing of professions from other countries like India and China. Australia is experiencing an outburst of foreign professionals that are changing the field. Lastly increased regulation of rules in the sector
Research in the field indicates that changing technology is the biggest challenge that the accounting profession is facing. Everyday technology is advancing making it difficult for accountants to catch up with the changing technology CITATION Ste11 \l 1033 (Stevensopn, 2011). Many organizations are adopting new decision-making tools as a way of maximizing efficiency in their outputs. However, accountants are struggling to catch up with these new accounting technologies. The introduction of cloud accounting technologies has not been taken well by some organizations since some business processes are still manual. This is calling for a transition in the profession to keep up with the boat of technology. However, these new technologies area a threat to accountants since they can be run without the need of an accountant. The tools require keying in figures and then they do all the required accounting calculations. The question therefore, is how the accounting profession will look like in future.
Firm consolidation is also posing a threat to the accounting industry in the recent years. The need to reduce overhead costs has led firms to consolidation and share resources as a way to save. Many firms are working together to reduce this costs with the presence of part time and casualization of the workforce. Australia is one of the countries enjoying part time work arrangements in its workforce CITATION Chr12 \l 1033 (Kent & Debelle, 2012). This has made firms to adopt different strategies for reducing cost and maximizing efficiency. Further, the rise of small firms has been a game changer. Small firms are offering easy services to many organizations rather than hiring permanent employees. Through consultancy, small firms offer real time services to large organizations at a lower cost as compared to hiring permanent employees in the organization.
On the other hand, Kent & Debelle (2012) suggest that demographic shifts in the economy has led to ownership and management of small businesses that have led to diverse clients. Online technology has created an opportunity for clients to understand their needs and only hiring what they need. Unlike in the previous years where accountant used to be the only ones with knowledge about management of firms, today organizations ensure that their managers understands every business process and can be able to raise issues easily with their employees CITATION Nar17 \l 1033 (Somasundaram, 2017). This has changed accounting to accounting management, meaning that the field is not purely calculation of figures but rather a strategic part of the larger organization. Management has been split into smaller components allowing every component in an organization to be able to play a larger role in the strategic management of an organization.
Part two: The banking industry in Australia
This part is an interview report of an employee of the Common Wealth Bank of Australia who has worked in the organization for the last ten years and risen of a head of department. The interview aimed at gathering firsthand information on trends in the banking industry in the five to ten years. The responded reported that the job market has significantly changed due to priorities of the labor majority who are young people. This is because job expectations from young people of this generation are different from the other generation CITATION Mye01 \l 1033 (Myers, 2001). The employment industry has undergone changes that are shaping the nature of work today. There has been an increasingly number of people who change jobs all the time. The interviewee reported that in the department they work in, young people cannot stay in the organization for more than three years. This has been characterized by the number of people changing jobs every time now and then. This has made job tenure shorter as compared to the past. Most employees do not want life time employment with an organization but rather short term engagements or part time basis.
Part time work has been the recent trend in employment trends since people are engaged in other different activities. This has been caused by casualization of work and putting greater emphasis on part time rather than fulltime. Watson (2013) argues that since 1990, most jobs that have been crreated in Australia are part time making the labor market more flexible but at the same time polarised. Some people have established their own professional business making it difficult for them to engage in fulltime work. On the other hand, Buddelmeyer & Wooden (2011) argue that technology and the internet have created a new platform and employment opportunities where young people are actively engaged in part time. This trend has made organizations to realign and reorganize their employment patterns as a way of meeting the demands in the market since proportions in working hours have dropping considerably. This means that new applicants may be given either a permanent or a part time employment depending on the decision of the hiring manager. The rise of women in the Australian labor market has shifted trends in employment patterns that have affected both the male and female workforce. Sloan (2012) suggests that women make up 45% of the Australian workforce. This means that most organizations are seeking to employ more women in their workforce due to diversity benefits realised with the employment of women.
Part three: Interview report
Common Wealth Bank of Australia is one of the leading banks in the country providing financial services with a range of products. The bank enjoys several brands within the country that are attributed to its success in the financial markets. The banking industry in Australia did not suffer economic effects that were witnessed in Europe and America. This made Australian banks more valuable for market capitalization CITATION Mic16 \l 1033 (Janda, 2016). This is because they are more secure with stronger balance sheets that attract more investors. This is couples with a recovering market, stable housing prices and triple-A credit rating.
According to Price Water House Coopers (2016), theire six forces shaping the banking industry in Australia. These are; technology, Asia, subdued economy, consumer behaviour, changing demographics in the country. This has made banks in the country to become simpler in their businesses to attract more customers and shareholders. Changing demographics are based on an increasingly old, urbanised and reacher population that offers more financial investment. Consumer behaviour is based on a highly educated customer who are law abiding and understands financial investments CITATION Val13 \l 1033 (Valenzuela, Cooksey, Chandralal, & Hassan, 2013). This population chooses wisely the kind of invest,memts they make and how they spend their resources.
Intervention from the government is characterised by environmental constraints, ...