The Recruitment Drought in the Internal Audit Industry
Why are internal audit roles constantly being posted?
2 min read
The internal audit industry is currently facing a significant challenge: a recruitment drought. Despite the uncertainty surrounding the economy and the talent shortages that marked 2023, employers have been hiring audit professionals at historically high levels. However, the recruitment activity in the UK has slowed slightly due to the same economic uncertainty and candidate shortages.
The Role of Compensation
One of the major factors contributing to this recruitment crisis is the steady upward trajectory of audit salaries and bonus offerings. In 2023, 77% of employers cited compensation expectations as a major hurdle in hiring. As the demand for skilled auditors grows, so does the competition for their services, leading to an increase in compensation expectations.
Changing Risk Landscape
Another factor contributing to the recruitment drought is the changing risk landscape. The increasing need for new skills in areas such as data analytics, cybersecurity, and artificial intelligence necessitates that internal audit teams cast a wider net for new recruits. This shift in required skills is not only changing the profile of the ideal candidate but also increasing the competition for these individuals.
The Importance of Soft Skills
In today’s competitive job market, some of the softer skills related to leadership and communication are being prioritised by hiring managers. These skills, which were once considered secondary to technical expertise, are now being recognised as critical for the successful performance of an internal auditor.
Competition with Tech Sector
Internal audit is also competing with some of the biggest names across the tech sector for graduates with backgrounds in AI, cybersecurity, and data analytics. This competition further exacerbates the recruitment drought in the internal audit industry.
Regulatory Scrutiny and Audit Thresholds
Increased audit thresholds and greater scrutiny from regulators are other factors contributing to the recruitment crisis. These changes have increased the complexity and demands of the internal audit function, thereby increasing the need for skilled professionals.
In conclusion, while there is a high demand for internal auditors, the industry is facing a recruitment crisis due to a combination of factors such as increased audit thresholds, greater scrutiny from regulators, and the need for a shift in skills and expertise. Addressing these challenges will require innovative approaches to recruitment and talent management in the internal audit industry.
