Industry Insights

Although only 2% of accountants reach partner level, research from the BDO Alliance USA Emerging Leaders program shows there is no single “ideal” personality type that determines leadership success. Emerging leaders were not significantly different from the broader accountant population; they were simply slightly stronger in areas like calmness, self-confidence, and teamwork, while tending to score lower in emotional stability — particularly resilience under pressure.

Many organizations assume that bigger bonuses lead to better performance. However, research suggests the link isn’t that simple. For accounting firms, the takeaway is clear: bonuses may change behavior, but they don’t necessarily improve results. They can undermine intrinsic motivation, fuel internal competition, and fail to lift high performers.

Performance conversations are a normal part of leadership — uncomfortable but necessary. However, before addressing underperformance, leaders should first reflect on their own role in the situation. Performance is shaped by clarity, workload, support, alignment, and leadership — not just individual effort.

Hiring offshore accounting staff carries the same risks as in-office hiring—but often with higher hidden costs. A bad hire leads to lost productivity, rework, frustrated managers, and strained client relationships, and these issues can be amplified in remote settings.

AI hiring has entered a new regulatory era. A proposed class-action lawsuit filed in California against Eightfold AI alleges that its hiring algorithms evaluated candidates using hidden scores, sensitive personal data, and opaque processes—without disclosure, consent, or the ability for applicants to review or challenge the results. The case claims potential violations of U.S. consumer-protection laws, fair employment regulations, and, for non-U.S. use, the EU Artificial Intelligence Act.

Accounting firms are turning to AI to ease talent shortages and improve efficiency, but this shift increases—not reduces—the importance of strong hiring decisions. As AI handles routine tasks, accountants must focus more on judgement, critical thinking, ethics, and clear communication—skills that are hard to assess through CVs and interviews alone.

The story of “Winston” illustrates the high cost of a bad hire in accounting. Despite a strong, AI-polished resume and confident interview, Winston lacked core technical skills, which became obvious within weeks. After failed improvement efforts, he was terminated, forcing the firm to restart the hiring process. Bad hires are common, damaging morale and productivity, and can cost at least 150% of salary—made worse by firms delaying tough decisions.

The piece argues that modern hiring has become distorted by AI. Employers use AI to improve job descriptions and screen applications, while candidates use the same tools to tailor resumes and cover letters—sometimes embellishing them. This results in “perfect” applications that reflect AI skill rather than real capability, while more authentic candidates are disadvantaged.

When two top candidates make it to the final stage, choosing between them can be surprisingly difficult — and waiting too long risks losing both. To decide with confidence, take a long-term view by considering each candidate’s future growth potential, not just their ability to fill today’s needs. Look closely at cultural fit by having them interact with your team to see who aligns best with your workplace environment. Use objective testing — technical, cognitive, and personality — to gain an evidence-based comparison beyond interviews and résumés. And if both candidates are truly outstanding, consider whether hiring both could be a strategic advantage, depending on budget and workload. If you do select only one, keep the other warm through ongoing connection, as they may be a strong future hire.

The blog outlines two effective ways to integrate pre-hire testing into your recruitment process to improve decision-making and reduce time spent on unsuitable candidates. Both strategies lead to faster, more focused hiring and can result in offers being made within a week. The post invites readers to share their hiring processes via a LinkedIn poll and offers support for firms wanting help with testing.

New research challenges the belief that people peak professionally in their 20s or 30s. While fluid intelligence declines early, traits that matter most in real-world performance—like crystallized intelligence, emotional stability, conscientiousness, and moral reasoning—reach their highest levels much later. The study shows overall human functioning peaks between ages 55 and 60, placing individuals 40 to 65 in the prime range for complex, high-responsibility roles. For employers, this means rethinking age bias, valuing experienced talent, strengthening retention of older workers, and ensuring leadership development continues well into midlife.

Hiring managers often struggle to get specific, practical insights from personality profiles—like whether a candidate will work independently, embrace technology, or adapt to change. Accountests has developed a quick-reference table that connects common business concerns with the relevant Big Five personality traits measured in their Accountants Personality Profile Questionnaire (APPQ). The table highlights which traits to examine for issues such as business development, leadership, adaptability, and AI-readiness, along with the risks of scoring too low or too high on each. This tool helps employers interpret personality reports more effectively, tailor interview questions, and plan onboarding strategies.