BCAS President CA Anand Bathiya’s Message for the Month of October 2024
Dear Members,
– More than 17.76 lakh applications were received for 17,471 police constable posts [1]
– India needs to create an additional 60 to 148 million jobs by 2030 [2]
– India, on average, grew 6.6% a year in the decade starting in 2010, but the employment growth rate was below 2%, which was below its G20 peers. [2]
The single largest challenge that stands between present-day India and a developed nation is our capacity to create sufficient employment opportunities and thereby leverage our demographic dividend. The Indian economy must generate approximately 7.85 million jobs ‘annually’ in the non-agricultural sector until 2030 to accommodate the increasing workforce3; currently, we fall short of this target. Empirical evidence suggests that jobless growth can lead to unintended consequences of income inequality, economic stagnation, lower productivity, strain on public finances, unrest, etc.
While the broader issue of ‘oversupply’ is a significant challenge for our nation, within our community and profession, the situation seems to be more balanced or even tipping in the opposite direction. Converse to the national phenomenon:
– The second-most critical challenge facing our profession was considered that of ‘Attracting and Retaining Talent’ [4]
– We need more than 30 lakh Chartered Accountants by 2047 [5]
– In 2023-24, the highest number of jobs were created in ‘services’, of which ‘financial services’ being a major contributor. This trend is expected to continue.[6]
1. Maharashtra police recruitment drive outcome.
2. Gita Gopinath, first deputy managing director of International Monetary Fund in conversation with 15th Finance Commission chairman N K Singh.
3. Economic Survey – 2024-25
4. BCAS Membership Survey 2024
5. ICAI president at a press conference in New Delhi on 21st February 2024
6. Study report by Bank of Baroda.
As our profession and organizations expand, we have a genuine opportunity to bridge this dichotomy by creating significant direct and indirect employment, thus remaining true to our purpose of Partners in Nation-building. Globally, the worrisome trend of a declining number of CPAs entering the profession and a fragile student pipeline—alongside over 75% of current CPAs retiring over the next 12 years—creates a unique opportunity for Indian Chartered Accountants to become the key enablers to the business world.
While external factors can offer support, they are not sufficient by themselves to address the challenge of Attracting and Retaining Talent. A vital aspect of fostering growth and excellence in our profession lies in reflecting on our mindset, approach and strategies to attract and, more importantly, retain talent. During the recent BCAS Lecture meeting on Profession @ 2047, Shri Shailesh Haribhakti highlighted the profound effect of small but meaningful adjustments and their overall contribution to our cause. From my observations, a few recurring themes emerge among successful professionals who excel in attracting and retaining talent:
i. Purpose-driven practices: The cultural fabric of purpose-led ethical organizations contrasts sharply with that of short-term, opportunistic entities. Individuals with integrity seek to affiliate with reputable organizations and align with a clear organizational purpose, substantially contributing to team unity. As professional entities, adhering to our core values of ethics, professionalism, and knowledge serves as the most effective method for attracting and retaining top-tier talent. Purpose-driven organizations also embody genuine leadership that emanates from the highest levels.
ii. People over profits: While a business aims for ‘maximization’, a profession strives for ‘satisfaction’. The line between professions and businesses is becoming less clear, and as professionals, an excessive focus on profits is inappropriate. Incidents where health and lives are compromised due to extreme work pressure and toxic environments cause irreparable harm to organizations, their employees, and their families. The culture of prioritizing ‘profits over people’ requires a complete reversal, placing the well-being of team members at the forefront. The practice of paying 1.3x and demanding 1.5x effort does not support sustainable well-being in the long run. Evaluating our progress on the axis of good > better > best is more meaningful than focusing on being big > bigger > biggest.
iii. Investing in the future: As managers or owners, we also have the responsibility of acting as trustees for the future of our teams. The position of influence we hold should be directed toward genuinely caring for and improving our team’s prospects. Adopting the perspective of your subordinates often leads to a more balanced approach to important issues. Organizations designed for longevity positively affect thousands of lives over time.
iv. Collaborate with scale: The scalability and security of an expanding organization inherently attract and retain talent. As teams’ ambitions rise, it becomes essential for organizations to grow and provide long-term career opportunities. Scaling also introduces challenges that test and enhance the capabilities of teams, offering them a chance to reach their full potential.
Fostering an environment where we regard our teams with attention, care, and respect, rather than merely as ‘resources,’ is crucial in tackling the issue of attracting and retaining talent.
Whilst learning events continued throughout the September month, at your Society, four sub-groups have been constituted with specific terms of reference:
i. SA 600 Working Group: The newly released exposure draft on SA 600 by the National Financial Reporting Authority carries significant implications. At BCAS, a working group comprising distinguished accounting professionals has been formed to examine these proposed changes thoroughly and provide meaningful recommendations.
ii. Direct Tax Simplification Working Group: In her Budget speech, the finance minister announced plans to undertake a comprehensive simplification of the current Income Tax Act, 1961. As a leading voice in the accounting and tax field, BCAS has formed a working group with the aims to (i) propose potential simplification strategies, (ii) assess the drafted simplification initiatives once they are available, and (iii) address the educational needs of our members concerning changes brought about by the proposed simplification measures.
iii. Sherpa Steering Group: BCAS has members spread across over 350 cities and towns throughout India. Last year, we launched the Sherpa initiative with the goal of connecting with our community and enhancing engagement. This initiative enables various BCAS projects to extend their reach to different regions, thus magnifying the benefits of BCAS nationwide. To support the development of this crucial initiative, a dedicated steering group has been established.
iv. IIM-M + BCAS Joint Steering Group: As you know, BCAS and IIM Mumbai signed a research-focused MOU last month. To advance this initiative, a joint steering committee featuring leading members from both BCAS and IIM-M has been established. A list of potential research topics has been finalized, and more developments will follow soon.
Separately, the International Tax Committee submitted its representation to the Reserve Bank of India on draft FEM (Export and Import of Goods and Services) Regulations, 2024. The same can be accessed on the Society’s website.
I would like to take this moment to thank our members for their incredible participation in all the BCAS events during the busy month of September, as well as for fully consuming the entire stock of BCAS Referencer publications. The dedication and effort from BCAS volunteers in planning, preparing, and executing these initiatives are immense, and the enthusiastic response from our community motivates us to continue striving for excellence.
