Is the grass really greener for experienced CPAs who quit their jobs in public accounting in favor of “better opportunities” in the private world?

That’s the question being asked by many CPA firms today, where staff turnover, particularly at the senior or manager level, can have a devastating impact on operational productivity while generating expensive replacement costs.

Understanding the root causes of voluntary turnover, both uncontrollable and controllable, is the initial step toward reducing it.

First, some bad news. The occupational unemployment rate for accountants is currently quite low—and a contributing factor to higher turnover. Individual firms have little control over this simple reality of corporate life.

The good news is that firms do have control over a second and decisive cause of turnover: the individual’s perception that a better job exists elsewhere. Even when the lure of a similar job for fewer hours or better pay beckons, proven interventions are available to keep staffers from jumping ship.

Open the Firm’s Mindset
There are many ways to influence employee perceptions about the unique benefits of a career in public accounting, as well as opportunities within the firm. Here are a few:

• Interview key employees about the benefits and downsides of working at the firm. These candid discussions can yield vital information to help your firm increase retention through better internal communication, recruiting and selection.
• Respond to and act on useful employee suggestions. Although your firm’s willingness to listen to employees will be viewed positively, implementing their reasonable suggestions to improve the workplace will demonstrate management’s responsiveness. And, by publicizing changes made, your firm can realize the full benefit of reaching out to “partner” with employees on workplace issues.
• Communicate the unique prospects of a career in public accounting. Emphasize opportunities for professional independence, technical specialization and work variety, as well as career training programs available in your firm.
• Select employees committed to a career in public accounting. A surprising number of accountants join CPA firms with the intention of leaving. By offering realistic previews of the work as well as occupational and seasonal demands, many inappropriate candidates will choose to “deselect” themselves in the hiring process.
• Create opportunity paths for employees with differing aspirations. Effective supervision, mentoring and peer involvement help solidify the employee’s relationship with your firm. Promotional opportunities are important to some, but most will not become partners and may not be motivated by that prospect. Make sure each employee (including part-timers) has opportunities and a career path within the firm. All employees want to be valued by the firm!
• Offer flexible work arrangements. The personal needs of employees are similarly diverse. By offering part-time and flexible work schedules, greater support during busy times, and more individual control over how work is structured, your firm can help mitigate the realities of seasonal stress indigenous to public accounting firms.
• Review rewards systems regularly. Employees often measure “compensation fairness” by comparing their own total rewards (salary, benefits and other perquisites) against: 1) the job market, 2) others in your firm with similar responsibilities and 3) their own personal view about the contributions they make to the firm. Review your reward systems regularly from all three perspectives to ensure the “give-get” balance is in alignment.

Make Employees “Feel at Home”
Turnover is not limited to employees dissatisfied with the job, supervisor or workload. For many “happy” employees, the decision to move on results from any number of scenarios: a headhunter’s call, a spouse’s new job in another town, an argument with a partner, or increased child or parental care responsibilities. The achievement of the CPA designation itself can stimulate job search activity.

Although these events are difficult to predict, paying attention to important work and personal life issues (and the employee’s reaction to them) is the hallmark of effective management and a key to greater retention.

By continuously “taking the pulse” of employees through discussions, surveys, interviews and informal “how’s it going” conversations around the water cooler, public accounting firms can create both organization-wide policies and individually-tailored work arrangements that reveal the greenness of their own pastures.

After all, when employees already feel at home, why would they go anywhere else?

About the Author
John K. Allen, Ed.D, is a partner at West Falmouth Associates and an organizational psychologist and executive coach who consults on employee selection and development. He is also president of the New England Society for Applied Psychology. For more information, visit WestFalmouthAssociates.com. 

Reprinted with permission from SumNews, the bi-monthly newsletter of the Massachusetts Society of Certified Public Accountants.