West Falmouth Associates- Uprooting Turnover in Public Accounting

by John K. Allen, Ed.D.
Reprinted with permission of SUM NEWS

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 public CPA firms today, where staff turnover, particularly at the management level, can have a devastating impact on operational productivity, while also 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 firms do have control over a second and more 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.

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, occupation 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 the firm. While promotional opportunities are important to some, most employees will not become partners and may not be motivated by that prospect. Nevertheless, 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 work schedules, greater support during busy times, and more control in how work is structured, your firm can increase retention.

Make employees "feel at home"
Turnover is not limited to employees dissatisfied 'ith 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 spouseÕs 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?

John K. Allen, Ed.D, West Falmouth Associates, is an organizational psychologist and executive coach who consults with MSCPA on employee selection and retention. For more information, visit www.WestFalmouthAssociates.com.

by John K. Allen, Ed.D. Reprinted with permission of SUM NEWS

by John K. Allen, Ed.D.
Reprinted with permission of SUM NEWS