Accountants quitting in recent years and a decline in college students pursuing accounting have put a spotlight on the importance of employee retention for accounting firms. Turnover not only incurs costs but also disrupts workflow and results in a loss of valuable skills and expertise.
Several factors contribute to the high rate of accountants leaving the profession. The stringent requirements, including an additional year of college credits for practice, coupled with a delayed payoff, make entry challenging. It often takes a decade for accountants to secure the high-salaried positions they were promised upon entering the workforce. This has led to a 9% decrease in students pursuing a Bachelor's degree in accounting between 2012 and 2022, as reported by universities.
Professionals across various industries actively seek employers who prioritize the overall well-being and fulfillment of their workforce, both inside and outside of work. A significant aspect that attracts new accounting talent is a strong emphasis on maintaining work-life balance. According to Thomson Reuters, a remarkable 85% of respondents consider employers who actively support work-life balance as their top priority.
Their research also highlights the priority accounting talent places on job stability amidst trends like The Great Resignation and a high job turnover rate among younger professionals. According to the study, 75% of new practitioners consider long-term job stability as a top career goal. Supporting this, previous ACCA research found that the primary reasons young professionals remained with an employer across all sectors were career progression opportunities (59%) and the chance to enhance their skills and knowledge (58%).
To ensure the motivation, engagement, and commitment of your firm's accountants, CPAs, and employees, here are some informative tips for industry leaders and CEOs to foster employee retention and cultivate a loyal and dedicated team.
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