7 Ethical Ways Accounting Firms Can Retain Talent

The "Great Resignation" has not spared the accounting sector. According to a Deloitte survey, 82.4% of personnel managers at public companies identified CPA talent retention as a challenge. As talent retains leverage in a competitive hiring landscape, accounting firms must prioritize retention or risk significant attrition.

Turnover poses real costs. Losing an employee requires expensive recruiting and training of replacements. Productivity drops during transitions. Client relationships suffer without the continuity of service teams. Morale declines if defections seem endemic, spurring further losses.

In 2024, retention requires being proactive. Firms can wait for exit interviews to uncover grievances, or work diligently to prevent them. This article provides seven powerful, practical steps accounting leaders can begin implementing now to retain their stars.

7 Strategies For Accounting Firms Retain Super Talents

Strategy 1- Master the Market with Competitive Compensation

To retain the best accountants, firms must offer compensation and benefits packages that reflect the value of their expertise. Regular market analysis ensures salaries and bonuses remain competitive. Fair pay reduces turnover by making firms desirable workplaces. 

Be aware of differences in expectations across generations. Millennials and Gen Z tend to prioritize purpose and development over money. But inadequate compensation remains a deal-breaker. Older staff with families may appreciate stability but still require fair pay to cover expenses. Identify motivators across groups when structuring rewards.

Don't underestimate the value of benefits. Medical, dental, retirement plans, life insurance, disability protection and generous leave policies influence job decisions. Offer a wide array of options to meet diverse needs. According to PriceWaterhouseCoopers, 55% of employees say benefits directly impact their job satisfaction.

Strategy 2- Reward Exceptional Performance

Beyond fair compensation, recognizing achievements through bonuses, extra time off, and other rewards boosts morale and motivation. These demonstrate that hard work and contributions are valued. Tailor rewards to company culture, resources and employee preferences. Even simple recognitions of great work make staff feel appreciated.

Consider rewarding at both the individual and team level. For individuals, tie performance incentives to specific metrics aligned with growth goals. Offer monetary bonuses for meeting utilisation targets, expanding clientele by a certain percentage or collecting on accounts receivable within a defined timeframe. These measurable objectives allow top performers to reap benefits directly linked to their efforts.

Remember, money is not the only way to recognise success. Public acknowledgments are powerful. Announce promotions and major contributions in company meetings or newsletters. Send peer recognition e-cards for applause from colleagues. Create leadership awards for management excellence.

Provide meaningful perks like paid time off, flexible scheduling, or tickets to events. Even simple gestures like gift cards or lunch with the boss show appreciation. Take top sales earners or client service teams out for experiences together. Mark career milestones with special privileges. The options for rewards are endless - match them to what makes employees feel valued.  

Strategy 3- Offer Robust Development Programs

Investing in continuous skills development demonstrates commitment to nurturing talent from within. This cultivates knowledgeable teams ready to take on new challenges. Provide training, mentoring, and clear advancement pathways. Growth opportunities are a major incentive to stay.

Look for development needs company-wide and address skill gaps. Survey employees to identify areas for growth. Offer training workshops, webinars, conferences, and online courses. Enable pursuits of advanced certifications by covering expenses and allowing study time. 

Create individualised employee development plans through collaborative discussions about goals and aspirations. Outline specific steps to build competencies and assume greater responsibilities. Review plans frequently to ensure progress stays on track.

Strategy 4- Build an Empowering Work Culture

Fostering a supportive work culture is pivotal for retention. Employees want to feel inspired by their firm's mission and empowered in their roles. Promote collaboration, diversity, open communication and flexibility.

Make mission and values core to the workplace experience. Align leadership, operations, policies and tone with establishing a motivating culture. Leading firms like EY highlight building a better working world as central to their purpose. Infuse this spirit into all interactions.

Emphasize professional development and growth opportunities. Challenge staff with engaging assignments that broaden experience. Promote mentoring and training initiatives. Offer tuition reimbursement and research stipends for advanced education. 

Lead by example. Management must exemplify firm values daily. From a culture of sustainability to championing diversity, ensure executives model desired behaviors. Employees follow cues from leadership.

Strategy 5- Prioritize Wellness and Work-Life Balance

The last few years highlighted the importance of physical and mental health. Ensure supportive policies that value employees' overall well-being, inside and outside work. Flexibility and boundaries foster goodwill.

Start by encouraging openness about challenges. Destigmatize mental health needs. Maintain robust and confidential counseling benefits. Strengthen resilience through mindfulness workshops. Show compassion for life obstacles.

Offer flexible and remote work options. Employees given control over schedule and location report better satisfaction. Output matters more than hours logged. Provide collaborative tools for team connectivity.

Strategy 6- Foster Diversity, Equity and Inclusion

Employees want to feel accepted, valued and heard. Champion diversity and model inclusive behaviors. Discrimination has no place in a modern workplace. Equity in opportunities to excel is expected.  

Audit policies, practices and cultures to root out biases. Look at hiring, compensation, advancement and social dynamics through a DEI lens. Measure representation across gender, race, age, ability and other dimensions. Set goals to drive progress.

Provide training at all levels on mitigating unconscious bias. Include diverse voices in decision-making. Seek input from minority groups through mentoring circles, councils and surveys. Create upward feedback channels.

Strategy 7- Align Values from Recruiting to Offboarding

Retention starts from the initial job attraction and interview stage. Set candidates' expectations accurately. Share your mission, culture and expectations transparently. Describe growth opportunities realistically. Avoid overpromising to woo applicants if claims will not hold true.

Continue cultural onboarding after hiring. Make new employees feel welcomed and oriented. Assign peer mentors. Provide the tools, training and guidance needed to be set up for success. Check in frequently as people transition into roles. 

If employees do leave, conduct thorough offboarding interviews. Ask for candid reasons behind the resignation. Reflect on critiques of firm shortcomings. Analyze exit patterns to improve. Part respectfully by acknowledging contributions.

Conclusion

In an era of shifting expectations and job mobility, accounting firms must be proactive about retention. Compensation will always be critical, but does not alone ensure loyalty. Employees seek fulfilling work cultures, development opportunities, flexibility, health support and purpose. 

The strategies above provide impactful options any accounting firm can begin implementing immediately. While individual solutions yield benefits, a combination of financial incentives, culture building, growth pathways and aligning values maximizes impact. Meet employees' needs across multiple dimensions.

About Entigrity

Entigrity™ is a reliable offshore staffing partner for 850+ accounting and CPA firms, 200+ CFOs & businesses across the US, Canada, and the UK, positioning itself among the top outsourced accounting firms. With a flexible and transparent model, the company enables firms of all sizes to acquire skilled accounting, bookkeeping, and tax preparation staff. As a pioneer in offshore accounting, Entigrity ensures precise alignment with the hiring needs of accounting firms, providing staff under your control and management and minimizing concerns about compliance, payroll taxes, overheads, or benefits. Trusted by 40+ of the top 200 US accounting firms, we specialize in supplying highly skilled personnel from India. We have 39 global offices across India. We are GDPR compliant, ISO 27001:2013, and SOC 2 Type II certified. We are now "Great Place to Work Certified™," "KPO Organization of the Year," and "Dream Companies to Work For" among accounting industries. Entigrity is also recognized as a platinum partner by the Institute of Management Accountants (IMA). The company is strategically partnered with Boomer, a BDO Alliance USA and Abacus Alliance member. 

Mukund Bhalala

Offshore Success Advisor

Mukund, Offshore Success Advisor at Entigrity, is a seasoned expert with over six years of experience in revolutionizing accounting firms across North America through innovative offshore staffing solutions. With a passion for customer relationship management and a keen eye for management accounting, Mukund spearheads large-scale projects, nurturing partnerships with leading firms. His extensive journey traversing 36 states and 210 cities in the USA enriched his understanding of diverse customer needs, fueling his commitment to delivering tailored offshore solutions. Mukund's mission is to empower teams, integrate cutting-edge technology, and drive growth in the accounting industry through strategic offshore staffing innovations.