3 Ways to Improve Your Accounting Firm's Recruitment & Retention

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Houston, do we have a problem? Over 300,000 accountants and auditors in the United States have left the profession in the last 2 years. Over 25% of accountants aged from 18-to-38 plan to leave their current employer in the next 12 months. Some days it feels like rough waters for those of us riding out the accounting wave, yet  according to the Bureau of Labor Statistics, the demand for accountants is forecast to grow 7% from 2020 to 2030.

Ok, so demand for our services is increasing, but our pipeline is decreasing. It may be time for a good hard look in the mirror to understand how to break this vicious cycle.

I believe that our industry has a stale perception of being boring, antiquated, and too resistant to change. This impacts our pipeline greatly.

The Retention Dilemma

Average annual CPA firm turnover is 15% of which 84% is voluntary turnover. According to a survey conducted by the Illinois CPA Society here were the top 3 reasons why employees left their jobs:

• Salary
• Burnout/Workload
• Work-life Balance
  

Anyone shocked by that data? I don’t think so. Unsurprisingly, there was a material disconnect between why the employers believed their team left and what was reported. 36% of employees named workplace culture as a top reason for leaving, but only 10% of employers thought culture was a major reason employees left.

Now we’re making some progress and getting to the root of the issue. Culture. The amorphous intangible asset that is typically represented by a printed word cloud on the wall in the breakroom.

Technology & Connectivity

How can technology & data connectivity bridge the gap between culture, work-life balance, and burnout?

Greater than half of today’s workforce is comprised of Millennials and Gen Z. These are the generations that have grown up with data at their fingertips or have grown accustomed to an environment of constant connectivity.

Given the expectation of ease of access to constant data, if our firms are not positioned to provide an environment of accessible data, how can we expect recruits to be attracted to our firm? Conversely, how can we expect to retain a quality workforce who is growing disgruntled with the distancing between their connectivity in their personal lives versus their lack of connectivity at work?

This is when the apple fell on Isaac Newton’s head before he suddenly came up with his law of gravity. Your tech stack, connectivity and accessibility to data may be inadvertently turning people away. 

3 Tech Stack Recommendations for Recruitment & Retention

Here are 3 must-haves when architecting an internal tech stack - for internal efficiency and for your people strategy:

1. Use A Workflow Management Software

You must have a centralized source of truth that manages the day-to-day work of your team. A quality workflow tool should enable visibility for your team, your clients, and each individual at your firm. It should allow for ease of communication regarding specific tasks and client deliverables. You should have nearly every data point related to ‘getting work done’ integrated into your workflow management system. Without this, you’re steering a ship without a rudder and your team is rowing in all kinds of directions. I’ll throw in that we love Financial Cents for this piece.

How do we connect this to recruitment & retention?‍

This is the fun part - when you are able to clearly articulate the day-to-day workload to an incoming team member, you present your firm as a landing place where they will have a clear understanding of their role, responsibilities, and reduced friction to accomplish their work. If you put yourself in their shoes, wouldn’t it feel comforting to know that the firm has a defined process, an efficient back-bone, and a clear sense of direction?

2. Leverage Integrated Systems & Tools

Today, can you imagine typing 4433555555666 on your cell phone just to say “hello”? My friends that grew up with T9 texting will get that. The answer is no - we have much more efficient means to text one another. Similarly, I can’t imagine moving to a firm that hasn’t prioritized data integrations to create a more seamless work experience for its employees.

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Here’s a light example - if you’re using QuickBooks as a primary general ledger tool, you need to ensure that every single one of your clients has their bank feeds connected, payroll systems appropriately mapped to the GL, and that your sales channels are appropriately integrated to bring in the right data for the monthly close process. (hint: QBO integrates with over 750 business apps)

Here’s a heavy example - what if you built a secure internal data infrastructure to allow data from each tool feed into a data warehouse that is parameterized to allow the right team members to access specific data when they need it and where they need it? Now we’re talking.

How do we connect this to recruitment & retention?

By building the appropriate data integrations in your firm, you create an environment where the team spends less time on copying & pasting and more time on higher-value work and/or more personal time that brings them more joy. In either scenario, you’re creating a culture that reduces internal friction, creates opportunity for your team to thrive (personally & professionally), and reduces the likelihood of your team being enamored by efficiencies that other firms may present.

3. Build an Internal Wiki

Have you ever searched high and low for that link to access your firm-provided health insurance or the notes from a conversation that you had with your client 3 months ago? We’ve all been there. It’s frustrating and time consuming. Similar to the early days of difficult-to-navigate intranets, we now have incredible tools like Notion to further reduce the barriers of access to information.

I would recommend building an internal wiki for several key purposes:

• Team Collaboration
• Access to Firm Resources
• Learning & Development / Training Library
• SOP’s / Process Documentation
• Transparent Firm Strategy & Roadmap

How do we connect this to recruitment & retention?

This is another technology-forward element that shines a bright light on the type of culture that your firm carries. Building an internal wiki promotes a culture of transparency, ease of access, and constant improvement. You can translate the use of a wiki to elaborate to recruits how and why your onboarding, learning & development, and transparency will lead to a more fulfilling professional experience at your firm.

Summary

Houston, we might have a problem, but we have solutions. Yes, there is a pipeline challenge, but the more that we’re able to create an environment and culture that promotes progress and technology, the more individuals will see opportunity abound in our field. I’d urge you to take the internal steps necessary to up-level your internal technology approach in order to usher in the next generation of happy and fulfilled accountants. A rising tide lifts all boats.

_{This was lovingly written by yours truly in a paid partnership with Intuit 💚.}