The Future of Women and Other Minorities

Source: Accounting Office Management & Administration Report

The first Forum for Women in Accounting took place recently in Las Vegas. Leslie Murphy, immediate past chair of the AICPA, addressed the forum on the history of women in accounting and the results of programs for women.

About one-third of the AICPA membership is women. About 19 percent of partners in public accounting are women (larger firms—13 percent; smaller firms—27 percent). These numbers have not changed in several years.

Women continue to face the same problems:

• Balancing work with family life.
• Becoming part of the “good old boys’ network.”
• Finding women role models.
• Getting leadership training and mentoring.

Balancing work with family life is also an issue for men today, and there have been changes generated by women and men. But there are problems:

• Women are less interested in becoming partners, though the number of women accountants is at record high levels.
• Women seek middle management roles, like leading practice groups. In fact, 40 percent of these positions are held by women. But their numbers are not increasing.
• Ninety-two percent of women and 72 percent of men say that work-life balance is as important to them as career growth.
• During the 90’s, generation Xers began demanding the same work-life initiatives women were seeking. But CPA firms have been slow to react to these demands. The problem was exacerbated by the Sarbanes-Oxley Act, which has created greater pressure to find talent. The impending retirement of baby boomers will aggravate the problem.

New initiatives are now beginning to surface. Here is what Murphy recommends:

• Women’s programs, diversity programs, and work-life programs are about more than retention—they are about the future of the firm. Firms should consider these programs as long-term investments.
• Firms must be more culture conscious. Actions and decisions must be consistent with a firm’s culture. The younger generations won’t abide anything less.
• Deal with staff needs one-on-one. A rule no longer applies to categories of people.
• Staff loyalty is not to the firm, but rather to individuals in the firm. Capitalize on this trend with mentoring. Mentoring also helps develop women and other minorities.
• Work closely with staff, starting early, to make sure they are always aware of their next career steps.
• Training programs should concentrate not just on technical skills, but also on developing successors.
• In thinking about how resources are used, and how firms make profits, be open to innovation. One change already occurring is outsourcing. (Editor’s note: Another might be use of nonaccountants to fill certain professional roles.)
• Be advocates of change, and do not accept paradigms as immutable.
• Firms must become more diverse.

From Accounting Office Management & Administration Report, July 2007, p. 1. See The Tide is Turning Back to Women-Focused Programs. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $399. 212-244-0360, [email protected]. For the complete article, click here.