How to Hang On to Your Associates

Source: Possibilities for CPA Firm Leaders

Following are excerpts from a blog entry by Rita Keller, reproduced with permission.

Recently, Rita Keller was interviewed about associate turnover and the keys to boosting retention rates. Here are some of the highlights:

• One of the most important issues is flexibility. Firm leaders should keep in mind that the next generation will work very hard and probably work the hours traditionally needed. They just need the flexibility to do it on their own schedule (to a certain degree). Most of us now realize that the younger accountants can work very efficiently in a virtual environment. Allowing flexibility in work schedules will raise retention rates.
• I am a great proponent of enhanced communication, continual training, and focus on generational understanding. Many firms are now giving all kinds of creative perks to young people (Starbucks in the office, gift cards for above and beyond work effort, generous vacation days the minute you walk in the door, free parking, free cell phones).
• I believe that young people will stay at a firm where there is an inclusive environment. One where the youngest people are not excluded from management topic meetings and process improvement task forces.
• From my viewpoint, seniors (3 years to 6 years experience) are the most likely to jump ship. The firm has spent significant training dollars on them for 3-5 years and their resume looks amazing. Usually they can get $5,000 to $10,000 or more to join another firm. However, I hope they realize that their future increases will be slower and their performance must be top notch. The grass isn't always greener.
• Many firms, in recent years, have not stressed taking the CPA exam. Until the recession hit, they had SO much work for their young accountants that they simply did not encourage them to take the time to study and pass the exam. This appears to have changed. Many firms, of all sizes, have special programs to provide support for passing the exam as soon as possible.

To read the entire blog entry, click here.

From Possibilities for CPA Firm Leaders, the blog of Rita Keller, president of Keller Advisors, LLC, [email protected], September 29, 2009, “An Interview on CPA Firm Associate Turnover.” Visit http://cpamanagement.blogspot.com.