Source: Journal of Accountancy

New employees in accounting firms stay less than two years and turnover at small firms is about 10 percent. Here is what small firms can do to become known as great places to work, improve relationships between partners and staff, and provide for growth and succession:

Staff is attracted to firms that:

• Believe in managing and have a supportive culture.
• Promote professional development.
• Offer good career paths.
• Provide stimulating work and variety.

Ask your people to define the work they do best, and try to use them for that work if you can.

People want to know the firm’s goals, how they contribute to them, and that partners care about them. Use lunch meetings to discuss ideas for improving service to clients, new clients and prospects, planned professional development courses, and how to improve productivity. Show appreciation and offer praise, and encourage them to show appreciation for the talents of their peers.

Offer flexible work schedules and consider devoting an area of the office for day care.

Be faithful to the culture of your firm. One firm declined a merger opportunity because the merger candidate was more interested in hours than quality of life.

Believing in the value of your people is the key to growth and succession. While marketing may be necessary for growth, it is not as important as people for value creation. Here is how you can help develop people:

• Team partners with staff for one-on-one sessions to help with short and long term goals and plans.
• Conduct counseling twice a year to assess progress of above.
• Bring young staff members to client meetings.
• Encourage and pay for courses in marketing, leadership, management, technology, and industry niches.
• Encourage staff to feel a sense of ownership of their work. Ask for input on improving the work on engagements and the relationships with the clients.
• Conduct “state of the firm” meetings.
• Don’t permit partners to criticize each other or staff in public.

The firm of G.T. Reilly & Co. in Milton, Mass., has a retention rate of 96.5 percent. Its culture makes people feel that they belong. G.T. Reilly:

• Follows the golden rule for dealing with staff.
• Respects contributions by staff.
• Permits flexible work schedules.
• Provides continual opportunities for promotion. Age diversity in the partner group contributes to this.
• Conducts an annual practice development seminar to share “war stories” on marketing experiences.
• Hosts many staff social events.
• Conducts meetings just for staff, where younger staff can present ideas to senior staff members who later pass them on to senior management.
• Gives marketing awards.
• Uses a quarterly newsletter to keep staff informed.

Marien and Company in Norwich, Conn., a 14 person firm, creates competency models for staff training. The models include technical competence, management, marketing, client service, and engagement profits. Employees use these models to set goals. The models set standards and benchmarks for learning, promotions, and compensation increases.

Recognizing that profitable clients have more complex needs, and therefore offer better personal growth opportunities, the firm of Berson and Corrado in Ramsey, N.J., is selective about the clients it serves. The firm assigns work to staff members slightly more advanced than their current levels, and helps them with the work.

While some firms encourage staff to select an enjoyable niche at an early stage, others say wait until you have developed enough maturity to make a wise decision.

From Journal of Accountancy, May 2006. For the complete article, click on the following link: http://www.aicpa.org/pubs/jofa/may2006/tarasco.htm. Also see http://www.aicpa.org/pubs/jofa/may2006/sessions.htm.