2020 Turnover

“Turnover can be one of the most expensive problems at a company.” – Shawn Achor

As usual, within the CPA profession, there is no one answer to a management question. Recently, on the topic of turnover, I am hearing lots of stories.

We are all reading about firms, especially the larger firms, who are taking the opportunity related to COVID to downsize their workforce to save money and to get rid of people not meeting the firm’s expectations.

On the other side of this story, I am hearing directly from some practitioners that they have been able to hire some experienced (and skilled) CPAs who are in the job market right now for various reasons.

Recently, one firm shared with me that they have had no turnover and another firm reported that they have experienced several departures.

Here are just a few reasons people leave:

• CPAs of all ages have no difficulty obtaining another job.
• In many firms, team members are awaiting salary increases and other perks that were cut-back during COVID.
• Some are tired of the long hours with few rewards and recognition.
• Your clients are also looking for good people and they know you have them.
• Many accounting firms are not embracing the new workforce, the partners exclude them rather than include them. Communication is an issue.
• The pay is better elsewhere.

Some reasons people stay:

• Firms have generously rewarded their entire team because they went above and beyond during an unusual and challenging busy season.
• The transition to work-from-home (WFH) was easy because the firm was already completely paperless and the firm was very supportive in meeting the needs of establishing a home office.
• Communication from the partners has actually improved in recent months. Team members are well-informed even when remote.
• WFH will be an on-going option for many team members.
• Team members are thanked and recognized for their contributions.

Another good reason to retain top talent – Some studies (such as SHRM) predict that every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. For a manager making $40,000 a year, that’s $20,000 to $30,000 in recruiting and training expenses.