The Great Accounting Exodus - Part 2: Why Are Accountants Fleeing Public Practice?
In Part 1 of this blog series, we covered the staggering statistics behind the great accounting talent drain. Over 300,000 CPAs left the profession from 2019-2021, exacerbating an already-concerning shortage of new grads entering the field.
But why exactly are so many experienced accountants choosing to pivot away from their careers in public practice? The whitepaper, “The Accounting Hiring Crisis,” drills down into the cultural and economic forces causing the retention crisis:
PR Problem and Career Stigma
Let’s face it – accounting doesn’t have the most glamorous reputation. Despite the rise of rockstar accountant characters like Ben Affleck in “The Accountant” and Anna Kendrick in “A Simple Favor,” the career still carries a stigma of being dull office work. The negative “bean counter” stereotype persists, turning off the influencer generation.
Lack of Work-Life Balance
Perhaps the biggest factor driving accountants away is the failure of the profession to support work-life balance. The significant number of hours one has to spend as an associate compared to other jobs in the industry is a top deterrent. Younger generations simply won’t tolerate the crushingly long hours and 70+ hour weeks demanded during busy season.
Salary Failing to Keep Up
While accounting careers used to be known for providing financial security and prosperity, accounting salaries now lag behind other career paths – as much as 20% lower than comparable finance and tech roles. With skyrocketing costs of living, the ROI of the 150 credit hours required to become a CPA is being called into question.
Hesitating to Modernize
At the root of these issues is the accounting profession’s slowness to “get with the times” and adapt to modern workforce expectations. The industry still grapples with adopting efficiency technologies, alleviating menial tasks that can be automated, and fostering a culture that attracts young talent. Antiquated processes and reluctance to change are perpetuating the hiring and retention crisis.
How Can You Attract and Retain Employees?
Whether you’re struggling with hiring accounting staff or seeing abnormally high turnover, understanding these forces is crucial. Firms that adapt and evolve to address these issues will have a much better chance of securing and keeping qualified accounting talent.
Firms that invest in SmartVault find themselves with a crucial advantage for hiring and retention in today’s hyper-competitive talent marketplace. And by increasing efficiency and productivity, you can do more with your existing employees. Schedule a demo with us to learn more.
