Embracing the Retention Revolution: Cultivating a thriving accounting firm culture

Think about these facts identified in the AICPA 2023 Trends Report (btw, none of these should surprise you): 

• Declining enrollment. Accounting program enrollment has been declining, with a notable decrease in the number of students pursuing accounting degrees. 
• Aging workforce. A significant portion of the accounting workforce is nearing retirement age, contributing to the talent gap. 
• Fewer CPA exam candidates. The number of candidates taking the CPA exam has decreased sharply over the last decade. 

And while studies show that many sectors in the US workforce are struggling with a labor shortage—as of August 2024, there are 93 available workers for every 100 open jobs—accounting firms face unique challenges in finding and retaining talent. Especially in the wake of the pandemic and the “Great Resignation.” 

But there is good news. 

At the forefront of this conversation, we’re seeing strategies to help boost the accounting pipeline—from the CPA Evolution initiative to NPAG’s Accounting Talent Strategy Report and recommendations. And now, we’re also starting to see the awakening of what’s being referred to as the “Retention Revolution.” 

So, what exactly is the Retention Revolution? 

In a recent episode of The Modern Firm® podcast, Rightworks Culture and Workforce Advisor, John Mitchell, dives deep into the topic of the Retention Revolution with Rightworks Academy coach, Tiffany Caponigro. Listen in to that episode if you want to learn more about this movement. 

For now, suffice it to say this: The Retention Revolution is an inspiring movement to transform workplace environments to keep top staff engaged and happy. It’s about flipping the script from a place of mass resignations and employee burnout to the creation of work environments that attract and retain exceptional employees. As accounting firms recognize they have the power to shape and control workplace culture, they can create irresistible spaces for both current and prospective team members. 

But things look different now than they did five years ago. Today’s accounting professionals place higher value on things like work-life balance, flexibility, learning opportunities, compensation and creative benefits. To be effective in this new movement, firms have to understand what today’s workers are looking for. 

Understanding today’s workforce: Lessons and truths for accounting firms 

Today’s modern workforce dictates some essential truths for firms to grasp. Consider the following: 

1. Employees work for a paycheck 

We all know that passion and purpose are important in our work. Most of us want to feel like we’re contributing and doing something meaningful. In fact, 23% of STEM students in a recent EY Accounting Professional of the Future survey cited the opportunity to contribute to society as a motivation to pursue a career in accounting. But ultimately, employees are driven by financial needs. Acknowledging this reality is the first step in creating a workplace that respects and rewards staff. 

2. Unicorn employees are out there 

Hiring unicorns—those rare, highly skilled individuals who require minimal supervision—can seem like the Holy Grail. And while they do exist, they can be hard to find. Firms must be proactive in attracting them by showcasing a meaningful, supportive and engaging culture. And once you’re lucky enough to find them, you need to make sure you’re providing an environment they want to stay in. More on that later… 

3. Coworkers and teams aren’t “family” 

One common misconception firms can fall into is the idea that “we’re a family” in the workplace. While camaraderie and support are essential, it’s important to understand that employees also have lives outside of work. Fostering a healthy balance between work and personal life leads to happier, more productive employees. 

Strategies for creating an irresistible place to work 

Creating a great accounting firm culture involves strategic planning and a genuine commitment to employee well-being. Attracting top talent is hard enough. Once you find those high-value employees, you need to ensure you’re taking measures to keep them. Here are some practical strategies to consider: 

1. Offer competitive compensation. This one probably goes without saying, but providing a strong compensation and benefits package with a clear path for advancement opportunities will go a long way in keeping your key employees. 
2. Prioritize mental health and wellness. Offer mental health resources, gym memberships and spa packages. Encourage regular breaks and PTO to promote overall wellness. 
3. Provide work environment enhancements. Small touches, like relaxing elements (think candles or massage chairs), can transform your office. Provide employees with a stipend for equipment, furniture, tools and accessories to make their individual offices or workspaces their own, particularly if you have a hybrid or remote team. 
4. Allow flexible work arrangements. Understand that flexibility is key. Accommodating individual work preferences—whether remote, hybrid or flexible hours—can greatly enhance employee satisfaction. And when your staff is happy, they’ll likely want to stay. 
5. Instill confidence and trust. It’s no secret that employees who feel valued perform better. When you show your staff that you welcome and trust their skills, ideas and initiative, you open the door to an inspired team that can take your firm to the next level. 
6. Ask for employee feedback. Regularly seek input from staff and act on it. This not only improves your work environment but also demonstrates to your employees that they are valued and heard. It shows your team that you’re invested in creating a firm where they want to continue working. 

Strategies for being a better manager 

Creating a firm that not only attracts top talent but also motivates employees to want to stay can’t be done with a one-and-done approach. It’s a process that requires continuous intention, evaluation and effort. And leadership plays a vital role in nurturing and maintaining a positive workplace culture. Here are some ideas to help managers lead more effectively and contribute to the culture you’ve created: 

1. Lead proactively. Don’t wait for issues to arise; actively cultivate a positive work culture. Lead by example, support your team and encourage collaboration. Make sure everyone knows and understands the firm’s mission, vision and values. And be genuine. Authentic concern for employee well-being goes a long way. 
2. Address misconceptions. Challenge outdated beliefs, such as “remote work reduces productivity.” Instead, create an inclusive environment that encourages and celebrates collaboration across your team—no matter if they are in-office, remote or hybrid…or if they have flexible work hours. Take steps to break down silos and ensure that all members of your team feel like they are important contributors. Recognize that employees have lives outside of work and show them that you care about that. 
3. Champion culture. Designate a culture champion (or group) within your firm who can focus on enhancing and maintaining a positive workplace environment. As a leader, you don’t have to shoulder this responsibility alone. And when you entrust this initiative to someone on your team—and support them along the way—it demonstrates your desire to prioritize the well-being of your team and empowers them in the process. 

The undeniable role culture plays in the Retention Revolution 

Creating an exceptional culture is an ongoing journey that requires reflection, proactiveness and authentic care for your employees. Firms that prioritize human connection and create engaging, flexible and supportive environments will likely see improved retention and productivity. 

The Retention Revolution is about more than just keeping employees—it’s about building a thriving community where everyone can flourish. By focusing on both client and staff experiences, firms can better navigate staffing challenges and create a truly irresistible workplace culture. 

If you’re feeling overwhelmed or unsure of where to start, experts like the team at Rightworks Academy can guide you in this transformative process. Let’s embrace this journey together and make the accounting profession the career of choice for tomorrow!