Why Former CPAs are Leaving and What Existing CPAs Want: CPA Talent Retention Survey from the PICPA Sheds Light On Accounting’s Retention Challenges
April 25 2024 - 12:51PM
Business Wire
The Pennsylvania Institute of Certified Public
Accountants Latest Survey and Insights Report Emphasizes Need for
Changing Business Models in the Accounting Profession
The Pennsylvania Institute of Certified Public Accountants
(PICPA) is pleased to share the latest of its closely-followed
Insights Report series: CPA Talent Retention 2024: Keeping Your
Best Performers. This incisive report delves into the dual
challenges of why entry- and mid-level CPAs are exiting the
profession—labeled as "Career Changers"—and offers actionable
strategies for firms aiming to retain their existing talent,
referred to as "Current Talent." Anchored by robust data, this
two-part survey provides eye-opening insights and practical
solutions to enhance talent retention within the accounting
profession.
"The findings from our latest report emphasize the complexity of
talent retention and the necessity for firms to adopt innovative
strategies that address both individual and organizational needs,"
says Jennifer Cryder, CPA, MBA, CEO of PICPA. "We want to make sure
that the ‘Current Talent’ group does not become ‘Career Changers’.
This report aims to guide accounting firm leaders towards effective
strategies that we believe, when properly implemented, will enhance
both retention and firm performance."
Notable topline findings from the survey include responses from
323 accounting professionals nationwide—Career Changers—who have
0-15 years of public accounting experience and have left their firm
or profession within the past five years:
- When asked to complete this statement “My desire to stay at my
previous firm or in the accounting field would have increased if…”
the leading response was higher salaries (39.7%).
- Other top responses were: “there were more flexible work
options” (35.6%), “entry- and mid-level employees were more valued”
(33.5%) and “there were better benefits offered” (30.4%).
- When provided the same statement but specific to work-life
balance, the leading response was: “there were more flexible work
options around hours and location” (35.6%).
In the Current Talent group, which surveyed 449 Pennsylvania
CPAs with 3-10 years of experience, notable findings included:
- The majority of respondents (56.7%) stated they have a higher
desire to stay in public accounting, with 73% stating they would
like to stay with their current firm.
- Career development is a critical factor for retention with 85%
of respondents saying their firm actively supports their career
development, and 78% saying their firm offers interesting career
opportunities.
- Still, the number one response to the question “What would
increase your desire to stay at your firm in the accounting field?”
was “there were higher salaries” (46.9%), followed by “my working
hours were capped” (42.3%) and “there were better benefits offered”
(37.4%).
The survey also provides unique demographic breakdowns between
male and female respondents and a breakdown of respondents by
ethnicity.
With over 70% of CPAs nearing retirement and a notable decrease
in accounting graduates and CPA exam takers, the need for firms to
fundamentally move away from the traditional "pyramid" model to a
more robust "pentagon" model, better leveraging automation, AI, and
outsourcing is critical to long-term success. This shift reduces
reliance on a broad base of entry-level talent, allowing firms to
focus on hiring fewer, but better retained staff while fortifying
the middle managers with higher compensation and more diverse
career opportunities. The PICPA believes this approach not only can
help meet client needs effectively but also aligns with salary
expectations and improves work-life balance, ensuring high-quality
work without compromise.
PICPA’s insights reports are representative of the
organization’s mission to provide education, training and key
resources for success on behalf of its members and the broader
professional community. You can learn more about the PICPA
here.
About the PICPA
The Pennsylvania Institute of Certified Public Accountants
(PICPA) is a premiere statewide association of more than 20,000
members working in public accounting, industry, government, and
education. Founded in 1897, the PICPA is the second-oldest state
CPA organization in the United States. To learn more about the
PICPA visit www.picpa.org.
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Trevor Davis Gregory FCA for PICPA trevor@gregoryfca.com
215-475-5931