Why Does Turnover Occur in Accounting Roles?

Whether you are a business owner or an experienced accountant working in an accounting department or public accounting firm, it’s important to understand why people quit their accounting positions to move onto another role. At the fundamental level, turnover occurs when an employee is no longer the right fit for the relationship that has been established between the employee and the employer. In my experience, this relationship usually breaks down in one of the following areas:

Growth 

Growth potential and expectations are supremely important when determining whether or not a job is still the right fit for someone. Some people want growth opportunities and if they are not given enough, they'll take their talents elsewhere. Others may not care as much about growth opportunities, but if the employer wants its employees to grow, like in many public accounting firms, they may not want to keep stagnant employees around. It's important to understand that the desire and need for growth is constantly changing for everyone depending on their circumstances. As employees reach major life milestones, their priorities will change. Those shifting priorities dictate how much growth potential and expectation might be best for them at their current state of life.

Compensation 

In many organizations, compensation and growth opportunities go hand in hand. However, it's important to understand the role that compensation plays in an employee 's career. For many people, compensation is the primary motivator for them to be working in the first place. If an employee's compensation does not properly align with their desired lifestyle, they will put in the effort to correct it. If there are no opportunities available for them to increase their compensation in their current role on a timeline that they deem reasonable, they will seek employment elsewhere. Just like growth opportunities, and employees desire for more compensation changes with their priorities, which are often dictated by key life milestones. These milestones may include buying a house, supporting a family, or impressing everyone at their high School reunion.

Work Culture / People 

There's an old saying that rings very true in the modern workplace: “People don't quit their jobs, they quit on their managers.” when an employee is not receiving the appropriate level of attention by their manager, it will often drive them to seek other opportunities. Depending on the employees’ level of skill, they might need specific attention and mentorship from managers or Independence and trust. In addition to management, it's also worth noting that general culture will also contribute to employee retention. Some people use their job as a means to fulfill their innate social tendencies between workplace conversations and happy hours. At the same time, there are others who don't need work to fulfill those needs at all. Modern workplaces are faced with the challenge of bringing these types of people together and striking the right balance. If that balance isn't right for a certain employee, they will probably seek employment elsewhere.

If keeping your people around is a priority, you should make sure that they are satisfied in each of these areas. What most organizations fail to consider is that their employees’ needs can change over time, and that every employee is different when it comes to balancing these three areas. The best practice for an employer is to regularly (at least once a year) survey employees on how they are feeling about these areas so proactive changes can be made to keep employees around!