Insights From Warren Buffett: Why Public Accounting Firms Struggle With Staffing Challenges

Public Accounting Firms Face Staffing Challenges

Employee turnover and chronic staffing shortages represent significant organizational challenges for public accounting firms nationally. These critical points impact service delivery. A new research study offers a rich understanding of how Certified Public Accountants, or CPAs, in public accounting experience the process of leaving their roles. Understanding how departing professionals perceive their exit process—including the professional courtesy extended during their final weeks—is critical because former employees frequently serve as important referral sources for future business opportunities.

Intervention Opportunities Identified

The research, titled “Turnover experiences in public accounting and alumni's decisions to ‘give back',” is forthcoming in Contemporary Accounting Research. The study’s authors are Lindsay Andiola of Virginia Commonwealth University, and Derek Dalton and Nancy Harp, both affiliated with Clemson University.

The findings suggest that firms have ample opportunities to intervene in most turnover cases before the employee formally resigns. Leavers frequently discuss their thoughts about seeking new opportunities with others at the firm. These conversations occur with co-workers, supervisors, and mentors. This deliberation period often spans months before the final decision is formalized.

The stayers—those employees remaining with the firm—report noticing observable warning signs well before any resignation notice is tendered.

Confusing Aspects of Departure

Why are these indicators often missed by upper management?

Top warning signs cited by stayers include a noticeable decline in the quality of the individual’s work output. Stayers also reported observing significant personality changes among those planning to depart. These indicators suggest a lengthy internal struggle. The decision often sudden for management, but not for the employee. The research highlights the potentially confusing aspect of observing behavioral shifts without organizational intervention occurring. The study emphasizes that the treatment of employees during their exit process can have important downstream consequences for the firm’s ability to secure future business recommendations from their alumni network. Firms can enhance their long-term success by approaching the turnover process with professionalism and empathy, maximizing positive outcomes for all parties.

Employee turnover and staffing shortages are major concerns for public accounting firms. A new research study provides a rich understanding of how ...

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