Brief Overview
Over time, the public accounting industry has grappled with high turnover rates, prompting firms to introduce work-life balance practices to mitigate this issue. Despite the widespread adoption of these practices, employee turnover in U.S. public accounting firms continues to rise. Research indicates a direct link between conflict over work-life balance practices and perceptions of unfair treatment within CPA firms with employee turnover intentions.
Addressing Turnover in Public Accounting
Public accounting firms have long sought to tackle turnover through initiatives aimed at enhancing job satisfaction and organizational commitment. Central to these efforts is the promotion of work-life balance, with alternative work arrangements (AWAs) being a key incentive. While such practices have proven effective in reducing turnover and boosting job satisfaction in other industries, the accounting profession faces persistent challenges in retaining talent.
Key Findings
- Employees in a mid-sized regional accounting firm demonstrated a clear understanding of work-life balance practices offered by the firm.
- Despite awareness of these practices, 40% of employees felt the implementation of work-life balance policies was unfair, with men expressing this sentiment more strongly than women.
- Issues of unfair treatment were linked to disparities in workload distribution, lack of support from supervising partners, and perceived salary discrepancies.
- Conflict within the firm, stemming from perceived unfairness, was prevalent among employees, particularly affecting job satisfaction and turnover intentions.
- Men were more likely to cite conflict, organizational justice issues, and turnover intentions, highlighting gender disparities in perceptions of fairness and support for work-life balance practices.
Recommendations for Improvement
To address turnover effectively, public accounting firms must prioritize fairness in the implementation of work-life balance policies. This involves aligning partner actions with written policies, ensuring equitable workload distribution, and addressing salary discrepancies. By fostering a culture of fairness and support for work-life balance, firms can enhance job satisfaction, reduce conflict, and ultimately curb turnover rates.
In conclusion, promoting fairness and addressing disparities in work-life balance practices are crucial steps for public accounting firms to retain talent and thrive in a competitive market. By prioritizing employee well-being and equity, firms can build a more cohesive and productive workforce, ultimately driving success in the industry.