Compared to many industries, accounting firms had it relatively easy during COVID-19. Aside from needing to help their clients adapt to pandemic-related uncertainty, the accounting industry pivoted quickly to remote work and this helped it fare well. The same can’t be said for “The Great Resignation.”
Although COVID-19 seems to be fading, a looming storm of resignations threatens to rain on the post-pandemic parade. Some accounting firms were already facing the mass exodus of retiring baby boomers — but now, mid-career professionals crucial for optimum growth are also driving the spurt in resignations.
In this article, we cover three decisive recommendations — supported by data from the Hinge Research Institute — that will help you navigate the mid-career talent crisis and grow despite the labor crisis.
1. Determine why employees leave, what existing employees want, and let mid-career professionals lead the change
Whether or not your firm is directly experiencing the loss of employees, it’s a good idea to start preparing for the reality of the Great Resignation. Indeed, a quick look at Navigating the Mid-Career Talent Crisis from Hinge Research Institute shows that 30% of mid-career professionals, 17% of leadership and 6% of senior executives left their jobs last year.
Performing some in-depth employee research or surveys of your existing team and requesting exit interviews from departing employees are powerful ways to pinpoint what you can change to reduce the departure of top talent — while building your firm’s reputation as an excellent place to work.
According to the Hinge Mid-Career Crisis study, two factors stood out as the top resignation drivers for mid-career professionals across all industries: (1) poor leadership and (2) problems with company culture. These drivers prevailed over all of the others — including salary, work-life balance, and the inability to get a promotion.
Here is how to navigate these challenges:
Leadership: Over three-fourths (75.9%) of employees that left their jobs last year said that poor leadership was a reason.
The Hinge Mid-Career Crisis study offers the following perspective on leadership challenges: “When was the last time your senior leadership received management training? Most senior managers move into their positions based on their experience or accomplishments — not on their leadership, motivational or communications skills. Would an investment in leadership assessment or training deliver big returns?”
Company culture: Nearly three-fourths (72.4%) of employees who left their jobs last year said that wanting a better company culture was a reason.
If mid-level employees are leaving for better company culture — it’s likely that senior leadership needs a wake-up call. The Hinge Mid-Career Crisis study found 90% of senior executives are either happy or passive about company culture at their organizations, while 48% of mid-career professionals are not.
The Hinge Mid-Career Crisis study offers the following perspective on culture that can help senior executives embrace the need for change: “Your organization’s culture is not defined by senior management but by your employees — especially those in the middle of their career. They are the ones who contribute to and experience a supportive, purposeful, respectful and fulfilling environment. Make sure their voices and ideas are heard.”
2. Change without research is a solution in search of a problem
If changes to leadership or company are not backed by solid, in-depth employee research or surveys, they could have unintended consequences for employee recruitment, retention, and satisfaction. Therefore, it’s vital to conduct thorough research to understand the unique situation at your firm.
Do employees want location-flexible work, hybrid work models, improved transparency, or deeper decision-making involvement? Engage employees to find a common thread, and let mid-career professionals lead the change.
3. Outsource to fill the talent gap
So far, we’ve focused on how to keep existing team members satisfied — so they stay in their jobs and build your firm’s reputation as a great place to work — but what if you urgently need to fill gaps in talent now? The new High Growth Study 2022, Accounting & Financial Services Edition found that high-growth firms have a simple solution: outsourcing.
High-growth accounting firms don’t just outsource entire projects; they develop hybrid teams for fast access to specialized skills. This empowers them to quickly augment the capacity of in-house teams.
Firms can achieve incredible results while applying these perspectives to navigate the post-pandemic mid-career talent crisis. If crucial accounting professionals are leaving their firms or, worse, the industry, be the kind of firm they’ll want to join. The good news is, investing in these changes will only help the firm grow, and it won’t break the bank.
