5 ways accounting firms lose good staff and how to see it coming

No accounting firm chooses to lose a great team member on purpose. Oftentimes, these moments can come unexpectedly, but not without some form of reason. When ensuring a solid, talented, and tenacious team of accounting professionals, it’s imperative that your processes are built to withstand issues that may appear. Being able to take an objective look at the way a firm is running means more time for career development, new services, happier team members and a strong record of staff retention. The key is to be able to see it coming. We’re here to help you pre-empt team members leaving and guide you toward a clear path on how to avoid it.

Jump to:

1. Career plateaus
2. Peak season pressure
3. Unrealistic client expectations
4. Lack of feedback flow
5. Inconsistent flexibility

1. Career plateaus

Talented, high-performing staff are usually seeking a path forward. Where there is no clear career progression, instances of burnout can increase. If you want a team member who strives for more, make sure you are conducting regular check-ins to gauge what they would like their career progression to look like.One subtle sign your team member has hit a plateau and has mentally checked-out is they no longer show interest in development opportunities. This is why monthly check-ins are so important. It makes your staff feel valued, heard and excited about their future while giving you the chance to inspire motivation and fix any issues that may affect their performance and/or happiness.

2. Peak season pressure

The extreme deadlines and seasonality of the accounting industry can add stress and pressure to a sometimes already strained situation. Issues arise when firms neglect their team by creating an environment that has:

• No flexible time during off-peak periods
• Lower compensation than other firms 
• Absence of recognition and appreciation
• An atmosphere devoid of support, communication, and check-ins

The answer here may seem simple, but it takes being able to look outside of your current workload to take care of your team during peak season. Encouraging a workplace that is comfortable delegating to other members, approaching a senior employee for help, and being able to voice their concerns when stress increases is crucial. This comes down to a firm actively working on their internal culture and prioritising their team’s wellbeing both inside and out of peak periods.

3. Unrealistic client expectations

Managing client expectations is one of the most integral skills a successful accountant can acquire. Being unable to handle those expectations can lead to a loss of good staff through lack of skills, burnout, or feeling overwhelmed by demands. Communicate these expectations early in the onboarding process and have your client agree to what you’ve outlined to manage the relationship. 

Setting clear boundaries about how you handle client requests, what time they are able to get in touch with you, and pricing for scope is just as important. Some ways clients can add to staff turnover and how to combat this are:

• Unreasonable turnaround time requests: brief your team on how to clearly communicate to their clients about what is realistically able to be achieved within agreed timeframes. If anything is classed as a rush, inform the client of any additional costs before the work starts to cover your team’s time
• Hostile behaviour: conflict/resolution is an incredible soft skill to possess. Educate your team on how to stay calm and professional, look to deescalate the interaction through empathetic language, and identify solutions that work for both parties
• High maintenance, low margin: A client may require an excessive amount of calls, emails, and unnecessary demands. First, run the numbers to confirm that the data you have is correct. Following this, revise their pricing to reflect time spent handling their account. Support your staff by communicating directly to the client about their requests and what your firm can realistically provide. Finally, if no resolution can be found, you can seek to exit the professional relationship amicably. 
• Too many clients, too little time: If a team member is feeling overwhelmed by the number of clients under their management, look to alleviate the pressure elsewhere. Outsource work to create space within their schedule, help them achieve turnaround expectations, and use the outsourcing provider  as a valuable buffer for unpredictable tasks that may arise.

4. Lack of feedback flow

The best accountants are observational and analytical by nature. When feedback only flows down the line, and team members don’t feel a reciprocal ability to communicate their observations, team loss can occur. A warning sign is if a member of staff is giving generic, similar answers to cultural surveys each year or during regular check-ins. The lack of interest in voicing their opinion should be a giant red flag. This can often signal that their feedback has not been taken seriously, and changes haven’t been made. Ensure the workplace culture is one that encourages regular, honest feedback without fear of repercussions. Not only does this mean your team will feel comfortable to share if mistakes are made, but it means the  firm is able to run to its highest capacity, with exceptional support at its core.

5. Inconsistent flexibility

Flexibility within the industry is an important draw for talented staff. Many Australian firms offer flexi-time, work from home (WFH), and hybrid working arrangements. When arrangements such as these become inconsistent, staff will look to other firms to bridge the gap. Quiet resentment, loss of trust, and high stress can result from these inconsistencies, adding to team losses. Some ways to stay consistent to workplace related promises can be:

• Include flexible working arrangements in their contract and outline expectations clearly so both the firm and the staff member are mutually beneficial
• Base arrangements on productivity, not seniority. Performance should dictate flexibility rather than time spent within the firm
• Review which communication software works best so that your team are within reach and still able to contribute effectively
• Use outsourcing companies to increase the success of flexible arrangements, especially during peak periods. Outsourcing busy work can help to maintain consistency by absorbing compliance volume, ensuring your team is able to work flexibly year-round.

Firms that are intentional in their approach are sure to retain the highest-quality staff. The key is to be proactive, think outside of the box, and be deliberate in your approach to create a team that is ambitious, supported, and excited about what their career can offer them.