Turnover in Public Accounting and its Effects on the Industry

Abstract

There is a large turnover of employees in the public accounting firms in the United States. This research paper looks at the demographics of the employees that are leaving public accounting and what factors are causing them to leave the industry. It also looks at what kind of an effect this turnover has on the accounting industry. Research was gathered by reading past studies that have been done on this topic, as well as recent articles that have been published by credible sources. The demographics of the employees that are leaving are senior or management level and mostly women. Some of the factors that are causing employees to leave public accounting are the job description, the separation of goals between the firm and the employee, the work place culture, other career opportunities, the lack of work life flexibility, and overall stress and burnout of the job. This is having an effect on the accounting industry by causing a lack of diversity in the firms, as well as causing the firms to have to make policy changes in order to better retain their employees. This is an important study because the turnover rates in the accounting industry only continue to increase and accounting firms need to do something about it in their organizations.