Regional Accounting Firm Case Study

Executive Summary

This regional accounting firm lost 12% of its employees the previous year. They were leaving between 4-5 years, a critical time in an accounting career. The firm has a mandatory retirement age, and four partners would retire over the next five years. It wanted four of the employees who left to replace the retiring partners. Covid significantly negatively impacted the firm’s previous fun culture and employee connections. They did not know why employees joined the firm, stayed, and would leave. The firm had to find what it needed to do to attract and retain top talent otherwise, it would have to upsell to one of the Big 4. Most of the partners did not want to interact regularly with employees. The stress levels, especially during tax season, were extraordinarily high, which resulted in unreasonable workloads. Most employees did not know what they needed to accomplish to be promoted. Each partner responded to Covid differently; thus, without a cohesive plan, some departments worked exclusively from home, and others worked exclusively in the office.

Challenges

  • To uncover precisely why employees joined the firm, stayed with, and would leave.
  • To have the partners engage with the employees more rather than stay working in their offices.
  • To create an engaging, vibrant, and connecting culture.
  • To plan for the next Tax Season that would give employees reasonable workloads, deadlines adhered to with clients, and a cap on the number of hours employees can would work weekly.

Action Implemented

  • Needed to increase base compensation by 30% to be at market value.
  • Learn what each employee wanted to have a work-life balance.
  • Had honest and difficult career conversations, so everyone knew what was expected.
  • Implemented a 12 month plan that employees developed to create an engaging, vibrant, and connecting culture.
  • Developed a written plan for the next Tax Season to give employees reasonable workloads, deadlines adhered to with clients, and a cap on weekly working hours.
  • Developed a regular and consistent communication method for all employees simultaneously.
  • Had some Partners become coaches and mentors to the younger employees to help them build stronger, lasting connections.

Outcomes – ROI

  • Employee retention increased by 8%, and no one left that the firm had wanted to retain.
  • The new and younger employees felt more connected to other employees and enjoyed the new vibrant culture.
  • The following tax season was a breeze, and some difficult clients left, which was a win for all.
  • The new culture valued employees by asking for their ideas on where and how to improve the firm’s processes, implemented “Stay Interviews,” added many new skill-building classes, and monthly featured a Mentor and Mentee’s story of what they have learned from each other.

Conclusion

We helped the partners increase employee retention so they would not have to sell to a Big 4. The partners became more engaged with and cared about the employee. Likewise, the employees became responsible for creating and maintaining an engaging, vibrant, and fun culture.