Managing Employee Turnover Is Everyone's Business

By Larkin, Joseph M. | The National Public Accountant, September 1995 | Go to article overview

Managing Employee Turnover Is Everyone's Business


Larkin, Joseph M., The National Public Accountant


Employee turnover costs businesses billions of dollars each year. It works against productivity, efficiency and, ultimately, profits. As such, managing turnover is essential for all organizations. Every organization, therefore, should have an action plan, or at least a program that sensitizes management to the issues. The public accounting profession has long been known as one where turnover is relatively high, especially at the lower levels of the organization.

Most programs designed to reduce/manage turnover consist of changes, collectively or separately, in job content, compensation practices, promotion policies and career paths, hiring practices, authority and responsibility relationships and the workflow process. This article discusses these components and offers suggestions for their implementation in accounting firms.

Job Content

Granted, not every assignment in accounting is challenging, exciting and rewarding. But at the very least there must be some sort of positive outcome related to a task completion. It is up to management to attempt to design jobs so there is some appropriate motivator accompanying each assignment. Task variety can work wonders. Diversity in assignments can go a long way toward making even the most mundane tasks bearable. Remember, individuals are often motivated by different things. It is up to the organization to match individuals with tasks they can perform and enjoying doing as well.

Compensation Practices

Dissatisfaction with salary has often been cited as a significant contributor to turnover. Compensation includes not only salary but also a vast array of benefits, both intrinsic and extrinsic. Traditionally, the accounting profession has been viewed by some as being one of the more frugal professions when compared with, for example, law and medicine. It is crucial for management to monitor satisfaction with salary and act accordingly. There may be some situations where a person has reached the ceiling for their particular position. In that case, perhaps it is best for both parties to part ways. Regardless, the availability of external job opportunities seriously impacts the intention to leave. Firms should monitor the external job market and pay particular attention when it is strong.

One of the distinct advantages of a position in public accounting is its value as a training ground offering a wealth of diverse business experience. Further, public accounting in general is perceived as a prestigious career path and is well-regarded in the business community. Often times, these two job dimensions are overlooked by management. They are in effect "compensation," albeit of the intrinsic variety. Firms should be aware of these advantages and emphasize them to their employees.

Promotion Policies and Career Paths

An open line of communication delineating organization personnel policies and performance expectations should be in place. It is essential that policies are clearly communicated to organization members.

Performance expectations should be challenging yet reasonable. Furthermore, the performance appraisal system should be perceived as fair and accurate. If firm personnel do not believe in the process, its effectiveness is severely impaired.

Some sort of mentoring program should be in place. Staff should identify a superior with whom they feel comfortable in sharing their concerns. A periodic assessment of progress and goal setting should take place and be documented.

A clear link between performance and upward mobility within the organization can help assure staff that performance can lead to promotion.

Hiring Practices

Hiring practices should be consistent with organizational needs. Accurately assessing staffing requirements is difficult yet important. Over- or under-hiring can have serious implications for firm performance.

This planning process must allow enough time to achieve the desired outcomes. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Managing Employee Turnover Is Everyone's Business
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.