I work a midsize regional firm and, no surprise, we are hemorrhaging staff. And it’s the good ones leaving. Some for family offices and industry positions, which I can understand. But others for smaller accounting firms as staff and seniors which just seems like a career killer to me. I’m convinced we need to do retention bonuses, raises, and recruit new talent by paying above market. Of course I’m a younger partner and don’t have the pull to actually make this happen. Thoughts?

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My only input is that it probably isn’t just about the money. It probably has more to do with the same culture that makes you as a younger partner not able to make things happen. If the staff felt like the firm was progressive, not stuck in the ways of the old partners, cared about them, listened and tried to make changes to meet their needs, etc. they wouldn’t be leaving.

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This

I am with a midsized firm and a younger partner too. I truly think many people leaving are just burnt out and frankly several have admitted that in exit interviews. We do frequent market studies and are paying at market. The continued emphasis on chargeable hours is part of the issue.....I know we need to measure effort somehow but more hours doesnt always even mean better results. Also partners are not all doing ok either, this is an incredibly stressful time for all.

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Agreed, and the more people who leave, the more pressure on the ones who stay. It’s a vicious circle right now with a lot of people going to industry, so the traditional movement among firms is less leaving everyone short staffed. I for one (in tax) am turning down / referring work to others as I don’t have staff to execute and there are only so many hours that I can personally work to pick up the slack.

Salary has to increase for the lower levels to keep people. Partners have to take 30% cuts and distribute that salary to lower levels.

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Assuming BDO1 isn’t a partner bless his heart!! 😢

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I would say money is part of it but not all of it. Both sides of the equation have to be fixed. More compensation as well as a more balanced life/work load. The smart ones will give up some pay for a better life.

Depends if you are paying market or not. If you are paying market or even close to it, then I would look at other factors. It every firm is the same, which some people will default to. There are firms where the peak is in the 50s/60s and some where it is 100+.

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