Recruiting and retaining top talent continues to be a challenge in the accounting industry. Staffing shortages can lead to increased workloads, burnout, and reduced client satisfaction, making effective recruitment and retention strategies crucial for a firm’s success.

Firms like Legacy Professionals LLP understand that a stable workforce is essential for maintaining high-quality service. As a niche-focused CPA firm that provides audit, accounting, and tax services to employee benefit plans, labor organizations, and nonprofit entities, the firm has many long-standing client relationships and many long-term employees, reflecting two of its core values of loyalty and commitment.

The Growing Talent Shortage in the Accounting Industry

The accounting industry faces a significant talent shortage due to a decline in the number of accounting graduates and newly licensed CPAs. Recent studies show an increase in accounting majors at universities across the country in the fall of 2024. Prior to this, fewer students were pursuing accounting degrees, partly due to the perception of long hours, the new additional requirements to graduate and practice, and perceived limited career flexibility compared to other finance-related fields.  

High turnover rates further strain firms as experienced professionals leave for other opportunities or exit the profession entirely. The competition for top talent has intensified, with firms offering higher salaries, signing bonuses, and flexible and hybrid work arrangements to attract and retain skilled professionals.

Strategies for Effective Recruitment 

To attract top talent, CPA firms must build a strong employer brand that highlights their workplace culture, career growth opportunities, and commitment to work-life balance. Establishing relationships with universities through internships, mentorship programs, and campus recruiting helps secure talent before they enter the job market.  

Competitive compensation packages, including salaries, bonuses, and benefits, can help prospective employers stand out. Beyond pay, firms that offer flexible schedules, remote and hybrid work options, and professional development programs are more appealing to job seekers.  

Technology can also play a crucial role in the recruitment process. Firms leveraging applicant tracking systems can streamline hiring and connect with a broader pool of candidates. A proactive recruitment strategy that involves attracting new talent and engaging passive candidates can establish a steady pipeline of skilled professionals.

Long-Term Via Employee Retention 

Retaining top talent is just as important as recruiting it. A positive workplace culture that fosters collaboration, respect, and professional growth keeps employees engaged and committed. Firms that prioritize career development through mentorship programs, leadership training, and clear advancement paths create an environment where employees see long-term potential.  

Competitive compensation is a key factor in retention, but non-monetary incentives also play a crucial role. Flexible work arrangements, generous paid time off, and opportunities to engage all contribute to job satisfaction. Employees who feel valued and supported are less likely to seek other work opportunities.  

Regular feedback and engagement initiatives, such as employee surveys and open communication channels, help firms address concerns before they lead to turnover. By investing in a strong retention strategy, CPA firms reduce hiring costs, improve productivity, and maintain continuity in client relationships. 

The Impact of Strong Recruiting and Retention

Strong recruiting and retention strategies directly impact a CPA firm’s bottom line. This is because high employee turnover leads to significant costs in hiring, training, and lost productivity. By retaining skilled professionals, firms such as Legacy Professionals LLP reduce these expenses while maintaining continuity in client service.  

A stable workforce improves client relationships, as long-term employees develop deep industry expertise and institutional knowledge. This could lead to higher-quality service, increased client satisfaction, and stronger retention rates.  

Additionally, firms with engaged and experienced teams operate more efficiently, leading to greater productivity and profitability. Investing in talent acquisition and retention is not just an HR strategy. In many ways, it’s a sound business imperative that drives long-term success.

Building a Thriving Future Through Talent Investment 

Investing in strong recruiting and retention strategies is essential for CPA firms to remain competitive and sustain long-term success. 

Legacy Professionals LLP exemplifies this commitment, as demonstrated by the promotion of three new partners and two new principals in January 2025. These internal advancements highlight the firm’s dedication to developing and retaining top talent. 

By fostering career growth and maintaining a stable workforce, firms can enhance client service and improve productivity. This can establish a solid foundation for continued success in the accounting industry.